2 THE GLOBALIZATION OF WORLD ECONOMICS.pptx

The Globalization of the World Economics

1. ESSAY TOPIC: Social media does more harm than good in the contemporary world.

2. Economics is the study of scarcity and how it affects the use of resources , the production of goods and services , the growth of production and well-being over time , and many other important and complicated issues that affect society. ECONOMICS

3. Economics is the study of how things are made, moved around, and used . It looks at how people, businesses, governments, and countries choose to use their resources. What is economics all about?

4. INTERNATIONAL MONETARY FUND

5. International Monetary Fund (IMF) The IMF is an organization of 190 member countries that works to: foster global monetary cooperation facilitate international trade secure financial stability promote high employment and sustainable economic growth reduce poverty around the world

6. 27 December 1945 Through the course of Marcos's regime, the IMF and World Bank lent the regime $5.5 billion, with a further $3.5 billion from foreign governments such as the United States.

7. International Monetary Fund (IMF) The IMF regards “ economic globalization ” as a historical process representing the result of human innovation and technological progress .

8. International Monetary Fund (IMF) ECONOMIC GLOBALIZATION. It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders.

9. International Monetary Fund (IMF) IMF and ordinary people agree that drastic economic change is occurring throughout the world.

10. International Monetary Fund (IMF) Increased trade also means that investments are moving all over the world at faster speeds.

11. International Monetary Fund (IMF) It is noted that there is an increased speed and frequency of trading. These days, supercomputers can execute millions of stock purchases and sales between different cities in a matter of seconds through a process called high-frequency trading. Even the items being sold and traded are changing drastically.

12. WORLD BANK

13. World Bank An international development organization owned by 189 countries. Its role is to reduce poverty by lending money to the governments of its poorer members so that they can improve their economies and the standard living of their people.

14. The International Monetary Fund (IMF) and the World Bank share a common goal of raising living standards in their member countries.

15. Their approaches to achieving this shared goal are complementary: the IMF focuses on macroeconomic and financial stability while the World Bank concentrates on long-term economic development and poverty reduction.

16. INTERNATIONAL TRADING SYSTEMS The International Trading System is the global framework that allows countries to buy and sell goods and services with each other.

17. THE SILK ROAD

18. INTERNATIONAL TRADING SYSTEMS The Silk Road - oldest known international trade route - it had a network of routes that connected different parts of the ancient world from China to what is the Middle East today and to Europe - it was a major conduit for trade between the Roman Empire and China and later between medieval European kingdoms and China.

19. THE SILK ROAD The Silk Road was a network of trade routes connecting China and the Far East with the Middle East and Europe. However, the Ottoman Empire controlled the western end of the Silk Road.

20. THE SILK ROAD It is named this way because the most profitable item was SILK.

21. THE SILK ROAD Established when the Han Dynasty in China officially opened trade with the West in 130 B.C., the Silk Road routes remained in use until A.D. 1453, when the Ottoman Empire boycotted trade with China and closed them.

22. THE SILK ROAD Although it was international , it was not “global” because it had no routes that could reach the American continent.

23. THE SILK ROAD Although it has been nearly 600 years since the Silk Road has been used for international trade, the routes had a lasting impact on commerce, culture, and history that resonates even today.

24. THE SILK ROAD The Silk Road was a network of trade routes connecting China and the Far East with the Middle East and Europe. Established when the Han Dynasty in China officially opened trade with the West in 130 B.C., the Silk Road routes remained in use until A.D. 1453, when the Ottoman Empire boycotted trade with China and closed them.

25. GALLEON TRADE

26. 1571- Establishment of Galleon Trade Connected Manila in the Philippines and Acapulco in Mexico The first time that the Americans were directly connected to Asian trading routes The Manila Galleon Trade Route, as this maritime route was called, represented  one of the earliest examples of global trade in the Pacific.

27. 1571- Establishment of Galleon Trade The galleon trade was part of the age of mercantilism . From the 16 th century to the 18 th century, countries, primarily in Europe, competed with one another to sell more goods as means to boast their country’s income (called monetary reserves later on). Economic theory and practice common in Europe from the 16th to the 18th century that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers.

