MIDTERM

• Economic globalization refers to the expanding interdependence of world economies
• foreign direct investments (FDI), a type of investment in which a company establishes a business in another country for production of goods or services and still takes part in the management of that business
• In 2008, the International Monetary Fund (IMF) defined economic globalization as a historical process, the result of human innovation and technological progress.
• Economic globalization can be traced from the time when there was economic movement in Asia, Africa, and Europe through the Silk Road, a network of trade routes that connected the East, particularly China, and the West
• , these routes also led to the discovery of the Philippine islands when Portuguese and Spanish envoys were in search of spices
• WTO, established in 1995, "ensures that trade flows as smoothly, predictably, and freely as possible"
• Another good example of economic globalization of trade and services is the increasing number of business process outsourcing (BPO) companies in the Philippines.
• The establishment of an international monetary system (IMS) is one of the actors that facilitate economic globalization. IMS refers to internationally agreed rules, conventions, and institutions for facilitating international trade, investments, and flow of capital among nation-states
• Historically, there are three global IMS-the gold standard, the Bretton Woods System, and the European Monetary System (EMS).
• International Financial Institution World economies have been brought closer together by globalization
• The Bretton Woods System The major economies in the world had suffered because of World War I, the Great Depression in the 1930s, and World War II
• One of the systems born out of Bretton Woods was the General Agreement on Tariffs and Trade (GATT) that was established in 1947 (Goldstein et al., 2007)
• The Brandt Report (1983) was published by

  a commission chaired by the former German

  Chancellor Willy Brandt.
• 1.THE NORTH –

  are those countries

  that are above the

  South 30 degree

  North.
• THE SOUTH – is a

  geographical convenience

  based on the fact that

  most of the Poor World lies

  south of latitude 30 degree

  North. (Except Australia

  and New Zealand).
• The Global North (comprises one quarter of the

  world population) refers to developed societies of

  Europe and North America, which are characterised

  by established democracy, wealth, technological

  advancement, political stability, aging population,

  zero population growth and dominance of world

  trade and politics.
• The Global South (are the developing countries)

  (comprises three quarters of the world population)

  represents mainly agrarian economies in Africa,

  India, China, Latin America and others that are not

  as economically sound and politically stable as their

  global North counterparts and tend to be

  characterised by turmoil, war, conflict, poverty,

  anarchy and tyranny (Odeh, 2010).
• Brandt line makes recommendations on ways to break through the perceived political impasse in North-South negotiations on global development
• Asian Regionalism

  defined as a political ideology

  that favors a specific region over

  a greater area. It usually results

  due to political separations,

  religions geography, cultural

  boundaries, linguistic regions,

  and managerial divisions.
• Regions are a group of countries located in the

  same geographically specified area;
• What is regionalization?

  The process of dividing an area into smaller

  segments called regions.
• Regionalism is created as a sort of

  counter-globalization
• What is globalization?

  ➢ The expansion and intensification of

  social relations and consciousness

  across world-space and world-time.
• East Asia Economic Group (EAEG).
• ASEAN has also partnered with three East Asian countries-China, Japan, and South Korea.
• reasons. The North American Free Trade Agreement (NAFTA), a free trade pact between Canada and the United States

  (now including Mexico), was created to help reduce trading costs, increase business investment, and help North America

  be more competitive in the global marketplace (NAFTA, 2018).
• the European Union (EU) is a political and economic established to ensure free movement of people,

  goods, services, and capital within the EU's single market (EU, 2018a).
• Asian Development Bank (ADB)
• the Japanese International Cooperation Agency (JICA)
• The International Bank for Reconstruction and Development (IBRD): Established in 1944, IBRD provides loans and development assistance to middle-income and creditworthy low-income countries.
• The International Development Association (IDA): Founded in 1960, IDA offers concessional loans and grants to the world's poorest countries, providing them with financial resources for development projects and programs. 
• -The International Finance Corporation (IFC): Established in 1956, IFC is the largest global development institution focused exclusively on the private sector in developing countries. It provides investment, advisory services, and asset management to encourage private sector development.
• The Multilateral Investment Guarantee Agency (MIGA): Founded in 1988, MIGA promotes foreign direct investment in developing countries by providing political risk insurance and credit enhancement to investors and lenders.
• The International Centre for Settlement of Investment Disputes (ICSID): Established in 1966, ICSID provides international facilities for the conciliation and arbitration of investment disputes between governments and foreign investors.
• The World Bank receives contributions from member countries through various channels, primarily the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
• the five largest contributors to the World Bank funds are typically: 1. United States 2. Japan 3. Germany 4. United Kingdom 5. France