Alcantara, Kathleen S.

TE-101

1. Enumerate and explain the 3 distinct phases of Globalization.

The three distinct phases of Globalization are The Early Voyages of Exploration and
Colonization, The Age of Transactional Integration and The Modern Age of Globalization. The
first phase is all about the global economy and the importance of pieceenterprise. The second
phase covers the period of intensive internalization of transportation system, communication,
and many other human activities that unfolded between the middle of the 19th century. The
last phase begin 1945, it was made by the economic expansion. This third phase is a new global
economic it is provided a new framework for international commerce and finance. This
international arrangement called for close cooperation between nation-states. The new global
economic arrangement made possible the expansion of the welfare and the protections to the
economically as well as to financially secured.

2. Explain the two benefits of trade.

The first benefit of trade is Free trade promotes fairness. There is less opportunity for
cronyism, or the ability of participating nations to change trade advantages toward favored
parties. It is bigger and better-connected industries can more easily acquire unfair advantages,
such as tax which shield them from competition. The second benefit of trade improves
efficiency and innovation. Free trade works with other market processes to shift workers to
have more productive uses, allowing more efficient industries. The results are higher wages,
investment in such things as infrastructure, and a more dynamic economy that continues to
create new jobs and opportunities.

3. Discuss what is MTC.

MTC stands for Multinational Companies also known as Multinational Corporation it is a

global or world wide enterprises. It is also a organization or a business that controls or own
production of goods or services. Usually, it is a largest corporation incorporated in one country
which produces or sells goods or services in one or other countries. They also import and export
and making an investment in a foreign country. The advantage of MTC is they are building good
relations with other countries and in promotion of parent country’s culture and traditions in other
countries.

4. Discuss what is TNC.

TNC or Transactional Companies/Transactional Corporation it also one of the most important

subject in our economics like MTC. It is also a organization or a business but it enterprise a
direct foreign investment. MTC is controlling the goods or services while TNC owns or controls
the income gathering assets in more than one country. The advantage of TNC is that they are
able to maintain a responsiveness to the local markets where they maintain facilities. They also
have an ability to use foreign subsidiaries to minimize tax-liability.

5. Discuss Protectionism vs. Trade Liberation

Protectionism is a action or a policy that protecting a country's domestic industries from a

foreign or international competition. They protecting it so they can promote export by using
the tariff, import quotas. While Trade Liberation is the removal of barriers to to trade on the
free exchange of goods in other nations. It also a policy of trading with other country without
restrictions such as tariffs or quota unlike to Protectionism.