For educational

1. PREPARED BY: MS. MONICA GAMIS

2.  Process or system by which goods and
services are produced, sold and bought in a
country or region.

3.  Also referred to as “ world economy”
 Refers to the international exchange of goods
and services
 It may also mean as the free movement of
goods and services, technology and
information
 Economies of countries are more connected
from extraction, production, distribution,
consumption and disposal of goods and
services.

4.  It is concerned with globalization of
production, finance, markets, technology,
organizational regimes, institution,
corporations and labor.
 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 organizations
made countries cut down trade barriers and
open up their current accounts and capital
accounts.

5. From your list of 10 objects at
home, which country of origin
was the most represented?

6. 1. Protectionism
A policy of systematic government
intervention in foreign trade with the
objective of encouraging domestic
production. This encouragement involves
giving preferential and discriminating
against foreign competitors.
 Comes in the form of tariffs and quota

7. 2. Trade Liberalization
Characteristics:
 Free trade
 Countries sign free trade agreements
 Transportation and communication
advancements facilitate movement of
goods and services around the world.

9.  A phenomenon in which markets for goods
and services that are in some related to one
another experience similar patterns of price
increase or decrease
 A situation in which the prices of related
goods and services sold in a specific
geographical area begin to move in a similar
pattern.

10. It is basically refers to how easily two or more
markets can trade with each other.
 High integration(similar price)
 Low integration(price flactuation)

11. 1. Horizontal Integration
This occurs when a firm or agency performing
similar marketing functions at the same level in
the marketing sequence.
A. Acquire a similar company in the same industry.
B. Expanding company’s market
C. Increasing market power
D. Increasing product or services differentiation
E. Lowering competition
Example: LANDBANK AND UCPB, SM INVESTMENTS
CORPORATION AND 2GO GROUP INC., PLDT AND
GLOBE

12. 2. Vertical Integration
This occurs when a firm performs more than one
activity in the sequence of marketing process.
A. Strengthening company’s supply chain
B. Lowering product costs
C. Capturing upstream or downstream profits
D. Gaining access to new distribution channels.
Example: NETFLIX

13. 3. Conglomeration
This occurs when a group, which is made up of two
or more business entities engaged in completely
different or similar businesses, usually with a
parent company and numerous subsidiaries.
Examples of conglomerates are Berkshire
Hathaway, Amazon, Alphabet, Facebook, Procter
and Gamble, Unilever, Diageo, Johnson & Johnson,
and Warner Media

14. 1. Preferential Agreement
PTAs are formed when countries within
geographical region agree to lower or eliminate
tariff barriers on goods imported from other
members of the area.
Example: REGIONAL TRADE AGREEMENT
Or RTA

15. 2. Free Trade Area
FTAs are formed when countries in a region agree
to reduce or eliminate trade barriers on all goods
imported from other members.
Example: NORTH ATLANTIC FREE TRADE
AGREEMENT (US, CANADA, MEXICO)

16. 3. Customs Union
A custom union entails the elimination of tariffs
barriers between members and the acceptance of
a single (unified) external tariff against non-
members.

17. 4. Common Markets
A common market’s defining feature is the
expansion of free trade beyond tangible goods to
include all economic resources. This means that all
barriers to the free movement of goods, services,
capital and labor are removed.

18. 5. Economic Union
Refers to a trading block that has a common
market among its members as well as common
trade policy with non-members’ freedom to pursue
their own macroeconomic policies.
Example: European Union

19. PRIMARY
Their goal is to extract raw materials from the natural
environment.
 Mining (Coal, iron)
 Agriculture (crops/livestock)
 Fishing
 Forestry
 Mineral Extraction (oil)
 Farming

20. SECONDARY
Which gains the raw materials and transform them into the
manufactured goods.
TERTIARY
Which involved services rather than goods

22. It is the whole system of human
interactions. The modern world system is
structured politically as an interstate
system – a system of competing and
allying states. Political scientists
commonly call this international system
and this is the focal point of the field of
international relations.

23.  World – systems are defined by the
existence of a division of labor. The
modern world-system has multi-state
political structure (the interstate
system) and therefore its division of
labor is international division of labor.
 The division of labor consists of three
zones according to the prevalence of
profitable industries or activities: core,
semi periphery and periphery.

25. 1. CORE
High income nations in the world economy.
This is the manufacturing base of the
planet where resources funnel in to become
the technology and wealth enjoyed by the
Western World today. They are dominant
capitalist countries that exploit peripheral
countries for labor and raw materials.

26. 2. SEMI-PERIPHERY
Are the middle - income countries, such as
India and Brazil. These are considered
semi-periphery due to their closer ties to
the global economic core.
Semi- Peripheral countries share
characteristics of both core and peripheral
countries.

27. 3. PERIPHERY
Also known as the “Low Income Countries”,
whose natural resources or labor support
the wealthier countries, first as the
colonies and now by working for
multinational corporations under
neocolonialism.
Peripheral countries are dependent on core
countries for capital and have
underdeveloped industry.

30. Global governance is sometimes referred to
as “ world governance.” Global is a
movement towards political cooperation
among transnational actors, negotiating
responses to problems that affect more
than one state or region, “Global
Governance” may mean the process of
designating laws, rules, or regulations
intended for a global scale.

31. Globalization restrains governments by
inducing increases budgetary pressure. A s a
consequence, governments may attempt to
curtail the welfare state, which is often
seen as a drag on international
competitiveness, by reducing especially
their expenditures on transfers and
subsidies.

32. Internationalization refers to the
increasing importance of international
trade, international relations, treaties,
alliances, and many more. International,
means between or among nations become
increasingly necessary and important.

33. Globalization refers to global economic
integration of any formerly national
economies into one global economy, mainly
by free trade and free capital mobility, but
also by easy or uncontrolled migration. It is
the effective erasure of national boundaries
for economic purposes. International trade
(government by comparative
advantage)becomes interregional trade
(governed by absolute advantage)

34. The national community embraced both
national labor and national capital, and
these classes cooperated to produce
national goods largely with national natural
resources. These national goods then
competed in international markets against
the goods of other nations, produced by
their own national capital/labor teams
using their own resources. This is
internationalization as defined a while ago