The Global Economy
Summary
TLDRIn this session, Mr. Anthony A. Ramos discusses economic globalization and its impact on the global economy. He defines economic globalization as the interdependence of economies through the movement of goods, services, technologies, and wealth. Ramos highlights the benefits of globalization, including global reputation, cheaper labor costs, and increased local employment. He also addresses the disadvantages, such as political issues, capital flight, and social injustices. The instructor further explains different types of economic integration, like free trade agreements and economic unions, and their advantages and disadvantages.
Takeaways
- 🌐 Economic globalization refers to the interdependence of economies worldwide through the movement of goods, services, technologies, and wealth.
- 📈 Economic globalization can lead to a global reputation for companies, cheaper labor and operating costs, and increased local employment in countries where businesses expand.
- 🔄 The process of going global involves internationalization of products and services, which can result in various advantages such as global partnerships and opportunities.
- 📉 Economic globalization proponents argue it can lead to job creation and lower prices for goods due to increased competition and choices.
- 🌍 Politically, economic globalization is believed to encourage democracy by fostering interactions between nations with different political systems.
- 💸 Capital flight, where companies and wealth leave a country due to economic instability or the search for cheaper production, is a disadvantage of economic globalization.
- 🏭 Social injustices such as poor working conditions, low wages, and child labor are associated with economic globalization, as companies may move to countries with lower standards.
- 🚀 Technological innovation, development of transportation systems, and social-political reforms are key factors driving economic globalization.
- 🌟 Market globalization involves the reduction of trade barriers, leading to more open markets, while production globalization focuses on sourcing materials and services from different countries for cost advantages.
- 📜 Economic integration involves agreements between countries to allow the flow of capital, labor, goods, and services across borders, aiming to reduce costs for consumers and producers.
- 🔗 Types of economic integration include free trade agreements, free trade areas, customs unions, common markets, and economic unions, each with varying degrees of cooperation and sovereignty.
Q & A
What is economic globalization according to the transcript?
-Economic globalization is defined as the economic mixing and interdependence of economies across the world through an escalation of cross-cultural movement of goods, services, technologies, and wealth.
What are the advantages of economic globalization mentioned in the transcript?
-The advantages include having a global reputation, cheaper labor and operating costs, local employment opportunities, global partnerships and opportunities, and the potential to create jobs and lower prices of goods.
How does economic globalization affect political systems according to the transcript?
-Economic globalization can encourage the growth of democracy, especially in impoverished nations under dictatorships, as they begin to interact with freer countries.
What are the disadvantages of economic globalization as per the transcript?
-Disadvantages include political issues affecting business, capital flight, social injustices such as poor working conditions and child labor, and the exploitation of people for cheaper production.
What is meant by 'going global' in the context of the transcript?
-'Going global' refers to the process of internationalizing products and services to take advantage of the benefits of economic globalization.
What are the factors that facilitate economic globalization according to the transcript?
-The factors include technological innovation, development of transportation systems, and social and political reforms.
What is the difference between market globalization and production globalization as described in the transcript?
-Market globalization refers to the decline in barriers to selling in countries other than the home country, while production globalization involves sourcing materials and services from other countries to gain advantage from price differences.
What are the different types of economic integration discussed in the transcript?
-The types of economic integration discussed are free trade agreements, free trade areas, customs unions, common markets, and economic unions.
What are the advantages of economic integration as mentioned in the transcript?
-Advantages include trade benefits, employment opportunities for different nationalities, and strengthened political cooperation.
What are the disadvantages of economic integration according to the transcript?
-Disadvantages include the creation of trading blocks, trade diversion, and erosion of national sovereignty.
How does economic integration affect consumers and producers as per the transcript?
-Economic integration aims to reduce costs for both consumers and producers and to create a more free market among participating countries.
Outlines
🌐 Introduction to Economic Globalization
In the first paragraph, Mr. Anthony A. Ramos introduces the topic of economic globalization. He sets the learning objectives for the session, which include defining economic globalization, identifying factors that facilitate it, recognizing its advantages and disadvantages, and formulating a personal stance on global economic integration. Economic globalization is defined as the interdependence of economies worldwide through the movement of goods, services, technologies, and wealth across cultures. The instructor uses examples like laptops, cellphones, and ballpens to illustrate how items are sourced from different parts of the world, highlighting the concept of economic globalization. The paragraph also discusses the benefits of going global, such as gaining a global reputation, cheaper labor and operating costs, local employment opportunities, and the creation of global partnerships and opportunities.
