ECONOMIC GLOBALIZATION WHO BENEFITS & WHO STRUGGLES?

ECONOMIC - Refers to the production, distribution, • Wealthy Countries – Gain access to markets
and consumption of goods and services. and higher profits.
• Developing Countries – Grow but often depend
GLOBALIZATION - The process of worldwide
on foreign investments.
integration in economy, culture, and technology.
• Small Businesses – Struggle to compete with
ECONOMIC GLOBALIZATION means that countries big international companies.
depend on each other more for goods, services,
CHALLENGES OF ECONOMIC GLOBALIZATION
money, and technology.

THE INTERNATIONAL MONETARY FUND (IMF) – • Economic dependence – Countries rely on

regards economic globalization as a historical foreign investments and supply chains.
process representing the result of human innovation • Job losses – Automation and outsourcing
and technological progress. reduce jobs in certain industries.
• Economic inequality – The wealth gap between
rich and poor nations widens.
GROWTH OF GLOBAL TRADE & INVESTMENTS THE FUTURE OF ECONOMIC GLOBALIZATION
• Trade and foreign investments have expanded • Globalization will continue, but policies should
significantly. focus on fairness and sustainability.
• Global trade (goods & services) increased from • Countries must balance economic growth with
42.1% of world GDP in 1980 to 62.1% in 2007 (IMF, protecting local industries.
2007). • Governments and organizations must create
• Foreign direct investment (FDI) increased from policies that help smaller economies thrive
$57B (1982) to $1.76T (2015) (UNCTAD, 2015).

FACTORS DRIVING TRADE & INVESTMENT GROWTH INTERNATIONAL TRADING SYSTEM

• More Trade – Lower taxes, better transportation, • Refers to the set of rules, agreements, and
and online payments make trading easier. institutions that govern trade between
• More Foreign Investments – Businesses invest in countries.
foreign markets, linking economies. • It ensures that the exchange is fairly and
• Global Supply Chains – Companies source efficient.
materials and labor globally to cut costs.
DIFFERENT TYPES OF TRADING SYSTEM
THE ROLE OF TECHNOLOGY IN GLOBALIZATION.
• Export Trade – process of selling goods and
Technology has accelerated globalization by services.
transforming businesses and financial markets. • Import Trade - process of buying goods and
1. Fast Trading – Computers execute millions of services.
stock trades in seconds. • Entrepot Trade – process of buying goods and
2. Online Shopping Growth – Businesses sell globally from another country and selling them to
without physical stores. another country without using them.
3. Automation and AI – Machines improve efficiency • Invisible Trade – refers to the exchange of
but replace some jobs. services between countries rather than
physical goods
IMPORTANCE OF INTERNATIONAL TRADING expansion of trade, investment, technology and labor
SYSTEM flaws.
Positive Effects:
Key Benefits:
• Economic Growth
• Promotes Global Economic Growth • Access to Goods and Services
• Expands Market Opportunities • Technology Transfer
• Strengthens International Relations • Increased Competition
• Encourages Innovation and Competitiveness Negative Effects:
• Maintain Price Stability • Job Displacement
• Income Inequality
• Environmental Concerns
THE BRETTON WOODS SYSTEM
• Economic Vulnerability
• The bretton woods system, established in 1944
at the United Nations monetary and financial A HISTORY OF GLOBAL POLITICS: CREATING A
conference INTERNATIONAL ORDER
• It created a rules-based system for international
Westphalian System (1648)
financial relations, with the goal of preventing
competitive currency devaluations and • Concluded the 30 Years War in Europe
promoting economic growth. • Established the principle of state sovereignty,
Key Features: allowing nations to govern without external
o Fixed Exchange Rates: interference
o International Monetary Fund (IMF):
o World Bank: The Concert of Europe (Early 19th Century)
• Aimed to maintained peace and balance
NEOLIBERALISM AND ITS DISCONTENTS
• Introduced multilateral diplomacy through
Neoliberalism regular congresses and consultations among
• refers to an economic and political ideology that major powers
emphasizes free markets, deregulation,
The League of Nations (1920)
privatization, and a reduced role of the state in
• Form after World War 1
economic affairs.
• Founded to promote peace and prevent future
• promotes globalization, competition, and the
conflicts
belief that market forces are the best mechanism
• Aimed to provide a platform for resolving
for economic growth and efficiency.
international disputes through dialogue and
Discontents:
collective security measures.
o Economic Inequality
The United Nations
o Job Insecurity
• Established Post World War 2
o Erosion of Public Services
• Created in 1945 to replace League of Nations
o Environmental Degradation
o Democratic Deficit • Structured with Main Organs: General
Assembly, Security Council, International
Court of Justice, and Secretariat
ECONOMIC GLOBALIZATION TODAY • Addressing peacekeeping, human rights and
sustainable development.
Economic Globalization refers to the increasing
interdependence of national economies through the
INTERNATIONALISM

Refers to the idea of cooperation and collaboration

between nation to achieve common goals: maintain
peace and promote global stability

Challenges To Internationalism

• Nationalism and Populism

• Geopolitical Rivalries
• Economic Disparities
• Sovereignty Concerns
THE UNITED NATIONS AND CONTEMPORARY - is a group formed by different countries that
GLOBAL GOVERNANCE work together to solve global problems or achieve
common goals. Examples:
WHAT IS GLOBAL GOVERNANCE?

