Introduction to the Study of Globalization PDF

Introduction to the Study of Globalization  What is Globalization? What is Globalization? Globalization is comprised of multiple sameness and interconnectedness that go beyond the nation-states (McGrew, 1990). Ohmae (1992) stated that globalization means the onset of the border...

Introduction to the Study of Globalization  What is Globalization? What is Globalization? Globalization is comprised of multiple sameness and interconnectedness that go beyond the nation-states (McGrew, 1990). Ohmae (1992) stated that globalization means the onset of the borderless world. Additionally, Kiely & Marf leet (1998) def ined Globalization as a world in which societies, cultures, politics and economics have, in some sense come closer together.  Globalization is also defined differently depending on someone else’s expertise, experience, and perspective. Globalization to an ECONOMICS EXPERT Fast speed of trade (import and exporting are done in just a millisecond through technology) Global economic organizations. (e.g International Monetary Fund (IMF), World Bank (WB) World Trade Organization (WTO), International Labor Organization (ILO), ASEAN, etc.) Multinational and Transnational Corporations Free trade (Governments does not restrict the importation of products and the exportation of local products) Globalization to a CULTURE EXPERT Establishment of “global village” (media, facebook has connected the world). Shrinking world (breaking boundaries) Cultural imperialism Borderless world Adoption of other cultures (KPOP) Globalization to a POLITICAL SCIENCE EXPERT Globalization serves as a challenge to the nation-state. Strengthening of regional blocs (ASEAN) (UN) Emergence of global political norms (the norm that each country is entitled to the exploitation of human resources for its own growth). Emergence of corporations (businessmen and investors) International laws (conflicts) World governance  IMPORTANCE OF GLOBALIZATION  IMPORTANCE OF GLOBALIZATION It increases the size of global market Allows more and different goods to be produced and sold for cheaper prices It is one of the most powerful forces affecting the modern world  EARLY GLOBALIZATION  EARLY GLOBALIZATION Around 100 BCE, a network of trade routes called the Silk Road developed, linking the Far East with the Middle East and Europe. Over the next two millennia, goods, cultures, religions, technologies, and ideas were exchanged between the East and the West through the silk road. Historical Periods of Globalization Prehistoric Period (10000 BCE- 3500BCE) Globalization was minimal , limited by the geographic spread of hunter-gatherers and the lack of advanced technology. Pre-modern Period (3500 BCE-1500 CE) The invention of writing and the wheel signif ic antly advanced globalization by improving transportation and spreading ideas. Early Modern Period (1500-1750) It is the period between the Enlightenment and the Renaissance, the rise of metropolitan centers, and capitalism expanded globalization, marking a shift toward universal morality law. Modern Period (1750-1970) Innovation in transportation, communication, and industrialization, along with population growth and migration, led to increased cultural exchange and social transformation. Contemporary Period (1970-Present) A dramatic leap in globalization, characterized by intensif ie d global independencies and accelerated connections worldwide.  Five dimensions of global cultural flow (Appadurai,1996) 1. Ethnoscape - global movement of people 2. Mediascape - flow of culture 3. Technoscape - circulation of mechanical goods and software 4. Financescape - global circulation of money 5. Ideoscape - realm of political ideas - windows into the broader phenomenon of globalization. Four Attributes Of Globalization 1. Globalization occurs worldwide 2. Intensification and acceleration of social exchanges and activities 3. Expansion and stretching of social relations 4. Various forms of connectivity  EFFECTS OF GLOBALIZATION  EFFECTS OF GLOBALIZATION 1. Economic Effects 2. Cultural Effects 3. Technological Effects 4. Environmental Effects 5. Political Effects 6. Social Effects 1. Economic Effects Increased Trade- Globalization has led to an increase in international trade, allowing countries to specialize in producing goods where they have competitive advantage. 1. Economic Effects Job Creation and Loss- While globalization can create jobs in developing countries due to outsourcing, it can also lead to job losses in developed countries as companies move to production areas with lower labor costs. 1. Economic Effects Economic Growth - Many countries have experienced signif ic ant economic growth due to globalization, particularly emerging economies like China and India. 