CONTEMPORARY WORLD

GROUP 1:
STRUCTURES OF GLOBALA
LIZATION
 What is globalization?

InGlobalization is the word

essence, globalization used the
is about to
describe thebecoming
world growing interdependence
increasingly
of the worlds economies,
interconnected. cultures,
Countries today and
are more
populations,than
connected brought
ever by cross-border
before, due to
trade such
factors in asgoods andcontainerized
air travel, services,
technology
sea shipping,and international
flow investment,trade
people, and and
agreements information.
legal treaties, and the
Internet.
What is globalization?
When did globalization begin?

• Globalization is not a new phenomenon. Today’s

globalization has developed through the different phases
which are started from ancient time.

• The Silk Road, an ancient network of trade routes across

China, Central Asia, and the Mediterranean used between
50 B.C.E. and 250 C.E. is perhaps the most well-known
early example.
WHAT IS GLOBAL ECONOMY?

▪ The global economy refers to the interconnected

worldwide economic activities that take place bet
ween multiple countries. These economic activitie
s can have either a positive or negative impact on t
he countries involved.
The global economy comprises several characteristics, such as:

 Globalisation: Globalisation describes a process by which

national and regional economies, societies, and cultures ha
 International finance: Money
ve become integrated throughcan
thebeglobal
transferred
networkat aoffaster
trade,rate
between countries compared to goods, services,
communication, immigration, and transportation. and people;
making international finance one of the primary features of a
 International trade: It refers to the exchange of goods and
global economy.
services between different countries, and it has also helped
 Global investment: This refers to an investment strategy that is
countries to specialise in products which they have a comp
not constrained by geographical boundaries.
arative advantage in.
References:

1.Biswas, A., 2021. What Is Globalization And History Of Globalization [4 Phases]. [online] SCH
OOL OF POLITICAL SCIENCE. Available at: <https://schoolofpoliticalscience.com/meaning-an
d-history-of-globalization/#What_is_Globalization> [Accessed 2 March 2021].
2. Slideshare.net. 2021. Globalization. [online] Available at: <https://www.slideshare.net/Cheldhay
eDay/globalization-153976947> [Accessed 2 March 2021].
3. Edology. 2021. How does the global economy work? | Edology. [online] Available at: <https://w
ww.edology.com/blog/accounting-finance/how-does-global-economy-work/> [Accessed 3 March
2021].
Structures of G
lobalization
Global Economy
 Economic Globalization is a histo
rical process that is a result of huma
n innovation and technological progr
ess. It refers to the increasing integr
ation of economies around the worl
d, particularly through the moveme
nt of goods, services, and capital ac
ross the boarders.
Global Economy
 It is virtually a world without borders, inhabited by
marketing individuals and/or companies who have
joined the geographical world with the intent of co
nducting research and development and making s
ales.
Economic globalization primarily comprises the glob
alization of:
1. Production 6. Regimes
2. Finance 7. Institutions
3. Markets 8. Corporations
4. Technology 9. labour
6. Organizational
Two Types of Economies
1. Protectionism
- protecting one’s economy from fo
reign competition by creating trade ba
rriers.
2. Trade Liberalization
- reducing trade barriers to make in
ternational trade easier between count
ries
 Trade Barriers= Tariffs

What are Tariffs?

Required fees on the import and export of goods
Example:
Importation of Candy from Country A to Country B

Candy Tariff of 5 pesos Candy

P1.00 on imported candy P6.00

Country A Country B
 Various ways of making Trade Easier
1. Free Trade -trading of goods and services between two or more countri
es without tariffs or taxes

 On March 11, 2014, Canadian Prime Minister Stephen Harper and South K
orea President Park Geun-hye signed the Canada- Korea Free Trade Agree
ment (CKFTA) which makes Canada eliminate 97.8% of its tariff for goods
imported to South Korea and South Korea will eliminate 98.2% of its tariff
lines for goods imported from Canada
2. Trade Bloc- it is an agreement made betwee
n governments to reduce or eliminate trade bar
riers

 Canada,Mexico and United States are part of

the North American Free Trade Agreement (N
AFTA)
3. Outsourcing- manufacturing jobs transfer from developed na
tions to developing nation reduce the cost of products
Who controls the Global economy?
 Although governments do hold power over countries’ econom
ies, it is the big banks and large corporations that control and
essentially fund these governments.
 Global economy is dominated by large financial institutions.
U.S Foreign Trade
 The United States is the one of the worl
d’s leading trading nations.
 The exports and imports of the United

