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Globalization &

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Tanya Ibanez

on 5 February 2014

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Transcript of Globalization &

Globalization &
Economic Integration

Globalization Defined
Characteristics of Globalization
Jointly owned by companies from 4 countries:

1. France (Cockpit and Final Assembly)
2. Germany (Fuselage and Tail)
3. Britain (Wings)
4. Spain (Doors)
Other Definitions
Presented by:
Ibanez, Garina, Juguan, Jolito, Geollegue

is an inevitable phenomenon in human history that's been bringing the world closer through the exchange of goods and products, information, knowledge and culture.
– The World Bank

World wide integration and deepening of economic activities
Integrated production and consumption systems
Facilitated by IT revolution, liberalization and deregulation
Unprecedented mobility of goods, services, capital and people
Events all over the world become strongly interdependent
1. Technological advances
2. Increased communication and interaction
3. Expansion of International commerce
4. Increased travel and migration
5. Interdependence and Interconnectedness
6. Trans-national relations
7. Domino effects
8. Alteration of space
9. Alteration of time
10. Sense of “Globality”/Global Consciousness

1,500 suppliers in 27 countries.
More than 35 percent of components for the consortium's aircraft are supplied from over 500 American companies.
Numerous suppliers also are located in the Asia-Pacific.
Singapore Technologies Aerospace produces wing ribs and passenger doors for the A320, and engine mounts and thrust reverser doors for the A340.
India's Hindustan Aeronautics Limited also builds A320 passenger doors.

Airbus Consortium

Economic Integration
An economic arrangement between different regions marked by the
reduction or elimination of trade barriers
and the
coordination of monetary and fiscal policies
. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement. –

Economic integration occurs when countries
lower barriers such as import tariffs and open their economies up to investment and trade with the rest of the world.
These critics complain that inequalities in the current global trading system hurt developing countries at the expense of developed countries.
- The World Bank

Integration of Economies are made possible by:
Communication networks
Internet access
Growth of economic cooperation - trading blocs (EU, NAFTA, etc.)
Collapse of ‘communism’
Movement to free trade

Levels of Economic Integration
1. Preferential trade agreements (PTA)
2. Free trade areas (FTA)
3. Customs unions
4. Common markets and economic and
monetary unions.
5. Complete Economic Integration

Multinational Corporations
Corporate Expansion
Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others. Multinationals are giant international companies and they are formed in order to increase market share and profits.

Intergovernmental Organizations

United Nations
European Union
African Union
World Trade Organization
Universal Postal Union
Organization of Petroleum Exporting Countries

East Asian Growth Area
sub regional economic cooperation initiative
in Southeast Asia. It has four members: Brunei, Indonesia, Malaysia, and the Philippines and it was founded in Davao City, the center of trade and commerce in the Southern Philippines.

Social Networks and Globalization
Objective of BIMP-EAGA
Accelerate economic development
in the four countries' “focus areas” which, although geographically distant from their national capitals, are in strategic proximity to each other, in one of the world’s most resource-rich regions. The BIMP-EAGA initiative is market-driven, and operates through a decentralized organization structure involving the four governments and the private sector.
Economic integration between countries leads to the emergence of a
global marketplace
or a
single world market.
In 1944, 44 nations attended the Bretton Woods Conference with a purpose of
stabilizing world currencies
establishing credit for international trade
in the post World War II era. The conference established many of the organizations essential to advancement towards a close-knit global economy and global financial system.
Bretton Woods Conference
BIMP-EAGA cooperation aims to increase trade, tourism and investments inside and outside the subregion by:
Facilitating the free movement of people, goods, and services
Making the best use of common infrastructure and natural resources
Taking the fullest advantage of economic complementation

is one of the principal drivers of globalization. Advances in information technology, in particular, have dramatically transformed economic life. Information technologies have given all sorts of individual economic actors—consumers, investors, businesses—valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners.

ASEAN Integration in 2015
Proposals to move class opening to September has once again surfaced after the country’s major universities, including the University of the Philippines (UP), De La Salle University (DLSU), Ateneo de Manila University (AdMU), and University of Santo Tomas (UST) expressed “openness” to move the school opening as preparation for the ASEAN Integration in 2015.
“One day there will be no borders, no boundaries, no flags and no countries and the only passport will be the heart” – Carlos Santana
The K to 12 Basic
Education Program
The enhanced K+12 Basic Education Program is a DepEd program that will improve the standard of education and give more opportunities for graduating students. The K12 is the kindergarten stage and the 10 years of Elementary and High school + 2 more years for technical education.
Students will get sufficient instructional time to do subject-related tasks, making them well-trained.

Graduates will be more prepared to enter the labor force.

Filipino graduates will be automatically recognized as professionals abroad because we are following the international education standard as practiced by all nations.
Why do countries pursue economic integration?
There are economic as well as political reasons why nations pursue economic integration. The economic rationale for the increase of trade between member states of economic unions that it is meant to
lead to higher productivity
. This is one of the reasons for the global scale development of economic integration, a phenomenon now realized in continental economic blocks such as ASEAN, NAFTA, SACN, the European Union, and the Eurasian Economic Community; and proposed for intercontinental economic blocks, such as the Comprehensive Economic Partnership for East Asia and the Transatlantic Free Trade Area.
Comparative Advantage
by David Ricardo
Refers to the ability of a country to produce a particular good or service at a lower marginal and opportunity cost over another.
Producing wine and cloth in Portugal and England
Therefore while it is cheaper to produce cloth in Portugal than England:
1. It is cheaper still for Portugal to produce excess wine.
2. Trade wine for English cloth

Conversely England benefits from this trade because:
1. Its cost for producing cloth has not changed.
2. Yet it can now get wine at a lower price.
The conclusion drawn is that each country can gain by specializing in the good where it has comparative advantage, and trading that good for the other.
Side of Globalization

1. Globalization lets countries do what they can do best. If, for example, you buy cheap steel from another country you don’t have to make your own steel. You can focus on computers or other things.

2. Consumers also profit from globalization. Products become cheaper and you can get new goods more quickly.

3. Globalization gives you a larger market. You can sell more goods and make more money. You can create more jobs.

1. Globalization causes unemployment in industrialized countries because firms move their factories to places where they can get cheaper workers.

2. Globalization may lead to more environmental problems. Poor countries in the Third World may have to cut down more trees so that they can sell wood to richer countries.

4. Some of the poorest countries in the world may get even poorer. Their population is not as educated as in developed countries and they don’t have the new technology that they do.
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