Global Economy
Summary
TLDRThe transcript discusses the dominance of the US dollar in international trade and the challenges it faces from emerging economies like the BRICS nations. It touches on historical currency shifts, the importance of a stable currency backed by tangible reserves, and the potential collapse due to overproduction. The speaker also addresses the impact of globalization on the environment, food security, and intellectual property, highlighting the need for sustainable practices and fair trade policies to ensure economic growth without environmental degradation.
Takeaways
- 🌐 The script discusses the dominance of the U.S. dollar in international transactions and the historical shift from other currencies like the Euro.
- 📉 It highlights the challenges to the U.S. dollar's supremacy, including the BRICS countries' potential move towards using gold as a standard of currency.
- 💡 The importance of practicality in currency use is underscored, with the dollar's current prevalence due to its widespread acceptance in global trade, especially for commodities like oil.
- 📈 The script mentions a potential economic collapse due to the overproduction of currency without a corresponding increase in value or goods, referencing historical examples like the Weimar Republic's hyperinflation.
- 💼 The role of the World Trade Organization (WTO) in protecting intellectual property rights and the strategic non-participation of China in the WTO to avoid such constraints is noted.
- 🌾 The impact of economic globalization on food security and environmental degradation is explored, with concerns about genetically modified organisms (GMOs) and their long-term effects.
- 🌳 The script raises the issue of environmental sustainability, questioning the irreversible effects of GMOs on the environment and human health.
- 🛑 It points out the problem of food hoarding by businesses to create artificial shortages and inflate prices, which can lead to social and economic instability.
- 🚫 The negative impact of importing on domestic industries is highlighted, suggesting that countries should prioritize local production to support their economies.
- 📊 The discussion on global income inequality and the stratification of the global economy is touched upon, with a focus on the challenges faced by developing countries like the Philippines.
- 🌍 The script concludes with a reflection on the need for a balanced approach to globalization, considering both economic growth and social equity.
Q & A
What is the current dominant international currency mentioned in the script?
-The current dominant international currency mentioned is the U.S. dollar.
What was the international currency before the U.S. dollar according to the script?
-Before the U.S. dollar, the script suggests that the Euro was the international currency.
Why is the U.S. dollar used for transactions like buying crude oil?
-The U.S. dollar is used for transactions like buying crude oil because it is practical and has been established as the standard for international trade.
What is the challenge to the U.S. dollar's dominance mentioned in the script?
-The challenge to the U.S. dollar's dominance is the declining demand for the dollar and the rise of alternative currencies, possibly gold, as proposed by countries known as the BRICS.
What are the BRICS countries and what do they represent in the script?
-The BRICS countries are Brazil, Russia, India, China, and South Africa. They represent a significant portion of the world economy and are challenging the use of the U.S. dollar in international trade.
What historical currency was used during the Spanish colonization period according to the script?
-During the Spanish colonization period, the script mentions that the peso was the currency used by the colonizers and in the countries they colonized.
How does the script describe the economic impact of the United States' influence on the world?
-The script describes the economic impact of the United States' influence by stating that the U.S. controls the world through transactions, particularly in the sale of crude oil which must be transacted in dollars.
What is the concern about the continuous printing of U.S. dollars without a corresponding value?
-The concern is that the continuous printing of U.S. dollars without a corresponding value could lead to a collapse in the currency's value and potentially devalue the money without a reserve or basis for its value.
What is the role of the World Trade Organization (WTO) in protecting intellectual property according to the script?
-According to the script, the WTO plays a role in protecting intellectual property by ensuring that if a country is a member, its registered products are recognized and protected in all member countries, allowing for legal action against imitators.
Why did the script mention the issue with genetically modified organisms (GMOs) in the Philippines?
-The script mentions the issue with GMOs in the Philippines to highlight the potential environmental and health risks associated with such modifications, especially when the long-term effects are not fully understood.
How does the script address the issue of food security and environmental degradation in the Philippines?
-The script addresses food security and environmental degradation by discussing the impact of GMOs, the potential for monopolistic practices in food distribution, and the importance of sustainable agricultural practices that do not compromise the environment.
Outlines
🌐 Dominance of the US Dollar in Global Economy
This paragraph discusses the dominance of the US dollar in the international monetary system and how it has become the practical choice for global transactions, particularly in the purchase of crude oil and other commodities. It highlights the challenges to the dollar's supremacy, including the rise of the BRICS nations (Brazil, Russia, India, China, and South Africa), which propose alternatives like gold. The paragraph also delves into historical currency shifts, from the Spanish peso during colonial times to the Euro and the current US dollar, influenced by political and economic power dynamics. It touches on the potential for economic collapse due to excessive money printing without corresponding value in goods and services, and the importance of a stable currency for economic health.