📈 Advantages and Disadvantages of Economic Globalization
Paragraph 2 delves into the proponents' view of economic globalization, emphasizing job creation and reduced product prices due to increased choices. It also touches on the political impact, suggesting that globalization can foster democracy by encouraging free markets. However, the paragraph shifts to discuss the disadvantages as seen by the opponents of globalization. These include political issues affecting business, such as instability, crime rates, and war, which can deter investment. The concept of 'capital flight' is introduced, where economic instability or the pursuit of cheaper production leads to the departure of companies, assets, and wealth from a country. Additionally, social injustices like poor working conditions, low wages, and child labor are cited as negative outcomes of economic globalization.
🚀 Factors Driving Globalization and Its Effects
The third paragraph identifies the factors that drive globalization, such as technological innovation, development of transportation systems, and social and political reforms. It explains how these factors have contributed to the decline of trade barriers and the rise of market globalization. The paragraph then describes the modern world system, which includes market globalization characterized by the reduction of trade barriers and production globalization, where materials and services are sourced from different countries to take advantage of price differences. The effects of globalization include distributed operations, reduced labor and production costs, changes in location to reduce costs and take advantage of free trade zones, and increasing complexity in business management.
🌉 Types of Economic Integration and Their Impact
Paragraph 4 discusses economic integration, starting with a definition that involves agreements between countries to allow the flow of capital, labor, goods, and services across borders. It outlines the types of economic integration: free trade agreements, free trade areas, customs unions, common markets, and economic unions. The paragraph explains that these forms of integration aim to reduce costs for consumers and producers and to create a freer market. Advantages of economic integration include trade benefits, employment opportunities, and strengthened political cooperation. Disadvantages include the creation of trading blocks that may limit interaction to a smaller group and the erosion of national sovereignty as countries must align their decisions with the integration agreements.
Mindmap
Keywords
💡Economic Globalization
💡Cross-cultural Movement
💡Internationalization
💡Global Reputation
💡Cheaper Labor Cost
💡Local Employment
💡Global Partnerships
💡Economic Integration
💡Free Trade Agreement
💡Capital Flight
💡Social Injustices
Highlights
Definition of economic globalization as the interdependence of economies worldwide through the movement of goods, services, technologies, and wealth.
Observation that items in our daily lives often come from different parts of the world due to economic globalization.
The concept that economic globalization leads to the internal and internationalization of products and services.
Advantages of going global include establishing a global reputation, as exemplified by multinational companies like McDonald's.
Economic benefits of globalization such as cheaper labor, operating, and supply costs.
Globalization leads to local employment opportunities in countries where multinational companies establish operations.
Global partnerships and opportunities arise as companies expand their reach across different nations.
Proponents argue that economic globalization can create jobs and lower the prices of goods.
Political impact of globalization includes the potential to encourage democracy in interacting nations.
Disadvantages of economic globalization include political issues, crime rates, and financial instability in certain countries.
Capital flight is identified as a significant cost of economic globalization, where companies move assets from countries due to instability or cheaper production opportunities.
Social injustices such as poor working conditions and low wages are highlighted as a consequence of economic globalization.
The role of technological innovation, transportation systems, and social-political reforms in driving globalization.
Market globalization is characterized by the decline in barriers to selling in countries other than the home country.
Production globalization involves sourcing materials and services from other countries to take advantage of price differences.
Primary effects of globalization include distributed operations, reduced labor and production costs, and changes in company locations.
Economic integration involves agreements between countries to allow the flow of capital, labor, goods, and services across borders.
Types of economic integration include free trade agreements, free trade areas, customs unions, common markets, and economic unions.
Advantages of economic integration include trade benefits, employment opportunities, and strengthened political cooperation.
Disadvantages of economic integration such as the creation of trading blocks and the erosion of national sovereignty.
