Social Science ( Structure of Globalization)

Economic Globalization

Economic Globalization

growing scale of cross- boarder trade in commodities/ services.

Global Economic Integration

Separate production operations are functionally related to each other

Modern world system

Immanuel Wallerstein (1974) expounded on how the core came to dominate the periphery areas particularly in the Economic world system as a basis of his analysis

Globalism

Free flow of people, goods and informational national borders

Internationalism

Promotes political, economic, and cultural cooperation

Interstate System

Farmer displacement and impacting agricultural output, as multinational firms seek lower income wages and tax rates

Global Interstate System

Institutional arrangement that solves regional or globalized issues and include more than just the state of a country

Market Integration

When different markers become more connected, allowing goods, services, and resources to move more freely with fewer trade barriers

2 Kinds or Market Integration

Horizontal

Vertical

Horizontal market integration

When a firm gains control of other firms

Vertical market integration

When one company owns the operations and products from one stage to another

2 Kinds of Corporation

Transnational Corporation (TNCs)

Multinational Corporation ( MNCs)

Transnational Corporation (TNCs)

When each foreign subsidiary is given some freedom to develop its own product

International Financial Institution ( IFIs)

Support through loans or grants

Role of international financial institution ( IFIs)

Providing Financial stability, supporting economic development, and fostering international cooperation

Contemporary Global Governace

Coordinates global activities through international institutions and agreements

Positive effects of globalization

People exchange knowledge, connections, experiences, and innovation

Negative effects of globalization

Doesn't help to reduce the level of poverty

Leads to higher level of unemployment

4 Benefits

•Greater synchronisation in price movements

•Wider range of suppliers and commodities

•Improved marker efficiency

•Reduction of cost and increase in overall wealth

4 Challenges

•economic disparities

•regulatory difference

•targeting the wrong company

•overall lack of communication and transparency

7 Institutions that govern globalization

1. United Nations

2. Commissions

3. The World Bank ( WB)

4. International Monetary Fund ( IMF)

5. World TradeOrganization ( WTO)

6. World Health Organization ( WHO)

7. Organization for Economic cooperation and development ( OECD)

9 Factors that Facilitate Economic Globalization

1. International Monetary Fund

2. World Bank

3. Economic cooperation and development

4. ESEAN (Association of Southeast Asian Nations)

5. NAFTA ( North American Free Trade Agreement)

6. The group of 8 and g8 and g20

7. Multinational Companies ( MNCs)

8. Central Banks

9. Global Civil Society

Immanuel Wallerstein ( 1974)

He expounded on how the core came to dominate the periphery areas particularly in the Economic world system as a basis of his analysis

Netherlands

World's most globally connected country