💡 The Role of Currency in Global Trade and Economic Alliances
The second paragraph explores the necessity of currency in modern trade, arguing against the practicality of barter systems due to the perishable nature of commodities. It emphasizes the US dollar's role as an international currency, facilitating exchanges between countries. The paragraph also discusses the challenges posed by countries like those in the BRICS group, which make up a significant portion of the global economy and propose the use of gold as an alternative to the dollar. The geopolitical implications of energy dependency are highlighted, using Russia's oil supply to Europe as an example. The paragraph concludes by mentioning economic alliances like NATO and ASEAN, formed for mutual protection and commerce, and the importance of understanding economic globalization and global trade.
🚀 China's Strategic Approach to Global Trade and Intellectual Property
This paragraph examines China's strategic approach to global trade, particularly its decision not to join the World Trade Organization, which allows it to avoid strict intellectual property regulations. It discusses the implications of this choice for the protection of inventions and trademarks, suggesting that China's non-participation makes it difficult to hold the country accountable for imitations or infringements. The paragraph also touches on the broader themes of economic globalization and sustainable development, hinting at the need for a careful balance between innovation, environmental protection, and global economic participation.
🌱 Environmental Impact of GMOs and Food Security Concerns
The fourth paragraph addresses the environmental and health concerns surrounding genetically modified organisms (GMOs), using the example of a genetically modified eggplant in the Philippines. It raises questions about the long-term sustainability and safety of GMOs, noting that scientists were unable to conclusively prove their safety. The paragraph also discusses the broader issues of environmental degradation and food security, suggesting that the overproduction and monopolization of food by certain businesses can lead to artificial scarcity and inflated prices. It calls for government intervention to prevent hoarding and ensure a stable food supply.
📉 Economic Manipulation and the Impact on Local Farmers
This paragraph delves into the manipulation of markets by businesses and government entities, which can lead to artificial shortages and inflated prices. It discusses the practice of hoarding commodities like sugar to create a false sense of scarcity and drive up prices, which can be particularly damaging to local farmers who struggle to compete with lower-priced imports. The paragraph highlights the need for government action to prevent such practices and protect local industries, suggesting that a focus on exports over imports is crucial for a country's economic growth.
🌍 Economic Globalization, Poverty, and Inequality
The final paragraph sets the stage for a discussion on economic globalization, poverty, and inequality. It invites reflection on the Philippines' position in the global economy and the potential for the country to rise to middle-income status. The paragraph introduces the concept of global stratification and encourages an analysis of how economic theories apply to the real-world dynamics of wealth distribution and development. It also poses a question about the feasibility of continuous economic improvement in the context of global economic pressures.
Mindmap
Keywords
💡International Currency
💡Pre-colonial
💡Monetary Policy
💡BRICS
💡Economic Globalization
💡Genetically Modified Organisms (GMOs)
💡Environmental Degradation
💡Food Security
💡Intellectual Property
💡Trade Imbalance
💡Hoarding
Highlights
The origin of the dollar's dominance in international currency is tied to the country that governs the world economy.
Before the U.S. dollar, the Euro was the primary international currency.
The demand for the U.S. dollar increases due to its practicality in global transactions, especially for commodities like crude oil.
There is a current challenge to the U.S. dollar's dominance by countries known as BRICS, proposing alternatives like gold.
Colonizers historically influenced the type of currency used in colonized countries, such as the Spanish peso.
The British Empire's influence led to the Euro being used as an international currency for Europe.
The U.S. dollar's control over global economy is exemplified by contracts requiring oil sales in dollars.
The value of currency may not reflect its worth due to excessive printing without corresponding value.
The Philippine peso is used for local transactions, but international trade requires currency conversion.
Economic history shows that currency value can collapse due to overproduction without underlying value.
Barter systems are impractical in modern economies due to the need for a lasting, universally accepted medium of exchange.
China's non-participation in the World Trade Organization allows them to avoid international intellectual property regulations.
Genetically modified organisms (GMOs) like Bt eggplant have raised concerns about long-term environmental and health effects.
The potential negative impacts of GMOs have led to their discontinuation if irreversible effects on the environment or human health are suspected.
Food security and production can be manipulated by monopolistic practices, creating artificial shortages and inflating prices.
Government intervention is necessary to prevent hoarding and ensure fair market practices in times of food crisis.