⚫ can be defined as the system of institutions, ◼ United Nations (UN)

rules, norms, and procedures that enable ◼ World Health Organization (WHO)
international cooperation on issues that cross ◼ World Trade Organization (WTO)
national borders. ◼ Association of Southeast Asian Nations
⚫ aims to facilitate decision-making and co- (ASEAN)
operation among international actors
⚫ Non-Governmental Organizations (NGOs)
KEY CHARACTERISTICS OF GLOBAL
GOVERNANCE: - are independent, non-profit groups that
operate without government control. Examples:
WHO GOVERNS GLOBALLY?

⚫ States: Maintain traditional roles, but face ◼ Red Cross

limitations. ◼ Greenpeace
⚫ International Organizations (IGOs): Set norms, ◼ Amnesty International
facilitate cooperation (WHO, WTO). ⚫ Multinational Corporations (MNCs)
⚫ Non-Governmental Organizations (NGOs):
Advocate, provide services, influence policy - are large companies that operate in multiple
⚫ Multinational Corporations (MNCs): Impact countries, managing production, services, or
economic and environmental policies. business activities across borders. Examples:
⚫ Civil Society: Holds actors accountable and
participates in global movements." ◼ Apple
◼ Google
WHERE GLOBAL GOVERNANCE MATTERS ◼ Coca-Cola
⚫ Economic Governance: Global financial
IMPORTANCE OF INTERNATIONAL ORGANIZATION
regulations, trade agreements.
⚫ Environmental Governance: Climate change
agreements, conservation. • Promoting Peace and Security
⚫ Health Governance: Pandemic responses, • Protecting Human Rights
international health regulations. • Addressing Global Health Issues
⚫ Cyber Governance: Cybersecurity, data privacy. • Environmental Protection
⚫ Migration Governance: Refugee protection, • Strengthening International Law and
managing migration flows. Cooperation

INTERNATIONAL ORGANIZATION THE UNITED NATIONS

is a group or institution created by multiple

WHAT ARE UNITED NATIONS?
countries through a treaty or formal agreement to
work together on common interests and goals. ⚫ A global organization with 193 countries.
⚫ It was created in October 24,1945 after World
DIFFERENT TYPES OF INTERNATIONAL
War II.
ORGANIZATION ⚫ Aims to maintain peace, protect human rights,
and help countries develop.
⚫ Intergovernmental Organizations (IGOs)
MAIN GOALS OF THE UNITED NATIONS A WORLD OF REGIONS

⚫ To keep peace throughout the world Regionalism refers to the process by which countries
⚫ Protect human rights within a geographical area collaborate to achieve
⚫ Fight poverty and hungry common goals.
⚫ Provides Aid in Disasters
⚫ Stops diseases
There are two main types of regionalism:
HOW DOES UNITED NATIONS WORK?
Formal Regionalism - structured organizations such
1. General Assembly as the European Union (EU), The Association of
Southeast Asian Nations (ASEAN)
⚫ All 193 countries meet here to talk about world
problems. Informal Regionalism - consists of loose coalitions or
⚫ They vote on what actions to take. cooperation agreements between countries that
share common interests but do not have binding
2. Security Council institutions, such as the BRICS group (Brazil, Russia,
India, China, and South Africa).
⚫ This group decides on peace and security issues.
⚫ They approve peacekeeping missions
Association of Southeast Asian Nations (ASEAN)
3. International Court of Justice 10 Member States:

⚫ This is the world’s highest court for solving • Brunei

problems between countries. • Cambodia
• Indonesia
4. Secretariat
• Laos
⚫ Manages the daily work of the UN, led by the • Malaysia
Secretary-General Antonio Guterres from • Myanmar
Portugal. • Philippines
• Singapore
THE CHALLENGES OF THE UNITED NATIONS
• Thailand
• SOVEREIGNTY ISSUE • Vietnam
• GEOPOLITICAL ISSUE
• INSTITUTIONAL
• ENVIRONMENTAL NON-STATE REGIONALISM

involves communities and groups linking up across

borders to pursue common goals.

WHAT IS REGIONALISM?

is the process where countries in a specific

geographical area work together to achieve common
goals, such as economic growth, security, and
cultural cooperation.
Types of Regionalism: CHALLENGES TO REGIONALISM

• Economic Regionalism -is the process where • Rising nationalism

countries in a specific region come together to • Economic disparities
form agreements that promote economic • Political differences and conflicts
cooperation, trade, and development • Global power influence
• Political Regionalism - is when countries in a • Security threats and geopolitical tensions
specific region cooperate on political matters • Health and environmental crises
to promote stability, shared governance, and • Cultural and social differences
common policies. • Economic protectionism
• Internal disputes
• Security Regionalism - is when countries
within a specific region cooperate on security
and defense to maintain peace, stability, and
protection against threats.

• Cultural Regionalism - is when countries or

communities within a specific region come
together to preserve, promote, and share their
cultural heritage, traditions, and values.

ADVANTAGES OF REGIONALISM

• Preserves National Sovereignty

• Prevents Unequal Influence
• Encourages Self-Reliance
• Avoids Bureaucratic Delays
• Reduces Cultural/Economic Tensions

DISADVANTAGES OF NOT BEING PART OF

REGIONALISM

• Limits Economic Growth

• Weakens Political Influence
• Increases Security Risks
• Slows Development
• Creates trade barriers