1. Economic Effects Income Inequality - Globalization can exacerbate income inequality within countries, with wealth often concentrated in the hands of the few. 2. Cultural Effects Cultural Exchange - Globalization has facilitated the spread of ideas, customs, and cultural practices around the world, leading to greater cultural diversity. 2. Cultural Effects C u l tu ra l H o m o g e n i z a ti o n - o n th e f li p s i d e , globalization can lead to cultural homogenization, where dominant cultures (often western) inf luence and sometimes overshadow local cultures. 2. Cultural Effects Language Spread - English has become a global lingua franca due to globalization, which can lead to the decline of less widely spoken languages. 3. Technological Effects Innovation and Knowledge Transfer - Globalization accelerates the spread of technology and knowledge across borders. Companies and nations can adopt innovation faster, leading to rapid technological advancements. 3. Technological Effects Digital Div ide- While globalization facilitates technology access for many, it can also widen the digital divide, where less developed regions may struggle to keep up with technological progress. 3. Technological Effects Global Supply Chains - Technology has enabled the creation of global supply chains, where production is spread across multiple countries, optimizing e f fic i e n c y b u t al s o maki n g e c on omi e s more interdependent. 4. Environmental Effects Environmental Degradation - The increased production and consum ption driven by globalization can lead to environmental degradation, such as deforestation, pollution, and climate change. 4. Environmental Effects G l obal En v i ron men tal Awaren es s - H owev er, globalization also fosters global cooperation on environmental issues, leading to international agreements and initiatives to combat climate change and protect biodiversity. 5. Political Effects Global Governance - Globalization has led to the rise of international organizations like the United Nations and the World Trade Organization, which work to manage global issues. 5. Political Effects Erosion of Sovereignty - Some argue that globalization can erode national sovereignty as countries become more interdependent and subject to international regulations and agreements. 5. Political Effects Rise of Populism - Globalization has also contributed to the rise of populism in some countries, where people feel left behind by the global economy and push back against international cooperation. 6. Social Effects Improved Access to Information - Globalization has made it easier for people to access information and ideas from around the world, thanks to the internet and social media. 6. Social Effects Migration- Globalization has increased migration rates as people move across borders in search of better oppor tunities, leading to more diverse societies. 6. Social Effects Changing Lifestyle - Globalization has inf lu enced lifestyles and consumption patterns, often leading to the adoption of Western-style consumerism.  THE GLOBAL ECONOMY THE GLOBAL ECONOMY Also referred to as world economy Refers to the international exchange of goods and services. It may also mean as the free movement of go o ds , c a pi t a l , s er vi c es , t ec h n o l o gy a n d information.  TWO TYPES OF ECONOMIES 1. PROTECTIONISM P r o t e c t i n g o n e’s e c o n o m y f r o m foreign competition by creating trade barriers  TWO TYPES OF ECONOMIES 2. TRADE LIBERALIZATION Reducing trade barriers to make international trade easier between countries. What is global economy/economic globalization? The Global Economy refers to the interconnected worldwide economic activities that take place between multiple countries. These economic activities can have either positive or negative impact on the countries involved. What is global economy/economic globalization? It is concerned with globalization of production, finance, markets, technology, organizational regimes, institutions, corporations, and labor. What is global economy/economic globalization? It is expanding since the emergence of trans- national trade and increased exponentially due to the increase rate of communication and technology.  