Transcripts
Hello everyone this your instructor Mr
Anthony a Ramos and for this session We
will be talking about the global
economy so for our learning objectives
for this session After this session you
must be able first to define the
economic globalization second you must
be able to identify and explain the
factors that facilitate economic
globalization third the modern world
system recognize the advantages and
disadvantages of economic integration
and of course must be able to formulate
a personal stance about global economic
integration so we will be Beginning this
session with the concept that we are
about to talk about so of course if
we're talking about global economy
Syempre no iung economic globalization
is one of the concepts that will be
tackled so first let's Define what is an
economic globalization so according to
jos in 2009 economic globalization is
the economic mixing and interdependence
of economies across the world through an
escalation of cross cultural movement of
goods services technologies and wealth
And that's the reason kung bakit
mapapansin natin Ano yung iba't sa ating
bahay sa ating mga sa ating mga
pinupuntahang mga lugar mapapansin natin
na yung mga bagay na nandoon si for
example yung sa eskwelahan yung inyong
ah inyong laptop ang inyong cellphone
ballpens even yung notebook mapapansin
ninyo that they are come from different
part of parts of the world no so
maaaaring ito ay matatagpuan or nagawa
sa China maaring tagpuan sa Japan or
maaring nagmula sa United States of
America It's Simply because we are under
with what we call as the economic
globalization so again that's AC cross
cultural movements of different things
that includes goods Services na meron po
tayo Nono and of course since they are
being transferred from one place into
another this kind of things this goods
this services this technologies and even
weth they are being termed as the
world's money Simply because this goods
Syempre no yung mga produkto na meron
tayo meron silang katumbas na halaga and
that is a economic globalization Okay so
if we are Actually to pursue economic
globalization what we want to do is of
course have an
internal internationalization of our
products and Our services So what are
the of going global so the pros or the
positive effects of going global are the
following of course it will have a
global reputation so there are a lot of
companies most especially iyung mga
multinational companies na kung saan
Iyung fast food no say for example Iyung
McDonald's and even yyung Burger King
mapapansin niyo that they have the
global reputation na masarap talaga siya
regardless Kung nasang bansa ka pag
sinabi niyo agad ng McDonald's no since
it has been internationalized alam alam
natin na Mayon itong reputation na
masarap talaga yung kanilang mga pagkain
Of course it will be one of the
advantages of going global Second Of
course all of our investors most
especially mga may-ari ng kumpanya ang
gusto nilang mangyari ay magkaroon ng
less na binabayaran Pero mas malaki ang
kanilang kita That's the reason kung
bakit some of the advantages of going
global is the cheaper labor cost cheaper
operating cost and of course the cheaper
supply cost no so mapapansin natin dito
that if we're if we're planning to Go
Global mapapansin ninyo na ung operating
cost and other cost which Uh which is
related doon sa ating ano no doon sa
ating sa ating negosyo ay mas mababa
compared po kapag ito ay nakadestino sa
isa lamang na lugar and of course if you
will be investing sa ibang bansa or
ibang lugar it will cause local
employment for the nationals doon sa
bansang iyon so Syempre Kung ikaw ay
magtatayo halimbawa ng isang fast food
chain Sino ba ang yung iha-hire of
course yung mga tao doun sa lugar na
iyon example dito sa Pilipinas yung
McDonald's yung mga empleyado Syempre ng
McDonald's Philippines are filipinos and
that is one good example and proof kung
bakit masabi natin that there will be
local employment as you go global of
course There Will Be A lot of global
partnerships and
opportunities since we are going global
at Syempre mapapansin natin that all of
those companies which intends na mag sa
iba't ibang mga bansa ay maaaring
makipagpatintero
it will create much opportunities for
for companies sa iba't ibang mga lugar
na magpartners okay and of course if you
will be establishing a business hindi
lamang sa isang lugar kundi sa maraming
lugar it will create back up income in
terms of jobs and pricing the proponents
for ung mga tagapagtaguyod ng expansion
ng economic globalization will tell you
