Mr. Jovic B.

Lim, LPT, MAED

Mr. Arnold P. Santos, LPT.
Mr. Adrian D. Estudillo, LPT.
Course Instructors
Third Trimester (Modular)
LEARNING OUTCOMES:
• Define economic globalization.
• Identify the factors that facilitate economic
globalization.
• Articulate a stance on global economic
integration.
Introduction
Have you ever wondered why there is an existence of commercial
interactions among nations? Why is there a need to buy and to sell?
In the distant past, humans have already engaged themselves in some
form of trading system and devised its basic structure. History proves
how humans from prehistoric time until today are in constant pursuit for
a comfortable manner of living until they found the secret: To organize
and formulate an economic system that will make life easier for all.

The second topic is anchored to this reality.

 Economic Globalization is a historical process, the
result of human innovation and technological
progress. It refers to the increasing integration of
economies around the world, particularly through
the movement of goods, services, and capital
across borders. The definition provided by Szentes
(2003: 69)
 In economic terms globalization is nothing but a process making
the world economy an “organic system” by extending
transnational economic processes and economic relations to more
and more countries and by deepening the economic
interdependencies among them.
 ’ Frank and Gills (1993: 3) also call for a broader outlook, and
located the origin of globalization in the (very) distant past: ‘the
existence of the same world system in which we live stretches
back at least 5,000 years’. The best known example of archaic
globalization is the Silk Road, which connected Asia, Africa and
Europe.
  The increasing reliance of
economies on each other
 The opportunities to be able
to buy and sell in any country
in the world
 The opportunities for labour
and capital to locate
Stock Markets are now
accessible from anywhere in
anywhere in the world
the world!  The growth of global markets
in finance
 Clearly, there is an ongoing integration of
economies among nations of the world today
and this lead us on to the question: How it is
made possible?

The next slide will show you the contributory

factors to this integration.
 Integration of Economies

Made possible by:

 Technology
 Communication networks
 Internet access
 Growth of economic cooperation – trading
blocs (EU, NAFTA, etc.)
 Collapse of ‘communism’
 Movement to free trade
 A Short History of Global Economic
Integration

The Current Episode of Global Economic Integration

 How does the current wave of global economic integration compare with
previous episodes? In a number of ways, the remarkable economic
changes that we observe today are being driven by the same basic forces
and are having similar effects as in the past. Perhaps most important,
technological advances continue to play an important role in facilitating
global integration.

For example, dramatic improvements in supply-chain management,

made possible by advances in communication and computer
technologies, have significantly reduced the costs of coordinating
production among globally distributed suppliers.
 A Short History of Global Economic
Integration

 Another common feature of the contemporary economic

landscape and the experience of the past is the
continued broadening of the range of products that
are viewed as tradable. In part, this broadening simply
reflects the wider range of goods available today-high-
tech consumer goods, for example-as well as ongoing
declines in transportation costs. Particularly striking,
however, is the extent to which information and
communication technologies now facilitate active
international trade in a wide range of services, from call
center operations to sophisticated financial, legal,
medical, and engineering services.
What are now the consequential effects
of this economic integration? Now that
there comes out countries that have
enormous capital for being the key
players in this economic integration.

The next slide will provide you the

insights.
 Result of Economic Integration:
Rise of the Global Corporation
 The contemporary global corporation is
simultaneously and commonly referred to either as
a multinational corporation & (MNC), a transnational
corporation (TNC), an international company, or a
global company. This distinctions are offered by
Iwan (2012).
 International companies are importers and
exporters, typically without investment outside of
their home country
 Result of Economic Integration:
Rise of the Global Corporation

 Multinational companies have investment in other

countries, but do not have coordinated product
offerings in each country. They are more focused
on adapting their products and services to each
individual local market
 Global companies have invested in and are
present in many countries. They typically market
their products and services to each individual
local market
 Result of Economic Integration:
Rise of the Global Corporation
 Transnational companies are more complex
organizations which have invested in foreign
operations, have a central corporate facility but
give decision making, research and develop
(R&D) and marketing powers to each individual
foreign market
Free Trade has eventually led to the emergence
of countries that are typically classified by the
World Bank as either “Developed” or
“Developing” countries.

The next slide will provide you an insight as to

the perceived benefits and disadvantages of
Trade.
 Trade versus Aid?

Disadvantages
Benefits of Trade: of Trade:
-Increased Choice -Increase in gap between the
-Greater potential for rich and the poor
-Dominance of global trade
growth by the rich, northern
-Increase hemisphere countries
international -Lack of opportunities for
economies of scale the poor to be able to have
-Greater employment access to markets
opportunities -Exploitation of workers and
growers
 If there is blessing in economic
integration, undeniably, it also has
accompanying adverse effects.

The next slide will show you a glimpse

of such …
 Corporate Domination

KEY ISSUES:
-Damage to the
environment?
-Exploitation of labour?

-Monopoly power
-Economic degradation
-Non-renewable
resources Shell and Nike’s activities have
come under severe criticism in
-Damage to cultures some quarters.
After this lecture, the next two slides
will task you to watch a video clip on
the History of Globalization.
Afterwards, do the given assessment
outputs. Enjoy.
 Activity 1: Video Viewing

 https://
www.youtube.com/wa
tch?v=RieHPO4Jea

History of
Globalization
 Activity 1: Video Viewing

 Answer the given question after the video viewing. (answers

must be posted in Microsoft Teams)

1. Is globalization motivated largely by human

economic needs? Why? Justify your
answers in not more than 3 paragraphs.

2. Through a sketch in an A4 paper, show the factors

which facilitate economic globalization. Submit the
sketches in the MS Teams.
 SUMMARY

International economic integration is a central tenet of globalization but is just

one window into the phenomenon of globalization. Its not the entire thing.

Nevertheless, much of globalization is anchored on changes in the economy.

Global culture is facilitated by trade. We , Filipinos would not be as aware of American
culture if not for the trade that allows locals to watch American movies, listen to
American music,and consume American products. The globalization of politics is
likewise contingent on trade relations. These days, many events of foreign affairs are
conducted to cement trading relations between and among states.

Given the stakes involved in economic globalization, it is perennially important to

ask how this system can be made more JUST. Although some elements of global free
trade can be scaled back, policies cannot do away with it as a whole. International
policymakers, therefore, should strive to think of ways to make trading deals fairer.
Governments must also continue to devise ways of cushioning the most damaging
effects of economic globalization, while ensuring that its benefits accrue for everyone.
(Claudio, A & Abinales, P.,,2018)
 Assignment

 Do an advanced reading on a topic: Global

Demography
 Watch a film: What Happened to Monday?
• Reflect on the global beneficial and adverse
effects of overpopulation.
THANK YOU!