28. MERCANTILISM AGE The Age of Mercantilism (16th–18th century) was a period when European powers controlled trade to increase wealth.

29. Age of Mercantilism Mercantilism was based on the idea that a nation's wealth and power were best served by increasing exports and reducing imports.

30. Age of Mercantilism They imposed high tariffs, prohibited colonies from trading with other countries, and limited trade channels.

31. GOLD STANDARD SYSTEM

32. 1867- Gold Standard Following the United Kingdom, the United States and other European nations adopted the gold standard at an international monetary conference in Paris. Purpose: To establish a common system that would enable more efficient trade and prohibit isolationism of the mercantilist era.

33. 1867- Gold Standard

34. 1867- Gold Standard Result: The countries developed a common basis for currency prices as well as a fixed exchange rate system that are all based on the value of gold. With the gold standard, countries agreed to convert paper money into a fixed amount of gold .

35. THE GREAT DEPRESSION

36. 1920’s- 1930’s – the Great Depression A global economic crisis This significantly depleted government resources , which led to the difficulty of going back to a pure standard It is considered the w orst and longest experienced by the West

37. 1920’s- 1930’s – the Great Depression CAUSES: a. the stock market crash of 1929 b. the collapse of world trade c. government policies d. bank failures and panics e. collapse of money supply

38. Barry Eichengreen (Economic Historian) The United States began to recover when it abandoned the gold standard The US government was able to free up money to spend on reviving the economy

39. Lyceum of Southern Luzon, Inc. | 2024 CHEM PEAR AND CONE TRUST

40. Lyceum of Southern Luzon, Inc. | 2024 COMPARE AND CONTRAST

41. Lyceum of Southern Luzon, Inc. | 2024 TRAIN SEA SHUN ALL

42. Lyceum of Southern Luzon, Inc. | 2024 TRANSITIONAL

43. Lyceum of Southern Luzon, Inc. | 2024 TEA SEES IS TAPE MINT

44. Lyceum of Southern Luzon, Inc. | 2024 THESIS STATEMENT

45. Lyceum of Southern Luzon, Inc. | 2024 HEAVY DANCE END SOUP PORT

46. Lyceum of Southern Luzon, Inc. | 2024 EVIDENCE AND SUPPORT

47. Lyceum of Southern Luzon, Inc. | 2024 COST END EPIC

48. Lyceum of Southern Luzon, Inc. | 2024 CAUSE AND EFFECT

49. Lyceum of Southern Luzon, Inc. | 2024 PROW SEED YOUR

50. Lyceum of Southern Luzon, Inc. | 2024 PROCEDURE

51. Lyceum of Southern Luzon, Inc. | 2024 TEA YURI TEA CALL

52. Lyceum of Southern Luzon, Inc. | 2024 THEORETICAL

53. The BRETTON WOODS SYSTEM

54. BRETTON WOODS SYSTEM It was inaugurated during the 1944 United Nations Monetary and Financial Conference Goal: To prevent past catastrophes from happening again and to impact international connections.

55. BRETTON WOODS SYSTEM The Bretton Woods system (1944–1970) was an adjustable peg system , with every country fixing their currencies to an anchor currency (the US dollar) and the value of the anchor currency was fixed to gold. It is also called the “ gold exchange standard ” system.

56. BRETTON WOODS SYSTEM

57. JOHN MAYNARD KEYNES

58. Definition of Economics JOHN MAYNARD KEYNES “Economics is a science of thinking in terms of models joined to the art of choosing models which are relevant to the contemporary world.” Economics is about creating models to explain how the world works, and choosing the ones that best fit real-life situations today.

59. JOHN MAYNARD KEYNES Influenced the ideas of BWS Believed that a country experiences economic crises not when it does not have sufficient funds; rather it happens when money is not being spent; thus, moved.