The creation of World Trade Organization (WTO) made countries cut down trade barriers and open up their current accounts and capital accounts. ACTORS THAT FACILITATE ECONOMIC GLOBALIZATION ACTORS THAT FACILITATE ECONOMIC GLOBALIZATION - refers to individuals, organizations, or entities that inf lu ence or participate in the global interconnected economy (e.g. Multinational Corporations, International Financial Institutions, International and Non-Governmental Organizations) whose actions and decisions impact global trade, finance, and economic policies INTERNATIONAL ECONOMIC AND FINANCIAL INSTITUTIONS International Financial Institutions (IFIs) play a signif ic ant role in the social and economic development of countries with emerging or transitional economies in many regions of the world. This position entails providing advice on development projects, as well as funding and aiding with their implementation. Goals of IFIs Reduce global poverty Support sustainable economic, social and institutional development Promote cooperation and integration  Example: The International Monetary Fund - It is an organization composed of 190 countries working together in promoting worldwide monetary cooperation, securing f inancial stability, facilitating international trade, and reducing poverty around the world. Multinational Corporations Any f irm that undertakes foreign direct investment, owns or manages income-generating assets in more than one country, produces goods or services beyond its country of origin, or engages in international production. Multinational Corporations Example: Johnson & Johnson Nestlé Google LLC International Governmental Organizations These are legal entities formed by a treaty that brings together two or more governments to collaborate in good faith on problems of mutual interest. IGOs were created primarily to provide a vehicle for the world’s people to collaborate more effectively in the areas of peace and security, as well as to address economic and social issues. International Governmental Organizations Examples: United Nations North Atlantic Treaty Organization European Union International Criminal Court International Non-Governmental Organizations Are non-prof it voluntary associations having members or participants from several nations that operate on an international, transnational, or global scale. International Non-Governmental Organizations Examples: Amnesty International Friends of the Earth International The Red Cross  THE MODERN WORLD SYSTEM THE MODERN WORLD SYSTEM This refers to the interconnected global economic, political, and social structure that influences relations between countries and regions. Components of the Modern World System Economic Transactions Trade : Exchange of goods and services across borders Investment : Capital f low between countries for business and development Financial Flows : Movement of money, including loans, aid, and remittances Components of the Modern World System Political Relationships Diplomatic Ties: Formal relations and negotiations between nations International Ties: Cooperative agreements and treaties (E.g., NATO, EU) Components of the Modern World System Social Dynamics Cultural Exchanges : Spread of ideas, art, and traditions globally Migration Patterns : Movement of people seeking better opportunities or fleeing conflict Global Challenges: Shared issues like climate change, health pandemics, and human rights  Impact of the Modern World System on Global Economy Economic Integration: Enhanced market access and global supply chains Geopolitical Shifts: Inf luence of powerful nations and regional conflicts Shared Risks: Collaborative efforts needed to address global crises. UNDERSTANDING ECONOMIC INTEGRATION  UNDERSTANDING ECONOMIC INTEGRATION - ECONOMIC INTEGRATION refers to the collaboration of two or more countries to limit or eliminate trade restrictions and encourage political and economic cooperation. - It allows global markets to function more steadily with less government intervention, giving countries a chance to make the greatest use of their resources. How Does Economic Integration Work? - Economic integration strives to harmonize economic policies among member nations to promote mutual trade and economic and political interests. - It, along with little government interference, creates more business prospects world wide. ECONOMIC INTEGRATION LEVELS ECONOMIC INTEGRATION LEVELS 1. Free Trade Area - It entails the partial or complete elimination of trade tariffs on goods and services between member countries. Example: European Free Trade Association and North American Free Trade Agreement ECONOMIC INTEGRATION LEVELS 2. Preferred Trade Area - It assures a better and preferred offering to member countries by cutting tariffs on imports for one another. Example: Commonwealth System of Preferences ECONOMIC INTEGRATION LEVELS 3. Monetary Union - It concerns agreeing on fixed relative exchange rates and introducing a common currency to participate in foreign exchange and settle international transactions. ECONOMIC INTEGRATION LEVELS 4. Economic Union - It involves the coordination of monetary, fiscal, and taxation policies and government expenditure to promote the free flow of commodities, services, and production inputs Example: Belgium, Netherlands, and Luxembourg (BENELUX) ECONOMIC INTEGRATION LEVELS 5. Customs Union - It establishes common external trade tariffs on imports from non-member nations, making external production factors easier to track and tax within the region Example: European