that it will create jobs and of course
it will lower the prices of the goods so
that Sabi nga nila no if if you will go
with economic globalization Mas marami
kang pagpipilian at dahil nga mas malaki
mas maraming pagpipilian mas mapapababa
ung ating prices of course Syempre
kagaya ng binanggit natin kanina if you
will also be if if There Will Be An
investment coming from external people
no Galing sa mga iba't ibang mga bansa
it will create jobs for the nationals
Okay of course in terms of political
impact naman on the other hand sabi
diyan St rather ethnocentric many in the
West argue that economic globalization
will encourage the growth of democracy
as impoverish Nations especially those
under dictatorships begin to interact
with the freer US of course if you are
dealing with globalization Ano bang
gusto natin ' ba Syempre magkaroon kayo
or magkaroon tayo ng mga produkto na
galing sa iba't ibang bansa at magkaroon
ng malayang kalakalan and with that it
will encourage the growth of democracy
in a sense na mabibigyan pagkakataon
yung mga tao na mamili kung ano ba ang
gusto nilang produkto or serbisyo na
i-take so that is the political impact
of course of economic globalization
according to the proponents if we have
the advantages We also have the
disadvantages so The following are the
Uh the disadvantages as mentioned by the
opponents of economic globalization
Syempre no una diyan ay yung political
issues Kung ikaw ay ikaw ay mag-i-invest
sa isang bansa and ito ay apektado ng
political issues such as nagkakagulo
halimbawa ang sistema ng gobyerno dahil
sa nagtatagis sa mga partido Syempre
maapektuhan ang iyong negosyo yung crime
rate and war in some countries na kung
saan magulo of course hindi mapa-prito
yung negosyo doon Mas gugustuhin mo ba
na mag-invest sa mga bansa na merong
merong gulo Syempre kung sakali
nakapag-internet
ang mga gusto mo at ikaw ay nataon sa
mas conservative na mga bansa sa tingin
mo ah kikita ba ang iyong negosyo or
serbisyo most likely hindi and of course
hindi mo gugustuhin na magkaroon ng
financial instability sa bansang iyong
pag-iinvest kasi Otherwise of course
kasama ang iyong negosyo sa babagsak
kung sakali m mangyari yo So one of the
reasons kung bakit merong mga taong umag
sa Economic globalization is what we
call as the capital flight so according
to ermes et al n 2003 opponents argued
that economic globalization has cost
capital flight So what is capital flight
so capital flight Everyone is the large
scale departure of companies assets and
weth from a country due to economic
instability or the opportunity for
cheaper production ito rin yyung reason
kung bakit kung mapapansin din ninyo non
kung kayo ang tatanungin i'm quite sure
that most of you na mga nag-aaral as at
the moment will tell me na mas gust sir
mas gusto kong mang ibang bansa bakit
Kasi yan yung sinabi sa atin ng economic
globalization Kung tutuusin and ah that
the opponents of economic globalization
is pointing this one out as well no na
kapag meron halimbawang mga kung meron k
economic globalization mapapansin nyo na
hindi napapakinabangan ng isang bansa
ang kanilang mga tao bakit mas gusto
kasi nilang umalis sa mga bansa na
mahihirap or mas mababang sahod para
makakuha ng mas mataas na sahod no so
sabi rin diyan if truth be told economic
globalization has indeed allowed for
social injustices such as poor working
conditions wages that are scandal low
and even the exploitation of children in
the form of force labor Kaya nga ' ba
kagaya ng binabanggit ko kanina Instead
na manirahan or ano no mag-stay ang mga
tao rito sa Pilipinas kagaya ninyo Mas
gugustuhin niyo Syempre na magkaroon ng
mas mataas na sahod And that's the
reason kung bakit gusto niyong umalis ng
bansa and with that being said yyung
social injustices na binabanggit natin
ay nangyayari Bakit nga ba kayo aalis
hindi ko rin lang kayo nasisisi because
of the Poor working condition at hindi
pare-pareho yung ating nararanasan sa
mga bansa dito sa Pilipinas halimbawa na
lamang lalong-lalo ung mga nagtatrabaho
sa fast food chains ' So kung tutuusin
ang kanilang sahod ay nasa minimum no
kahit na nag kahit na nagtatrabaho sila
ng ah 8 hours or kahit mga 9 hour sa
isang araw pero kung i-compare mo
halimbawa sa mga nagtatrabaho sa fast
food sa ibang bansa Maliit ang Php500 or
Php600 sa kanasi ng sahod ang Ilan nga
Hindi ba kung mapapansin ninyo dun sa
may hst ng sa may New York ang kanilang
per hour na na sweldo ay $10 Sobrang
layo Kung tutuusin no kung dito sa
Pilipinas kung ikukumpara mo yung
kanilang sahod doun sa ibang bansa eh
