LESSON 4

• STRUCTURES OF GLOBALIZATION

  • SOCIAL
  • POLITICAL
  • ECONOMIC
• SOCIAL a measure of how easily information and ideas pass between countries (includes internet and social media networks).
• POLITICAL amount of political cooperation between countries, working together.
• ECONOMIC

  Countries that trade with many others and few trade barriers are economically globalized.
• ECONOMIC GLOBALIZATION

  -        Free movement of goods, capital services, technology, and information.
• ECONOMIC INTEGRATION

  The process/arrangement between

  regions to reduce or eliminate trade

  barriers, and to coordinate monetary/

  fiscal policies with a common purpose of

  increasing the trade to those countries

  involved.
• ECONOMIC INTEGRATION

  Effects:

  1. Improve the allocation of natural resources.
  2. Promote technology transfer
  3. Enhance living standards.
• ECONOMIC INTEGRATION

  Factors:

  1. Regional Integration

  2. Trade Liberalization

  3. Direct Foreign Investment

  4. Privatization

  5. Deregulation
• BARTER TRADE SYSTEM

   

  -        An old method of exchange. People exchanged services and goods for other services and goods in return.
• MERCANTILISM

   

  -        An economic system of trade that spanned from 16th century to the 18th century. It was based on the idea that a nation’s wealth and power were best served by increasing exports and so involved increasing trade.
•  

  GOLD STANDARD

  -        A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.
• INTERNATIONAL ORGANIZATIONS

  • International Organizations

  • Supranational

  • Non-governmental

   
• LARGE MANUFACTURING COPORATIONS

  • Multinational

  • Transnational
• INTERNATIONAL ORGANIZATION

  Major players in the nation-state. Promotes voluntary cooperation and coordination.

   
• INTERGOVERNMENTAL ORGANIZATIONS

   

  ·        It is composed of nation states that promote VOLUNTARY cooperation and coordination among its members.

  ·        Decisions and agreements are NOT ENFORCEABLE

  ·        Members do not surrender any sovereignty.
• SUPRANATIONAL ORGANIZATIONS

  ·        It is composed of nation states that promote VOLUNTARY cooperation and coordination among its members.

  ·        Surrender their power in specific areas to the higher organization
• NON-GOVERNMENTAL ORGANIZATIONS

  ·        It is NOT CREATED by an international treaty of intergovernmental agreement.

  ·        Often focus on a specific issues around the world.

  ·        It is NOT FOR PROFIT VOLUNTARY associations in which projects are funded by philanthropies or through partial government funding.
• LARGE MANUFACTURING ORGANIZATION

  These corporations sell goods and manufactured products to be used all over the world.
• MULTINATIONAL CORPORATIONS

  ·        Global Corporations

  ·        An entity that owns and controls production of goods or services in one or more countries aside from the origin

  ·        Have a centralized management system.