The Global Economy

Global economy denotes that the economies of various

countries are more interconnected from extraction, production,
distribution, consumption, to disposal of goods and services.
Economic integration means that separate production
operations are functionally related to each other and form a
unified product or service.

Actors that Facilitate Economic Globalization

International Monetary Fund (IMF)

The IMF is an international organization of 183 member
countries to promote international monetary cooperation and
exchange stability; to foster economic growth and high
employment; and to provide short-term financial assistance to
countries to help ease balance of payments adjustments.

International Financial Institutions (IFIs)

These organizations give loans to governments for large-scale
projects, restructuring and balance of payments on condition
that they make specific changes that IFIs believe will boost
economic growth (Shangquan, 2000).

Transnational Corporations
Enterprise that engages in activities which add value
(manufacturing, extraction, services, marketing, etc.) in more
than one country.

G8 and G20
Group of nations that serve as an advisory organization that
discuss current economic and political problems and transfer
the ideas from the forum in national legislative regulations.

Global Civil Society

Either composed of individuals or groups of individuals
disadvantaged by the effects of the globalization of the world
economy, they protest and seek alternatives while on the other
hand, global social movement constituting a basis for an
alternative to a new world order.

What is the Modern World System?

According to the world-system theory, the peripherals are
mostly where production or raw materials are sourced out,
while the semi-peripherals processed or distributed the
products to the core areas-sites of major demands for goods
and services.

The Global Interstate System

Global Interstate System - is an institutional arrangement of

governance that addresses regional or globalized issues that go
beyond the scope of a nation-state (Institutions that Govern
Globalization
International Organizations

International Monetary Fund (IMF) looks at the stability of the

international monetary system by monitoring global economy,
lends to countries, and provides policy and technical advisory
functions to members.

World Trade Organization (WTO) regulates international trades,

ensures smooth flow of trade, and provides a forum for
negotiations for trade agreements among countries and regions
of the world.

World Health Organization (WHO) is responsible for global

researches on medicines and vaccines including the World
Health Report and Survey.

Organization for Economic Cooperation and Development

(OECD) aim to stimulate economic progress and world trade by
providing a platform to compare policy experiences and identify
good practices in domestic and international economic policies
and programs of its members.

International Labor Organization (ILO) deals with labor problems

and international labor standards and social protection for
workers.
Food and Agriculture Organization of the United Nations (FAO)
leads international efforts to defeat hunger, eliminate food
insecurity and malnutrition, and increase resilience of
livelihoods and food.

UNESCO contributes to peace and security by promoting

international collaboration through educational, scientific, and
cultural reforms.

International Civil Aviation Organization (ICAO) for regulations of

international air transport

International Maritime Organization (IMO) shipping and

prevention of pollution at sea

International Telecommunication Union (ITU) developing

standards on ICT

The World Intellectual Property Organization (WIPO)

international intellectual property rights standards

Globalism vs Internationalism

Internationalism is defined as political, economic, and cultural

cooperation between nations, while globalism is an ideology
based on the belief that flow of people, goods, and information
should flow freely across national borders. Sargent (2008)
argues that internationalism emphasizes diversity and
celebrates multiculturalism, while globalism focuses more on
the economic aspect of the exchanges among countries and
society.

Market Integration

Market integration is a process by which economies are

becoming more interdependent and interconnected in terms of
commodity flows including externalities and spillover of
impacts.

Two Kinds of Market Integration

Horizontal integration happens when a firm gains control of

other firms performing similar marketing functions at the same
level in the marketing sequence. For instance, Disney bought
Pixar, which is also in the entertainment media, for $7.4 billion.

Vertical integration happens when one company owns the

operations and products from one stage to the other along the
supply chain. For example, an iron mining company operates the
steel manufacturing firm.
Four Key issues with IFIs
 Legitimacy
 Effectiveness
 Support conditionality
 Financial capacity and sustainability

Contemporary Global Governance

Global governance - collective efforts to identify, understand,
and address worldwide problems that go beyond the problem-
solving capacities of states.