States thrive so mightily that the profits

of many large businesses, the jobs and
incomes of many workers, and the inco
mes of many farmers are dependent up
on them.
 According to World Economic News, US banks participate in m
any traditional government businesses like power production,
oil refining and distribution, and also the operating of public a
ssets such as airports and train stations.
How does the Global Economy work?
 The functioning of the glo
bal economy can be explai
ned through one word- tra
nsactions.
 This transactions mainly c

omprise trade taking place

between different countrie
s.
 One of the biggest issues created by economi
c globalization is issues regarding environme
nt.
 Sustainability- the degree to which the Earth

can provide resources for human needs.

 In 2008, Canada passed the Federal Sustaina

ble Development Act which changed the wa

y Canada makes decisions and actions regar
ding environmental sustainability
References:
1.
https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/economics-terms-and-concept
s/global-economy

2. (2021). Retrieved 4 March 2021, from https://youtu.be/lMOQ7l3R2ME

3. “The contemporary world” https://youtu.be/raRO3u2HS_I
4. Edology. 2021. How does the global economy work? | Edology. [online] Available at: <https://www.edology.com/blog/accounting-finance/how-d
oes-global-economy-work/> [Accessed 3 March 2021].
6 Major
Economic
Issues
Issue # 1. Employment and Unemployment

• Un­employment refers to involuntary idleness of reso

ur­ces including manpower. If this problem exists, s
ociety’s actual output (or GNP) will be less than
its potential output. So one of the objectives of G
overn­ment policy is to ensure full employment which
implies absence of involuntary unemployment of any
type.
Issue #2. Inflation

• It refers to a situation of constant­ly r

ising prices of commodities and factors
of produc­tion. The opposite situation is
known as deflation. During inflation som
e people gain and most people lose. So t
here is a change in the pattern of incom
e distribution. Therefore, one of the ob
jectives of government policy is to ensu
re price level stability which implies t
he absence of inflation and deflation.
Issue #3. The Trade Cycle

• It refers to periodic fluc­

tuations in
the levels of economic or business ac­t
ivities, i.e., the tendency for output
(GNP) and employment to fluctuate over
time in a recurring sequence of ups an
d downs. The periods of good trade alt
ernate with periods of bad trade, or,
boom periods of high output and high e
mployment alternate with slump periods
of low output and low employment.
Issue #3. The Trade Cycle

• In boom periods, employment is low but

the rate of inflation is high. In peri
ods of depression (or reces­sion) unemp
loyment is high and the rate of inflat
ion is moderate. In macroeconomics we
study the causes of business cycles an
d suggest remedial measures
Issue #4. Stagflation

• Most modern mixed econo­mics suffer from the disease

of stagflation which im­plies the co-existence of in
flation and unemployment in a stagnant economy. The
trade-off between infla­tion and unemployment is per
haps the most complex macroeconomic issue of the da
y. Every country in the world is now struggling har
d to fight the disease of stagflation.
Issue #5. Economic Growth
• In spite of short-term fluctuations of outpu
t that are associated with the trade cycle,
the long-term trend of total output has been
upward in most industrially advanced country
. The trend in the nation’s total output ov
er the long period is known as economic grow
th.
• It refers to an expansion of society’s prod
uction capacity such as bringing new land un
der cultivation or setting up new factories.
Growth is measured by the annual rate of inc
rease of per capita income and is illustrate
d by a rightward shift of the production pos
sibility curve.
Issue #5. Economic Growth
• There are three major sources of growth, vi
z.,:

(1) The growth of the labor force,

(2) Capital formation and
(3) Technological progress.

