Podcast
Questions and Answers
What is a potential challenge for businesses hiring staff in foreign countries?
What is a potential challenge for businesses hiring staff in foreign countries?
Which of the following is a benefit of protectionism?
Which of the following is a benefit of protectionism?
What aspect of regulatory compliance poses a challenge for businesses expanding internationally?
What aspect of regulatory compliance poses a challenge for businesses expanding internationally?
Which type of policy does not fall under protectionism?
Which type of policy does not fall under protectionism?
Signup and view all the answers
What is a disadvantage of protectionism?
What is a disadvantage of protectionism?
Signup and view all the answers
Which of the following describes a tariff?
Which of the following describes a tariff?
Signup and view all the answers
Why might businesses encounter issues with foreign bureaucratic agencies?
Why might businesses encounter issues with foreign bureaucratic agencies?
Signup and view all the answers
What is the required minimum paid-up capital for a domestic enterprise employing at least 50 persons to qualify for 100% foreign ownership?
What is the required minimum paid-up capital for a domestic enterprise employing at least 50 persons to qualify for 100% foreign ownership?
Signup and view all the answers
Under Executive Order No. 98, what is the minimum investment required for establishing a retail trade store with 100% foreign ownership?
Under Executive Order No. 98, what is the minimum investment required for establishing a retail trade store with 100% foreign ownership?
Signup and view all the answers
What defines a business as an export company in terms of output?
What defines a business as an export company in terms of output?
Signup and view all the answers
What is the minimum paid-up capital required for retail companies specializing in luxury or high-end products to achieve 100% foreign ownership?
What is the minimum paid-up capital required for retail companies specializing in luxury or high-end products to achieve 100% foreign ownership?
Signup and view all the answers
Which of the following is not considered a restriction on direct foreign investment?
Which of the following is not considered a restriction on direct foreign investment?
Signup and view all the answers
Which of the following types of businesses can have 100% foreign ownership with a minimum paid-up capital of only P5,000?
Which of the following types of businesses can have 100% foreign ownership with a minimum paid-up capital of only P5,000?
Signup and view all the answers
What is a commonly utilized protectionist policy to help local firms compete against foreign imports?
What is a commonly utilized protectionist policy to help local firms compete against foreign imports?
Signup and view all the answers
What name is given to the list that outlines restrictions on direct foreign investments?
What name is given to the list that outlines restrictions on direct foreign investments?
Signup and view all the answers
What is the minimum paid-up capital required for a domestic enterprise to have 100% foreign ownership if it is not utilizing advanced technology or employing at least 50 persons?
What is the minimum paid-up capital required for a domestic enterprise to have 100% foreign ownership if it is not utilizing advanced technology or employing at least 50 persons?
Signup and view all the answers
What is the primary purpose of ensuring good utilization in the context of food security?
What is the primary purpose of ensuring good utilization in the context of food security?
Signup and view all the answers
What aspect is categorized as a major pillar of food security that emphasizes long-term access?
What aspect is categorized as a major pillar of food security that emphasizes long-term access?
Signup and view all the answers
Which of the following actions contributes to reducing inequalities in economic power?
Which of the following actions contributes to reducing inequalities in economic power?
Signup and view all the answers
In the context of food security, which factor can lead to temporary food insecurity despite adequate food intake?
In the context of food security, which factor can lead to temporary food insecurity despite adequate food intake?
Signup and view all the answers
What is one suggested method for achieving greater political equality to combat global inequality?
What is one suggested method for achieving greater political equality to combat global inequality?
Signup and view all the answers
What is the primary purpose of export subsidies?
What is the primary purpose of export subsidies?
Signup and view all the answers
How does exchange rate control impact a nation's export prices?
How does exchange rate control impact a nation's export prices?
Signup and view all the answers
Which goal focuses on reducing inequality between countries?
Which goal focuses on reducing inequality between countries?
Signup and view all the answers
What does Goal 11 aim to achieve?