60. JOHN MAYNARD KEYNES When economies slow down, governments have to reinvigorate markets with infusions of capital. This active participation of governments in managing economic crises became the foundation for what would be called a system of global Keynesianism.

61. GLOBAL KEYNESIANISM Approach to economics which emphasizes responsible public management of economic problems in a world-system context.

62. BRETTON WOODS Delegates at Bretton Woods agreed to create two financial institutions: International Bank for Reconstruction and Development (IBRD) or World Bank Responsible for funding postwar reconstruction projects International Monetary Fund (IMF) The global lender of last resort to prevent individual countries from spiraling into credit crises

63. If the economic growth in a country slowed down because there was not enough money to stimulate the economy, the IMF would step in.

64. Shortly after Bretton Woods, various countries also committed themselves to further global economic integration through the General Agreement on Tariffs and Trade (GATT) in 1947. Main Objective: To reduce tariffs and other hindrances to free trade.

65. THE FIAT CURRENCIES

66. FIAT CURRENCIES Today, the world economy operates based on what are called fiat currencies --- currencies that are not backed by precious metals and whose values are determined by their cost relative to other countries.

67. FIAT CURRENCIES This system allows governments to freely and actively manage their economies by increasing or decreasing the amount of money in circulation as they see it.

68. DEBATE Lyceum of Southern Luzon, Inc.

69. Lyceum of Southern Luzon, Inc. Objectives: 1. To develop critical thinking and persuasive communication skills 2. To explore both the positive and negative effects of social media on modern communication 3. To practice respectful and structured argumentation

70. DEBATE Lyceum of Southern Luzon, Inc. FORMAT Style: Modified Oxford- style Debate

71. Lyceum of Southern Luzon, Inc. Debate Format OPENING STATEMENTS Each team's first speaker provides an overview of their side's arguments and introduces the team members. 

72. Lyceum of Southern Luzon, Inc. Debate Format CONSTRUCTIVE SPEECHES Each team's speakers present their arguments, providing evidence and analysis to support their position. This often involves multiple constructive speeches for each side. 

73. Lyceum of Southern Luzon, Inc. Debate Format CROSS-EXAMINATION/ INTERPELLATION Speakers from the opposing team question the presenting speaker, challenging their arguments and evidence. 

74. Lyceum of Southern Luzon, Inc. Debate Format REBUTTALS Each team has the opportunity to respond to the arguments presented by the opposing team, highlighting weaknesses in their case and reinforcing their own. 

75. Lyceum of Southern Luzon, Inc. Debate Format CLOSING STATEMENTS Each team's final speaker summarizes their arguments and offers a concluding statement. 

76. Lyceum of Southern Luzon, Inc. Debate Format QUESTION AND ANSWER There may be a period for audience questions, where speakers from both sides have an opportunity to respond. 

77. Lyceum of Southern Luzon, Inc. Debate Format SIDES Affirmative (Pro) Argues that social media has improved communication Negative (Con) Argues that social media has worsened communication

78. TEAM Lyceum of Southern Luzon, Inc. COMPOSITION

79. Lyceum of Southern Luzon, Inc. Team Composition Each team will have five (5 to 6) speakers. Assign roles 1st Speaker (Introduction) 2nd and 3rd Speakers (Argument Development) 4th and 5th Speakers (Rebuttal and Conclusion)

80. Lyceum of Southern Luzon, Inc. Team Composition 1st Speaker (Pro) | 3 minutes | 1st Speaker (Con) | 3 minutes | 2nd and 3rd Speakers (Pro) | 3 - 5 minutes | 2nd and 3rd Speakers (Con) | 3 - 5 minutes | 4th and 5th Speakers (Pro) | 3 - 5 minutes | 4th and 5th Speakers (Con) | 3 - 5 minutes | Open Floor / Audience Questions | 5 minutes | Final Response (Optional, 1 per team) | 1 minute | TIME ALLOTMENT

81. DEBATE Lyceum of Southern Luzon, Inc. GUIDELINES

82. Lyceum of Southern Luzon, Inc. Debate Guidelines Use reliable facts, data, examples, or testimonies to support your claims. Each team should anticipate possible arguments from the opposing side and prepare counterpoints. Refrain from personal attacks, offensive language, or interruptions. Maintain a formal, respectful tone and speak clearly.

