Ge 3 2
Ge 3 2
Ge 3 2
MARKET
INTEGRATION
INTRODUCTION
Economy is the social institution that has the biggest impact on society. We usually
think of economy in terms of numbers – number of unemployed, GDP, or how the
stock market is doing today. While we often talk about it in numerical terms, the
economy is composed of people. The people is the social institution that organizes
everything happening in the society; production, consumption, and trade of goods.
There are many ways in which a product can be made, exchanged and used. Think
about capitalism or socialism. These economic systems– and the economic
revolutions that created them – shape the way people live their lives.
02
This is where he exchange of goods and
MARKET services take place.
"Buy & Sell"
03
Market Integration
04
"Market Integration is a state of affairs or a process
involving attempts to combine separate national
economies into larger economic
regions. Integration as a means of stimulating trade
and improving divisions of the
labor among countries has been recommended by
many economists"
-Koester, 2017
05
Negative Integration Positive Integration
Reduces non-tariffs and tariff barriers to Adjusts domestic policies and institutions
trade as a main tool for integrating through the creation of supranational
markets. arrangements.
06
FORMS OF
INTEGRATION
Common Markets
Free Trade Area- it reduces barriers to trade among member countries to zero, but each
member country still has autonomy in deciding the external rate of tariff for its trade
with non-member countries.
Customs Union- in this form, countries agree to abolish tariff and non-tariff barriers to
trade in goods flowing between them.
Common Markets- it allows for free movement of labor and capital within the member
countries.
1. Cost (client's price vs. competitor's price, cost of maintenance & cost of purchase)
2. Communication (public relations, promotions & advertisements)
3. Convenience (product availability, ease of use & product information and support)
4. Consumer (target markets, consumer needs & consumer wants)
09
History
10
History
The emergence of big American corporations after WWII started the integration
global market. International Telephone and Telegraph, Continental Banking,
Sheraton Hotels began to rise, while Toyota, Nissan and Isuzu flourished after giant
companies boomed.
This paved way for the emergence of the TRIAD: US, EU and Japan as the major
economies of the world. Mostly, if not all, of the MNCs and TNCs are found in the
triad.
11
History
What are the three-legged stool of institutions created to guide the post-war world?
International Monetary Fund
World Bank
World Trade Organization
12
Financial Institutions in Global Economy
Is the financial institutions that have been established (or chartered) by more
than one country, and hence are subjects of international law.
Creation of Global Economy would not have happened without the IFIs such as the World
Bank Group (WBG), International Monetary Fund (IMF) and the Bretton Woods System.
14
The following are financial institutions and economic organizations that made
countries even closer together, at least, when it comes to trade:
15
Bretton Woods System
16
World Bank Group International Monetary Fund
17
General Agreement
World Trade Organization
on Tariffs and Trade
International organization derived
from the General Agreement on International treaty that committed
Tariffs and Trade (GATT) that signatories to lowering barriers to
promotes it free trade around the the free flow of goods across
world. national borders and led to the
Primary function is to manage the WTO.
smooth flow of global trade by At least 23 countries have signed
ensuring countries abide by their with GATT in the year 1947.
signed trade agreements. As such, it
also investigates and resolves trade
disputes.
18
North American Free The Organisation for Economic
Trade Agreement Cooperation and Development
19
The Organization of the Petroleum
European Union
Exporting Countries
20
According to Iwan (2012), the current international corporation may be called
as any of the following:
Multinational Companies (MNCs)- have investmenst in other countries, but do not have
coordinated product offering in each country. They are more focused on adapting their
products and services to each individual local market.
Example: McDonalds
21
Global Companies (GCs)- they invest in and are existing in many countries. They
sell their goods and services to each local market.
22
Multinational Companies (MNCs) or Transnational
Companies (TNCs) role in the global economy:
23
Attributes of Global Corporations
Global corporations are typically large, multinational companies that have a great
amount of control over the world. These organizations have the ability to make
decisions about what happens in our society and economy.
Common Attributes:
24
World Economies have been brought closer by globalization. It is important to
remember though that it is not only the economy of the United States but also
other economies in the world that have significant impact on the global market
and finance.
The strength of a more powerful economy brings greater effect on other countries.
In the same manner, crises on weaker economies have less effect than other
countries. Although countries are heavily affected by the gains and crises in the
world economy, organizations that they consist also contribute to these events.