• A country seeks to achieve economic growth m

ainly for improving the standards of living
of its people. If the rate of economic growt
h exceeds the rate of population growth, the
re is likely to be an improvement in the sta
ndard of living for the average person.
Issue #6. The Exchange Rate and the Balance of Pay­ments

• The balance of payments is a systemati

c record of all economic transactions
between the mem­bers of the home countr
y and the rest of the world in an acco
unting year. These transactions are la
rgely, if not entirely, influenced by
the exchange rate. It is the rate at w
hich a country’s economy is exchanged
for another currency (or gold).
Issue #6. The Exchange Rate and the Balance of Pay­ments

• The trend in the value of the rupee in

terms of two major currencies of the w
orld, viz., the U.S. dollar and Britis
h pound, has been downward in the last
two decades. Economists are always eag
er to discover the cause and consequen
ces of such changes.
Reference:
• https://www.economicsdiscussion.ne
t/macroeconomics/6-major-macro-eco
nomic-issues/20641
 ISSUES WITH GLOBA
L ECONOMY
SOCIO-CULTURAL ISSUES

1
■ Globalisation is defined as the mobility across borders of goods and ser
vices, people, capital and knowledge (BIS (2017a)).
■ The world economy has become much more integrated, interdependent
and intertwined as globalisation and liberalisation appear to have beco
me an inevitable and irreversible trend.
■ However, due to the adverse and lingering impact of the Great Financial
Crisis (GFC), there has been a growing backlash against globalisation,
not only in EMEs but also in advanced economies, particularly in the Un
ited Kingdom and the United States.
1. CONFLICT AND POVERTY (2007)

■ The fight against global poverty has become a fight for global security.
1. Policymakers are increasingly focused on the line between poverty a
nd conflict.
2. Extreme poverty literally kills.
3. Poverty exhausts government institutions, depletes resources, weake
ns leaders and crushes hope.
1. CONFLICT AND POVERTY (2007)

In a GLOBAL CONTEXT,
■ Poverty and insecurity are mutually reinforcing, leading to a “doom spi
ral”.
■ Conflict increases infant mortality, creates refugees, fuels trafficking in
drugs and weapons, and wipes out infrastructure.
■ Violent conflict also produces considerable economic spillover for nei
ghboring countries, as refugees flow in, investment pulls out and supp
ly chains and trade routes are disrupted.
1. CONFLICT AND POVERTY (2007)

Resource and Conflict

■ A powerful drive of extreme poverty is scarcity.
■ When demands overweigh the supply and distribution is unfair, public fru
stration can spark and strife.
a. More than 40% of the planet’s population, use wood, charcoal, straw or
cow dung as main source of energy, and 1.2 billion people lack access t
o clean drinking water.
■ Abundance no less than scarcity can fuel conflict and poverty — generall
y of nonrenewable and more easily lootable mineral wealth (50%).
1. CONFLICT AND POVERTY (2007)

Demographics and Poverty

■ Nearly half of the people are under 25 years old (“youth bulge”)
a. Nearly 17 million are refugees or internally displaced person.
b. 130 million are illetirate
c. 350 thousand are child soldiers
d. Young people make up almost 60% of the world’s poor.
2. GLOBAL HEALTH CRISIS (2007)
■ An estimated 2 billion people worldwide lack access to basi healthh services. The re
sult is a staggering level of preventable disease.
■ The citizens of poor countries must pay the most out-of-pocket for their health care,
because poor governments lack finance to provide for a functioning, accessible healt
h system.
a. An estimated 150 million people and 25 million households are impoverished globall
y because they are required to make out-of-pockett payments for health care.
b. Of the $3.2 trillion spent on health care worldwide in 2002, only 12 percent was spe
nt in low- and middle-income countries, which house 90% of the world’s burden of di
sease.
■ Aid for health increased by over 50% from 2002 and 2005, reflecting major increases
by donor countries, and the creation of new financing partnerships like the Global Fu
nd to fight AIDS, Tuberculosis and Malaria and the Global Alliance for Vaccine and I
mmunization (GAVI).
3. TECHNOLOGY DRIVING CHANGE IN JOBS (2
017)

■ Over the last three decades, advanced economies have seen labor-intens
ive sector jobs move to emerging markets.

a. Today’s five largest global companies: Apple, Alphabet (Google), Microso

ft, Amazon, and Facebook. They employ around 720,000 people.
b. A decade ago, the big five were: Petrochina, Exxon Mobile, General Elect
ric, China Mobile, and Bank of China. They employed around 1.3 million
people.
Does this alter work
preferences? Yes.

