● Center of economic gravity through
Introduction to Globalization innovation, research, and
development
Module 1 Part 1
● These countries have free market
● Success of a business depends on
the domestic economic environment policies
and developments abroad. ● Companies in these economies do
● Video Summary: Globalization not sacrifice quality over its cost
creates a single global culture, it’s
revolutionary. BRIC Economies
● Brazil
“Globalization has made it possible for
● Russia
goods and services to cross national
borders.” ● India
● China
Ex. Jollibee operating 900+ stores ● South Africa (became a part of BRIC
worldwide in 2010)
As of 2019, China leads the largest Decoupling
economy in PPP Basis
● Economies that grow based on their
From economic expansion (2019), our underlying economic strengths
country faced economic contraction (2020) ● The Middle class as the crucial
segment of the nation, as it provides
Philippines bounced back through cash the consumption of goods and
transfers (ayuda) services, savings, and government
tax revenues
Technical recession - investments,
government expenditures, bagsak ○ Ex. China and India has
strong labor force because of
Micro-enterprises its middle class size
Challenges Faced by Global Businesses Multipolar world
● Climate change - they are affected in ● A sustainable decoupling process
terms of availability of supply
leads to a multipolar world
● The great resignation
● Extreme heat index - some ● Engines of growth are comprised of
plantations are sensitive to heat both industrialized and emerging
● Oil price hike market economies
● Diseases - monkey pox ○ Ex. BRIC Countries
● Political tensions - Taiwan and China
● Artifical Intelligence With the decoupling of the world
● War between Russia and Ukraine
economy, diversification of
The flow of business had moved in both export-oriented nations to include major
directions and increasingly from one emerging markets is imperative.
developing country to another.
Living on credit can lead to a disaster. A
country’s financial sector should be
Emerging Economies
adequately regulated.
● Increasingly freer trade
Multipolar World Economic Order: ● Predictability of trading relationships
● United States ● Promotion of fair competition
● European Union ● Encouragement of economic
● Russia reforms in developing countries
● Brazil
● South Africa
● India
Institutional Structure and
● China its Impact on Globalization
Module 2 Part 2
Key International Institutions that
Facilitate Globalization Institutions
● International Monetary Fund (IMF) ● Helps transmit information, enforce
● The World Bank contracts and property rights, and
● World Trade Organization promote market competition
International Monetary Fund (IMF) Impact of Globalization
● Demand for transparency
● Oversees the International Monetary
● Need for adaptive institutions
System and provides global financial ● Increasing expectations of
stability accountability
● Importance of independent judiciary
The World Bank and free press
● Conceived at the Bretton Woods
Conference in 1944 Effective Policy Measures that Promote
Globalization
● Its initial role was to aid the
● Good Governance
reconstruction of Europe after WW2 ● Competitive Markets
● Now they reconstruct economies to ● Property Rights
make them efficient, along with ● Anticorruption Policies
poverty reduction
Impact of Information Technology
on Globalization
World Bank loaned Philippines 500M USD
● Software
to help them mitigate the impact of the
● Cellphone
COVID-19 Pandemic
● Internet
World Trade Organization
AI on Globalization
● The WTO began trading in 1948
● Companies are introduced to
under the General Agreement on
generative Artificial Intelligence to
Tariffs and Trade (GATT).
their processes
● Administers trade agreements
● Reviews national trade policies
The Globalization Controversy
(Arguments)
WTO Agreements (Multilateral Trading
● Job losses
System Principles Fostered)
● Income stagnation
● Trade without discrimination
● Erosion of communities
Making Globalization Work for All
● Globalization does create winners
and losers
○ Winners (Rapidly growing
due to economic reforms)
■ China
■ India
■ Brazil
○ Losers (No economic and
political freedom to their
citizens)
■ Central Asia
■ Much of Africa
■ North Korea
