Global Economy 2024 PDF

Global Economy Global economy is the exchange of goods and services integrated into a huge single global market. It is virtually a world without borders, inhabited by marketing individuals and/or companies who have joined the geographical world with the intent of conducting research and developme...

Global Economy Global economy is the exchange of goods and services integrated into a huge single global market. It is virtually a world without borders, inhabited by marketing individuals and/or companies who have joined the geographical world with the intent of conducting research and development and making sales. https://www.encyclopedia.com/  ECONOMIC BASIS OF TRADE 1. DIFFERENT NATIONS RICH IN VARIED NATURAL RESOURCES. 2. THE PRODUCTION OF VARIED GOODS AND SERVICES REQUIRE DIFFERENT ECONOMIC RESOURCES AND TECHNOLOGY. 3. VARIOUS NATIONS DEVELOPED SPECIALIZATIONS WITH UNIQUE QUALITY.  10 Countries With The Highest Industrial In The World 1 China European 2 Top Asian Countries for Organic Union Farming United 3 States 1.China 4 Japan 2.India 3.Kazakhstan 5 Germany 4.Indonesia 6 India 5.Philippines 6.Iran South 7 7.Vietnam Korea 8.Thailand United 9. Korea 8 Kingdom 10. Timor-Leste 9 France 10 Italy s://www.worldatlas.com/articles/10-countries-with-the-highest-industrial-outputs-in-the-world.html  INTERNATIONAL TRADE INTERNATIONAL TRADE IS THE PROCESS BY WHICH NATIONS EXPORT AND IMPORT GOODS, SERVICES AND FINANCIAL CAPITAL INTERNATIONAL TRADE IS VITAL TO ECONOMIC GROWTH BECAUSE IT EXPANDS A NATION’S CONSUMPTION POSSIBILITIES.  MAJOR GOALS OF MACROECONOMICS  N L K E r w i π Consumer expenditure goods service s Subsidies Taxe s Investment Saving s s Import Export s s GDP measures the value of goods and services produced within a country's borders, by citizens and non-citizens. GNP measures the value of goods and services produced by only a country's citizens but both domestically and abroad. GDP is the most commonly used by global economies.  Gross domestic product (GDP) Total market value of the goods and services produced by a country’s economy during a specified period of time. GDP = C + I + G + NX consumption (C) Investment (I) Government spending (G) Net exports (NX) represent a nation’s exports minus its imports. https://www.britannica.com/topic/gross-national- Gross national income (GNI), the sum of a country’s gross domestic product (GDP) plus net income (positive or negative) from abroad. GNI = GDP + NET INCOME OVERSEAS (remittances, interest investment overseas, profit investment overseas) It represents the value produced by a country’s economy in a given year, regardless of whether the source of the value created is domestic production or receipts from overseas. https://www.britannica.com/topic/gross-national-inc ome COMPARISON GROSS GROSS NATIONAL GROSS NATIONAL DOMESTIC PRODUCT INCOME PRODUCT Meaning Value of the Value of all finished Measures the total finished goods and services income by a domestic goods produced by a country's residents and services country's citizens, and businesses, produced within both domestically regardless of their a nation's and abroad. citizenship. borders What is it? Production of Production of Production of products within products by products both local the country’s enterprise owned by and overseas income boundary. the resident of the country. Basis Location Citizenship No Citizenship Calculation GDP= GNP = GDP+ Net GNI = GDP + Consumption Factor Income (Primary income +Investment+ Abroad (NFIA) from foreign sources Gov’t – Primary income Spending+ Net paid to foreign COMPARISON GROSS GROSS NATIONAL GROSS NATIONAL DOMESTIC PRODUCT INCOME PRODUCT Basis Location Citizenship No Citizenship Measurement of Local Scale International Scale Local and Overseas Scale Productivity Focus Domestic Production by All earnings of citizen Production Nationals (local and overseas) and foreign nationals residing in the country. Outlines The strength of Resident’s Comprehensive the country’s Contribution to the overview of a domestic economy of the country’s economic economy. country. health, including its people’s and business’s total domestic and foreign income. https://www.youtube.com/watch?v=XIRSjUQrcWY https://www.youtube.com/watch?v=NiMFQLznzeQ Export vs. Import  Figure 1. Gross Domestic Product (At Constant 2018 Prices) Year-on-Year Growth Rates (in percent) Q1 2018-2019 to Q2 2023-2024 https://psa.gov.ph/content/gdp-expands-63-percent-second-quarter- 2024#:~:text=The%20Philippine%20Gross%20Domestic%20Product,the %20second%20quarter%20of%202024.  