Lesson 3 Global Market PDF

Contemporary World Lesson 3 Trace how the economic Contribute in creating lifestyle of people positive impact. emerged through time from the emergence, evolution and the future Determine what global of jobs. econ...

Contemporary World Lesson 3 Trace how the economic Contribute in creating lifestyle of people positive impact. emerged through time from the emergence, evolution and the future Determine what global of jobs. economy and market integration are and how they affect our living. PEOPLE’S LIFESTYLES CAUSED BY ECONOMIC STATUS HAVE CHANGED SIGNIFICANTLY. From the early days, the nature of work has continuously transformed.  Hunting and Agriculture Gathering Industrialization Revolution Men were typically doing There was a shift from Workers moved from rural the hunting and women nomadic lifestyle to areas to cities, and jobs were gathering food. settled life leading to the became more specialized People lived a nomadic cultivation of crops and and formalized due to the lifestyle. domestication of animals. mechanization of production and the rise of factories. Post-War The 20th century led to mass employment in manufacturing and service industries Information Age The late 20th century witnessed the proliferation of computers and the internet, transforming the job landscape Gig Economy A New Way of Working in the 21st century is characterized by short- term contracts and freelance work.  Remote Work and Automation and AI Flexibility Sustainability These are expected to replace some and Social jobs but also create new ones.Tasks The COVID-19 pandemic accelerated the adoption of remote work, Impact: that are repetitive or data-driven may Careers in renewable energy, changing how and where work is sustainable agriculture, and social be automated done. services are on the rise.  This usually comes in the form of quotas and tariffs. Tariffs are required fees on imports or exports. For example, apen that costs $1.00 in Country A will cost $5.00 in Country B because of tariff. “a policy of systematic government intervention in foreign trade with the objective of encouraging domestic production; this encouragement includes giving preferential treatment to domestic producers nad discriminating against foreign competitors (MsAleese, 2017 as cited in Ritzer, 2015, p.1169) ”  David Cameron “World Market” This refers to the international exchange of goods and services. This may also refer to the free movement of goods, capital, services, technology and information. This provides access to international technology, promotes variety and diversification, encourages specialization, creates healthy cultural exchanges, and helps in poverty alleviation. This causes competition among d countries, unequal economic growth, imbalance in trade and domestic job loss. https://opentext.wsu.edu/cpim/chapter/1-7-what-is-globalization/#:~:text=below%2050%20percent.-,Elements%20of%20economic%20globalization,technology%20(Stiglitz%2C%202003). 1. International Trade 2. Foreign Direct Investment 3. Capital Market Flows 4. Migration 5. Diffusion of Technology 1. International Trade An increasing share of spending on goods and services is devoted to imports and an increasing share of what countries produce is sold as exports The importance of International trade lies at the root of a country’s economy. In the constant changing business market, countries are now more interdependent than ever on their partners for exporting, importing, thereby keeping the home country’s economy afloat and healthy. For example, China’s economy is heavily dependent on the exportation of goods to the United States, and the United States customer base who will buy these products. 2. Foreign Direct Investment According to the United Nations, FDI is defined as “investment made to acquire lasting interest in enterprises operating outside of the economy of the investor”. Direct investment in constructing production facilities, is distinguished from portfolio investment, which can take the form of short-term capital flows (e.g. loans), or long-term capital flows (e.g. bonds) (Stiglitz, 2003). Since 1980, global flows of foreign direct investment have more than doubled relative to GDP (World Briefing, Paper, 2001). 3. Capital Market Flows In many countries, particularly in the developed world, investors have increasingly diversified their portfolios to include foreign financial assets, such as international bonds, stocks or mutual funds, and borrowers have increasingly turned to foreign sources of funds (World Briefing, Paper, 2001). Capital market flows also include remittances from migration, which typically flow from industrialized to less industrialized countries. In essence, the entrepreneur has a number of sources for funding a business.  4. Migration Migration can benefit developing economies when migrants who acquired education and know-how abroad return home to establish new enterprises. However, migration can also hurt the economy through “brain drain”, the loss of skilled workers who are essential for economic growth (Stiglitz, 2003). 5. Diffusion of technology Innovations in telecommunications, information technology, and computing have lowered communication costs and facilitated the cross- border flow of ideas, including technical knowledge as well as more fundamental concepts such as democracy and free markets (Stiglitz, 2003). The Contemporary World Prince Kennex Reguyal Aldama Rex Bookstore Philippine Copyright 2018 The Contemporary World Lisandro E. Claudio & Patricio N.Abinales C&E Publishing Inc. 2018