Economic Community ECONOMIC INTEGRATION LEVELS 6. Common Market - It is similar to free trade zones and customs unions. It facilitates the free movement of production factors between member countries and liberalizes cross-border labor mobility and investment. ECONOMIC INTEGRATION LEVELS 7. Complete Economic Integration - It combines coordination of fiscal policies with comprehensive monetary unification Example: European Union BENEFITS OF ECONOMIC INTEGRATION - It is beneficial in many ways, as it allows countries to specialize and trade without government interference, which can benefit all economies. - It results in a reduction of costs and ultimately an increase in overall wealth. BENEFITS OF ECONOMIC INTEGRATION - The advantages of economic integration fall into three categories: Trade creation Employment opportunities Consensus and cooperation  The Drawbacks of Economic Integration - Despite the benefits, economic integration has costs. Nationalists, or people who believe that their country is superior to others, are critical of economic integration. - These fall into three categories Diversion of trade Erosion of National Sovereignty Employment shift and reduction Market Integration  Market Integration T h e i P h o n e , a d ev i c e d e s i g n e d i n California and assembled in China, contains components sourced from over 4 0 c o u n t ri e s. T h i s i l l u s t ra t e s t h e interconnectedness of global supply chains and the extent to which markets are integrated.  Market Integration The 30 years since the WTO's creation have ushered in a new era of trade and economic growth. Between 1995 and 2023, total world trade — goods and commercial services — saw st ron g growt h , a vera gi n g 5.8 per cen t per yea r. T h i s translates into an almost f ivefold increase in world trade (World Trade Organization). T h i s i n d i c a t e s a s i g n i f ic a n t i n c r e a s e i n t h e interconnectedness of global markets and the growing importance of international trade.  Market Integration Global market integration means that price differences between countries are eliminated as all markets become one. One way to the progress of globalization is to look a t trends how prices converge or become similar across countries.  The law of one price states that the prices of identical security, commodities or asset traded anywhere that are exchanged in two or more markets must be the same regardless of location and currency. In an ef ficient market, there must be only one price for commodities regardless of where they are traded. Identical goods must have identical prices. For EXAMPLE, an ounce of gold must have the same price expressed in terms of dollars in London as it does in Tokyo.  The law of one price The law of one pric e is a variation of Purchasing Power Parity that relates to a single commodity as opposed to a basket of goods. This theory postulates that the difference in prices for identical commodities in two countries is due to the foreign exchange (FX) rate between the two countries.  Market Integration in the 21st Century Globalization-the integration of people with w o r l d m a r k e t s - i s pe r h a ps t h e m o s t si gni f ic a nt a nd pe r v a si v e e c o no m i c development of the late 20th and early 21st Centuries. It is the subject of a small but growing body of empirical economic research at the national and multi-national levels.  Market Integration I n ec onomic s researc h, globalization means trade integration. A s marke t l i be ral i zati o n and trad e i nt e grat i o n c l i mb to t he to p o f t he economic policy agenda in many countries, development economists increasingly focus their attention on market imperfections that may inhibit trade and create welfare losses.  Market Integration As economic integration unfolds, producers be c o me i nse r te d d i re c tl y i nto gl o bal marke t s o n t he o ut put si d e , t hro ugh production of exports, and/or on the input side, through imported intermediate inputs, technologies, or factors.  Market Integration: Migration Migration is the principal mechanism by which households developed in less countries (LDCs), especially in rural areas, become directly inserted into the global economy.  Market Integration: Migration Globalization is not internationalization, but the effective erasure of national boundaries-opening the way not only to free mobility of capital and goods but also, in effect, to free movement (or uncontrolled migration) of vast labor tools from regions of rapid population growth and the impacts on national economies could be tragic.  Market Integration: Microeconomics "Microeconomics of Globalization" refers also to the myriad ways in which economic actors also may become inserted into the global economy indirectly, through their relations with other economic agents within local, regional, and national markets.  