Nation-State Elements
 Continuous and broken territory (preferred)
 Sovereign territory
 Monopoly of both of law and coercion
 Rules citizens directly
 People as a source of sovereignty/legitimacy
 Homogenous population

Supranational forces have weakened the state in three ways:

 1.The creation of a supranational economy wherein the
transactions are largely uncontrolled by states, resulting to
the restriction of states to direct national economies.

2.Rise of regional or global institutions, such as European

Union, ASEAN, UN, to which individual countries defer
because they are too small to engage in effective
international competition or because their economies are so
weak.

3.Territorial borders had been made largely irrelevant by

technological revolution in transport and communication.

The United Nations

The United Nations is an IGO designed to make the enforcement
of international law, security, human rights, economic
development, and social progress easier for countries around
the world.

The UN today is divided into five branches:

1.The UN General Assembly - is the main decision-making and
representative assembly and is responsible for upholding
the principles of the UN through its policies and
recommendations. It is composed of all member states and
headed by a president elected by the member states.
 2.The UN Security Council - can authorize the deployment of
UN member states' militaries, can mandate a cease-fire
during conflicts, and can enforce penalties on countries if
they do not comply with given mandates. It is composed of
five permanent members and 10 rotating members.
3.The International Court of Justice - can settle, according to
international law, legal disputes between States and give
opinions, mostly advisory, on legal questions brought to it
by UN organs and agencies
4.The Economic and Social Council - assists the UN General
Assembly in promoting economic and social development,
as well as cooperation of member states
5.The Secretariat - headed by the Secretary-General, provides
studies, information, and other dates when needed by other
UN branches for their meetings

General Principles of International Law

International law - laws that regulate relations of states and
international persons

How does international law become a part of the law of the

state?
Doctrine of incorporation - This doctrine posits that
international law automatically forms part of domestic law,
without requiring any specific legislative or judicial action.
Doctrine of transformation - This doctrine states that
international law must be transformed into domestic law
through a formal act of legislation or judicial decision.
International Conventions and International Customs

International conventions are international agreements

concluded between States, in written form, and governed by
International Law, embodied either in a single instrument or in
two or more related instruments and whatever its particular
designation. Example: The Geneva Conventions.

International customs, also known as customary law, consists of

rules of law derived from the consistent conduct of states,
acting out of the belief that the law required them to act that
way. Example: The right of self-defense, and the duty to respect
human rights.

However, for a custom to be deemed as an international

custom, these two elements must exist:
State practice: This refers to the actual behavior of states in
relation to a particular issue. It must be consistent and uniform,
meaning that states must consistently behave in a similar
manner over time.
Opinio juris sive necessitatis: This is the belief of states that the
practice is legally binding. States must believe that the practice
is not merely a matter of courtesy or convenience, but rather a
legal obligation.

The prohibition of torture. The prohibition of torture is

universally accepted, with no significant exceptions. Even states
with authoritarian regimes have generally condemned torture,
although their adherence to this principle may be inconsistent in
practice. States have repeatedly expressed the belief that the
prohibition of torture is a legal obligation. This is evident in
statements by government officials, legislative acts, and court
decisions.

Treaties
A treaty is an international agreement conducted between
states, in written form and governed by international law,
whether embodied in a single instrument or in two or more
related instruments, whatever its particular designation.

Bilateral treaties - the parties involved are only two states.

Examples are the Mutual Defense Treaty with USA; Visiting
Forces Agreement with USA; and RP-US Extradition Treaty with
USA.
Multilateral treaties - involves three or more states. An example
of which is the 1982 United Nations Convention on the Law of
the Sea (UNCLOS).

Basic Principles Concerning Treaties

Pacta tertiis nec nocent nec prosunt - "A treaty binds the parties
and only the parties"
Pacta sunt servanda - "Agreements must be kept"
Rebuc sic stantibus - "Things standing thus"