Economic globalization has led to discussions on global income inequality and the stratification of the global economy.
The Philippines' economic status as part of the global South is examined within the context of global economic theories.
Transcripts
okay it's it's a reality right now if
You observe that there is really a
challenge to to
tell you the origin of this dollar
actually it depends on what country uh
governs the world if you notice during
the pre-colonial
um the monetary International currency
was different only now that it was U.S
a dollar that dominates the
international currency but before it's
actually Euro okay that depends on which
country is most
um practical
so since retina is practical to use
dollar renew when we and deal with other
countries like buying crude oil and all
other products it must be converted into
dollar that's why right now there is a
shoot up
okay or the increase of there's a spike
of the demand for dollar but some
economy says that it may not be good
because they keep on producing Gala
without any basis
okay just that at this time it's U.S
that controlled the world okay
um they
dominated all transactions so it is very
practical right now to use dollar but
lately there's a challenge okay there
was a declining the demand for dollar
more so that there are
um five countries okay known as the
bricks that challenges this economic
um demand for the use of dollar okay so
the challenge it by probably using gold
which is now the standard of
um currency
okay and it may be you want because the
Demand right now is to buy purchase or
purchase these Chinese products so
this is actually a challenge as to what
um denomination that they're going to
use but if you trace back history the
world economy is governed by the
colonizers in Spanish period all of the
countries that were colonized
that they colonize uh use peso okay
Ola currency that was used by the
Spaniards and all of the country that
they colonized also use the same
currency
so almost all of the world at the time
use that currency but because of that
um
lately they were replaced by their
colonizers like the Britain also
dominates the world it was Europe okay
uh Euro for Europe okay as a
international aspect as their currency
okay but right now we know of the
influence of U.S so it's the dollar
so we control the economy by entering
into a contract with
with Saudi Arabia that when you transact
business
um that that crude oil must be sold in
the dollar since all of us also purchase
dollar purchase purchase oil okay for
our economy then we have to convert our
peso to dollar so the exchange rate
which is
now a great demand at present okay after
the pandemic
makes that currency strong or meaning
it's in demand but it's the value that
it is worth May no longer be the same as
before so in fact there may be a
possibility of a collapse why because
they keep on printing without
um
knowing first how much
um how much is the value of it because
when you make money
there must be a reserve or something
that can be a value
okay so in other words when we uh use
dollar it's more of an international
currency but it's just like in the
Philippines that we have peso as a
motivation for all Commodities in the
Philippines okay but we're gonna just
simply print it otherwise it's just a
mere people without any value okay so
when we exchange that to other currency
it may not be that valuable anymore
that's why decentral Bank of the
Philippines also limits it okay there
was a time in history when
um I think it was in Germany where when
you when they purchased one one bread
it's worth almost thousands of
of their currency why because it really
devaluates because they do not have
products that can be in exchange of the
money
okay so they have to produce first in
order they must have to increase first
their GDP so that there the money has an
equal value because they keep on
reproducing money because it's the
control of the government without the
products or services that they render or
they produce then it may be of a less
value
okay
so
well can we not also how can we
how about if we will not use money
in all our transactions well it's very
it's not practical anymore why because
we need you can just simply Bart there
okay let's say you have a
equal amount I need your cow and you
need my face all the tourists to barter
we're gonna do that anymore because you
know this Commodities has a these are
perishable
so to make it
um lasting then we have to convert our
our products into money which can last
okay for a long time
so that is the the nature of our economy
so in in
the world
okay we have dollar so if we have peso
in all in our country the world also you
use an international currency to to
exchange other products that are found
in other countries so right now we use
dollar
okay there are challenges
um from other countries
they propose a better probably
International currency like the use of
gold okay so these are the countries
known as the brics and Brazil Russia
um India
um China and South Africa
okay so do you want to challenge and
these are actually big groups and they
constitute probably 40 of the world
economy so although there are only few
of that but they contributed much in the
exchange of
of
International currency because these are
very active in
in the
in Commerce like Russia sells all their
all their oil to European countries and
you know when winter comes probably
people there will die okay because
there's no electricity there's no
there's no
um
fuel which will be used to
to
warm their body during winter season
okay so it's coming already but you know
people are people are are paying higher
um
higher fees for for the purchase of this
crude oil
now
exactly that is what the president of
United States that Europe should have
their own alternative okay so they
depend much on the supply of Russia
which actually resulted for this
um unfortunate event in our history
because Putin sees that this Europe will
probably bow to him because they depend