They are trying to

create new types of
jobs, rather than going
for traditional ones such
as banking, finance, or
accounting. 
4. INCREASING MIGRATION (2017)

■ Wars, climate change, and broader e

conomic and social inequalities are t
he root causes of migration flows. 
■ The refugee crisis in Syria resulted t
he arrival of more than one million mi
grants in 2015-2016 in Germany.
■ Refugees from Syria have been esca
ping violence, as many also are from
Iraq and Afghanistan, and, in such ca
ses, humanitarian reasons should al
ways prevail over other consideration
s.
5. RISING PROTECTIONISM (2017)

PROTECTIONISM (n.) — an economic

policy that aims to protect the local econ
omy from imports from other countries.
■ The total number of discriminatory pr
otectionist measures implemented by
G20 countries has increased over the
past five years The main driver has b
een the U.S.
■ U.S. has implemented the most prote
ctionist and trade restrictive measure
s of its peer group, the European Uni
on the least.
SOURCES
a. TOP10 GLOBAL ECONOMIC CHALLENGES
AN ASSESSMENT OF GLOBAL RISKS AND PRIORITIES
BROOKINGS GLOBAL ECONOMY AND DEVELOPMENT (FEBRUARY 2007)
b. HOW TO MANAGE THE TOP FIVE GLOBAL ECONOMIC CHALLENGES (NOVEMBER 2017)

https://knowledge.wharton.upenn.edu/article/what-are-the-top-five-challenges-for-international-organizations/
c. 28 PROS AND CONS OF PROTECTIONISM
https://environmental-conscience.com/protectionism-pros-cons/
d. GLOBAL ECONOMIC CHALLENGE AND OPPORUNITIES (SEPTEMBER 15, 2017)

https://www.imf.org/en/News/Articles/2017/09/25/sp092517-global-economic-challenges-and-opportunities
MARKET INTEGRATION
What is Market Integration?

CO
Types of Market Integration
Advantages and Disadvantages of

N
Market Integration

TE
The Function of International
Organizations

N
TS
1
What is market
integration?
Market integration is a term that is used to
identify a phenomenon in which markets of
goods and services that are somehow related to
one another being to experience similar patterns
of increase or decrease in terms of the prices of
those products. The term can also refer to a
situation in which the prices of related goods
and services sold in a defined geographical
location also begin to move in some sort of
similar pattern to one another.

-Malcolm Tatum
Last Modified Date: February 09, 2021
2
HORIZONTAL INTEGRATION VERTICAL INTEGRATION

Marketing agencies Occurs when a firm

combine to form a union performs more than
to reduce their effective one activity in the
number and the extent of sequence of the
actual competition in the marketing process
market

Types of
market
integration
CONGLOMERATION

A combination of
agencies or activities
not directly related
to each other may
operate under a
unified management
 TYPES OF VERTICAL INTEGRATION

FORWARD INTEGRATION BACKWARD INTEGRATION

When a when a business

company at the at the end of the
beginning of the supply chain
supply chain takes on
controls stages activities
farther along “upstream”

footwear companies
having their flagship
stores
2
HORIZONTAL INTEGRATION VERTICAL INTEGRATION

Marketing agencies Occurs when a firm

combine to form a union performs more than
to reduce their effective one activity in the
number and the extent of sequence of the
actual competition in the marketing process
market

Types of
market
integration
CONGLOMERATION

A combination of
agencies or activities
not directly related
to each other may
operate under a
unified management
3
Advantages and
Disadvantages of
Market
Integration
 ADVANTAGES OF MARKET
INTEGRATION
HORIZONTAL
INTEGRATION

Increased marketAccess to new markets

Reduced
Higher power
Lower competition
efficiency
costs
DISADVANTAGES OF MARKET INTE
GRATION
HORIZONTAL INTEGRATION DISADVANTAGE

Destroyed value Legal repercussions Reduces flexibility

 ADVANTAGES OF MARKET
INTEGRATION
VERTICAL INTEGRATION

requires provides allows you to invest in

gives you more assets that are highly
offers lower more
control over your specialized
more cost of competitive
business
cost transactio advantages
control n
 DISADVANTAGES OF MARKET
INTEGRATION
VERTICAL INTEGRATION DISADVANTAGE

