ECONOMIC

GLOBALIZATION
ECONOMIC GLOBALIZATION

 TRADE
 TRANSPORATION
GLOBAL
 COMMUNICATION SCALE
2 TYPES OF ECONOMIES

PROTECTIONISM
TRADE LIBERALIZATION
PROTECTIONISM

 PROTECTING ONE’S ECONOMY FROM

FOREIGN COMPETITION BY CREATING
TRADE BARRIERS
TRADE LIBERALIZATION

 REDUCING TRADE
BARRIERS TO MAKE
INTERBATIONAL TRADE
EASIER BETWEEN
COUNTRIES
TARIFF
REQUIRED FEES ON
IMPORTS/EXPORTS
COUNTRY A COUNTRY B
5.00 tariffs
$1.00 $6.00
$
 PROTECTIONISM
• TRADE
LIBERALIZATION
FREE TRADE

 TRADINGOF GOODS OR SERVICES

BETWEEN TWO OR MORE COUNTRIES
WITHOUT TARIFFS OR TAXES
CANADA-KOREA FREE TRADE
AGREEMENT

98.2% 97.8%
TRADE BLOC

 AGREEMENT MADE BETWEEN

GOVERNMENTS TO REDUCE OR ELIMINATE
TRADE BARRIERS
NORTH AMERICA FREE TRADE
AGREEMENT (NAFTA)

CREATED IN 1989

BOTH FREE TRADE AND

TRADE BLOC- IT ELIMINATES
BARRIERS FOR NORTH
AMERICAN COUNTRIES
NORTH AMERICA FREE TRADE
AGREEMENT (NAFTA)
MANUFACTURING JOBS
FROM DEVELOPED
NATIONS TO DEVELOPING
NATION TO REDUCE THE
COST OF PRODUCTS

DEVELOPING COUNTRIES
HAS CHEAP LABOR

OUTSOURCING
NORTH AMERICA FREE TRADE
AGREEMENT (NAFTA)

US HAS
OUTSOURCED
791,000 JOBS
IN 2010
SUPPORT AND
EXPAND TRADE
LIBERALIZATION

DISCOURAGE
PROTECTIONISM

PREVENT CONFLICT
THAT MAY LEAD TO
INCREASES GROWTH
AND REDUCES
POVERTY ON
DEVELOPING
COUNTRIES IN VARIETY
OF WAYS. (EXAMPLE :
IS THEIR PROGRAM ON
EDUCATION)
PROVIDE SHORT TERM
LOANS TO
COUNTRIES WHEN AN
EMERGENCY
OCCURS.
YEMEN- 93 MILLION
DOLLARS ON APRIL 2012
FOR ANTI- TERRORISM
PROGRAM.
DEALS WITH THE RULES
OF TRADE WITHIN
NATION.

SETTLES TRADE DISPUTES

AND CONDUCTS
TRADE NEGOTIATIONS
CHAPTER 1
SILK ROAD

OLDEST KNOWN INTERNATIONAL TRADE ROUTE

NETWORK OF PATH WAYS IN THE ANCIENT WORLD

.
FROM CHINA  MIDDLE EAST EUROPE
SILK ROAD
WHEN DID FULL ECONOMIC
GLOBALIZATION BEGIN?
 “ALL IMPORTANT
POPULATED CONTINENTS
BEGAN TO EXCHANGE PRODUCTS
CONTINOUSLY”
 TRACED IT TO 1571 “GALLEON TRADE”
 MANILA - ACAPULCO, MEXICO
GALLEON TRADE

 PART OF AGE OF MERCANTILISM (16 TH- 18TH CENTURY)

 the economic theory that trade generates wealth and is stimulated by the
accumulation of profitable balances, which a government should
encourage by means of protectionism.
 To defend their products form competitors who sold products cheaply, the
monarchies imposed high tariffs, and forbid colonies to trade with other natiion.x
GALLEON TRADE
ADOPTATION OF GOLD STANDARD
1867
 UNITED KINGDOM, US, EUROPEAN NATIONS

 CREATE A COMMON SYSTE THAT WOULD ALLOW

FOR MORE EFFICIENT TRADE AND PREVENT THE
ISOLATIONALISM OF MERCANTILIST ERA

 THECOUNTRIES ESTABLISHED A COMMON

CURRENCY PRICES AND FIXED EXCHANGE RATE
(GOLD)
BRETON WOODS SYSTEM
BRETON WOODS SYSTEM
 INAUGURATED IN 1944
 INFLUENCED
BY BRITISH ECONOMIST JOHN
MAYNARD KEYNES
“ECONOMIC CRISIS OCCUR WHEN MONEY IS
NOT BEING SPENT, AND THERBY NOT MOVING”
 WHENECONOMIES SLOW DOWN,
GOVERNMENTS HAVE TO REINVIGORATE
MARKETS WITH INFUSIONS OF CAPITAL.
BRETON WOODS SYSTEM
 THEY AGREED TO CREATE TWO FINANCIAL
INSTITUTIONS.
 INTERNATIONAL BANKFOR RECONSTRUCTION
AND DEVELOPMENT (IBRD OR WORLD BANK)
 INTERNATIONAL MONETARY FUND (IMF)
 INCREASES GROWTH
AND REDUCES
POVERTY ON
DEVELOPING
COUNTRIES IN VARIETY
OF WAYS. (EXAMPLE :
IS THEIR PROGRAM ON
EDUCATION)

FUNDING POST WAR RECONSTRUCTION

PROJECTS
INTERNATIONAL ECONOMIC
ORGANIZATION
 RESEARCH THE ORIGINS AND HISTORY OF THE INSTITUTION YOU HAVE
CHOSEN
 MAP TH EINTERNATIONAL CONNECTION IT HAS CREATED
 IDENTIFY THE MAJOR COUNTRY LEADERS OF THIS INSTITUTION
 LOCATE THE PHILIPPINES IN THIS MAP OF INTERCONNECTINS
 ANSWER THE QUESTIONS:
 HOW DOES THIS INSTITUTION INFLUENCE ECONOMIC ACTIVITY?
 HOW DOES IT AFFECT THE ECONOMICS IN THE PHILIPPINES?