their economy on the Russian
um supply of gas okay imagine all Europe
all parts of Europe including Germany
which is their former enemy during the
time of Hitler also depend
entirely from Russian oil okay so that's
how Putin okay you know him already
controls the world in terms of supplying
the crude oil in Philippines we also
purchase their crude oil okay although
there was a sanction from the United
States because they might use this money
they might use this money for the
purchase of the crude oil at the project
that could oil for the
manufacturing of the
armaments to
or missiles for
to to
continue his
illegal acts of invasion okay so that's
how the global economy right now works
so other countries also groups
themselves for Mutual
um protection and commerce NATO group
themselves for Mutual defense and
protection other countries like in Asia
we have asean and basically it's all for
economic purposes it was created for
economic purposes
now one we have is to generate insights
on economic globalization and global
trade okay
um how about this global trade I want to
tell you okay I keep on repeating this
one that other countries are also wise
China is very wise why because
um although they
they're part of the permanent member of
the United Nations there is one group
that they do not
um become a member of the World Trade
Organization okay uh these are groups of
uh countries which
um because of in practicality of
registering all the inventions you have
in other countries to be for it to be
recognized and you can claim therefore
the
the right economic rights if somebody
would imitate your product all they have
to do is to become a member of the of
the World Trade Organization
he says that if your products is or if
your country is a member of that the
protection not only is in in the
Philippines but also to all countries
that grant that are members of the World
Trade Organization
so in other words if you invented
something let's say invented or
um you had a product okay trademark
like um
uh Levi's granting it's in made in the
Philippines you don't have to go to
other country and register it for it to
be have to be protected and therefore
somebody would imitate your product you
can claim for damages
okay
so as long as you're a member of the
World Trade Organization if you register
your products in the country where you
are all of the countries who are members
of the World Trade Organization also
recognize that registration
okay so what what happened is that China
did not participate
which is why if they imitate the
products of other country it's difficult
for the inventor
okay
or trademark owner
to sue China why because they are not a
member okay they are not bound by The
Invention okay they can just simply
copied it okay so probably You observe
most of the products right now are
made
are made in China
okay and
you will know it because the it's not
registered okay if it's purely
if it is genuinely in
I think continue I mean
there must be a word r it means it's
registered
okay so at the top of the
trademark or trade name there is a word
r it means it is registered
okay
so I don't know if You observe that but
basically this is common to all other
inventions that they put there are it
means it is registered in the Bureau of
buttons under the intellect um
intellectual property
okay what do you mean by this
intellectual property if you have
invention it is your own
um it is your own effort that you come
up with a useful
a tool for the solution of human
problems
if that if anybody will just copy it
that may be unfair on your part so to to
encourage you to do more and to invent
which actually in other countries they
are more into it they give incentives to
those inventors
you you will be protected okay all I
have to do is to register it
in the Bureau of buttons to prove that
it issue so anybody would copy or any
similar or
um
imitation
or similar or seemingly similar to
to the origin
you can claim for damages otherwise
it will defeat
the the oh it will
put a stop to those who have uninvented
mind
okay
to increase that you will be protected
and if there somebody would claim or
would imitate your product you can claim
for damages
so if there is a loose on your
income because somebody copied or
imitated your company
then you can be awarded with the amount
of the of the loss you have
provided also you have to present the
proof of damage as like a decrease of
the sale of your products
Okay so
and another damage is like moral damages
or
um put a punishment to those who simply
copied it will be awarded to
you're a real owner now elaborate
further the concepts of economic
globalization and sustainable
development focusing on environmental
degradation
can food Security in the Philippines now
there are many inventions in the
Philippines okay as I've mentioned
okay but it should be more inclined to
Environmental Protection One
case I've read about Environmental
Protection is an invention I don't know
if you are aware of that baby alone okay
it's bbha I'm genetically modified
organisms GMOs
okay the modified
the gene of this plant and to make it
more for the more
um productive
as a result the fruit of that
um of that plant becomes enormously big
compared to an ordinary implant without
that genetical modification
okay
and also my ease okay corn was
also started to make it more productive
which resulted to a bigger
um fruit or bigger
type
of corn so that was effective but
there's another
uh invention or
um discovery about the use of this
and genetically modified organism
they experimented this
um Talon or eggplant which resulted to
the
to the
production of a bigger type bigger type
of eggplant but the question is whether
or not
it is sustainable or are are they really
sure it was us in court if they are
really sure that there is no
environmental effect to human beings
okay
so the result was that they are not so
sure they are not so sure as to each
effect
so because they are not so sure of its
effect to human body
and when it will really affect it's no