Can bring about

more difficulties
Requires a huge Can cause confusion
amount of money within the business
Makes things more
difficult
4
THE FUNCTION
OF
INTERNATIONAL
ORGANIZATION
 Evolution Of International
Organizations
There was need to have a
neutral forum where countries
could participate and discuss
problems that were of significance
International organizations the world over. This gave rise to
provide a common platform
international Organizations.
wherein representatives from
different parts of the world
can discuss and evolve solutions
for contemporary issues. In
common parlance, it is well
known as intergovernmental
organizations.
ROLES OF INTERNATIONAL ORGANI
ZATION
Play an important
The role in collecting There are some
participating statistical international
information,
countries analyzing the trends organizations
define the in the variables, that perform
making a
function of the comparative study
certain
International and disseminate the supervisory
Organizations. information to all functions.
other countries

The third function

of the international
organizations is
lending out
setting up technical
multilateral or cooperation to
bilateral the member
agreements
between countries. countries.
THANK YOU
 References
Malcolm Tatum, Last Modified Date: February 09, 2021, “Market
Integration”https://www.wisegeek.com/what-is-market-integration.htm

https://www.economywatch.com/global-challenges/role-international-
organizations.html#:~:text=Role%20Of%20International%20Organizations.%20The
%20participating%20countries%20define,organizations%20also%20help%20in
%20cooperation%20between%20different%20
ROLE OF FINANCIA
L INSTITUTIONS
@ Daryl Dave J. Baroy
Definition of Financial Institution.
● Financial Institutions are referred to as a company that deals in all
types of finance-related businesses. They are different from banks
and play a very important part in broadening the financial
services in the country. They provide a very attractive rate of
returns to the customers in comparison to any government-centric
banks. It deals in loans and advances and also specializes in some
specified sectors like hire purchases and leasing etc.

● Financial institutions play a pivotal role in every economy. They

are regulated by a central government organization for banking
and non-banking financial institutions. These institutions help in
bridging the gap between idle savings and investment and its
borrowers, i.e., from net savers to net borrowers.
Roles of Financial Institution
 #1 – Regulatio
n of Monetary S
upply
Financial institutions like the central
bank help in regulating the money
supply in the economy. They do it to
maintain stability and control inflation.
The central bank applies various
measures like increasing or decreasing
repo rate, cash reserve ratio, 
open market operations, i.e., buying and
selling government securities to regulate
liquidity in the economy.
#2 – Banking Services
Financial institutions, like commercial banks,
help their customers by providing savings and
deposit services. They provide credit facilities
 like overdraft facilities to the customers for
catering to the need for short-term funds.
Commercial banks also extend several kinds of
loans like personal loans, education loans,
mortgage or home loans to their customers.
#3 – Insurance Ser
vices
Financial institutions, like insurance
companies, help to mobilize savings and
investment in productive activities. In
return, they provide assurance to investors
against their life or some particular asset at
the time of need. In other words, they
transfer their customer’s risk of loss to
themselves.
#4 – Capital Format
ionFinancial institutions help in capital
formation, i.e., increase in 
capital stock like the plant,
machinery, tools and equipment,
buildings, means of transport and
communication, etc. They do so by
mobilizing the idle savings from
individuals in the economy to the
investor through various monetary
services.
 #5 – Investment Ad
vice
There are a number of investment options available at the
disposal of individuals as well as businesses. But in the
current swift changing environment, it is very difficult to
choose the best option. Almost all financial institutions
(banking or non-banking) have an investment advisory desk
that helps customers, investors, businesses to choose the best
investment option available in the market according to their 
risk appetite and other factors.
#6 – Brokerage services
These institutions provide their
investors access to a number of
investment options available in
the market that ranges from
stock, bonds (common
investment alternative) to 
hedge funds, and private equity
investment (lesser-known
alternative).
#7 – Pension Fund Ser
vicesFinancial institutions, through their various
kinds of investment plans, help the individual
in planning their retirement. One such
investment options is a pension fund, where the
individual contributes to the pool of investment
set up by employers, banks, or other
organizations and get the lump sum or monthly
income after retirement.
 #8 – Trust Fund Serv
ices
Some financial organization
provides trust fund services to their
clients. They manage the client’s
assets, invest them in the best
option available in the market, and
take care of its safekeeping as well.
#9 – Financing the Small and Medium Sc
ale Enterprises

