UNIVERSITY OF CALOOCAN CITY
Biglang Awa St., Corner Catleya St., EDSA, Caloocan City
COLLEGE OF EDUCATION
THE CONTEMPORARY WORLD
SUBJECT CODE: GEC 008
TOPIC OR LESSON: THE GLOBAL ECONOMY
WEEK: 3
SUB-TOPIC/S: NONE
OVERVIEW OF THE TOPIC
This lesson discusses the global economy. The United Nations (UN) tried to address the
different problems in the world. Their efforts were guided by the eight Millennium
Development Goals, which they created in the 1990’s. Among these eight goals, the
eradication of extreme poverty and hunger ranked as the first. The other seven goals
include: achieving universal primary education, promoting gender equality and women
empowerment, reducing child mortality, improving maternal health, combating diseases
like HIV/AIMDS and malaria, ensuring environmental sustainability, and having a global
partnership for development.
Are you ready? Prepare your pen and paper and be ready to explore your journey in
learning!
LEARNING OUTCOMES
After going through this module, you are expected to:
a. Define economic globalization and Globalization theories
b. Identify the actors that facilitate economic globalization
c. Define the modern world system
d. Articulate a stance on global economic integration
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LEARNING OBJECTIVES
At the end of the lesson, students should be able to:
a. Explain the nature of economic globalization and global trade;
b. Analyze the global economy situation in the 21st century; and
c. Write a concept paper explaining the gap between the economic situation of rich
and poor countries.
ENGAGE
In this activity aims to know your ability to answer a critical and creative thinking skills
questions. Write your answer in the box.
a. Do you think the Philippines is harmed when other countries transfer their activities to
us through outsourcing?
Answer:
b. In what ways do international organizations help our country’s economy?
Answer:
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EXPLORE
Make an inventory of things, equipment, products etc. which can be found in your home.
Considering the lesson about global economy that each country in the world allows for
a worldwide exchange of products, which of those things you have listed is a local or
international brands? Write a reflection paper about it and share it during virtual class
meeting.
List of Things
REFLECTION
Local International
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
EXPLAIN
As we continue the lesson, let us study the nature of global economy.
Economic Globalization and Global Trade
According to the United Nations (as cited in Shangquan, 2000), “Economic globalization
refers to the increasing interdependence of world economies as a result of the growing
scale of cross-border trade of commodities and services, flow of international capital,
and wide and rapid spread of technologies. It reflects the continuing expansion and
mutual integration of market frontiers, and is an irreversible trend for the economic
development in the whole world at the turn of the millennium.
There are two different types of economies associated with economic globalization-
protectionism and trade liberalization. Protectionism means “a policy of systematic
government intervention in foreign trade with the objective of encouraging domestic
production. This encouragement involves giving preferential treatment to domestic
producers and discriminating against foreign competitors”. Trade protectionism usually
comes in the form of quotas and tariffs. Tariffs are required fees on imports or exports. For
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instance, a pen that costs $1.00 in country A and in country B, It would be given five dollar
tariff. The pen would become $6 in country B. This policy was practiced during the
mercantilist era, from sixteenth to seventeenth centuries until the early years of the
Industrial Revolution (Chorev, 2007). The great depression of 1929 marked the peak of
protectionism. Until today, protectionism exists in the world economy despite the growth
of trade liberalization. Countries such as China, Japan, and the United States are being
accused of practicing protectionism (Ritzer, 2015).
World War II heavily influenced the shifting of the dominant economic policy from
protectionism to trade liberalization or free trade. Free trade agreements and
technological advances in transportation and communication mean goods and services
move around the world more easily than ever. We are talking about everything from
shoes and bananas to innovations and ideas. Let us take mobile phones as an example.
Mobile phones seem to have good consequences for everything including reducing
poverty. According to economist Jefferey Sachs, mobile phones are the “single most
transformative technology” when it comes to the developing world. Phones give people
access to banking and payment system and better access to education and
information. In some places, mobile phones help farmers get information and get the
best price for the crops they are producing.
