1. The document discusses several international financial institutions including the World Bank and International Monetary Fund, their goals of providing loans and assistance to developing countries for economic development. 2. It also discusses the concepts of market integration seen in economic unions like the European Union and ASEAN, which aim to reduce barriers to trade and movement of goods, services, and factors of production across member countries. 3. The benefits of economic integration are outlined, including the EU's single currency, the Euro, which lowered costs for cross-border transactions and made price comparisons easier.

1. INTERNATIONAL FINANCIAL INSTITUTIONS
WORLD BANK
GOALS OF WORLD BANK
THE FIVE ORGANIZATIONS OF WORLD BANK
INTERNATIONAL MONETARY FUND
MARKET INTEGRATION
THE EUROPEAN INTEGRATION
LEGAL BASIS OF EUROPEAN UNION
THE BENEFITS OF EURO
ASEAN INTEGRATION
THE GLOBAL ECONOMY AND OUTSOURCING

2. INTERNATIONAL
FINANCIAL
INSTITUTIONS
• are institutions that provide financial
support via grants and loans for
economic and social development
activities developing countries.

3. • They provide loans, grants, and technical
assistance to governments, as well as loans
to private businesses investing in
developing countries.
• International financial institutions include
public banks, such as World Bank,
International Monetary Fund and regional
development countries.

4. The following are usually classified as
international financial institutions:
1. World Bank
2. International Monetary Fund
3. European Investment Bank
4. Islamic Development Bank
5. Asian Development Bank

5. 6. European Bank for Reconstruction and
Development
7. CAF- Development Bank of Latin
America
8. Inter-American Development Bank
Group
9. African Development Bank
10. Asian Infrastructure Investment Bank

6. WORLD BANK
It is an international organization dedicated to
providing financing advice and research to developing
nations to aid their economic advancement.
CURRENT PRESIDENT: David Malpass

7. FACT FILES
• Founded: July 1, 1944
• Headquarters: Washington, DC
• Type: International Financial Organization
• It was first called as International Bank of
Reconstruction and Development.
• It is the largest development institution
• It was created after the World War 2 in order to
support the financial needs of European and Asian
countries.

8. TWIN GOALS OF WORLD BANK
1. End extreme poverty by decreasing the
percentage of people living on less than $1.90 a
day to no more than 3%
2. Promote shared prosperity by fostering the
income growth of the bottom 40% for every
country.

9. 5 INSTITUTIONS OF WORLD
BANK
1. International Bank for Reconstruction and
Development
2. International Development Association
3. International Finance Corporation
4. Multilateral Investment Guarantee Agency
5. International Centre for Settlement of
Investment Disputes

10. 5 LARGEST SHAREHOLDERS
• France
• Germany
• Japan
• UK
• US

11. INTERNATIONAL MONETARY
FUND
• is an organization of 189 countries, working
to foster global monetary cooperation,
secure financial stability , facilitate
international trade, promote high
employment and sustainable economic
growth and reduce poverty around the
world.

12. • IMF is governed by and accountable
to the 189 countriss that make up it
near-global membership.
• The IMF's primary purpose is to ensure the
stability of the international monetary
system-the system of exchange rates and
international payments that enables
countries and their citizens to transact with
each other.

13. The Mission of International Monetary Fund
SURVEILLANCE
• The IMF oversees the international
monetsry system and monitors the
economic and financial policies of its 189
member countries.
• The IMF highlights possible risks to
stability and advises on needed policy
adjustments.

14. LENDING
• A core responsibility of the IMF is to
provide loans to member countries
experiencing actual or potential
balance of payments problem.
• Unlike development banks, the IMF
does not lend for specific projects.

15. CAPACITY DEVELOPMENT
• IMF capacity development-technical
assistance and training-helps member
countries design and implement economic
policies that foster stability and growth by
strengthening their institutional capacity
and skills.
• The IMF seeks to build on synergies
between technical assistance and training
to maximize their effectiveness.

16. MARKET INTEGRATION AND HOW
IT WORKS
Koester (2017) states that market integration is a
state of affairs or a process involving attempts to
combine separate national economies into larger
economic regions
Integration – as a means of stimulating trade and
improving divisions of the labor among countries

17. GENERAL AGREEMENT OF TARIFFS AND
TRADE (GATT) in 1948 gave further impetus to
integration by promoting greater acceptance of
the most favored nation principle.
The Article 1 of the GATT states: “All contracting
parties must accord any advantage, favour, privilege
of immunity granted to any product from any other
country immediately and unconditionally to all other
members.”

