contemporary-reporting-2.pptxhgyhjiknnkk

It's a ppt about contemporary world subject

1. ECONOMY The Global

2. Objectives Define economic globalization. Identify the factors that facilitate economic globalization. Define the modern world system. Articulate a stance on global economic integration. By the end of the lesson, students are expected to:

3. Refers to the framework of rules, institutions, agreements, and practices that govern the exchange of goods, services, and capital between countries. It is a complex and dynamic system that facilitates global economic integration and cooperation. INTERNATIONAL TRADING SYSTEM

4. 1. International Trade Agreements COMPONENTS of the International Trading System These are formal agreements between countries or groups of countries that establish trade rules. Examples: World Trade Organization (WTO): The most important international organization for trade regulation. It oversees global trade rules, resolves disputes, and promotes free trade. Regional Trade Agreements (RTAs): Agreements between neighboring countries, such as the European Union (EU), North American Free Trade Agreement (NAFTA), and the Asia-Pacific Trade Agreement (APTA). Free Trade Agreements (FTAs): Agreements that reduce or eliminate tariffs and trade barriers between member countries, such as the USMCA (replacing NAFTA) and the RCEP(Regional Comprehensive Economic Partnership).

5. 2. Multilateral Trade System COMPONENTS of the International Trading System The WTO is the central institution of the multilateral trading system. It was established in 1995 and succeeded the General Agreement on Tariffs and Trade (GATT), which was created in 1947. Main functions include: Dispute settlement : Providing a forum for resolving trade disputes between member countries. Setting trade rules : Establishing rules for trade in goods, services, and intellectual property. Trade negotiations : Facilitating negotiations to reduce trade barriers and promote trade liberalization Technical assistance : Supporting developing countries in implementing trade rules and policies.

6. COMPONENTS of the International Trading System 3. Trade Policies and Instruments Countries use various tools to regulate trade, including: Quotas : Limits on the quantity of a particular good that can be imported. Tariffs : Taxes on imported goods. Subsidies : Financial support provided to domestic industries. Non-tariff barriers (NTBs ): Regulations, standards, and labeling requirements that can restrict trade.

7. COMPONENTS of the International Trading System 4. International Financial Institutions These institutions support the functioning of the international trading system by providing financial assistance and promoting economic stability. Key institutions include: International Monetary Fund (IMF): Promotes international monetary cooperation and provides financial assistance to countries facing balance-of-payments problems. World Bank : Supports development projects in developing countries, which can indirectly support trade by improving infrastructure and economic conditions.

8. 5. International Organizations and Forums COMPONENTS of the International Trading System Other organizations and forums that play a role in shaping the international trading system: United Nations Conference on Trade and Development (UNCTAD): Supports developing countries in trade and investment policies. International Chamber of Commerce (ICC): Promotes free trade and facilitates business between countries. World Trade Organization (WTO): The central institution for trade regulation and dispute resolution.

9. PRINCIPLES of the International Trading System 1. Non-Discrimination Most-Favored-Nation (MFN) Treatment : Countries must treat all trading partners equally. National Treatment : Foreign goods and services must be treated no less favorably than domestic ones.

10. PRINCIPLES of the International Trading System 2. Free Trade Encouraging the reduction or elimination of trade barriers to promote the free flow of goods and services. 3. Transparency Ensuring that trade policies and regulations are clear, predictable, and publicly available.

11. PRINCIPLES of the International Trading System 4. Fair Competition Promoting fair and open competition among countries and businesses. 5. Sustainable Development Encouraging trade policies that support environmental protection, labor rights, and social development.

12. CHALLENGES Despite its benefits, the international trading system faces several challenges: in the International Trading System 1. Trade Imbalances Some countries may experience large trade deficits or surpluses, leading to tensions and disputes. 2. Protectionism Some countries impose trade barriers to protect domestic industries, which can undermine free trade

13. CHALLENGES Despite its benefits, the international trading system faces several challenges: in the International Trading System 3. Dispute Settlement Disputes between countries can be complex and time-consuming, especially if they involve sensitive issues like intellectual property or subsidies. 4. Global Inequality Developing countries often face disadvantages in the global trading system due to lack of resources, technology, and market access.

