THE

GLOBALIZATION
OF WORLD
ECONOMICS
Lesson 2
1. Define economic globalization
2. Identify the actors that facilitate economic globalization
3. Narrate a short history of global economic integration in
the twentieth century
4. Articulate your stance on the global economic integration
GLOBALIZATIO
N
ECONOMICS
TRAD
E
KAYO NI
CRUSH

DEVELOP
 ECONOMIC
GLOBALIZATION
 ECONOMIC GLOBALIZATION
● A historical process representing the result of
human innovation and technological progress -
IMF
● Characterized by the increasing integration of
economies around the world through the movement
of goods, services, and capital across boarders.
INTERNATIONAL TRADING SYSTEM
● Silk Road - oldest known international trade route, 130 BCE.

● Galleon Trade (1571)

- connected Manila, Philippines to Acapulco, Mexico
- age of Mercantilism
● Adoption of Gold standard (1867)
- led by UK, US, and other EU nations
- more open trade system
- adopted at an International Monetary Conference in Paris
- to create a common system that would allow for more efficient
trade and prevent the isolationism of the mercantilist era
- established a fixed rate system based on the value of gold
 THE BRETTON WOODS SYSTEM
● Influenced by the Idea of British Economist John Meynard
Keynes who believed that economic crisis occur not when a
country does not have enough money, but when money is not
being spent and, thereby, not moving.
● International Bank for Reconstruction and Development
(IBRD)
- responsible for funding postwar reconstruction projects
● International Monetary Fund (IMF)
- global lender of the last resort to prevent individual countries
from spiraling into credit crises
NEOLIBERALISM
● Neoliberalism became the new strategy.
● The policies they forwarded came to be called the
Washington Consensus.
- minimal government spending to reduce
government debt.
- reduce tariffs and open economies.
● Defects with the Washington Consensus became
palpable on 1900s.
ECONOMIC GLOBALIZATION TODAY
● International Trade remains essential.
● Exports make national economies grow.
● Economic globalization remains an uneven
process.
● Main beneficiaries are TNCs.
● “Race to the bottom”
 WHO FACILITATE ECONOMIC
GLOBALIZATION?
● Non-state actors include international
economic organizations
● Private sector includes multinational
companies, central banks, civil society.
HOW DO THEY CONTRIBUTE?

● International Economic Organizations – critical in

developing neoliberal policies across countries.
● Multinational Companies – considered main carriers of
globalization. Composed of big trade companies across
the world.
● Global Civil Society – major driver of economic
globalization.
- Part of the global civil society are disadvantaged
individuals
- Another part is Transnational Advocacy Networks.
 ACTIVITY 3: GLOBALIZATION IN THE
PHILIPPINES
Philippines is a central
figure in the development
of economic globalization.
Assess the influence of
globalization in the
country and argue
whether it is beneficial or
detrimental to the
progress of the state.

Write an argumentative
essay with minimum of 3
paragraphs.