⋆.˚✮ LESSON 1 ✮˚.
INTERNATIONALISM
- Growth of transaction and interdependence between countries
- More messages, ideas, merchandise, money,investments, pollutants, and
people, across borders between national-state-territorial units
LIBERALISATION
- Denotes a process of removing officially imposed restrictions on movements
of resources between countries to form an open and borderless world
economy
UNIVERSALISM
- Process of dispersing various objects and expenses to all people of the
Earth
WESTERNIZATION
- Western modernity
- Synonymous with Colonisation or Americanisation
- ALI AHMED
- Westoxication
- Drug overdose “tranq”
- Mass shooting
- Racism (Asian Hate Crime)
COSMOPOLITAN
- Citizen of the world
IMPOSED RESTRICTION
- Visa
- Tax
⋆.˚✮ LESSON 2 ✮˚.⋆
GLOBALIZATION
- Spread of transplanetary connection “Global Connection” among people:
- Physically
- Culturally (get to see the culture of others and share culture)
- Psychologically (mental health-common now a days)
- Legally (International marriages, human rights)
- Linguistically (Language)
- Widening, deepening, and speeding, up of worldwide connectedness in all
aspects of contemporary life (Modern Life)
⋆.˚✮ LESSON 3 ✮˚.⋆
“GLOBALIZATION OF WORLD ECONOMICS”
➔ IMF (INTERNATIONAL MONETARY FUND) DEFINITION
◆ Economic Globalization: A historical process resulting from human
innovation and technological progress.
◆ Characteristics:
● Increasing integration of economies globally
● Movement of:
○ Goods
○ Services
○ Capital
● Across borders.
^Key Points^
● These changes are products of people, organizations, institutions, and
technologies.
➔ INCREASING INTEGRATION
◆
➔ INTERNATIONAL TRADING SYSTEMS
◆ It refers to the exchange of capital, goods, and services across
international borders or territories.
◆ Factors that influence trade between nations:
● Currency
● Government policies
● Economy
● Judicial system
● Laws
◆ Not new
● Example: Silk Road
➔ WHEN DID FULL ECONOMIC GLOBALIZATION BEGIN?
◆ Definition: Full economic globalization began when all important
populated continents started exchanging products continuously.
● These exchanges occurred directly with each other and
indirectly via other continents.
● The values exchanged were sufficient to generate significant
impacts on all trading partners.
◆ Source: Dennis O. Flynn & Arturo Giraldez
➔ GALLEON TRADE
◆ Significance: It signaled the coming of full economic globalization.
◆ Year: 1571
◆ Impact: The first time the Americas were directly connected to Asian
trading routes.
◆ Route: Manila to Acapulco
➔ ECONOMIC GLOBALIZATION BEGAN IN THE PHILIPPINES.
➔ AGE OF MERCANTILISM
◆ Galleon Trade: Part of this system.
◆ Features of the Mercantilist System:
◆ Global trade with multiple restrictions:
■ Monarchy regimes
■ High tariffs
■ Colonies forbidden to trade with other nations
■ Restricted trade routes
■ Subsidized exports
➔ GOLD STANDARD
◆ 1867
◆ A more open trade system
◆ Adopted at an international conference in Paris
◆ Fixed exchange rate system based on the value of gold
◆ Still a very restrictive system
➔ GREAT DEPRESSION
◆ Worst economic downturn in the history of the industrialized world,
lasting from the stock market crash of 1929 to 1939.
◆ Wall Street went into panic, and millions of investors were wiped
out.
◆ Making returning to pure standard more difficult.
◆ Worst and longest recession experienced by the Western world.
◆ Some economists blame this on the gold standard.
◆ HOW DID US RECOVER FROM THE GREAT DEPRESSION?
● Abandonment of the gold standard
● Free up money to spend on reviving the economy
○ Barry Eichengreen
➔ FIAT CURRENCY
◆ Definition: Currencies not backed by precious metals.
◆ Value Determination: Value is determined by cost relative to other
currencies.
◆ Current Use: This is how the world economy operates today.
➔ THE BRETTON WOODS SYSTEM
◆ Inaugurated in 1944 during the United Nations Monetary and Financial
Conference
◆ Aimed to prevent the catastrophes brought mostly about by the Great
DepressioN
◆ John Maynard Keynes (Philippines)
● English economist
● Largely influenced the Bretton Woods System
● Believed that economic crises occur when money is not being
spent and therefore not moving; they do not occur because a
country does not have money
◆ Two financial institutions were created:
1.International Bank of Reconstruction (World Bank)
a.For funding postwar reconstruction projects
2.International Monetary Fund (IMF)
a.The global lender of last resort to prevent individual
countries from spiraling into credit crises
➔ GENERAL AGREEMENT ON TARIFFS & TRADE (GATT)
◆ happened after Bretton Woods
◆ 1947
◆ Its main purpose was to reduce tariffs and other hindrances to free
trade.
➔ KEYNESIAN ECONOMY
◆ Happened after Bretton Woods
◆ 1947
◆ Main purpose: Reduce tariffs and other hindrances to free trade
➔ ORGANIZATION OF ARAB PETROLEUM EXPORTING COUNTRIES
◆ During the Yom Kippur War, the US and other countries decided to
resupply the Israeli Army with arms
◆ OAPEC imposed an embargo, causing a sharp rise in oil prices
➔ WORLD TRADE ORGANIZATION (WTO)
◆ Founded in 1955
◆ Main Goal: Continue the tariff reduction under the General Agreement
on Tariffs and Trade (GATT)
➔ NEOLIBERALISM
◆ Strategy of the US Treasury Department, World Bank, IMF, and WTO to
observe the following:
◆ Washington Consensus: Minimal government spending to reduce government
debts
◆ Privatization of Government: Controlled services like water, power,
communication, and transport
◆ Developing countries were pressured to:
● Reduce tariffs and open economies
➔ THE GLOBAL FINANCIAL CRISIS
◆ 2007-2008
◆ The world experienced the greatest economic downturn since the Great
Depression.
◆ The US removed banking and investment restrictions.
◆ In an attempt to promote the free market, government authorities
failed to regulate bad investments occurring in the US housing
markets.
➔ ECONOMIC GLOBALIZATION TODAY
◆ Exports: Not just local selling of goods and services make national
economies grow at present.
◆ Before:
● United States, Japan, European Union: 65% of global exports
● Developing countries: 29%
◆ By 2011:
● Developing countries: 51%
● Advanced nations: 45%
◆ Economic globalization has ushered in an unprecedented spike in
global growth rates.
● According to the IMF, the global per capita GDP rose over
five-fold in the second half of the 20th century.
◆ However, economic globalization remains an uneven process.
● The main beneficiaries of global commerce have been
transnational corporations (TNCs), not the governments.
➔ ECONOMIC GLOBALIZATION TODAY
◆ RACE TO THE BOTTOM
◆ Refers to countries lowering their labor standards, including the
protection of the workers' interests, to attract foreign investors
seeking high profit margins at the lowest cost possible.
◆ Governments weaken environmental laws to attract investors, which
leads to fatal consequences on their ecological balance and depletes
finite resources.