25
CONCLUSION
FILM
“The Corporation”
Contemporary Global
Governance
By: Group 3
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slidesmania.com
GE 3 - A The Contemporary World Global Governance
Global Governance
Examine flaws in the international
system for dealing with complicated
situations, and engage stakeholders
in real problem-solving actions.
www.historyofcontemporaryglobalgovernance.com
United Nations
The pre-conferences of the United Nations:
1. Atlantic Charter
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world.”
Global Governance GE - 3 reporting ... History
Washington D.C.
● A meeting at Dumbarton Oaks, a mansion in
Georgetown, Washington, D.C., where representatives
of China, the Soviet Union, the United States, and the
United Kingdom formulated proposals for a world
organization that became the basis for the United
Nations.
● The Dumbarton Oaks Conference constituted the first
important step taken to carry out paragraph 4 of the
Moscow Declaration of 1943, which recognized the
need for a postwar international organization to
succeed the League of Nations.
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Crimea
● This conference was attended by President
Roosevelt, Premier Stalin and Winston Churchill.
They agreed to hold a conference of Allied
countries in San Francisco, California.
● It was held on February 4-11, 1945, was the
World War II meeting or the heads of
government of the United Kingdom, and the
Soviet Union to discuss the postwar
reorganization of Germany and Europe.
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GE 3- A The Contemporary World Global Governance
World Bank
one of the most important sources of finance and expertise for
developing countries in the world
International Criminal
Court (ICC)
Investigates and, where necessary, prosecutes those accused of
the most serious crimes affecting the international community.
United Nations
an intergovernmental organization whose mission is to ensure
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General Assembly
● main deliberative, policymaking and
representative organ of the UN
● all 193 Member States of the UN
are represented in the General
Assembly, making it the only UN
body with universal representation
● each year, in September, the full UN
membership meets in the General
Assembly Hall in New York for the
annual General Assembly session
● they talk about peace and security,
admission of new members and
budgetary matters
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Security Council
● maintenance of international peace and security
● has 15 Members (5 permanent and 10 non-
permanent members)
● all Member States are obligated to comply with
Council decisions
● takes the lead in determining the existence of a
threat to the peace or act of aggression
● calls upon the parties to a dispute to settle it by
peaceful means and recommends methods of
adjustment or terms of settlement
● can resort to imposing sanctions or even
authorize the use of force to maintain or restore
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Trusteeship Council
International Court of
Justice
● principal judicial organ of the United Nations
● is at the Peace Palace in the Hague
(Netherlands)
● settle, in accordance with international law,
legal disputes submitted to it by States
● give advisory opinions on legal questions
referred to it by authorized United Nations
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Secretariat
● comprises the Secretary-General and tens of
thousands of international UN staff members
who carry out the day-to-day work of the UN as
mandated by the General Assembly and the
Organization's other principal bodies
● the Secretary-General is a symbol of the
Organization's ideals, and an advocate for all
the world's peoples, especially the poor and
vulnerable
● UN staff members are recruited internationally
and locally, and work in duty stations and on
peacekeeping missions all around the world
● serving the cause of peace in a violent world is
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humanitarian problems.
Contemporary Global Gover Institutions of Global Gover United Nations
It is the one place on Earth where all the world’s nations can gather together, discuss common problems, and
find shared solutions that benefit all of humanity.
GE 3- A The Contemporary World Contemporary Global Gover
Is it effective?
Is Global
Effective global governance
Governance will allow us to end armed
Effective? conflict, deal with new and
Effective global governance emerging problems such as
cannot be achieved without technological risks and
effective international cooperation. automation, and to achieve
Besides being a manifestation of levels of prosperity and
international solidarity, progress never before seen.
international cooperation is a The most important
means to promote common challenge for humanity to
interests and shared values and to overcome is that of
reduce the vulnerabilities existential risks.
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generated by increased
interdependence.
GE 3- A The Contemporary World Contemporary Global Gover
How the Court works. (2021). Retrieved 22 June 2021, from https://www.icc-
cpi.int/about/how-the-court-works.
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Global
Interstate
System
Blanco - Bertillo - Calumpang - Cardona
What is a STATE?
Blanco
What is a State?
A State is an independent, sovereign
government exercising control over a
certain spatially defined and bounded
area, whose borders are usually clearly
defined and internationally recognized by
other states (Flint, 2016).
Blanco
Population
Elements Territory
of a State Government
Teacher Adeline Palmerston
Sovereignty
Blanco
POPULATION
A state is a community
of persons. It is a human
political institution.