Financial institutions help small and

medium scale enterprises set up
themselves in their initial days of
business. They provide long-term as
well as short-term funds to these
companies. The long-term fund helps
them in the formation of capital, and
short-term funds fulfill their day to
day needs of working capital.
#10 – Act as A Government Agent for Econo
mic Growth
Financial institutions are regulated by the
government on a national level. They act as
a government agent and help in the growth
of the nation’s economy as a whole. For
example, to help out an ailing sector,
financial institutions, as per the guidelines
from the government, issue selective 
credit line with lower interest rates to help
the sector overcome the issues it is facing.
 Conclusion
● Financial institutions are the backbone of the
economy. Without the help of these institutions,
the economy will go down and will not be able to
stand up. Due to their pivotal role in the
development and growth of the economy, the
government regulates these institutions through
the central bank, insurance regulators, pension
fund regulators, and so on. Over the years, their
role has expanded from accepting and lending
funds to larger areas of services.
International
Policies and
Agreements
 In an efficient
market system,
the wholesale
prices in
different
markets are
closely related.
Such analyses help us to
understand the efficiency
of the marketing-system
and form the policy to
improve the marketing
system’s efficiency and
achieve market
integration.
 “
Better market
integration can be
achieved by the
following policy
initiatives
Removal of taxes like
the octroi and other
indirect taxes.
To minimize the fluctuations in prices and
hedging risks by enlarging the futures
market.
 Phase out the subsidies
on goods and PDS as
they distort the market
prices and to see that the
Fair Price shops sell at
full market price to
ensure economic
viability.
 States must be
free to set up
public or joint
venture
companies to
procure food, for
transportation
and distribution
of food at
commercially
viable markets.
 Encourage private agencies
in area of food procurement.
Make rail transport cheaper and
better by removing the distortions
in tariff policy for freight
movement.
Allow FDI in retailing so
that competition,
economies of scale and
improved efficiency in
supply chain would lower
prices.
 Government to make policy
for universal access of
commercial fuel at affordable
rates.
Thanks!
GLOBAL INTERSTATE SYSTEM
 DEFINITION
The modern world system is now a global economy with global
political system
This refers to the relationship between different state union
This also includes all the cultural aspects and interaction netw
orks of human population.
 POLITICAL GLOBALIZATION

The amount of political co-operation there between co

untries

Beyond
facilitating
There are states These states International
meeting among
that are interact with one Organization
states, these
independent another through exist to facilitate
organization also
from one another diplomacy. these interaction.
take lives on their
own.
 STATE
VS
NATION
PEOPLE TERRITORY

STATE
IT DOES NOT EXIST IF ONE ELEMENT IS
LACKING

GOVERNMENT SOVEREIGNTY
 HISTORY
OR CULTURE
ORIGIN

NATION
IT CONSIST OF MANY
STATES

RELIGION LANGUAGE
 POSITIVE
EFFECT
OF
GLOBALIZATION
TO
GOVERNANCE
COMMUNICATIONS EDUCATION

MEDIA COVERAGE CULTURE

RESOURCES INVESTMENT

COMPETITION
 NEGATIVE
EFFECT
OF
GLOBALIZATION
TO
GOVERNANCE
 DEVELOPING
CULTURE COUNTRIES

RELIGION MORALS

INTERNATIONAL
POLITICS
ECONOMY

SCIENCE
 DIFFERENCE
GLOBALISM
INTERNATIONALISM
The belief that people, goods and
Nation decides to cooperate information ought to be able to
with one another in political, cross national boarder freely. It is
economic and cultural aspects the attitude of putting the
for promotion of common interest of the entire world above
goods. the interest of individual nations.

TYPES OF INTERNATIONALISM TYPES OF GLOBALISM

• Hegemonic internationalism • Economic globalism

• Liberal internationalism • Environmental globalism
• Revolutionary internationalism • Military globalism
• Socialist internationalism
• Social & Cultural globalism
 PURPOSE
Global interstate program main purpose is to contribute to peace a
nd security by promoting international collaboration through educ
ational, scientific and cultural reforms in order to increase universa
l respect for justice, the rule of law and human rights along with the
fundamental freedom.
The balance of power in the interstate system prevents any sin
gle state from controlling the world economy, and from imposi
ng a political monopoly over accumulation. This means that "fa
ctors of production" cannot be constrained to the degree that t
hey could be if there were an overarching world state.