What does Goal 11 aim to achieve?
Signup and view all the answers
What role do administrative barriers play in trade protectionism?
What role do administrative barriers play in trade protectionism?
Signup and view all the answers
Which of the following is NOT a factor contributing to environmental degradation?
Which of the following is NOT a factor contributing to environmental degradation?
Signup and view all the answers
Which of the following describes the international patent system in the context of trade policy?
Which of the following describes the international patent system in the context of trade policy?
Signup and view all the answers
Which statement accurately describes preferential government spending?
Which statement accurately describes preferential government spending?
Signup and view all the answers
Which sustainable development goal directly addresses the need for clean energy?
Which sustainable development goal directly addresses the need for clean energy?
Signup and view all the answers
What is the primary focus of Goal 13?
What is the primary focus of Goal 13?
Signup and view all the answers
In trade protectionism, how can countries’ differing perceptions of food safety impact international trade?
In trade protectionism, how can countries’ differing perceptions of food safety impact international trade?
Signup and view all the answers
What does comparative advantage emphasize compared to competitive advantage?
What does comparative advantage emphasize compared to competitive advantage?
Signup and view all the answers
What is one effect of a government intervening in the foreign exchange market?
What is one effect of a government intervening in the foreign exchange market?
Signup and view all the answers
Which of the following is NOT considered a trade protectionist policy?
Which of the following is NOT considered a trade protectionist policy?
Signup and view all the answers
Which of these goals focuses on sustainable consumption patterns?
Which of these goals focuses on sustainable consumption patterns?
Signup and view all the answers
What common misconception might consumers have regarding administrative barriers?
What common misconception might consumers have regarding administrative barriers?
Signup and view all the answers
Which goal is associated with partnerships for sustainable development?
Which goal is associated with partnerships for sustainable development?
Signup and view all the answers
Which factor might drive a country to adopt protectionist policies?
Which factor might drive a country to adopt protectionist policies?
Signup and view all the answers
What is a significant human factor contributing to environmental degradation?
What is a significant human factor contributing to environmental degradation?
Signup and view all the answers
Which goal aims to promote resilient infrastructure and innovation?
Which goal aims to promote resilient infrastructure and innovation?
Signup and view all the answers
Study Notes
Module 2: The Structures of Globalization: The Global Economy
- Course name: The Contemporary World
- Instructor: Prof. Supriano D. Gatdula
- Part 1
Economic Globalization
- Refers to the increasing interdependence of global economies
- Driven by cross-border trade of goods and services
- Includes the flow of international capital
- Also includes the widespread adoption of technology
Examples of Economic Globalization
- Import and export of goods
- Trade agreements that reduce barriers
- Foreign companies operating in other markets
Internationalization
- Designing a product to be easily consumed across multiple countries
Localization
- Adapting and customizing a product to meet the specific needs of a particular market
- Factors to consider include language, culture, local standards and legal requirements
Globalization Example
- Reaching new markets by using English in web content
- Adapting content to regional languages
- Providing payment options for online purchases and global shipping
Economic Benefits of Globalization
- Increased choice for consumers
- Higher quality goods due to specialization
- Increased competition leading to lower prices
- Economies of scale due to larger markets
- Increased capital flows into developing economies
- Increased labor mobility across countries
- Improved international relations (incentive to avoid conflict)
Potential Economic Disadvantages of Globalization
- Possible monopolization of multi-national companies
- Structural unemployment from declining competitiveness
- Increased interdependence on supply chains
- Tax avoidance by companies
Challenges of Globalization
- Need for a legal presence in foreign markets
- Difficulty in testing markets in unfamiliar jurisdictions
- Complying with regulatory and legal requirements in foreign countries
Trade Protectionism and Trade Liberalization
- Trade Protectionism: Government policies restricting international trade to protect domestic industries
- Trade Liberalization: Removing or reducing trade barriers to encourage free exchange of goods between nations
Protectionism Benefits
- Better trade balance (more exports than imports)
- Protection of developing domestic markets
- More growth opportunities for local firms; allows them to compete
Protectionism Disadvantages
- Loss of economic efficiency for the country overall
- Reduced choice for consumers
- Potential for retaliation from other countries
Measures of Protectionism
- Tariffs (taxes on imported goods)
- Import quotas (limits on the amount imported)
- Protection of technologies, patents, and knowledge
Restrictions on Direct Foreign Investment (FIA)
-
FIA Negative List A: Economic activities where foreign equity is restricted. The restrictions range from zero to 60% foreign equity.