Market Integration: Microeconomics It is the study of the economic behavior of individuals, households and firms. Where macroeconomics looks at the big picture of the economy, microeconomics looks at the individual behaviors that drive economic processes.  Examples of Microeconomics 1. Demand 10. Consumer Confidence 2. Supply 11. Business Confidence 3. Prices 12. Information Economics 4. Elasticity 13. Welfare Economics 5. Opportunity Cost 14. Productivity 6. Labor Economics 7. Competition 8. Competitive Advantage 9. Consumer Choice  Microeconomics: Demand How demand for goods is inf luenced by income, preferences, prices and other factors such as expectations.  Microeconomics: Supply How producers decide to enter markets, scale production and exit markets.  Microeconomics: Prices How individuals, households and f irms react to prices and inf luence prices with their supply and demand. Fo r E XA MPLE , t he o bse rv at i o n t hat so me customary prices appear to be sticky in that consumers resist buying above a particular historically established price.  Microeconomics: Elasticity Elasticity is how supply and demand reacts to change. Fo r E X A M PL E , a ho use ho l d t ha t demands less of a good when the price increases due to the availability of substitutes.  Microeconomics: Opportunity Cost The tradeoffs that individuals and f irms make to manage constrained resources such as time, money, capital and land. EXAMPLE, you spend time and money going to a movie, you cannot spend that time at home reading a bo o k, a nd yo u c a n't spe nd t he m o ne y o n something else.  Microeconomics: Labor Economics Modeling the supply and demand for labor. focus on human capital (referring to the skills that workers possess, not necessarily their actual work). For EXAMPLE, looking at how expectations for economic growth impact the labour participation rate.  Microeconomics: Competition Modeling competition in markets. For EXAMPLE, the use of game theory to model a price war between competitors.  Microeconomics: Competitive Advantage Competitive advantage is the ability of certain f irms to outcompete all competition in a particular area. For EXAMPLE, a sporting goods company wi t h supe ri o r brand re c o gni t i o n and a po si t i v e brand i mage t hat c an c harge premium prices and still enjoy high demand for its products.  Microeconomics: Consumer Choice Ho w ne e d s, pe rc e pt i o ns and i nfo rmat i o n shape consumer choices. 2 influences on a person's consumption choice: 1. their income 2. prices of the goods For EXAMPLE, the idea that consumers maximize their expected utility of purchases meaning that they buy the things they expect to be most useful to them.  Microeconomics: Consumer Confidence Ho w c o nsume r e x pe c t at i o ns fo r t he fut ure inf luence spending, saving, investment and labor participation. Is an economic indicator that measures the degree of optimism that consumers feel about the overall state of the economy and their personal f inancial situation. EXAMPLE, When consumer conf id ence is high, consumers make more purchases.  Microeconomics: Business Confidence How producer expectations for the future influence hiring, capital investment and supply. Business c o nf id enc e ind ex (BC I ) - prov id es information on future developments, surveys based upon opinion on developments in production, orders and stocks of f inished goods in the industry sector.  3 Basic kinds of Market Integration 1.Horizontal Integration 2.Vertical Integration 3.Conglomeration  Horizontal Integration This occurs when a f irm or agency gains control of o t he r f ir ms o r age nc i e s pe rfo rmi ng si mi l ar marketing functions at the same level in the marketing sequence. This type of integration sometimes combine agencies to form a union with a view to reduce their effective number and the extent of actual competition in the market.  Horizontal Integration Two or more companies produce the same goods or services. It is also known as Merger  Effects of Horizontal Integration Buying out competitor in a time bound way to reduce competition. Gaining larger share of the market and higher profits Attaining economies of scale Specializing in trade  Advantages of Horizontal Integration 1.Lower cost 2.Higher efficiency 3.Increased differentiation 4.Increased market power 5.Reduced competition 6.Economics of scale 7.Economic of scopes 8.International trade  Disdvantages of Horizontal Integration 1. Destroyed value 2. Legal repercussions 3. Reduced flexibility  Vertical Integration Occurs when a f ir m performs more than one activity in the sequence of the market process. Linking together of 2 or more functions in the marketing process within a single firm or under a single ownership. Makes possible to exercise control over both quality and quantity of the product from the beginning of the production process until the products is ready for the consumer. Reduces the number of middle men in the marketing channel.  