83. JUDGING Lyceum of Southern Luzon, Inc. CRITERIA

84. Lyceum of Southern Luzon, Inc. JUDGING CRITERIA Criteria Points Clarity and Organization 20 Strength of Arguments 25 Rebuttal and Refutation 20 Use of Evidence 15 Delivery and Engagement 10 Team Coordination 10 Total 100

85. TOPICS Lyceum of Southern Luzon, Inc.

86. Lyceum of Southern Luzon, Inc. TOPIC #1 Globalization benefits everyone equally. Pro : Increases opportunities worldwide Con : Widening inequality between rich and poor nations.

87. Lyceum of Southern Luzon, Inc. TOPIC #2 Globalization destroys local culture and traditions. Pro : Westernization erases indigenous practices Con : Cultures adapt and thrive through cultural exchange.

88. Lyceum of Southern Luzon, Inc. TOPIC #3 Global trade agreements (like WTO rules) favor developed countries over developing ones. Pro : Rich nations dominate trade policies Con : Developing nations still gain from open markets.

89. Lyceum of Southern Luzon, Inc. TOPIC #4 Globalization is the main driver of climate change. Pro : Increased production and transport harm the planet Con : Globalization also enables green technology sharing.

90. Lyceum of Southern Luzon, Inc. TOPIC #5 Globalization has reduced poverty worldwide. Pro : Millions lifted out of poverty in Asia Con : Income inequality is still growing globally.

91. Lyceum of Southern Luzon, Inc. TOPIC #6 Multinational corporations are good for developing countries. Pro : Provide jobs and investments Con : Exploit cheap labor and resources.

92. Lyceum of Southern Luzon, Inc. TOPIC #7 Globalization spreads diseases faster than ever before. Pro : COVID-19, SARS spread due to global travel Con : Globalization also enables faster medical response and vaccine distribution.

93. Lyceum of Southern Luzon, Inc. TOPIC #8 Globalization has made the world safer. Pro : Interdependence reduces wars; Con : Global tensions and conflicts over trade still happen.

94. Lyceum of Southern Luzon, Inc. TOPIC #9 The internet is the most powerful tool of globalization. Pro : Connects people and ideas globally; Con : Leads to cultural homogenization and misinformation.

95. INDIVIDUAL AWARDS Lyceum of Southern Luzon, Inc.

96. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Closing Argument

97. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Opening Statement

98. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Audience Choice Award – Voted by the audience for the most impressive speaker.

99. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Time Manager – For using allotted time effectively without rushing or exceeding.

100. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Questioner – For asking the most thought-provoking and challenging questions.

101. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Most Charismatic Speaker – For engaging delivery and stage presence.

102. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Use of Evidence – For effectively using facts, statistics, and credible sources.

103. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Most Logical Thinker – For the participant who presented arguments with excellent reasoning and clarity.

104. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Rebuttal – For providing the strongest counterarguments.

105. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Speaker – For outstanding delivery, articulation, and persuasive speech.

106. Lyceum of Southern Luzon, Inc. INDIVIDUAL AWARDS Best Debater – For the participant who showed exceptional debating skills overall.

107. GROUP AWARDS Lyceum of Southern Luzon, Inc.

108. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Team – For the team with the highest overall performance.

109. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Team Coordination – For excellent teamwork, division of roles, and smooth transitions.

110. Lyceum of Southern Luzon, Inc. GROUP AWARDS Strongest Argument Award – For presenting the most compelling and well-supported argument.

111. Lyceum of Southern Luzon, Inc. GROUP AWARDS Most Creative Team – For using unique and innovative approaches in presenting arguments.

112. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Overall Delivery – For clear, confident, and persuasive delivery as a group.

113. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Rebuttal Team – For providing the strongest counterarguments collectively.

114. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Opening Statement Team – For delivering the most impactful and attention-grabbing opening.

115. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Closing Argument Team – For concluding with a powerful and convincing summary.

116. Lyceum of Southern Luzon, Inc. GROUP AWARDS Best Research-Based Team – For excellent use of data and credible sources.

117. Lyceum of Southern Luzon, Inc. GROUP AWARDS People’s Choice Award – Voted by audience for the most impressive team.

118. Lyceum of Southern Luzon, Inc. TYPES OF SPEECH ACTS

119. Lyceum of Southern Luzon, Inc. Learning Objectives: Define speech acts and distinguish its types; Recognize the communicative competence requires in understanding speech acts; and Demonstrate effective use of communicative strategy in a variety of speech situations.

120. SCATTERGORIES

121. MECHANICS of the GAME 30 seconds

122. C

123. Something you can SAY to promise or offer

124. Something you can SAY to state a fact

125. Something you can SAY to ask or tell someone to do something

126. Something you can SAY to show feelings

127. Something you can SAY that changes a situation

128. Lyceum of Southern Luzon, Inc. SPEECH ACT

129. Lyceum of Southern Luzon, Inc. SPEECH ACT A speech act is an utte rance that a speaker makes to achieve an intended effect. Some of the functions which are carried out using speech acts are offering an apology, greeting, request, complaint, invitation, compliment, or refusal.

130. Lyceum of Southern Luzon, Inc. SPEECH ACT A speech act might contain just one word or several words or sentences.

131. Lyceum of Southern Luzon, Inc. TYPES OF SPEECH ACTS

132. Lyceum of Southern Luzon, Inc. Types of Speech Acts 1. LOCUTIONARY ACT It is the actual act of uttering.

133. Lyceum of Southern Luzon, Inc. Types of Speech Acts 2. ILLOCUTIONARY ACT It is the social function of what is said.

134. Lyceum of Southern Luzon, Inc. Types of Speech Acts 3. PERLOCUTIONARY ACT It is the resulting act of what is said. This effect is based on the particular context in which the speech act was mentioned.

135. Lyceum of Southern Luzon, Inc. CLASSIFICATIONS OF SPEECH ACTS John Searle (1976)

136. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 1. _ S_ER_IVE A type of illocutionary act in which the speaker expresses belief about the truth of a proposition.

137. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 1. ASSERTIVE A type of illocutionary act in which the speaker expresses belief about the truth of a proposition.

138. ASSERTIVE suggesting, putting forward, swearing, boasting, and concluding , describing, informing, stating facts Example: No one makes better pancakes than I do.

139. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 2. D_RE_TIV_ A type of illocutionary act in which the speaker tries to make the addressee perform an action.

140. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 2. DIRECTIVE A type of illocutionary act in which the speaker tries to make the addressee perform an action.

141. DIRECTIVE asking, ordering, requesting, inviting, advising, and begging. Example s : Please close the door. You are invited on my 18 th birthday party. Maybe you could be more approachable so that the people around you could like you more. Please, do not leave me.

142. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 3. C_MM_S_ _ VE A type of illocutionary act which commits the speaker to doing something in the future.

143. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 3. COMMISSIVE A type of illocutionary act which commits the speaker to doing something in the future.

144. COMMISSIVE promising, planning, vowing, and betting . (when you disagree about something, then a bet would happen between two or more people). Examples: From now on, I will participate in our group activity. I bet she/ he will not answer my calls because he is still at the verge of anger.

145. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 4. _XP_ _ SS _VE A type of illocutionary act in which the speaker expresses his/her feelings or emotional reactions.

146. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 4. EXPRESSIVE A type of illocutionary act in which the speaker expresses his/her feelings or emotional reactions.

147. thanking, apologizing, welcoming, and deploring. Example: I am so sorry for not helping out in our group projects and letting you do all the work.  

148. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 5. DE_ _ AR_T_ _N A type of illocutionary act which brings a change in the external situation . Simply put, declarations bring into existence or cause the state of affairs which they refer to.