Blanco
TERRITORY
A state is a territorial
unit. It cannot exist in
the air or at sea.
Blanco
GOVERNMENT
Government is the
organization or agency of
the State which makes,
implements, and enforces
the laws of the state.
Blanco
SOVEREIGNTY
Sovereignty is the most
exclusive element of
State. State alone
posses sovereignty.
Blanco
What is the Global Interstate System?
Blanco
Global Interstate
System
It is the whole system of human
interactions. The modern world system is
structured politically as an interstate
system.
Blanco
Overview of
Subtopics
Effects of Globalization
on Governments
Difference between
Internationalism and Globalism
Blanco
Effect of Globalization on Governments
One of the Key aspects of state sovereignty is the government. It is a group of
people who have the ultimately authority to act on behalf of state. there have
been several challenges to the government and ultimately, to state autonomy. We
can divide these challenges into four, the traditional challenges, the identity
movements, global economics, and global movements.
Identity Movements
It is important to know that a nation has a cultural identity that people are attached
to, while a state a defined entity due to its specific boundaries.
Traditional Challenges
This is a case of how there might be a national identity within a country that is
assisted by a neighbouring country.
Global Economics
Global economy demands the states to conform to the rules of free -market
capitalism. austerity comes from developments of organization that cooperates
across countries, such as WTO and regional agreements, such as NAFTA, the
European Union (EU), and the Association of southeast Asian Nations (ASEAN)
Global Social Movements
Social movements are movements of people that are spontaneous or that emerge
through enormous grassroots organization. These social movements are transnational
movements which means occurs across countries and across borders.
Therefore, states have less control over them.
The Relevance of the state amid Globalization
The state is a distinctive political community with its own set of rules and practices
and that is more or less separate from other communities.
It has four elements:
PEOPLE
TERRITORY GOVERNMENT
SOVEREIGNTY
GLOBAL GOVERNANCE in the twenty - first century.
FIRST, is the declining power of the nation-states
Notable examples include the United Nations (UN), International Labor Organization (ILO),
World Trade Organization (WTO), International Monetary Fund (IMF), Organization for
Economic Cooperation and Development (OECD), World Bank and International Police
Organization (INTERPOL)
The role of international organizations is helping to set the international agenda, mediating
political bargaining, providing a place for political initiatives and facilitating cooperation and
coordination among member nations.
"CALUMPANG, J."
HOW THESE INTERNATIONAL INSTITUTIONS
FUNCTION IN TERMS OF THEIR PROGRAMS &
EFFECTIVENESS
UNITED NATIONS (UN) - The UN was formed by 51 countries in order to encourage
resolution of international conflict without war and to form policies on international issues.
Like most organizations, the UN was formed in order to meet certain goals and purposes.
Article 1 of the Charter of the United Nations specifies the purposes of the UN. The Charter
of The International Criminal Police Organization (INTERPOL) is the world’s largest
international police organization with 192 member countries.
The International Criminal Police Organization (INTERPOL) The main purpose of its
establishment is to enable the world police to ensure the safety of human beings all over
the world.
INTERPOL - INTERPOL enables international police to work together to fight international
crime in 192 member countries. It primarily uses its police expertise and capabilities for
these three types of crimes: (1) Counter-terrorism (2) Organized Crime (3) Cyber Crime
Interpol works in conjunction with all member countries and international organizations like
the United Nations and European Union to combat international crime.
"CALUMPANG, J."
PROGRAMS/AGENCIES MADE BY OR RELATED
TO THESE INTERNATIONAL INSTITUTIONS
UNITED NATIONS (UN) - The United Nations Development Programme works in nearly 170
countries and territories, helping to eradicate poverty, reduce inequalities and build
resilience so countries can sustain progress. As the UN’s development agency, UNDP plays a
critical role in helping countries achieve the Sustainable Development Goals.
WORLD BANK - The World Bank has created new organizations within itself that specialize
in different activities. All these organizations together are called the World Bank Group. It
consists of:
a. International Bank for Reconstruction and Development (IBRD) which lends to low-
and middle-income countries
b. International Development Association (IDA) which lends to the private sector
c. Multilateral Investment Guarantee Agency (MIGA) which encourages private
companies to invest in foreign countries and;
d. International Centre for Settlement of Investment Disputes (ICSID) which helps
private investors and foreign countries work out differences when they don't agree.
"CALUMPANG, J."
