THE GLOBAL INTERSTATE SYSTEM
GLOBAL INTERSTATE SYSTEM
Is an institutional arrangement of governance that addresses regional or globalized issues that
go beyond the scope of nation-state
INTERNATIONALISM
Puts an emphasis on diversity and celebrates multiculturalism while globalism focuses more on
economics
INSTITUTIONS THAT GOVERNS GLOBALIZATION
1. INTERNATIONAL MONETARY FUND (IMF)
Monitors the stability of the international monetary system by looking at the global economy
2. World Trade Organization (WTO)
Regulates international trade, ensures smooth floe of trade and provides a forum for
negotiations and trade agreements
3. World Health Organization (WHO)
Responsible for global researches on medicines and vaccines including world health survey and
report
4. Organization for Economic Cooperation and Development
It aims to stimulate economic progress and world trade by providing a platform to compare
policy experiences and identify good practices
5. International Labor Organization (ILO)
Deals with labor problems and international labor standards and social protection for workers
6. Food and Agriculture Organization of the United Nations (FAO)
Leads international effort to defeat hunger, eliminate food insecurity and malnutrition
7. United Nations Educational, Scientific and Cultural Organization (UNESCO)
Contributes to peace and security by promoting international collaboration through educational,
scientific and cultural reforms
8. International Civil Aviation Organization (ICAO)
International Maritime Organization (IMO)
International Telecommunication Union (ITU)
World Intellectual Property Organization (WIPO)
Regulation of international air transport shipping and prevention of pollution at sea
Developing standard on intellectual property
Market Integration
Market Integration
Is a process by which economies are becoming more interdependent and interconnected in
terms of commodity flows
International Financial Institutions
Are institutions that provides support through loans to promote economic and social
development of a country
Corporations
Are private institutions that produce or manufacture goods, products and services for a more
expanded market
Global Governance
Global Governance
Is the collective efforts to IDENTIFY, UNDERSTAND AND ADDRESS a worldwide PROBLEMS that
go beyond the problem solving capacities of countries
Is the capacity within the international system at any given moment to provide government like
services and public goods in the absence of the world government
United Nations
Is one of the important example of a non-state actor, an international government organization
(IGO) playing a vital role in the worlds affairs
It is an IGO designed to make an enforcement of international law, security, human rights,
economic development and social progress easier for countries around the world
Five Branches of the United Nations
1. United Nations General Assembly
Is the main decision making and representative assembly responsible for upholding the
principles of the United Nations through its policies and recommendations
2. United Nations Security Council
Can mandate a cease fire during conflicts and can enforce penalties on countries if they do not
comply with the given mandates.
3. International Court of Justice
Can settle, according to international law, legal disputes between states and give opinions and
advisory on legal questions
4. Economic and Social Council
Assist the UN General Assembly in promoting economic and social development
5. Secretariat
Headed by Secretary General, provides studies, information and other dates when needed by
other UN Branches for their meetings
General Principles of International Law
International Law
Laws that regulate relations of states and international persons
National Law
Laws that regulate individuals among themselves
Treaty
An international agreement conducted between states in written form and governed by
international law
Types of Treaties
1. Bilateral treaty
2. Multilateral Treaty
Steps in Treaty making involves:
1. Negotiation
2. Signing of Treaty
3. Exchange of ratification instruments
4. Ratification of the treaty
5. Registration with publication by the UN Secretariat
International Conventions
Are international agreements concluded between states and governed by international law
International Customs
Also known as customary law consist of rules of law derived from the consistent conduct of
states acting out of the belief
THE 3 MAJOR TRADE BARRIERS IN MARKET INTEGRATION
1. TARIFFS
Tax on goods and services imported into a country.
2. QUOTA GOVERNMENT
Imposed a limit on the quantity, or in exceptional cases the value, of the goods or services that may be
exported or imported over a specified period of time.
3. EMBARGO
A trade restriction is typically adopted by a government, a group of countries, or an international
organization as an economic sanction.
TYPES OF INTEGRATION STRATEGIES
A. VERTICAL INTEGRATION
Occurs when a company gains control over the production or distribution processes of its product.
THREE PRIMARY WAYS OF VERTICAL INTEGRATION
1. BACKWARD INTEGRATION
2. FORWARD INTEGRATION
3. BALANCE INTEGRATION
B. HORIZONTAL INTEGRATION
Horizontal integration is another competitive strategy that business use to increase their power in the
market. Horizontal integration involves gaining control over other business that provide similar products
or services. This helps the business increase in size or expand into a new area or market.