Vertical Integration Occurs when a f ir m performs more than one activity in the sequence of the market process. Linking together of 2 or more functions in the marketing process within a single firm or under a single ownership. Makes possible to exercise control over both quality and quantity of the product from the beginning of the production process until the products is ready for the consumer. Reduces the number of middle men in the marketing channel.  Vertical Integration Apple Inc. is one of the best-known companies for perfecting the art of vertical integration. The company manufactures its custom A- series chips for its iPhones and iPads. It also manufactures its custom touch ID fingerprint sensor.  Conglomerate Conglomeration refers to the process of forming a conglomerate, which is a company that operates in multiple, unrelated industries. This process often involves a parent company acquiring subsidiaries in different sectors, creating a diverse portfolio of businesses under a single corporate umbrella.  Conglomerate Examples of Conglomerates Ayala Corporation San Miguel Corporation JG Summit Holdings, Inc. SM Investment Corporation Aboitiz Equity Ventures, Inc. GT Capital Holdings Inc. Berkshire Hathaway Amazon  Conglomerate Advantages Diversification of Risk Access to New Markets Economies of Scale Increased Market Power Innovation and Synergy Protection from Takeovers  Conglomerate Disadvantages Lack of Expertise Coordination Challenges Potential for Conflicts Loss of Focus Transparency Issues  Reasons for the Market Integration ⚬ To remove transaction cost ⚬ Foster competition ⚬ P r ov i d e b e t t e r s i g n a l s f o r optimal generation decisions and consumption ⚬ Improve security of supply Market integration is the process of merging separate markets into a unified whole. This allows for the free flow of goods, services, capital, and labor across borders. Concept and Significance of Market Integration Market integration is driven by factors such as: Trade liberalization Technological advancements Economic policies The significance of market integration lies in its potential to: Boost economic growth Enhance consumer welfare Promote innovation Reduce poverty Levels of Market Integration Free Trade Area: No tariffs or quotas between members, but each has its own external policies. Customs Union: Same as FTA, plus a common external trade policy. Common Market: Includes free movement of labor and capital. Economic Union: Coordinated economic policies. Monetary Union: Shared currency.  INTERNATIONAL FINANCIAL INSTITUTIONS Organizations that play a crucial role in shaping the global economy. They are primarily focused on promoting economic development, financial stability, and international cooperation. Characteristics of IFIs International Financial Institutions (IFIs) are established by multiple countries, providing financial resources and policy guidance to promote economic development and global cooperation. Their activities span across borders, aiming to foster interconnectedness and address global challenges. Key Roles of IFIs Financial Assistance: Provide loans and aid to help developing countries invest in growth. Economic Stability: Promote stable global markets and sound economic policies. Trade Facilitation: Remove trade barriers and encourage open markets. Global Challenges: Address global issues like climate change, poverty, and inequality. Examples of Major IFIs - World Bank: Focuses on poverty reduction, economic growth, and improving living standards in developing countries. - International Monetary Fund (IMF): Promotes global monetary cooperation, financial stability, and economic growth. - International Finance Corporation (IFC): A member of the World Bank Group, IFC focuses on private sector development in emerging markets. - Asian Development Bank (ADB): Promotes economic and social development in Asia and the Pacific Impact on the Global Economy IFIs have significantly contributed to the development of a global economy by: Expanded Trade: IFIs promote open markets, leading to increased trade and economic growth. Increased Investment: IFIs attract foreign investment, fostering development and job creation. Reduced Poverty: IFIs support economic growth, contributing to poverty reduction and improved living standards. Criticism and Challenges While IFIs have played a vital role in shaping the global economy, they have also faced criticism for: Lack of Transparency: Concerns about decision-making processes and accountability. Neoliberal Policies: Concerns about policies that may not benefit all developing countries. Focus on Developed Countries: Concerns about prioritizing