paano pa yung working condition Syempre
kung kasama diyan yung yung ating mga
benefits na na nakukuha dito sa
Pilipinas versus doon sa ibang bansa
Okay So bakit nga ba nangyayari muna ang
globalization so tatlo yung may
kadahilanan niyan of course yung patuloy
na pag-unlad ng ating mga teknolohiya no
or yung tinatawag natin na technological
innovation from time to time inevitable
na yung pagbabago ng ating technologies
at yan is sa drivers ng globalization
second the development of transportation
systems will also yield pve away para sa
atin para makapunta at even yung mga
products natin sa mga iba't ibang lugar
kung kaya't nagiging driver ito ng
globalization and of course ung social
and political reform ay isa siyang
factor kasi yung mga dating mga diktador
ng mga bansa or diktador ang mga bansa
ay nag nagiging liberal na kung saan ang
kanilang priority ay hindi yung gusto
lang ng kanilang leader kundi yung
priority ng mga tao Okay so if you are
to characterize on the other hand yyung
modern world system natin meron tayong
dalawa na si Una diyan ay natawag natin
na market globalization In which we are
pertaining to the decline in the buyers
to selling in countries other than the
home country kasi nung mga sinaunang
panahon pinoprotektahan kasi ng mga home
countries yung kanilang mga produkto in
a manner na kung saan nag lagyan sila ng
trade barrier para nga naman hindi
i-prioritize ng kanilang mamimili yung
mga imported goods instead Syempre kung
meron kang barus barus diyan kagaya
halimbawa ng pagtataas ng presyo doon sa
sa mga produkto ng ibang bansa mas
pipiliin mo Yung mas ano no yung mas
mura so yan yung nasa local however kaya
binanggit ko kanina in the modern world
system We also we already have market
globalization na kung saan tinatanggal
na halos yung mga trade barriers na
binabanggit natin kanina and of course
we have the production globalization in
which the sourcing of materials and
services from other countries to Gain
advantage from price differences in
different Nations so simply put if we're
talking about production globalization
you are getting the best possible
quality but with the best possible price
ibig sabihin niyan mas maganda pero mas
mura so example nian sa paggawa
halimbawa ng sasakyan ano hindi mo
kukunin yung parte halimbawa ng gulong
at ng ano no ng bumper ng magkapareho
kung sakali meron silang pinagkaiba sa
sa presyo for example kung mas mababa
ang presyo Pero mas maganda halimbawa
ang gulong sa Germany bumili ka sa
Germany kung mas mamura halimbawa ang
presyo Pero mas maganda halimbawa ang
manibela halimbawa sa may Pilipinas kuha
ka sa Pilipinas hanggang mabuo mo yung
produkto that is production
globalization Again I'm pointing out
that you will be getting the best
possible quality with the best possible
price that is your modern world system
as i mentioned earlier since we're
dealing with the globalization this are
the primary effects of it so of course
if you will be internationalizing your
business or your products There Will Be
distributed operations wherein yyung
companies po natin may be able to be
located doon sa mga iba't ibang mga
lugar at mga bansa it will also further
cause Iyung reduce labor or production
cost and of course Iyung reduce
distribution cost because Again the main
goal of globalization even
internationalizing your business is mas
mababa yung binabayaran ng ating mga
negosyante
second there will also be changes in
location wherein the companies may
locate their firms in New places both to
reduce Labor and production cost and of
course to Take advantage of free trade
zones para makamura sila ng kanila pong
binabayaran so that is your changes in
loc and of course Increasing complexity
of course if you're expanding your
business if you're business is say for
example lumalaki siya no mapapansin nyo
na nagiging Komplikado rin yung mga
bagay-bagay kasi mas marami kayong
kinakausap in your management so with
that being said Again the primary
effects of globalization are again
that's distributing operations changes
in location and of course Increasing
complexity so now balikan natin economic
integration so according to 12s in 1994
it involves agreements between countries
to permit to buy degrees the flow of
capital the labor the goods and even the
services across the respective
international borders ito ung dahilan
kung bakit uulitin ko umaabot sa atin
ung mga produkto ng isang bansa Papunta
pa sa mga iba't ibang mga bansa because
Again the aim of economic integration is
to reduce the cost for both consumers
and producers at magkaroon ng mas
