PPT Slide #1

Global Economic Imperialism - a situation in which one country has a lot of economic power or
influence over others
Globalization is PHENOMENON
Globalization - refers to the expansion and intensification of social relations and consciousness
across the world-time and world-space
Expansion - refers to the creation of new social networks and the multiplication of
existing connections that cut across traditional political, economical, cultural, and geographic
boundaries
Intensification - refers to the expansion, stretching, and acceleration of the
aforementioned networks

Metaphors of Globalization
Solid (Barriers that can prevent the free movement of globalization and it can be natural or
man-made)
● Natural (Mountains, Ocean)
● Man Made (Great wall of China)
● Imaginary (boundaries between one country to another)
Liquid (increasing ease of movements of people, things, information in the global age)

HISTORY OF GLOBALIZATION
Theodore Levitt - coined the term “Globalization” in a 1983 Harvard Business Review article
about the emergence of standardized, low-priced consumer products. He defined the term as
the changes in social behaviors and technology that allowed companies to sell the same
products around the world.

PPT Slide #2

Silk Road (1877)

● Ferdinand von Richthofen
● AKA Silk Route, an ancient trade route which links China with West (Rome and China)
● Silk went to Westward, and wools, gold, and silver to East. China received Nestorian
Christianity and Buddhism (from India) via Silk Road
● NOT THE FIRST GLOBAL TRADE ROUTE KEMERUT
Manila Acapulco Gallion Trade (1571)
● Eastern goods were shipped by Galleons via Pacific Ocean to Acapulco.
● South American Silver is given in return/ as a payment.
● FIRST TRUE GLOBAL TRADE ROUTE
Mercantilism (16th to 18th Century)
● Countries aimed to sell more goods than other countries to boost their income
● Processes raw materials to finished products and sell it on a higher price
Gold Standard (1821)
 ● Based in UK
● Because of WW1, countries were forced to abandon the Gold Standard to increase their
money supply
Great Depression (1929 to 1939)
● Global financial crisis due to the effect of wars
● Solved by Franklin D. Roosevelt’s NEW DEAL
Keynesian Economics
● Economic crises do not happen because countries do not have money, but because
money is not spent – meaning, it is not moving. Governments should reinvigorate
economies by infusing of capital (stimulus) to kickstart the economy – increasing the
purchasing power of people, and eventually demand.
Bretton Woods System (July 1944)
● Led by Harry Dexter and John Maynard Keynes
● Value of currencies shall be linked to US Dollars, and the US Dollar shall be pegged to
the value of Gold
● Has established two financial institutions
○ IMF (International Monetary Funds) - lender of last resort to prevent countries
from spiraling into credit/ economic crises
○ IBRD (International Bank for Reconstruction and Developement / known as
World Bank) - funding post war reconstruction projects.
Neoliberalism
● Coined by Friednrich Hayek and Milton Friedman
● Fixed Keynesian Economics. According to them, Keynesian Economics will cause
inflation but not necessarily increase the supply/ production
1970s Oil Embargo
● Members of OAPEC (Organizatio of Arab Petroleum Expporting Countries) has
sanctioned US and its allies due to American’s support with Israel dueing the Yom Kippur
War
Stagflation
● Stagnation and Inflation
● Rise of prices and goods, decline in growth and employment
Washington Consensus
● Has 2 parts
○ First, reduction of public spending to pay off debt
○ Second, privatization of government owned and operated corporations
● This was adopted by Ronald Reagan, UK PM Margaret Thatcher, and is referred as
“Shocked Therapy”. Was also adopted by Russia
2008 Global Financial Crisis
● September 2008, caused by the fall of Kehman Brothers (investment bank)
 ● Flaw of Neoliberalism, and has caused debt in Europe (Greece, Portugal, and Iceland).
● US have recovered quickly by reverting to the Keynesian-style stimulus led by Obama
Economic Globalization Today
● Developed countries to be protectionist (US Sugar, Japan Rice). Rise of nationalism, and
economies are too integrated.
Race to the Bottom
● Contries have deliberately lowered labor standards and wages to lure investors who
seeks cheap labor for a higher profit. Includes issues with the environment.
PPT Slide #3
Market Integration
United Nations
● October 24, 1945
● 193 Member State
● Tasked to promote international cooperation and restore international order
● Covers 5 main areas
○ Maintain International Peace and Security
○ Protect Human Rights
○ Delvier Humanitarian Aid
○ Support Sustainable Development and Climate Action
○ Uphold International Law
● International Monetary Fund
○ Works to achieve sustainable growth and prosperity for all of its 190 member
countries. It does so by supporting economic policies that promote financial
stability and monetary cooperation, which are essential to increase productivity,
job creation, and economic well-being.
○ Fosters international financial stability by offering
■ Policy Advice - monitors econmic and financial developments and
advising countries
■ Financial Assistance - loans and other financial aid to member countries
■ Capacity Development - technical assistance and training to help
governments to implement sound economic policies
● World Bank
○ With 189 member countries, staff from more than 170 countries, and offices in
over 130 locations, the World Bank group is a unique global partnership: five
institutions working for sustainable solutions that reduce poverty and build shared
prosperity in developing countries.
○ Five institutions of World Bank
■ IBRD (The international bank for reconstruction and development)
● provides financial products and policy advice to help countries
reduce poverty and extend the benefits of sustainable growth to all
of their people.
 ■ IDA (the international development association)
● helps the world’s poorest countries. Established in 1960, IDA aims
to reduce poverty by providing zero to low-interest loans (called
“credits”) and grants for programs that boost economic growth,
reduce inequalities, and improve people’s living conditions.
■ IFC (the international finance corporation)
● improves the lives of people in developing countries by investing
in private sector growth. We connect economic development with
humanitarian needs to create real progress for the people and
places that need it most.
■ MIGA (the multilateral investment guarantee agency)
● promote cross-border investment in developing countries by
providing guarantees (political risk insurance and credit
enhancement) to investors and lenders.
■ ICSID (the international centre for settlement of investment disputes)
● devoted to international investment dispute settlement. It has
extensive experience in this field, having administered the majority
of all international investment cases.
● Asian Development Bank
○ committed to achieving a prosperous, inclusive, resilient, and sustainable Asia
and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members—49 from the region.
● African Development Bank
○ The overarching objective of the African Development Bank (AfDB) Group is to
spur sustainable economic development and social progress in its regional
member countries (RMCs), thus contributing to poverty reduction.
● CitiGroup
○ American multinational investment bank and financial services corporation
headquartered in New York City. Fourth largest bank in the US.
● Merrill Lynch
○ Wealth management division of the Bank of America
○ Personal Banking, Lending, Investments, Retirement and Savings accounts,
Insurance, and Wealth Planning
● Global Market Integration
○ the result of the establishment of a global economy that involved the
homogenization of trade and commerce.
○ a key driver of economic growth and prosperity. As countries and businesses
become increasingly interconnected, the barriers to international trade and
investment are being dismantled, paving the way for a new era of global
collaboration.
● International Companies (ex. Apple)
○ Importers and exporters with no investments outside their home countries
● Multinational Companies (MNCs) (ex. McDo)
 ○ Have investments in other countries, but do not have a coordinated product
offering in each country. They are more focused on adapting their products and
services to each individual local market
● Global Companies (ex. Coca Cola)
○ Have investments and are present in many countries. They typically market their
products and services to each individual local market.
● Transnational Companies (TNCs) (ex. Nike)
○ more complex organizations that have investments in foreign operations, have a
central corporate facility but give decision making, research and development,
and marketing powers to each individual foreign market.