149. Lyceum of Southern Luzon, Inc. Classifications of Speech Act 5. DECLARATION A type of illocutionary act which brings a change in the external situation . Simply put, declarations bring into existence or cause the state of affairs which they refer to.

150. declarations are blessing, firing , baptizing, bidding, passing a sentence, and excommunicating.   Example s : You are fired! By saying that someone is fired, an employer causes or brings about the person’s unemployment, thus changing his external situation.

151. Lyceum of Southern Luzon, Inc. IDENTIFY!!!

152. Lyceum of Southern Luzon, Inc. IDENTIFY!!! It’s really dark in here.” Illocutionary: Request to turn on the light Perlocutionary: Listener switches on the light

153. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “I’ll finish the project tomorrow.” Illocutionary: A promise (Commissive) Perlocutionary: Listener trusts and waits for the project

154. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “Can you lower your voice?” Illocutionary: Request to speak softly Perlocutionary: Listener lowers their voice

155. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “You look great in that outfit.” Illocutionary: Giving a compliment Perlocutionary: Listener feels happy or flattered

156. Lyceum of Southern Luzon, Inc. IDENTIFY!!! I’m sorry for breaking your phone.” Apologizing (Expressive) Perlocutionary: Listener forgives or feels appeased

157. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “Please submit your paper by Friday.” Illocutionary: Command/Instruction (Directive) Perlocutionary: Listener submits the paper on time

158. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “I now pronounce you husband and wife.” Illocutionary: Declaring marriage Perlocutionary: Couple becomes officially married

159. Lyceum of Southern Luzon, Inc. IDENTIFY!!! Close the window, it’s raining.” Illocutionary: Order/request to close the window Perlocutionary: Listener closes the window

160. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “Your handwriting is difficult to read.” Illocutionary: Complaint/Criticism Perlocutionary: Listener tries to write more neatly

161. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “I’ll lend you my notes later.” Illocutionary: Making a promise (Commissive) Perlocutionary: Listener relies on receiving notes

162. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “Don’t forget to lock the door.” Illocutionary: Reminder/Directive Perlocutionary: Listener locks the door

163. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “Wow, you’re on time today!” (said sarcastically to someone late) Illocutionary: Expressing sarcasm/criticism Perlocutionary: Listener feels embarrassed or defensive

164. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “I declare this contest open.” Illocutionary: Declaration to start the contest Perlocutionary: Audience recognizes contest has started

165. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “I promise I won’t be late again.” Illocutionary: Promise (Commissive) Perlocutionary: Listener feels reassured (or skeptical)

166. Lyceum of Southern Luzon, Inc. IDENTIFY!!! “You must try this cake, it’s delicious!” Illocutionary: Recommendation/Invitation Perlocutionary: Listener eats the cake

167. NEOLIBERALISM AND ITS DISCONTENTS

168. NEOLIBERALISM AND ITS DISCONTENTS From mid-1940s until the early 1970s, global Keynesianism was at its pinnacle. Governments pumped money into their economies during this time, thus allowing consumers to buy more products; in turn increase the demand for such.

169. NEOLIBERALISM AND ITS DISCONTENTS This increase in prices was tolerated by Western and certain Asian economies, such as Japan, because it resulted in general economic expansion and lower unemployment.

170. NEOLIBERALISM AND ITS DISCONTENTS In the early 1970s, however, the price of oil rose sharply as a result the Organization of Arab Petroleum Exporting Countries’ (OAPEC) imposition of an embargo in response to the decision of the United States and other countries to resupply the Israeli military with the needed arms during Yom Kippur War.

171. NEOLIBERALISM AND ITS DISCONTENTS The result was a phenomenon that Keynesian economics could not have predicted--- a phenomenon called stagflation, in which a decline in economic growth and employment (stagnation) takes place alongside a sharp increase in prices (inflation).

172. NEOLIBERALISM AND ITS DISCONTENTS Around this time, a new form of economic thinking was beginning to challenge the Keynesian orthodoxy.