1st Quarter 2024 Gross National Income (GNI) grows at a slower pace Source: Philippine Statistics Authority  Figure 11. Net Primary Income, Q1 2021 to Q1 2024 Growth Rates, At Constant 2018 prices Source: Philippine Statistics https://www.youtube.com/watch?v=-oL7tZ_b1Fs https://www.youtube.com/watch?v=S67JPn8rQj0 PH INFLATION JULY 2024 Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation). It measures the average price change in a basket of commodities and services over time. Effects of Inflation to the Filipinos Finances Reduce purchasing capacity Poverty increase Unemployment ratio increase Political strategies affect sustainability https://www.youtube.com/watch?v=S67JPn8rQj0&t=106s www.youtube.com/watch?v=F54-D_9ci0I&t=2s Factors to control Inflation Monetary Measures – Central Banks Fiscal Measures – Government Expenditures, Taxation, Public Barrowing, Debt Management, Over-valuation (currency rate) Other measures – control initial stage to reduce hyper inflation  Economic globalization is a historical process, a result of human innovation and technological progress. The increasing integration of economies in the world, through movement of goods, services, and capital across borders. The movement of people (labor) and knowledge (technology) across international borders. (IMF, 2008] István Benczes. 2014. The Globalization of Economic Relations. https://www.researchgate.net/publication/293358032  Economic globalisation is a process of world economy in an “organic system” by extending transnational economic processes and economic relations to various countries and deepened the economic interdependencies among them.’ (SZENTES. 2003: 69) István Benczes. 2014. The Globalization of Economic Relations. https://www.researchgate.net/publication/293358032 (89) Coronavirus outbreak: The impact COVID-19 is having on the global economy – YouTube Impact of COVID to global economy Role of Government for income security Subsidizing wages of workers Loan for the business Long term recovery for the economy INTERNATIONAL ORGANIZATIONS GLOBAL ECONOMY Washington, D.C., USA https://www.youtube.com/watch?v=zoI5Di_ClvM International Monetary Fund To promote global monetary cooperation and international financial stability. Created in 1945 postwar to address trade protectionism and exchange control Primary role to provide short-term loans to prevent devaluation and retain the state’s fixed exchange rate in temporary balance of payment deficits. The Board of Governors, the highest decision-making body. Member's quota determines its voting power. (Garber, 1993) Washington, DC, USA The World Bank is an international development organization to reduce poverty and build shared prosperity in developing countries. 187 member countries Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people. To advise countries in areas like health, education, nutrition, finance, justice, law and the environment. MANILA, April 23, 2020—The World Bank approved a US$100 million loan for the Philippines COVID-19 Emergency Response Project to help meet urgent healthcare needs in the wake of the pandemic and bolster the country’s public health preparedness. Department of Health (DOH), implement the project to help strengthen the essential healthcare delivery system for critical medical services in the face of increased demand. https://www.worldbank.org/en/news/press-release/ 2020/04/23/philippines-world-bank-approves-usd10 0m-to-support-covid-19-emergency-response https://www.youtube.com/watch?v=lN3qrFA4jXc The General Agreement on Tariffs and Trade (GATT) covers international trade in goods. Twenty-three countries signed Final Act of the General Agreement on Tariffs and Trade (GATT) on 30 October 1947 https://www.youtube.com/watch?v=J-qGCZ4wmxs  World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. goal is to ensure that trade flows as smoothly, predictably and freely as possible. The Philippines membership 1995 https://www.wto.org/index.htm https://youtu.be/ivXgr6x102k