THE IMPORTANCE OF THE ACTORS IN
ECONOMIC GLOBALIZATION
CONTEMPORARY ● The process of economic globalization
has produced its actors as well. These
WORLD REVIEWER economic globalization actors became
key players in the global economy and
FIRST SEMESTER | CED-02-101A have touched on local industries of
nation-states to create an
GROUP 1 international, tradable, and not-
context-limited goods and services.
ECONOMIC GLOBALIZATION
● The spread of trade, transportation, THE GLOBAL PLAYERS
and communication systems on a ● Transnational Corporation
global scale in the interest of ➔ One of the important economic
promoting international commerce. development that involves the
changing nature of global production.
2 TYPES OF ECONOMIES ➔ The availability of cheap labor,
● Protectionism resources and favorable production
Protecting one’s economy from foreign condition in the third world country.
competition by creating trade barriers. ➔ Transnational Corporation are
● Trade liberalization believed to be the main driving force of
Reducing trade barriers to make international economic globalization.
trade easier between two countries. ● International Monetary Fund (IMF)
➔ Founded at the Bretton Woods
VARIOUS WAYS TO MAKE TRADE EASIER Conference in July 1944 alongside the
● Free Trade International Banks for Reconstruction
When countries buy and sell goods and and Development (IBRD)
services with each other without any extra ➔ The mandate of IMF was to promote
taxes or restrictions. This makes trade easier international financial cooperation and
and can lower costs. strengthen International trade.
● Trade Bloc ➔ The IMF was expected to provide
Is a group of countries that have agreed to short-term financial assistance (loans)
reduce or remove trade barriers among to countries.
themselves. Examples include the European ➔ Official organization for securing
Union (EU) and the North American Free International monetary cooperation.
Trade Agreement (NAFTA). ● The World Bank
● Outsourcing ➔ It is an international financial institution
Is when a company hires another company that provides loans and grants to
(often in a different country) to handle some of developing countries.
its tasks or services, usually to save money or ➔ Supports development projects in
get specialized skills. areas such as infrastructure,
education, and healthcare, aiming to
ACTORS THAT FACILITATE ECONOMIC reduce poverty and promote economic
GLOBALIZATION growth.
, ➔ Plays a significant role in funding systems interacting with each other
development initiatives and shaping and are often shaped by global trade
economic policies in developing and relationships.
countries.
● World Trade Organization (WTO) FOUR MODERN WORLD SYSTEM
➔ The World Trade Organization is an ● Core Countries
international organization that Wealthy, developed nations with strong
regulates international trade. economies and political influence. They often
➔ This organization sets rules and control global trade and have advanced
regulations for trade industries.
➔ between countries, aiming to promote ● Semi-Periphery Countries
free and fair trade. These are in-between countries that have
➔ The WTO plays a vital role in moderate development and are
facilitating global trade and resolving industrializing. They trade with both core and
trade disputes between nations. periphery countries.
● WTO, IMF, The World Bank ● Periphery Countries
➔ 3 institutions that underwrite the basic Less developed nations that provide raw
rules and regulations of economic, materials and labor to core countries. They
monetary, and trade relations between are often dependent on core countries for
countries. trade and investment.
➔ Many developing countries have ● External Areas
loosened their trade rules because of Countries or regions that aren’t fully
the influence and pressure of these integrated into the global economy and have
institutions. limited participation in global trade.
THE MODERN WORLD SYSTEM MARKET INTEGRATION
● According to Wallerstein (1975), the ● refers to the interconnectivity of prices
concept of "world-systems" becomes among different locations or related
relevant when we look beyond goods. It signifies that the markets are
small-scale societies, which he refers working collectively as one broader
to as "mini-systems." Mini-systems are market where prices are likely to move
characterized by their limited together and goods, services, or
economic complexity and a single, assets are substituted based on the
cohesive culture. In these societies, price change.
the economy and culture are closely
intertwined and self-contained. INTERNATIONAL
● In contrast, Wallerstein argues that FINANCIAL INSTITUTIONS (IFIS)
when we move beyond these ● Are organizations that promote global
small-scale societies, we encounter economic cooperation and stability.
what he defines as world-systems. They provide financial assistance,
World-systems are much larger and technical expertise, and policy advice
involve complex interactions between to countries around the world.
different regions and cultures. They
feature multiple economic and cultural
ECONOMIC GLOBALIZATION
CONTEMPORARY ● The process of economic globalization
has produced its actors as well. These
WORLD REVIEWER economic globalization actors became
key players in the global economy and
FIRST SEMESTER | CED-02-101A have touched on local industries of
nation-states to create an
GROUP 1 international, tradable, and not-
context-limited goods and services.