longer reversible
then it was not continued
okay that's the only problem here we
actually invented a bigger type of along
it's a genetically modified but the in
the scientists failed to prove
themselves
a simple question
okay weather
that invention would have an
environmental effect
so since they were not so sure of the
answer it was not continued
why because we cannot just simply agree
on something and we cannot
um we cannot
um
solved anymore that it's resolved it
happened many times okay in our place we
had before a
um
a golden cohort was that a problem okay
we do not have good in call but one of
the one of the
a resident there what
put that at us he said he got it from
somewhere else somewhere from bisca it
is known for their agriculture he
brought
that golden called to his house with it
with
it with Kang Kong but during the flood
this
um
this one overflows and eventually goes
into the rice field
okay so at first they do not eat
um
rice
okay
rice talks but later on because of
survival there's no food around
all I have to do is to adapt to the
environment
so how did they adapt they eat what they
cut what this what they see
so since we are in the rice paddies so
what
um that the only food you can see are
the rice so it becomes a pest already
Okay so until right now you know it
cannot be can't be stopped anymore
so that's the effect
so we have to be very careful in
whatever we do okay otherwise the effect
will be catastrophic
so similar to biblical said they are not
so serious effect so that's the reason
why it was stuck
been so sure that it has a an
environmental effect or when the effect
is calculated and it can be reversible
then probably it is it can be approved
okay focusing on environmental
degradation and then food security
so right now I think because of so many
catastrophes okay typhoon pandemic
um
there is really a less
production okay but sometimes it only
appears that it is less but in reality
it's not how how come
because most of the
businessman who controls the
distribution of this food
okay
um they monopolize okay they are done or
really control and they if they will not
produce the they're going to buy all the
products and then they just control
the output
so if they will not release
the let's say the the food
it will create a scenario where there is
shortage
yeah if this and if they're shorted then
everything will goes up all Commodities
but in reality it is just a word
sometimes the government will run sucked
raid those warehouses to prove that
um the the
the the
inflation is not really true okay
sometimes they are the one who creates
the prices like you know in supply and
demand if the very short days like no
they although there's no shortage
although all you have to do is to Simply
do not sell
okay The Horde let me just wait for the
right time to sell it at a higher price
so
if they do that it's actually a
violation of the law and the same time
it create a false Market
now
that should that should be the
activity of the government
in times of food crisis you have to go
to the warehouses and and prove to the
to the country that
uh what we have are
temporarily and
they just simply hoard yeah of course
you know of uh right shortage right so
not trying sure things the sugar
shortage okay so you've heard of
um there's no more stocks in rice in in
sugar
that is why when you buy I don't know
now at present he like
um Coca-Cola or any
um
beverages
like um soft drinks
for example
it's very expensive why because you they
use sugar and they believe that there
was a shortage really but in reality
there was none
Okay the reason is that
this Bureau of Customs also earn money
from
from the
business apart from the businessman so
they are not going to
sell their products all they have to do
is to import from other country because
they created a scenario where there is
your kids
but in reality they are just hiding the
the sugar in their warehouses
now
why because most of these people also
have connections in other countries okay
so they're going to buy a certain amount
uh
um let us say sugar and then sell it in
our country for a higher price what is
the result of that that discourages the
farmers why because they cannot their
products will not be sold okay or if it
is sold it will be at a lower price
because of the competition from other
country which is also at lower price
okay and this sometimes give frustration
to Farmers which resulted to become more
um unproductive why
they spend much on the production but
during her recession
um somebody will just simply
sell the products which is of similar
which is similar to what the farmers are
producing
so at a lower price so what happened is
that this farmer will also
um compete
so that their products will be sold as
well so that they can get their Capital
back
okay so it will not be at the lower
price so what is the effect they do not
actually earn
okay
now so if I am the President I would
simply do not import because in income
competing in income of a country it
simply means that your export is higher
than the import
if your importation of let's say buying
product from other country is higher
than what you sell then you do not earn
it must be the other way around you have
to sell
more than what you buy from other
countries
okay
so in in our practice in the Philippines
we normally keep on buying products from
other country
that's why we we do not
really improve
now uh evaluate publish researches on
economic globalization poverty and
inequality with imposition Global income
inequality
the third world right Philippines are
not present but could we continuously
rise up become a middle income
country
okay the global South and a global City
analyze theories of global
stratification based on their usability
and global economy
now there is an activity
which you have to
answer okay so you put their you copy
this one and answer in the
a Google Classroom okay and put there
check or wrong just copy and answer this
one
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