CW (G1 Structure of Globalization)

• Global economy is also known as the world economy. This phrase refers to the international exchange of commodities and services measured in monetary units of money.
• global economy may also refer to the free movement of products, capital, services, technology, and information.
• Global marketing refers to planning, producing or creating, placing, and promoting a company’s products or services in the global market.
• Global Economy or Economic globalization

  refers to the growing global interconnectedness of economies, notably the cross-border movement of products, services, and capital.
• Protectionism is protecting one’s economy from foreign competition by creating trade barriers.
• A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period.
• Tariffs are required fees on imports or exports.

  Example: a pen that’s costs $1 in one country A and in country B, it would

  be given $5-dollar tariff. The pen would become $6 in country B.
• Trade liberalization is the act of reducing trade barriers to make international trade easier between countries.
• Fair trade is the concern for the social, economic, and environmental well-being of marginalized small producers
• Market integration - a situation in which separate markets for the same product become one single market.
• MARKET INTEGRATION -provides a number of social benefits, including broadening the range of financial services and investment opportunities available to consumers and increasing competition in the provision of those services.
• There are three basic kinds of market integration

  • Horizontal integration
  • Vertical integration
  • Conglomeration.
• Horizontal Integration -  is a business strategy in which one company grows its operations at the same level in an industry.
• Vertical Integration - is an arrangement in which the supply chain of a company is integrated and owned by that company.
• Conglomeration - refers to the process by which a company expands its operations into unrelated business areas or industries.
• Free trade is the state in which import and export activities are allowed to go naturally without the imposition of tariffs or non-tariff trade obstacles like quotas, embargoes, sanctions, or other limitations.
• Tariffs - taxes or duties to be paid on a particular class of imports or exports
• Embargo - a government-instituted prevention of exports to a certain country. Official ban on trade or other commercial activity.
• Economic sanctions - commercial and financial penalties applied by one or more countries against a targeted country, group, or individual
• 4 FREE TRADE REGIONS:

  1. North American Free Trade Agreement (NAFTA)

  2. Association of Southeast Asian Nations Free Trade Area (AFTA)

  3. Southern Common Market (MERCOSUR)

  4. Common Market of Eastern and Southern Africa (COMESA)
• Global Interstate System - The whole world-system is more than just international relations. It is the whole system of human interactions.
• The word “global” refers to the interaction networks in which people live, whether these are spatially small or large around the world. “Interstate” explains the connections and operations between states, and “system” means that these policies and settlements are interacting with one another in important ways; interactions are two-way, necessary, structured, regularized, and reproductive
• Global governance - refers to the institutions, agreements, rules, norms, and processes that aim to guide, regulate, and coordinate behavior between countries on a global scale.
• United Nations (UN)- is a key organization in global governance, establishing common norms, policies, and expectations for countries to align with in areas such as human rights, development, and health standards. However, enforcement of these norms is limited.
• World Bank - plays a role in global governance by providing financial assistance and expertise to support development projects in countries around the world.
• World Health Organization (WHO)- is another important organization in global governance, focusing on public health issues and setting standards and guidelines for disease prevention and control.
• World Trade Organization (WTO) - serves as a governing body for international trade, negotiating trade rules and agreements, settling disputes, and reviewing trade policies. However, trade talks can often be hindered by disagreements between member states.