☆ Globalization.pdf

☆ Globalization Interdependence among countries all over the world through exchange of goods, services, lifestyle, commu- nication, and in cultural practices. The aspects that globalization affected. culture economy travel lifestyle...

☆ Globalization Interdependence among countries all over the world through exchange of goods, services, lifestyle, commu- nication, and in cultural practices. The aspects that globalization affected. culture economy travel lifestyle communication technology transportation ☆ Pros & Cons of Globalization ❖ Pros Promote economic growth with lower price Job opportunities Scaled up business. improved healthcare & treatment. cultural exchange & understanding ❖ Cons inequality between rich & poor countries job displacement higher cost of taxes. increased pollution. absence of specific cultural characteristics. ➔ Globalization resulted in more affordable products. ➔ Globalization made the transportation system faster. ➔ Globalization expanded the area of world trade. ➔ Globalization also resulted in job loss. economics, inequality, and environmental concerns. – ☆ Global Economy ❖ ECONOMICS - Greek word "oikos" + "nomos" 1 t means 'home management". - management of limited & finite resources It is generally divided into a categories: 1. Microeconomics - individuals households - study of individuals & firms in the decision of allocating finite resources. 2. Macroeconomics - nation/region - general discussions of large scale economic factors within a country or internationally. ❖ MACROECONOMICS GDP (Gross Domestic Product). - all monetary value of goods & services within a country. (lahat ng kinita sa loob ng bansa) - used to estimate the size of the economy + growth rate. - gawa sa Pilipinas GNP (Gross National Product). - total domestic & foreign products produced by all residents of a country. (kita ng mga Pilipino worldwide) - gawa ng Pilipino (kahit saang bansa). ❖ PURCHASING POWER - value of currency expressed in terms of the - amount of goods and services that 1 unit money can buy. (gaano karami kayang bilhin?) Inflation decreases the amount you're able to purchase. ❖ PURCHASING POWER PARITY - theoretical exchange that allows you to buy the same amount of goods & services in every country. comparison ng currency / currency exchange (forex - foreign exchange) - EX: 5 pesos = 3 dollars. ❖ INFLATION - measures how the price average in an economy rises. - marks a decrease in the Purchasing Power of a nation. How does inflation work? Demand Pull - demands for goods & services exceeds production. Cost Push - production costs increase price. Built in - price rises, wage rises to maintain living costs. ❖ Inflation - represents at which goods/services. increase over time. ❖ Causes of inflation Unemployment - a person cannot find work. - measure for healthy economy. - more unemployed. = less total economic production rate Low unemployment rate  - the economy is more likely to be producing near its full capacity maximizing output, wage growth, rising living standards. ▷ Extremely Low Unemployment Rate. - cautionary sign of an overheating economy. - inflationary pressures, tight conditions for businesses ▷ High Unemployment Rate - Tower output without a proportional decline in the need for basic consumption. - serious distress in economy, lead to social & political upheaval ❖ Labor Force - total of employed & unemployed people in a country - mandated working age in Ph = 18. - excludes people in prison / hospitals!! ❖ Government spending - money spent by the public sector on the acquisition of goods & production of services such as education, healthcare, social protection & defense. ❖ Funds are taken from Taxes & Debts ❖ Public spending - enables gov't to produce goods / services ❖ Taxes - that are needed to fulfill economic objectives - refers when a taxing authority (gov't) imposes tax - fund for government expenditure. * It is different from extortion because tax is imposed by the government. Types of fax: 1. Income Tax 2. Property Tax 3. Inheritance Tax 4. Corporate Tax 5. Capital 6. Sales ❖ Deficit spending - gov't expenditures are higher than the revenues. worsens a gov't debt balance ❖ Loan / Debt - a promise often contractual: Credit Rating - likelihood that a borrower will be able to pay back a loan within the agreement. High credit rating = high possibility of paying back. Poor credit rating - the borrower has had trouble paying back loans in the past. ❖ Government Policy Fiscal Policy - manipulation of the level of spending & tax rates budgeting (paano dapat gastusin? Monetary Policy - managing the size & growth rate of money in a country. (controlling the money supply.) ❖ Protectionism vs. Free Trade Protectionism - there should be a priority on domestic trade - has restrictions on international trade for the benefit of the domestic economy. - is done thru tariffs, quota, subsidies. Free Trade - removing restrictions to speed up trade, promote comparative advantage, increase competition & lower prices. - mas mura yung products. - protection ng local businesses. ❖ Tariffs & Trade Barriers Tariffs - form of trade barriers - tax paid to the customs authority of the receiving country. - shouldered by domestic consumers - to make the imported products more expensive. Trade Barriers - imposed to protect domestic employment protect consumers, infant industries Trade wars - national security & retaliation. - happens when one country raises tariffs on another country's imports. - side effects of protectionist policies. - protect national interests & provide advantage to domestic businesses. ❖ WORLD TRADE ORGANIZATION (WTO) - aims to promote free & fair trade. - established in 1995 when it replaced GATT (General Agreement On Tariffs & Trade) - situated in Geneva, Switzerland & has 164 members ❖ INTERNATIONAL MONETARY FUND (IMF) - oversees the world's monetary stability countries. - monitors economic activity & provide loans to member ❖ WORLD BANK - aims to reduce poverty by offering assistance to middle-income & low-income countries. ☆ Global interstate system - relation of each country to handle international issues. - recognition ng mga bagay sa mundo o international crimes na hinahandle / inoorganize internationally - International Crimes = international cooperation Interstate - samahan ng iba't ibang bansa. Example: Nahuli si Alice 640 (spy sa pinas I wanted sa Pinas) sa Indonesia. Nireport ng Indonesia sa Pinas dahil pareho silang parte ng ASEAN at may kasunduan na "regional peace & order" Basically, pag may wanted sa isang bansa, liable ang ibang bansa. State - Political Nation-culture. "Maraming nation sa iisang state.” Global Interstate System → United Nations Regional → ASEAN UNITED NATIONS - primary organization for international cooperation. - to maintain worldwide peace & security. - to develop velations among nations. - to foster cooperation among nations. But, the UN cannot prevent all wars. They have good intentions & may achievements such as the Universal Declaration Of It Uman Rights. They're not perfect & cannot solve our problems. (May competition & favoritism) * If you're not recognized by the Big 5, hindi ka matatawag na country. (ex: Taiwan) BIG 5: China France Great Britain Russia United States ☆ ECONOMIC GLOBALIZATION - Economies around the world become more interconnected.  - Be more closely related with each other. includes trade barriers, free movements and financial integration. ☆ POLITICAL GLOBALIZATION - Political processes become more integrated and each nation shares political power through diff. institutions. - An example is the United Nations where member states discuss political processes on an international level. ☆ CULTURAL GLOBALIZATION. - more ethereal concepts than economic & political - cultures & social ideas become more blended among different countries. - often associated with materialism values. - One example is popular culture in the United States. Specifically in Hollywood where pop culture is exported in each country or culture through television / movies. ☆ GLOBAL SUPERPOWER - Strongest nations in the world. - most powerful in terms of economic wealth, military, population resources & cultural effects. most dominant position.