-
FIA Negative List B: Economic activities where foreign ownership is restricted to 40% due to security, defense, health, and moral considerations.
-
Minimum investment amounts differ for businesses depending in the type of investment, activity, number of employees and other criteria.
-
Domestic enterprises may have 100% ownership if certain minimum investment levels are met
Trade Liberalization Advantages
- Promotion of free trade without regulatory barriers
- Lower prices for consumers
- Increased efficiency and cheaper production for domestic firms
- Increased opportunity for service or manufacturing sector focus for a country
- Facilitated technology transfer
- Increased skilled workforce due to global exposure and brain expansion
Sustainable Development
- Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
- The Sustainable Development Goals (SDGs) aim to transform the world by fighting poverty and inequality, protecting the planet and ensuring that all people enjoy health, justice and prosperity
Environmental Degradation
- Main factors include human activities (modern urbanization, industrialization, population growth) and natural events (floods, droughts, fires, etc.)
- Examples of degradation include land and soil degradation, water degradation, and atmospheric degradation.
Food Security
- Meeting everyone's nutritional needs now while ensuring future generation's future access to food
- The elements of food security include availability, access, utilization and stability of food supply
Global Income Inequality
- Unequal distribution of resources, opportunities, and power among individuals worldwide
How to Reduce Global Inequality
- Reduce political power disparities by making corporate boards, international conferences, and governments accountable to marginalized communities.
- Address inequalities in economic power by making it mandatory that billionaires and large corporations pay their fair share contributing to national treasury.
- Improve financial aid to local people and climate-vulnerable countries to strengthen resilience and tackle the climate crisis
Poverty
- Lacking access to financial resources and essential needs for human survival and adequate standard of living
Types of Poverty
- Absolute Poverty: A condition in which basic necessities like food, clothing, shelter and healthcare are missing. Measured by living below a poverty line set at an income level.
- Relative Poverty: A condition in which people lack resources to participate fully in society. Often measured by comparing the income of the poor with the wealthier population.
- Situational Poverty: Lack of resources at a particular time, often due to an unexpected event like a job loss or natural disaster.
- Generational Poverty: Poverty passed from one generation to another due to factors preventing upward social mobility such as poor education opportunities, discrimination and lack of access to resources and opportunities.
- Urban Poverty: Poverty specifically tied to living in an urban area, attributed to factors like lack of access to education, employment, poor housing, insufficient healthcare and sanitation systems
- Rural Poverty: Poverty faced in rural areas, usually stemming from a lack of resources, infrastructure, distance from urban areas and lack of opportunities such as education and employment
Causes of Poverty
- Lack of clean water and healthy food
- Lack of access to education
- Lack of access to healthcare
- Lack of employment opportunities
- Inadequate housing
- Discrimination
- Climate change
Multiplier Effect
- Proportionate amount of increase or decrease in final income resulting from an injection or withdrawal of capital.
Functions of Poverty
- Dirty work is done
- Poor provide services to middle to upper class in exchange for lower pay
- Provide jobs for other related occupations
- Buy goods other do not want, thus increasing the utility
- Justification for conventional forms- hard work/thrift to be identified from those who are not in poverty
- Participation in uninhibited activities among the population
- Rich adopting poor cultures
- Social hierarchy measurement rod
- Middle class economic upliftment, in the provision of goods, and services in slums
- Maintaining status quo and justifying aristocrats existence
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