173. NEOLIBERALISM AND ITS DISCONTENTS Economists such as Friedrich Hayek and Milton Friedman argued that the government’s practice of pouring money into their economies had caused inflation by increasing the demand for goods without necessarily increasing the supply.

174. NEOLIBERALISM AND ITS DISCONTENTS Economists like Friedman used the economic turmoil to challenge the consensus around Keyne’s ideas. What emerged was a new form of economic thinking that critics labeled neoliberalism.

175. Neoliberalism is contemporarily used to refer to market-oriented reform policies such as "eliminating price controls, deregulating capital markets, lowering trade barriers" and reducing, especially through privatization. NEOLIBERALISM AND ITS DISCONTENTS

176. NEOLIBERALISM AND ITS DISCONTENTS From the 1980s onward, neoliberalism became the codified strategy of the United States Treasury Department, the World Bank, the IMF, and eventually the World Trade Organization (WTO) --- a new organization founded in 1995 to continue the tariff reduction under the General Agreement on Tariffs and Trades (GATT).

177. NEOLIBERALISM AND ITS DISCONTENTS The policies they forwarded came to be called the Washington Consensus. The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monetary Fund (IMF), World Bank and United States Department of the Treasury.

178. ECONOMIC GLOBALIZATION TODAY

179. ECONOMIC GLOBALIZATION TODAY The global financial crisis will take decades to resolve. The solutions proposed by certain nationalist and leftist groups of closing national economies to world trade, however will no longer work.

180. ECONOMIC GLOBALIZATION TODAY Economic globalization remains an uneven process, with some countries, corporations, and individuals benefiting a lot more than others.

181. ECONOMIC GLOBALIZATION TODAY Developed countries are often protectionists as they repeatedly refuse to lift policies that safeguard their primary products that could otherwise be overwhelmed by imports from the developing world.

182. ECONOMIC GLOBALIZATION TODAY Example: Japan’s determined refusal to allow rice imports into the country to protect its farming sector. Japan’s justification is that rice is “sacred.

183. ECONOMIC GLOBALIZATION TODAY Example: The United States likewise fiercely protects its sugar industry, forcing consumers and sugar-dependent businesses to pay higher prices instead of getting cheaper sugar from the plantations of Central America.

184. ECONOMIC GLOBALIZATION TODAY Facing with these blatantly protectionist measures from powerful countries, poorer countries can do very little to make economic globalization more just.

185. ECONOMIC GLOBALIZATION TODAY The beneficiaries of global commerce have been mainly transnational corporations (TNCs), not governments. These TNCs are concerned more with profits than with assisting the social programs of the governments hosting them.

186. ECONOMIC GLOBALIZATION TODAY In turn, host countries ease tax regulations, preventing wages from rising while sacrificing social and environmental initiatives that safeguard society’s most vulnerable citizens.

187. ECONOMIC GLOBALIZATION TODAY The phrase “race to the bottom” refers to the practice of countries decreasing their labor standards, especially worker protections, in order to entice international investors looking for big profit margins at the lowest possible cost.

188. ECONOMIC GLOBALIZATION TODAY Governments weaken environmental laws to attract investors, thus, creating fatal consequences on their ecological balance and depleting them of their finite resources such as oil, coal, and minerals.

189. QUIZ

190. Tariffs Trading stagflation station inflation neoliberalism World Trade Organizations Trade Transnational Corporations stagnation International Monetary Fund World Trading Organization

191. Dennis O. Flynn & Arturo Giraldez Globalization began when “all important populated continents began to exchange products –both with each other directly and indirectly via other continents– and in values sufficient to generate crucial impacts on all trading partners.”

192. GLOBAL KEYNESIANISM Common themes: the importance of public management democratic politics the mixed economy global income distribution the management of global demand investment and money ecological sustainability the importance of multiple levels of public management local, national, regional and global

193. JEREMY BENTHAM EMMANUEL KANT FRIEDRICH ENGELS WOODROW WILSON GIUSEPPE MAZZINI KARL MARX