14. CHALLENGES Despite its benefits, the international trading system faces several challenges: in the International Trading System 5. Geopolitical Tensions Political conflicts and trade wars can disrupt the stability of the international trading system.

15. The The Global Financial Crisis (GFC) of 2008 was a pivotal moment in global economic history, and it posed a significant challenge to neoliberalism , the dominant economic ideology of the late 20th and early 21st centuries. Neoliberalism , which emphasizes free markets , deregulation, privatization, and minimal government intervention , was widely embraced in the 1980s and 1990s as a model for economic development. However, the GFC exposed the vulnerabilities and contradictions of this ideology, leading to a re-evaluation of its principles and a shift in global economic policy. Global Financial Crisis

16. What Was the Global Financial Crisis? The Global Financial Crisis (GFC) began in 2007 and reached its peak in 2008, triggered by the collapse of the U.S. housing market and the subsequent banking sector meltdown. Key factors included: Subprime mortgage lending : Banks issued risky loans to borrowers with poor credit histories. Securitization : Financial institutions bundled these loans into complex financial products (e.g., mortgage-backed securities) and sold them globally. Leverage and speculation : Financial institutions used excessive leverage, increasing their exposure to risk. Regulatory failure : Weak oversight and lack of transparency in financial markets allowed risky behavior to go unchecked. Credit freeze : A loss of confidence led to a freeze in credit markets, causing a global economic downturn.

17. Neoliberalism and the GFC Neoliberalism in the early 21st century emphasized minimal government intervention in the economy, marked by deregulation of financial markets, privatization of state-owned enterprises, and a strong push for free trade and globalization. Central to its philosophy was market fundamentalism—the belief that free markets are inherently efficient and self-regulating, capable of driving growth and allocating resources better than state-led approaches.

18. How the GFC challenged these principles in several ways 1. Deregulation and Financial Instability The crisis revealed the dangers of lack of regulation in financial markets. The absence of oversight allowed for excessive risk-taking and the creation of systemically important financial institutions (SIFIs) that could collapse and bring down the entire financial system. 2. Market Failure and the Need for Government Intervention The crisis demonstrated that markets are not always self-correcting. Governments had to step in with massive bailouts (e.g., the U.S. Troubled Asset Relief Program – TARP) and stimulus packages to prevent a total economic collapse.

19. How the GFC challenged these principles in several ways 3. Income Inequality and Social Unrest The GFC exacerbated income inequality, as the benefits of economic growth were concentrated among the wealthy, while the middle and lower classes suffered from job losses, home foreclosures, and reduced access to credit. 4. Global Imbalances and the Role of the U.S. The U.S. played a central role in the crisis due to its financial dominance and global economic influence. The crisis exposed the fragility of the global financial system, which was heavily reliant on U.S. institutions and markets.

20. Impact on Neoliberalism The GFC led to a reassessment of neoliberalism and prompted a shift in economic policy in several ways: 1. Regulatory Reforms In response to the crisis, many countries introduced new financial regulations to prevent future crises. For example: - The Dodd-Frank Act in the U.S. aimed to increase oversight of financial institutions. - The Basel III framework introduced stricter capital requirements for banks. - These reforms marked a departure from the deregulatory approach of the neoliberal era.

21. Impact on Neoliberalism The GFC led to a reassessment of neoliberalism and prompted a shift in economic policy in several ways: 2. Increased Government Role Governments took on a more active role in the economy, including: - Public investment in infrastructure and green energy. - Social safety nets to support vulnerable populations. - State-owned enterprises in strategic sectors (e.g., energy, banking). - This signaled a rethinking of the role of the state in the economy

22. Impact on Neoliberalism The GFC led to a reassessment of neoliberalism and prompted a shift in economic policy in several ways: 2. Increased Government Role Governments took on a more active role in the economy, including: - Public investment in infrastructure and green energy. - Social safety nets to support vulnerable populations. - State-owned enterprises in strategic sectors (e.g., energy, banking). - This signaled a rethinking of the role of the state in the economy

23. Thank You for Listening

24. Resources