INTRODUCTION TO GLOBAL_ECONOMY PRESENTATION

Global Economy

1. GLOBAL ECONOMY PRESENTED BY GROUP 4

2. INTRODUCTION TO GLOBAL ECONOMY The global economy refers to the worldwide network of economic activities and interactions that connect countries through trade, investment, technology, and labor. It is the system in which goods, services, money, and information flow across national borders, creating a web of interdependence among nations. THE GLOBAL ECONOMY

3. The global economy comprises several characteristics, such as: Globalization - Globalization describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration, and transportation.

4. International trade - International trade is considered to be an impact of globalization. International finance - Money can be transferred at a faster rate between countries compared to goods, services, and people; making international finance one of the primary features of a global economy. Global investment - This refers to an investment strategy that is not constrained by geographical boundaries. The global economy comprises several characteristics, such as:

5. Benefits of Global Economy Free trade Movement of labour Increased economies of scale Increased investment

6. MAJOR TRENDS AND CHALLENGES: The global economy is always changing, and today it faces both new opportunities and serious challenges. Knowing these trends and challenges is important to understand how the world economy works and where it is heading.

7. MAJOR TRENDS: Globalization with Shifts Trade, investment, and technology connect countries more than ever, but some nations are starting to pull back with protectionist policies and trade barriers. Digital Transformation Technology like artificial intelligence, automation, and digital finance is reshaping jobs, industries, and how businesses compete.

8. MAJOR TRENDS: Green Transition Many countries and companies are moving toward renewable energy, sustainability, and reducing carbon emissions, creating both opportunities and costs. Demographic Changes Populations are aging in developed countries, while some developing nations still have fast-growing young populations—this affects labor markets and economic growth.

9. MAJOR CHALLENGES: Inflation and Rising Costs Many countries face higher prices for food, energy, and housing, which reduces purchasing power. Debt Levels Governments, companies, and households are carrying high debt, creating risks for financial stability. Geopolitical Tensions Conflicts, trade wars, and rivalry among major powers (like the US and China) disrupt trade and investment.

10. Climate Change Extreme weather events affect agriculture, infrastructure, and supply chains, while transitioning to clean energy requires huge investments. Inequality The gap between rich and poor continues to widen, both within countries and between developed and developing nations. Unemployment and Job Displacement Automation and artificial intelligence are replacing some traditional jobs, while new skills are needed for modern industries. Global Health Risks The COVID-19 pandemic showed how health crises can quickly spread and damage the economy, and future risks remain.

11. IMPACTS ON DEVELOPING ECONOMY

12. POSITIVE IMPACTS Access to larger global markets - more exports and foreign exchange Foreign Direct Investment (FDI) - job creation, infrastructure, technology transfer Technology transfer - modern production methods and higher efficiency Knowledge and cultural exchange - improved education and innovation Higher living standards - better goods, healthcare, and services

13. NEGATIVE IMPACTS Economic dependence on global markets - vulnerable to global recessions Exploitation of labor - low wages, poor working conditions Widening inequality - urban areas benefit more than rural areas Cultural erosion - weakening of local traditions due to global influence Environmental damage - pollution, deforestation, resource depletion

14. LONG-TERM IMPACT If managed well : sustainable growth, poverty reduction, global integration If unmanaged : dependency, inequality, exploitation, and instability

15. Philippines in the Global Economy: The Philippines is connected to the global economy through trade, and remittances from overseas workers. While it has many opportunities to grow, it also faces challenges like climate risks, weak infrastructure, and reliance on a few industries.

16. Philippines in the Global Economy: Trade and Exports The Philippines is part of global supply chains , especially in electronics and semiconductors , which make up a large share of exports. Also exports agricultural products like bananas, coconuts, and pineapples , making it a key player in food supply. Major trading partners: China, Japan, U.S., South Korea, and ASEAN neighbors .

17. Philippines in the Global Economy: Remittances Millions of Filipinos work overseas (OFWs) and send money home. These remittances contribute around 9–10% of the country’s GDP , one of the highest ratios globally.

18. Philippines in the Global Economy: Demographics The Philippines has a young, growing population , unlike aging countries in Europe and East Asia. This provides a large labor force that can attract investment, but it also creates the challenge of generating enough jobs.

19. Philippines in the Global Economy: Challenges Infrastructure Gaps → Transport, logistics, and energy systems need improvement to fully compete in global trade. Vulnerability to Climate Change → Typhoons and flooding disrupt agriculture and economic stability. Dependence on Remittances → These provide stability, but the country needs to diversify industries for long-term growth. Inequality & Poverty → Despite growth, wealth is unevenly distributed, with rural areas lagging behind.

20. Philippines in the Global Economy: Global Integration Member of ASEAN , giving it access to regional free trade agreements. Works with international organizations like the IMF, World Bank, and WTO for trade, loans, and development programs .

21. INSTITUTIONS AND ORGANIZATIONS INVOLVED In the global economy, certain institutions and organizations are vital components; they influence the entire system, either stabilizing or disrupting it, both of which affects countries around the world.

22. The following are some of the powerful global institutions and organizations: 1.) International Monetary Fund (IMF ) - Stabilizes economies via loans, policy advice, surveillance, and technical support. 2.) World Bank - Stimulates long-term development through funding, technical assistance, and poverty reduction; now with a private sector and sustainability focus. 3.) World Trade Organization (WTO) - Sets trade rules, facilitates negotiations, resolves disputes, and monitors policies – upholding global trade frameworks.

23. The following are some of the powerful global institutions and organizations: 4.) United Nations (UN) - Coordinates inclusive global development, policy guidance, and capacity building across social, economic, and environmental domains. 5.) ASEAN Economic Community (AEC) - Regional integration via single market creation within ASEAN, promoting economic cohesion and competitiveness. 6.) Regional Comprehensive Economic Partnership (RCEP) - Large-scale regional free trade deal lowering barriers across Asia-Pacific, covering goods, services, investments, and more.

24. FUTURE OUTLOOK Given the current conditions of the global economy and several factors affecting it, we can make predictions on what will be the state of the global economy in the future, including its fluctuations and significant changes, and anticipate for what is yet to come, especially for the Philippines. HEE HEE

25. The following are some possible future scenarios in certain fields that can influence the global economy, both positively and negatively: a.) Artificial Intelligence (AI) and Automation Productivity surge ; trillions in value; solves supply constraints Job displacement ; inequality; need for policy balance b.) Fintech and Digital Payments Boosts inclusion ; high growth; efficient services Regulatory risks ; digital gaps; stability concerns

26. c.) Green Economy and Climate Change Trillions in green growth ; healthier societies GDP losses ; economy-wide income declined; trade and infrastructure disruptions d.) Global Demographics and Workforce Job creation in emerging economies ; new labor pools Aging populations; shrinking labor ; policy challenges for sustainability e.) Geopolitical and Economic Shifts Supply chain beneficiaries ; trade realignment Fragmentation ; growth and inflation risks; instability from multipolarity

27. THAT’S ALL THANK YOU!