developed nations over developing ones. MONEY Money is a fundamental element of modern economies, serving as a medium of exchange, a unit of account, and a store of value. It simplifies transactions, facilitates economic growth, and allows for the accumulation of wealth. Money is essentially a system of value that allows for the exchange of goods within an economy. It acts as an intermediary, eliminating the need for a “double coincidence of wants” where both parties in a trade must have something the other desires. Benefits of money - Efficiency: Money eliminates the need for inefficient bartering. - Specialization: Money allows for specialization and increased productivity. - Stability: Money provides a stable measure of value for easier price comparisons and planning. - Wealth Accumulation: Money can be saved and invested to build wealth and secure the future. Forms of Money Commodity Money: Goods with intrinsic value (e.g., gold, silver, salt) used for exchange. Fiat Money: Government-issued currency backed by trust and decree (e.g., US dollar, Euro, Japanese Yen). Fiduciary Money: Money substitutes based on trust and a promise of payment (e.g., checks, banknotes). Digital Money: Electronic forms of money, including cryptocurrencies and central bank digital currencies (e.g., bitcoin, ethereum, digital yuan). Functions of Money - Medium of Exchange: Money acts as an intermediary in transactions, facilitating the exchange of goods and services. - Unit of Account: Money provides a common measure of value, allowing for the comparison of prices and the calculation of costs and profits. - Store of Value: Money can be saved and used to purchase goods and services in the future, preserving its value over time.  HISTORY OF GLOBAL MARKET INTEGRATION IN THE 20TH CENTURY The 20th century witnessed a dramatic transformation in global market integration, driven by a complex interplay of political, economic, and technological forces. The Early 20th Century: (Early 1900s) The pre-World War I era was characterized by colonial trade, with European powers exploiting their colonies for resources and markets. This system primarily benefited the colonizing nations, creating an uneven playing field. The Interwar Period: (1918-1939) World War I disrupted colonial trade and led to the rise of new nation- states. The interwar period saw the establishment of the League of Nations, aiming for international cooperation and free trade. However, the Great Depression of the 1930s hampered global market integration as countries turned to protectionist policies. The Post-World War II Era: (1945-1990s) The devastation of World War II led to a recognition of the need for international cooperation and economic integration. The Bretton Woods Agreement (1944) established the International Monetary Fund (IMF) and the World Bank, aiming to promote international trade and investment. The General Agreement on Tariffs and Trade (GATT), signed in 1947, aimed to reduce trade barriers and promote free trade. The Rise of Globalization: (1970s-Present) The 1970s saw the rise of multinational corporations and advancements in transportation and communication technology, further accelerating global market integration. The collapse of the Soviet Union in 1991 opened up new markets for trade and investment. The 20th century witnessed a remarkable journey of global market integration, from the colonial trade of the early era to the post-war push for free trade and the rise of globalization. This process, driven by political, economic, and technological factors, laid the foundation for the increasingly interconnected world we live in today.  GLOBAL CORPORATION -A global corporation, often referred to as a multinational corporation (MNC), is a large company that operates in multiple countries and has a significant presence and business activities around the world. -maintains a central office located in one country, which coordinates the management of all its other offices, such as administrative branches or factories. Attributes of Global Corporation International Presence Global corporations operate in multiple countries and have a widespread global presence, often with subsidiaries, offices, and manufacturing facilities in various regions. Diverse Workforce They employ a diverse and often international workforce to support their global operations. This diversity allows them to adapt to different markets and cultures effectively Global Supply Chain Management They manage complex global supply chains, optimizing the sourcing of materials, components, and labor from various regions to enhance efficiency. Advantages of Global Corporation: 1. Cheaper Labor/Access to lower production costs 2. Broader Market Base 3. Tax Cut Disadvantages of Global Corporation: 1. Potential abuse of Workers 2. Threat to Local Business Thank you!