Unit 4 The Global Economy - Lesson 2 Waves of Economic Globalization.pptx

GLOBALIZATION

1. THE Contemporary World 2 nd Semester A.Y. 2022-2023 GEC 3 Teacher: Ms. Mary Janice L. Mandia

2. LEARNING OUTCOMES: At the end of the lesson, the learner must have: Discussed key events in the historical origin of economic globalization as a phenomenon. Identified and explained the different waves of economic globalization. Related the different waves of Economic Globalization to modern times   UNIT 4 – THE GLOBAL ECONOMY Lesson 2- Waves of Economic Globalization

3. "If we want to make sure that the next wave of globalization is even more successful, it has to be complemented with good, sound domestic policies that help those who are getting left out.”   -Gita Gopinath,(IMF Chief Economist)-  

4. WAVES OF GLOBALIZATION Globalization , in an economic context, refers to the freer cross-border movements of goods and services, labor, technology, real capital, and financial capital to create an integrated and interdependent global economy. The pillars of economic globalization are: international trade foreign direct investment cross-border financial flows Broadly speaking, globalization also deals with cross-border flows of ideas, political and social values, language, and other components of culture. Today globalization is often associated with the flow of Western economic, political, and social beliefs and institutions to other world regions.

5. Waves of Globalization in the 20 th Century Reference: Three Waves of Globalization In The 20th Century - YouTube

6. Spice routes (7th-15th centuries)   The spread of Islam from Arabia in the 7th century also saw the growth and expansion of trade. The founder of Islam, the prophet Mohammed, and his wife Khadija were famous merchants, and so were their followers. Later on, Muslim traders already dominated the Mediterranean and Indian Ocean trade, even reaching as far east as Indonesia and as far west as Moorish Spain.   The focus of the Islamic trade in those times was spices--particularly cloves, nutmeg and mace from the fabled Spice Islands – the Maluku islands in Indonesia. They were considered luxury products; hence, they were very expensive and high on demand. Globalization may not have taken off yet but these networks of trade started to exist. Start of International Trade…

7. Age of Discovery (15th-18th centuries) The Age of Discovery marked the discoveries made by European explorers which connected the East and West--and accidentally discovered the Americas. The most impactful of these explorations is the circumnavigation by Magellan--it opened the door to the Spice Islands. Richer empires began setting up global supply chains and trade flourished and altered people’s lives. But this colonial economy is founded on exploitation and slavery; thus, modern economists do not consider this age as a true era of globalization. The true era of globalization came in waves starting in the late 1800s. Start of International Trade…

8.   Waves of Economic Globalization

9. 1 st Wave of Globalization (from 1870 to 1914) Spanning from 1870 to 1914, the first wave of globalization saw the expansion of international trade and foreign investment as some trade barriers declined and breakthroughs in transportation and communications technologies were made. Mass migration of labor from Europe and China to North American regions also started. This age of globalization fell, though, due to World War 1, the global depression of the 1930s, and World War II.

10. 1 st Wave of Globalization (from 1870 to 1914) - Technology - Steam engines Telegraph Electricity Internal combustion engine

11. 1 st Wave of Globalization (from 1870 to 1914) - Political Leadership - Great Britain Economic Leader - Great Britain, and England in particular, became one of the most prosperous economic regions in the world between the late 1600s and early 1800s as a result of being the birthplace of the industrial revolution that began in the mid-eighteenth century. Colonialism - Gilmartin argues that these three waves of colonialism were linked to capitalism. The first wave of European expansion involved exploring the world to find new revenue and perpetuating European feudalism.

12. 1 st Wave of Globalization (from 1870 to 1914) - Trade in Services Limited Scale Shipping industry most important - Allows countries to access the raw materials needed to develop their economies. Enables the manufacture and export of affordable goods and products.

13. 1 st Wave of Globalization (from 1870 to 1914) - Commerce- Initially free trade, but increasing protectionism The objective of trade protectionism is to protect a nation's vital economic interests such as its key industries, commodities, and employment of workers. Free trade, however, encourages a higher level of domestic consumption of goods and a more efficient use of resources, whether natural, human, or economic.

14. 1 st Wave of Globalization (from 1870 to 1914) - Capital Movement - Capital movement means circulation of capital between countries with different curren - cies . Due to the effects of the circulation of capital on the balance of payments (every coun - try has such a fictitious balance, covering export and import of goods, services, capital etc.) Free

15. 1 st Wave of Globalization (from 1870 to 1914) - Migration - Free movement - legal permission for goods, capital, services, or workers to leave one country and enter another country without extra taxes, legal documents, official limits, etc.: The Czech Republic is part of the EU and its citizens are entitled to free movement across the union. Emigration - is the relocation or process of people leaving one country to reside in another. People emigrate for many reasons, including increasing one's chance of employment or improving quality of life. Emigration has an economic impact on the countries involved, including the workforce and consumer spending.

16. 2 nd Wave of Globalization (from 1944-1971) - Technology - Jet plane Television Communication Satellite Container Traffic

17. 2 nd Wave of Globalization (from 1944-1971) - Political Leadership - USA Economic Leader - America is the world's largest national economy and leading global trader. The process of opening world markets and expanding trade, initiated in the United States in 1934 and consistently pursued since the end of the Second World War, has played an important role in the development of American prosperity. Cold War - A cold war is a state of conflict between nations that does not involve direct military action but is pursued primarily through economic and political actions, propaganda, acts of espionage or proxy wars waged by surrogates. This term is most commonly used to refer to the American-Soviet Cold War of 1947–1991.

18. 2 nd Wave of Globalization (from 1944-1971) Commerce - Gradually reduced industrial tariffs - When you reduce tariffs and reduce prices, it reduces wage demands. And when you reduce wage demands, that leads to subsequent reductions in prices and contributes to further disinflation.

19. 2 nd Wave of Globalization (from 1944-1971) - Trade in Services - Limited Scale Shipping industry most important - Allows countries to access the raw materials needed to develop their economies. Enables the manufacture and export of affordable goods and products.

20. 2 nd Wave of Globalization (from 1944-1971) - Capital Movement- Regulated - The regulation of a capital market encompasses the regulation of securities. These rules enable the capital market to function more competently and fairly. A well regulated market has the prospective to boost additional investors to participate, and contribute in, promoting the development of the economy. Regulation consists of requirements the government imposes on private firms and individuals to achieve government's purposes. These include better and cheaper services and goods, protection of existing firms from “unfair” (and fair) competition, cleaner water and air, and safer workplaces and products. Example of regulation is minimum wage..

21. 2 nd Wave of Globalization (from 1944-1971) - Migration- Regulated (excluding Nordic countries) – Nordic countries are those countries belong in Northern Islands like: Denmark, Norway, Sweden, Finland, and Iceland, as well as the Faroe Islands, Greenland, and Åland . Labour migration - Movement of persons from one state to another, or within their own country of residence, for the purpose of employment .