18. NEGATIVE INTEGRATION
● reducing non-tariff and tariff barriers to trade can be
the main tool for integrating markets
● the term implies that a government’s only role if to
withdraw from interference in the movement of goods
and factors of production across national boarders

19. FORMS OF INTEGRATION
Preferential Agreement – involves lower trade barriers
between those countries which have signed the
agreement; the first and smallest step on the road to
further integration
Free Trade Agreement – reduces barriers to trade
among member countries to zero, but each member
country still has autonomy in deciding on the external
rate or tariff

20. Customs Union – represents a higher stage of
economic integration than a Free Trade Area as the member
countries adopt a common external tariff
Common Market – goes beyond a Customs Union in
allowing for free movement of labor and capital within the
Union; to integrate both product and factors markets of
member countries
Economic Union – the highest form of economic
integration

21. THE EUROPEAN INTEGRATION
The European Union is a unique economic and political union
between 28 European countries that together cover much of
the continent.
The result was the European Economic Community (EEC),
created in 1958, and initially increasing economic cooperation
between six countries: Belgium, Germany, France, Italy,
Luxembourg and the Netherlands. Since then, a huge single
market has been created and continues to develop towards
its full potential.

22. LEGAL BASIS OF EUROPEAN UNION
The European Union is based on the rule of law. This
means that every action taken by the EU is founded on
treaties that have been approved voluntarily and
democratically by all EU member countries.
A TREATY – is a binding agreement between EU member
countries. It sets out EU objectives, rules for EU
institutions, how decisions are made and the
relationship between the EU and its member countries

23. According to europa.eu (2017), the main treaties that
help created European Union are:
● Treaty of Lisbon
● Treaty of Nice
● Treaty of Amsterdam
● Treaty on European Union
● Single European Act
● Merger Treaty – Brussels Treaty
● Treaties of Rome: EEC and EURATOM treaties
● Treaty establishing the European Coal
and Steel Community

24. European Union, an Economic Union to
Political Union
A name change from the European Economic
Community (EEC) to the European
Union (EU) in 1993
The EU is based on the rule of law: everything it does
is founded on treaties, voluntarily and democratically
agreed by its member countries.

25. A Union of Single Currency
In 2012, the EU was awarded by the Nobel Peace Prize
for advancing the causes of peace, reconciliation,
democracy and human rights in Europe.
The single or ‘internal’ market is the EU’s main
economic engine, enabling most goods, services,
money and people to move freely. another key objective
is to develop this huge resource also in other areas like
energy, knowledge, and capital markets to ensure the
European can draw the maximum benefit from it.

26. The Benefits of Euro
1. People no longer need to change
money
2. It cost much less (or nothing at all)
to make cross-border payments.
3. Consumers and businesses can
compare prices more easily.

27. ASEAN INTEGRATION
•August 8, 1967 - five foreign ministries of
Indonesia, Philippines, Malaysia, Singapore
and Thailand signed a document in the main
hall of DFA in Bangkok, Thailand.
•Founding Fathers of ASEAN
-Adam Malik (Indonesia), Narciso Ramos
(Philippines), Tun Abdul Razak (Malaysia), S.
Rajaratnam (Singapore) and Thanat Khoman
(Thailand).

28. Establishment of the ASEAN Economic
Community (2015)
- has been seen as a way to promote
economic, political, social and cultural
cooperation across the region.
AEC’s vision for the next nine years, laid out
in the AEC Blueprint 2025
1. A highly integrated and cohesive economy

29. 2. A competitive, innovative, and dynamic
ASEAN
3. Enhanced connectivity and sectoral
cooperation
4. A resilient, inclusive, people-oriented
and people-centred region
5. A global ASEAN.

30. The ASEAN Free Trade Area (AFTA)
- ASEAN member Countries have
made significant progress in the
lowering of intra-regional tariffs
through the Common Effective
Preferential Tariff (CEPT) scheme for
AFTA.

31. 4 Pillars of the ASEAN Economic
Community
1. Single Market and Production Base
Core principles:
a. Free flow of goods
b. Free flow of services
c. Free flow of investment
d. Free flow of capital
e. Free flow of skilled labor

32. 2. Competitive Economic Region
3. Equitable Economic Development
4. ASEAN's integration into the globalized
economy.

33. The Global Economy and Outsourcing
Outsourcingmeans finding a partner
with w/c a firm can establish a bilateral
relationship and having the partner
undertake relationship-specific investments
so that it becomes able to produce goods or
services that fit the particular needs.

34. The Call Center Industry in the
Philippines
-sub sector of Business Processes
Outsourcing
-major contributor of our
economy

35. Global Corporation
( Multi national Company )
- a business that operates in two or
more countries.
Global Corporations and
Globalization
• economies of scope
• economies of scale