Globalization made some countries, especially the developing ones, to gain more in the
global economy at the expense of their nations. There are various ways, however, the
country can make trade easier with other countries while lessening the inequalities in the
global world. One of them is “far trade” (Nicholls and Opal, 2005). Fair trade, as defined
by the international Fair Trade Association, is the “concern for social, economic, and
environmental well-being of marginalized small producers” (Downie, 2007, pp.C1-C5). It
aims for a more moral and equitable global economic system. Specifically, it is
concerned with protection workers and producers, establishment of more just prices,
engagement in environmentally sound practices and sustainable production, creation
of relationship between producers in the south and consumers in the North, and
promotion of safe working environment.
A example of the growth of fair trade is the case of American coffee chains such as
Starbuck and Dunkin Donuts. In 2006, there are $2.2 billion dollars spent on certified
products, which is 42% greater than the preceding year.
ELABORATE
In this part, you will be asked to do a concept paper with these following questions:
1. Does the position of rich countries as giants in the economic chain threaten the
status of less developed countries in the global market?
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CONCEPT PAPER
RUBRIC FOR CONCEPT PAPER
5 4 3 2 COMMENTS
Content All details Most details Few details No details to
support the main support main support main support the
idea idea, has accurate idea, lacks main idea,
appropriately; information for accurate information is
information are almost all subject information inaccurate
accurate and matter and the and does not and does not
detailed; and information mostly clearly support the
information adequate and support visual’s
adequately supportive of visual’s purpose
supports the visual’s purpose purpose
purpose of visual
Creativity The use of color, The use of color, The use of There is a
design, and design, and space color, design little attempt
space is is adequate and and space is to use color,
outstanding, the overall design inappropriate, design and
have an original is mostly the design space
and creative harmonious and lacks appropriatel
design, and the pleasing creativity and y, the design
overall design is originality, the is dull and
harmonious and overall design presentation
pleasing lacks has sloppy
harmonious appearance
and the
presentation is
unpleasing
Presentati The idea was The idea was The idea not The idea is
on clearly presented clearly presented all clearly irrelevant
based on the but a little bit presented and no
poster illustration confusing based based on the connection
on the poster poster based on the
illustration illustration poster
illustration
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EVALUATE
The products that we consume and use (foods, clothing, and gadgets) are part of our
way of life. Globalization allows for a worldwide exchange of these commodities and
exposure to different cultures as well. This activity will allow you to investigate the origin
and spread of the products and services sold in our country. You will also be able to
know the countries involved in the production, distribution, and consumption of the
products being solid and consumed in the country. The following are the steps to
accomplish this activity.
1. Choose one of the following foreign products being sold in the Philippines.
a. Coffee
b. Sports car
c. Laptop
d. Hamburger
e. Cellphone
f. Shoes
2. List down the main ingredients or raw materials in manufacturing the chosen product.
Identify the corresponding country from which each ingredient or raw material came
from.
3. Identify the countries in the manufacturing of the chosen product. Indicate the
corresponding service the country does for the product (e.g., Costa Rica – planting
of coffee beans).
4. Aside from the Philippines, list other countries in which the product is being sold.
5. Cite the kinds of technology that made the creation of the product possible. Consider
communications and transportation.
6. Write one of the statements about the creation of the product. Indicate whether you
agree or disagree with your statements.
REFERENCES
The Contemporary World by Dr. Mariano Ariola LLB.Ed. LPT, Unlimited Books, Library
Services Publishing, 2018
Convergence: A College Textbook in Contemporary World by Dennis C. Coronacion
and Frolan C. Calilung, Books Atbp Publishing 2018
The Contemporary World
By: Prince Kennex Reguyal Aldama, Rex Book Store First Edition
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ADDITIONAL
MATERIALS
Reading Materials
• Chapter 9 of textbook: ”The Globalization of Economic Relations” by lstvan
Benczes
• Wallerstein, Immanuel. 2004 “The Modern World Economy: Production, Surplus
Value, and Polarization.” In World Systems Analysis: An Introduction. Durham & London:
Duke University Press, pp. 23-41.
PREPARED BY:
Lenard C. Tulod, MATSS, LPT
Assistant Professor IV
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