AN INTRODUCTION TO ECONOMIC GLOBALIZATION

The beginning of globalization is still debatable among scholars. Historians and non- historians hold varying views as to when globalization really started. These varying thoughts are individually discussed by Peer Vries in his study.
In economic terms, globalization is nothing but a process making the world economy an organic system by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependence among them. (Szentes, 2003)

1. ECONOMIC GLOBALIZATION

2. LEARNING OUTCOMES A -To define economic globalization -To identify the actors that facilitate economic globalization - To explain the role of international financial institutions In the creation of a global economy - To narrate a short history of global market; and - To identify the attributes of global corporation Presentation title 2

3. GLOBAL ECONOMY Explain this quote!!!! The proverb of the three blind men examining an elephant as a metaphor for the global economy. Each man touching a different part of the elephant, leg, trunk, and tail, has a very different impression of what is an elephant. Explanation: Yes, the same is true about the global economy. Countries and regions are economically different from each other. Its defining characteristic is the wide disparities in economic achievement and consequent standards of living. . Presentation title 3

4. ECONOMIC GLOBALIZATION It is a historical process, the result of human innovation and technological progress.. Explanation: This refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. The term sometimes also refers to the movement of people(labor) and knowledge (technology) across international borders. Presentation title 4

5. It is a functional integration between internationally dispersed activities. Explanation   means that it is a qualitative transformation rather than a quantitative change. Quali trans. Meaning mas madami yung transformative changes towards the development and exchange of services on the other hand quanti change something about the money that they can get on it.

6. In economic terms, globalization is nothing but a process making the world economy an organic system by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependence among them. ( Szentes , 2003) Presentation title 6

7. HISTORY OF ECONOMIC GLOBALIZATION

8. The beginning of globalization is still debatable among scholars. Historians and non- historians hold varying views as to when globalization really started. These varying thoughts are individually discussed by Peer Vries in his study. Presentation title 8

9. According to John Hobson, globalization existed as early as the 6 th century as significantly flows of goods, resources, currencies, capital, institutions, ideas, technologies, and people, flowed across regions to such as extent that they impacted upon, and led to the transformation of societies across much the globe. Presentation title 9

10. According to Samuel Adshead , it is a continuous world history began with the creation of the largest contiguous land empire in history, the Mongolian Empire that existed during the 13 th and 14 th centuries. Presentation title 10

11. According to Karl Marx, it is a world trade and world market date from 16 th century, and from then on the modern history of capital starts to unfold. Presentation title 11

12. THE CONCEPT OF DIVERGENCE AND CONVERGENCE

13. Aside from tracing the origins of economic globalization, the ideas of Wallerstein, Frank, and O’Rourke and Williamson introduces the concept of a fully integrated world economy which consequently established the roots of divergence and convergence. Presentation title 13

14. According to Immanuel Wallerstein a European capital;ist world economy, the modern world system, came into existence during the late 15 th and early 16 century. Presentation title 14

15. This world economy was distinctly modern and capitalist. EXPLANATION!!!! Which menas it thrived on ceaseless accumulation of capital. It is a world- system not because it encompasses the whole world but because it is larger than any juridically- defines political unit and a system because it is largely seld - contained and the dynamics of its development are largely internal. Presentation title 15

16. According to Andre Gunder Frank, believed that a global economy encompassing the entire globe and functioning as a fully integrated, autonomous system, with a logic of its own, predated the early modern era (1450’s- 1850’s) Presentation title 16

17. According to Kevin H. O’Rourke and jeffret G. Williamson, both economist define globalization as the integration of international commodity markets. They believe that the absence of transport costs, trade barriers, an dinternational commodity markets would be perfectly integrated into prices would be the same at home and abroad. WHAT IS COMMODITY PRICE CONVERGENCE???? Presentation title 17

18. From this idea of commodity price convergence, O’Rourke and Williamson outlined three distinct eras of commodity exchange and specialization. 1. Pre 18 th Century- They described long distance trade in this period to be limited to non- competing goods. 2. Early 19 th Century- it is the beginning of the trade in basic competing goods. 3. Present Er- This period is characterized by trade in both basic and highly differentiated manufactured commodities. Presentation title 18

19. INTERNATIONAL MONETARY SYSTEMS As transnational transactions intensified in the 19 th century, there was also a need to set norms to ease trade processes among nation-states. This propelled the promulgation of international monetary system or regime (IMS). IMS refers to the rules, customs, instruments, facilities, and organizations effecting international payments. SEARCH SEARCH SEARCH Presentation title 19

20. An international monetary system is a set of internationally agreed rules, conventions and supporting institutions that facilitate international trade, cross border investment and generally the reallocation of capital between states that have different currencies. What is the primary purpose of the international monetary system? The International Monetary Fund (IMF) works to  achieve sustainable growth and prosperity for all of its 190 member countries . It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. Presentation title 20

21. The Gold Standard The early 19 th century is not only the Big Bang of Globalization as claimed by O’Rourke and Williamson but also the beginning of the first modern day international monetary system/ regime. This century also witnessed the dominance of the british government and the worldwide advance of british companies. Presentation title 21

22. The Bretton Woods System The results of World War 1 coupled with consequences of universal suffrage (laborers manage to influence domestic politics) made the Governments reluctant to defend a pegging system at any cost. Presentation title 22

23. THANK YOU.