ECONOMIC GLOBALIZATION
● The spread of trade, transportation, THE GLOBAL PLAYERS
and communication systems on a ● Transnational Corporation
global scale in the interest of ➔ One of the important economic
promoting international commerce. development that involves the
changing nature of global production.
2 TYPES OF ECONOMIES ➔ The availability of cheap labor,
● Protectionism resources and favorable production
Protecting one’s economy from foreign condition in the third world country.
competition by creating trade barriers. ➔ Transnational Corporation are
● Trade liberalization believed to be the main driving force of
Reducing trade barriers to make international economic globalization.
trade easier between two countries. ● International Monetary Fund (IMF)
➔ Founded at the Bretton Woods
VARIOUS WAYS TO MAKE TRADE EASIER Conference in July 1944 alongside the
● Free Trade International Banks for Reconstruction
When countries buy and sell goods and and Development (IBRD)
services with each other without any extra ➔ The mandate of IMF was to promote
taxes or restrictions. This makes trade easier international financial cooperation and
and can lower costs. strengthen International trade.
● Trade Bloc ➔ The IMF was expected to provide
Is a group of countries that have agreed to short-term financial assistance (loans)
reduce or remove trade barriers among to countries.
themselves. Examples include the European ➔ Official organization for securing
Union (EU) and the North American Free International monetary cooperation.
Trade Agreement (NAFTA). ● The World Bank
● Outsourcing ➔ It is an international financial institution
Is when a company hires another company that provides loans and grants to
(often in a different country) to handle some of developing countries.
its tasks or services, usually to save money or ➔ Supports development projects in
get specialized skills. areas such as infrastructure,
education, and healthcare, aiming to
ACTORS THAT FACILITATE ECONOMIC reduce poverty and promote economic
GLOBALIZATION growth.
, ➔ Plays a significant role in funding systems interacting with each other
development initiatives and shaping and are often shaped by global trade
economic policies in developing and relationships.
countries.
● World Trade Organization (WTO) FOUR MODERN WORLD SYSTEM
➔ The World Trade Organization is an ● Core Countries
international organization that Wealthy, developed nations with strong
regulates international trade. economies and political influence. They often
➔ This organization sets rules and control global trade and have advanced
regulations for trade industries.
➔ between countries, aiming to promote ● Semi-Periphery Countries
free and fair trade. These are in-between countries that have
➔ The WTO plays a vital role in moderate development and are
facilitating global trade and resolving industrializing. They trade with both core and
trade disputes between nations. periphery countries.
● WTO, IMF, The World Bank ● Periphery Countries
➔ 3 institutions that underwrite the basic Less developed nations that provide raw
rules and regulations of economic, materials and labor to core countries. They
monetary, and trade relations between are often dependent on core countries for
countries. trade and investment.
➔ Many developing countries have ● External Areas
loosened their trade rules because of Countries or regions that aren’t fully
the influence and pressure of these integrated into the global economy and have
institutions. limited participation in global trade.
THE MODERN WORLD SYSTEM MARKET INTEGRATION
● According to Wallerstein (1975), the ● refers to the interconnectivity of prices
concept of "world-systems" becomes among different locations or related
relevant when we look beyond goods. It signifies that the markets are
small-scale societies, which he refers working collectively as one broader
to as "mini-systems." Mini-systems are market where prices are likely to move
characterized by their limited together and goods, services, or
economic complexity and a single, assets are substituted based on the
cohesive culture. In these societies, price change.
the economy and culture are closely
intertwined and self-contained. INTERNATIONAL
● In contrast, Wallerstein argues that FINANCIAL INSTITUTIONS (IFIS)
when we move beyond these ● Are organizations that promote global
small-scale societies, we encounter economic cooperation and stability.
what he defines as world-systems. They provide financial assistance,
World-systems are much larger and technical expertise, and policy advice
involve complex interactions between to countries around the world.
different regions and cultures. They
feature multiple economic and cultural
