CONTEMPT WEEK 1-6

• Contemporary World


  Circumstances and ideas of the present age, where it deals with problems and issues related to environment, population, wealth, power, tensions and conflicts
• Why Study the Contemporary World

  • To be aware about Contemporary World problems and issues that all societies must be concerned
  • To develop competencies and construct knowledge about problems and issues and become aware of our roles and our responsibilities as citizen
• Globalization


  The increased interconnectedness and interdependence of people and countries, through opening of international borders to increasingly fast flows of goods, services, finance, people and ideas and the changes in institutions and policies of national and international levels that facilitates or promote such flows
• With the birth of Information Technology and the widespread of these makes the world interconnected to each other
• Because of these that anything and everything becomes global
• Networking plays a pivotal role in establishing relationship between nations in the world resulting to the introduction of new normal Globalization
• Globalization


  The speed up of movements and exchanges of human resources, goods and services capital, technologies and cultural practices between countries in the world or expansion and intensification of economic, political and social relations and consciousness across the world
• Internationalization


  Designing a product in a way that it may readily consumed across multiple countries
• Westernization


  A process whereby societies come under or adopt western culture in areas such as industry, technology, politics, economics, lifestyle, law, norms, mores, customs and traditions
• Examples of Globalization


  • Economic Globalization- MNC's, NGO
  • Financial Globalization- Stock Market
  • Cultural Globalization
  • Political Globalization- WHO, UN
  • Sociological globalization
  • Technological Globalization- Facebook, You tube, Twitter
  • Ecological Globalization- climate change
• Forces and Drivers of Globalization

  • Economics
  • Politics
  • Culture
  • Environment
  • Individuals & Institutions
  • Technology
• Characteristics of Globalization

  • Creation and Multiplication of connections
  • Expansion and Stretching of connections
  • Intensification and Acceleration of connections
  • Consciousness and awareness of connections
• Global Economy


  All the economies of the world which we consider together as one economic system
• The economy has two meanings:

  1. The economy of the whole planet ex. GDP

  2. The way it is the world today, with countries intertwined together
• Global Economy


  The exchange of goods and services integrated into a huge single global market. It is virtually a world without borders, inhabited by marketing individuals and or companies who have joined the geographical world with the intent of conducting research and development and making sales
• Global Economy


  Resources, markets and competition are worldwide in scope
• Globalization


  The process of growing interdependence among elements of the global economy
• Global Sourcing

  Firms purchase products and services from around the world for local use
• Factors Affecting the Global Economy

  • Human Resource
  • Natural Resource
  • Physical Capital
  • Technology
• A country may lack independence from free trade economy and developing countries are depressed by industrialized nations due to over all control effect
• World System


  Defined by the existence of division of labor. The modern world system has a multistate political structure and therefore the division of labor is international division of labor
• Economic Integration


  An arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. It is sometimes called as regional integration as it occurs to neighboring countries
• Market Integration


  A process by which economies are becoming more interdependent and interconnected in terms of commodity flows including externalities and spillover of impacts
• Financial Market Integration


  The process by which economies are becoming more interdependent and interconnected in terms of financial flows including externalities and spillover of impacts
• International Financial Institutions (IFIs)


  Institutions that provide support through loans or grants and technical advices to promote a country's economic and social development
• Corporations


  Private institutions that produce or manufacture goods, products, and services for a more expanded market usually at the reach regions or the world
• Horizontal Integration


  When a firm gains control of other firms performing similar marketing functions at the same level of marketing sequence
• Examples of Horizontal Integration

  • Disney bought Pixar, Landbank acquired Phil. Postal savings Bank
• Vertical Integration

  When one company owns the operation of the products from one stage to the other along the supply chain
• Examples of Vertical Integration


  • An iron mining company owns a steel manufacturing company, McDonalds owns the land where supplies are located
• International Financial Institutions (IFIs)

  Financial institutions that have been established by more than one country, and hence are subjects of international laws. Their owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders
• The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions exist and are technically IFIs. Many of these are multilateral development banks (MDB)
• IFC provides and mobilizes capital to encourage private investments in the Philippines, especially in underfinanced sectors such as renewable energy, energy efficiency, water, and agriculture. We also work with the government to attract investors to much-needed infrastructure projects
• Role of international financial markets and institutions in global environments

  To provide platforms for companies to access capital, manage foreign exchange risks, and hedge against market volatility
• These markets and institutions offer various financial instruments, such as stocks, bonds, derivatives, and insurance products, which allow companies to diversify their funding sources, optimize their risk exposure, and protect against potential losses
• By evaluating the dynamics of these markets and institutions, companies can identify potential risks and opportunities, adjust their risk management strategies accordingly, and make informed decisions to protect their financial well-being in the global business landscape
• Multinational companies


  Own a home company and its subsidiaries, have a centralized management system, will face a barrier in decision making due to its centralized management system
• Transnational companies


  Do not have subsidiaries but just many companies, do not have a centralized management system, able to gain more interest in the local markets since they maintain their own systems
• Interstate System

  System of unequally powerful and competing states in which no single state is capable of imposing control on all others. These states are in interaction with one another in a set of shifting alliance and wars and changes in relative power of states upsets any temporary set of alliances, leading to a restructuring of the balance of power
• Global Interstate System


  An institutional arrangement of governance that addresses regional or globalized issues that go beyond the scope of a nation-state