The document discusses economic globalization, outlining its definition, drivers, and impact on local and international trade, with a focus on the role of transnational and multinational corporations. It highlights historical trade developments, the complexity of the global economy, and the challenges countries face in benefiting from globalization, citing poverty issues in regions like Sub-Saharan Africa. Perspectives on the success of globalization vary, with some arguing it reduces poverty while others point out the unequal benefits it brings.

1. Global Economy

2. Objective of The Lesson
1. economic globalization is
explained;
2. identify the drivers of economic
globalization;
3. explain the modern world system;
and
4. explain the stance regarding
global economic integration.

3. Recap!

4. Introductory Question
Global Free
Trade: Will it
be good for
the Philippines
or not?

5. Guide Question:
1. What is the importance of
globalization to local free trade?
2. What is the importance of
globalization in international free
trade?
3. Does a particular country still have
a role to play in the emergence of

6. Discussion Proper

7. WHAT IS THE GLOBAL
ECONOMY?
》 The global economy as a process is
caused by the change of the human and
technological processes that produce a
high degree of global economic integration
through action or movement of goods,
services and capital across borders world
(IMF, 2008).

8. The IMF identified four basic aspect of
globalization.
1. Trade and transactions,
2. Capital and investment movement
3. Migration and movement of people,
4. The dissemination of knowledge.

9. Actor of GLOBAL
ECONOMY
They are called Transnational corporations
(TNCs), International corporations (ICs) or
Multinational corporations (MCs), They are the
main promoters of economic globalization
during the past century and constitute
approximately two thirds of all country's output

10. Multinational Corporations have
operations in more than one country.
Transnational corporations also have
operations in more than one country,
but typically focus on a single market.
Multinational corporations and
Transnational corporations are highly
complex organizations with a wide

11. History ot GLOBAL
ECONOMY
1. Homo Sapiens, who traveled from the African
continent and settled in other parts of the world.
Although small in number and low level, there is
the international trade beginning in the 16th
century with the establishment of relations with
between America and Afro-Eurasia.

12. 2. The Silk Road, commonly known as
the first global trade route in history,
had a scope and importance far
greater than the simple exchange of
goods.
- It is linked by trade between the
continents of Asia, Africa, and Europe

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14. 3. Trade monopoly initiated by
the first multinational
corporation, the British and
Dutch East India Companies of
England and The Netherland
which were established in 1600

15. 4. Increased number of trades ferry
from major European cities to Asia.
5. Golden Age, the short period before
the first world war (1870-1913) can be
considered the "golden age" of world
trade, peaceful, free trade, and stable
finances.

16. ✅ As previously mentioned, many
economists agree that there is no
adequate and precise definition of
globalization.
✅ The same is their view on where and
when it started. Although if we accept the
definition that global trade is "a process
that produced a "total system" of

17. ❗But behind this high record, the
unequal compensation (ratio) can be
noticed between the goods exported
and the global Gross Domestic
Product (GDP). As Gereffi (2005) said,
if the global economy existed then, it
existed only in the spirit of product
exchange and not in their production.

18. ECONOMIC GLOBALIZATION:
FAILED OR
SUCCESSFUL?

19. For Dollar and Kraay (2002), only
countries that do not support it fail
to shrink the incidence of poverty
in their constituents in the past
few decade. Wolf (2004) adds, not
the extensiveness of globalization
the problem is the lack of it.

20. As for the World Bank, it does indeed
reduce poverty, but not all countries
are blessed with it. A strong example of
this is the area of ​
​
Sub-Saharan Africa,
where almost half of the population
lives on nothing another US$1.25 per
day to spend on basic needs.

21. Rostow (1960) believes that
underdevelopment or the ongoing lack of
economic growth and development,
including (poverty and malnutrition) is
not the initial stage of the historical and
evolutionary process. For him, it is the
result of colonialism and imperialism,
policies promoted by leading capitalist
countries (Hobson, 1902).

22. Thank you! 😉