World

• Globalization implies the expansion and intensification of social relations and consciousness across world time and space, leading to various forms of connectivity
• The Global Economy refers to the international exchange of goods and services expressed in monetary units of money, involving economic interactions between and among communities of nations
• Economic Globalization refers to the expanding interdependence of world economies, involving the growing scale of cross-border trade commodities and services, flow of international capital, and rapid spread of technology
• Economic Globalization is the process of making the world economy an 'organic system' by extending transnational economic processes and relations to more countries, deepening economic interdependence among them
• Foreign Direct Investments (FDI) involve a company establishing a business in another country for the production of goods and services while participating in the management of that business, like Toyota Motor Philippines Corp, a subsidiary of Toyota Motor Corp Japan
• Give the 4 Interconnected Dimensions of Economy Globalization:

  Globalization of trade of goods and services

  Globalization of financial and capital markets

  Globalization of technology and communication

  Globalization of production
• The Law of Comparative Advantage as the basis of free trade law, stating that even if one country has an absolute advantage in producing all goods, it can still benefit from specialization and trade if it specializes in goods where it has a comparative advantage
• Absolute Advantage is the ability of an actor to produce more of a good or service than a competitor, while Comparative Advantage is the ability to produce a good or service for a lower opportunity cost than a competitor
• Critiques to Comparative Advantage include criticisms that free trade may not always be fair trade, with rich countries potentially exerting monopsony power to force producers in developing countries to accept low prices
• Types of protection/import barriers include tariffs, quotas, subsidies to domestic producers, and administrative regulations
• Comparative Advancement is the ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
• Opportunity Cost is the value or profit of something that must be forgone (given up) to  acquire something else
• Global actor refers to any social structure which is able to act and influence and engage in the global or international system.
• Market Integration is defined as an economy where economic processes are so functionally related that the separate operations form a single unit of production with unique characteristics
• Market Integration is a state of affairs or a process that involves in combining national economies into a larger economic region, bringing together different countries into one economy
• Integrated markets are those where prices are determined interdependently
• Market integration is a situation in which the prices of related goods and services sold in a specific geographical area begin to move in a similar pattern
• Vertical Integration is a strategy where a company owns or controls its suppliers, distributors, or retail locations to control its value or supply chain
• Backward Vertical Integration involves acquiring a business operating earlier in the supply chain, like when a retailer buys a wholesaler
• Forward Vertical Integration involves acquiring a business further up in the supply chain, for example, when a vehicle manufacturer buys a car parts distributor
• Horizontal Integration combines businesses in the same industry and at the same stage of the production process
• Conglomerate Integration combines firms involved in unrelated business activities
• Horizontal Integration occurs when a firm or agency gains control of other firms or agencies performing similar marketing functions at the same level in the marketing sequence
• Horizontal Integration are involved in acquiring, merging or taking over a company by another company