malayang kalakalan yung mga iba't ibang
mga bansa gamit yung mga agreement na
meron po tayo again if we're dealing
with economic integration the focus will
be the consumers and even The Producers
Okay so now since we we were to tackle
about economic integration there are
different types of integration here so
the first one will be the free trade
agreement So it has been defined as the
agreements entered into between
countries regarding specific trade
issues so it's whether reduction or
tarif again when you say tarif or tarifa
in Tagalog This is your type of tax na
kung saan inilalapat mo sa mga imported
and exported goods and services so pera
ang pinag-uusapan natin in tar on the
other hand if we're dealing with cotas
This is non tarif or hindi naman ito
pera no ang ginagawa po natin dito si
for example kung Nagbebenta ka ng itlog
kung tarif yan lalagyan mo or papatawa
mo ng tax or mas mas mabigat na ano na
na presyo pero if you dealing with cota
you will have to limit the number of
imports ag sinabing 100,000 lang ang
pwede mong ibenta hanggang 100,000 lang
Okay the free trade agreement will enter
or an agreement Again in which merong
specific qui trade issue Ano ba ito
issue ba to halimbawa ng tarif or issue
ba to halimbawa ng kota that is your
free trade agreement free trade area on
the other hand eliminates barriers to
trade among the members such as tariffs
and quota so in a specific orung
pinagkasunduan halimbawa nila na lugar
kung saan mawawalan halimbawa ng tarif
at saka kota dalawa po yun hindi nila
kailangang mamili no Wala rito yung Wal
wala silang Wala talagang tarif or kota
malaya free trade area nga e so sa
example pag sinabi limbawan ang Metro
Manila free trade area wala pong taripa
at wala pong kota doon sa lugar na iyon
okay so next will be customs Union these
are being formed by countries that not
only eliminate trade barriers between
the members but they have Ito po yyung
pinaka-unique noo unified trade policy
with countries outside of the union so
just take note of the word unified trade
policy Okay the common market has all of
the characteristics ng customs Union na
binanggit natin kanina however kasama na
rito ung Ah yung elimination ng barriers
natin So that magkaroon po ng malayang
pag-move yung ating capital Labor and
even yyung technology po natin okay and
yung last ay yung tinatawag natin na
economic Union which require yung mga
member po natin mga member states na
mag-give up ng significant amount of
their independent Sovereignty kung
kaya't naaapektuhan yung kanilang mga
desisyon so that's economic union so
again if we're dealing with econ Union
Meron pong significant amount ng
kanilang independent Sovereignty or
pagkamalay may decide on their own na
naapektuhan yung kanila pong pagdesisyon
so hinahayaan po nila ito once that they
will be entering the economic unit so
Again the types of integration are free
trade agreements free trade area customs
Union common market and the economic
union
so since we were able already to discuss
the the types of economic integration
the following are the advantages of it
so of course There Will Be trade
benefits Hindi mo na kailangang Hindi mo
na kailangang malimitahan kag halimbawa
Nagkaroon ka ng economic integration mas
malaya mo ng maipo-post ang iyong
produkto at ang iyong serbisyo it will
further cause employment for for
different people ng mga nationalities or
mga mga Nations na magiging part ng
economic integration and of course the
political cooperation will also Be ano
po no will also be strengthen kasi nga
Sino bang mas sinasamahan ng mga bansa
Ito ung mga bansa halimbawa na meron po
silang napapakinabangan
economically so those are your
advantages of economic integration on
the other hand the disadvantages of
economic integration are the following
the creation of Trading blocks So kung
saan sila-sila na lamang yung nag-uusap
of course no so Instead na
makipagkalakalan sa mas malaking lugar
mas pinipili na lang na lamang nila na
magkaroon ng ah ng Trading block no sa
kanila kanila poong yung mga reo trade
diversion nangyayari siya Instead na
Meron siyang kausap before no mdt doun
sa kanilang mga Trading blocks and of
course the erosion of National
Sovereignty may also be noticed dito sa
atin pong ano no economic
integration and this will be the end of
our discussion about global economy let
me just give the opportunity to thank
everyone for attending our session and I
hope to see you all on our succeeding
one again this is your professor Mr anon
Ramos see you
oning
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