PROGRAMS/AGENCIES MADE BY OR RELATED
TO THESE INTERNATIONAL INSTITUTIONS
INTERPOL - Interpol Constitution calls for the appointment by each member country of a
body to serve as the Nationals Central Bureau (NCB). Recognizing the importance of the role
of the NCBs in the context of international police cooperation and believing that for an NCB
to be effective and meet the needs of international police cooperation.
"CALUMPANG, J."
THE EFFECTIVENESS OF THE PROGRAMS
UNITED NATIONS (UN) - Through advocacy and development projects, with a special focus
on vulnerable groups, UNDP contributes to poverty reduction, promoting democratic
governance, fostering environmental sustainability, addressing climate change and and
natural disasters, strengthening peace and conflict prevention, to ensure a better life for the
people of the Philippines.
Executive Order No. 27, s. 2017 “Directing all government agencies and instrumentalities,
including local government units to implement the Philippine Development Plan and Public
Investment Program for the Period of 2017-2022”
This long term vision is a basis for national unity and is meant to guide development
planning across at least four government administrations.
The vision which necessitates inter-generational equity, is consistent with the core
principles of the SDGs of sustainable development and leaving no one behind.
Sustainable development requires long-term planning where present development
should never be at the expense of future generations.
"CALUMPANG, J."
THE EFFECTIVENESS OF THE PROGRAMS
WORLDBANK - Without a place like the World Bank from which to borrow money, the
world’s poorest countries would have few, if any, ways to finance much-needed
development projects. The projects are essential to helping people become educated, live
healthy lives, get jobs and contribute as active citizens.
The Binga Power Project in 1957 marked the first World Bank Project in the Philippines.
"CALUMPANG, J."
THE EFFECTIVENESS OF THE PROGRAMS
WORLD BANK - In the 21st century, World Bank Intervention in the Philippines has improved
social and living conditions. The Philippine Rural Development Project of 2015
raised rural incomes
increase in agricultural productivity and market acces in rural areas.
From an educational perspective, the Learning, Equity and Accountability Program Support
(LEAPS) benefitted 4.4 million students and recorded improvements in the reading and math
scores of students in Grades 2 and 3.
The country’s debt stock reached 78.824 billion dollars in 2018 according to the World Bank.
A debt crisis deals with countries and their ability to repay borrowed funds. Therefore, it
deals with national economies, international loans and national budgeting.
"CALUMPANG, J."
THE EFFECTIVENESS OF THE PROGRAMS
High external debts are believed to have harmful effects to the country
The reputation of a country is also at stake when external debt is looked at and may
discourage investments to enter into the country.
The present foreign investors in the country would be expected to pull capital out of the
country. It would lead to a decline in the Peso, making the debt burden.
"CALUMPANG, J."
THE EFFECTIVENESS OF THE PROGRAMS
INTERPOL - The NCB-interpol Manila traces its beginnings in 1961 when the Philippines became a
member of the ICPO - INTERPOL, With the National Bureau of investigation (NBI) as its focal point.
The National Central Bureau shall be handled by the controlling body or Headquarters of the Criminal
Police Organization of a member State to be able to do its undertakings with authority.
The President of the Philippines issued Memorandum Order Nr. 92 on February 15, 1993
designating the Philippine National Police as the INTERPOL National Central Bureau for the
Philippines, with the Chief, Philippine National Police (PNP) as its concurrent Chairman.
a. Monitor and coordinate all activities of all law enforcement agencies relative to transnational
crime committed against or affecting the Philippines;
b. Maintain records and minutes of all meetings of NCB-INTERPOL Manila.
c. Operate and maintain the operation center of NCB-INTERPOL Manila as the focal point for
international cooperation against transnational crimes for all law enforcement agencies in the
Philippines; and
d. The NCB-INTERPOL Manila also functions as a sub-committee of the NALECC for the
monitoring of the sensitive activities of the latter.
"CALUMPANG, J."
THE EFFECTIVENESS OF THE PROGRAMS
INTERPOL - The NCB-interpol Manila traces its beginnings in 1961 when the Philippines became a
member of the ICPO - INTERPOL, With the National Bureau of investigation (NBI) as its focal point.
The National Central Bureau shall be handled by the controlling body or Headquarters of the Criminal
Police Organization of a member State to be able to do its undertakings with authority.
The President of the Philippines issued Memorandum Order Nr. 92 on February 15, 1993
designating the Philippine National Police as the INTERPOL National Central Bureau for the
Philippines, with the Chief, Philippine National Police (PNP) as its concurrent Chairman.
a. Monitor and coordinate all activities of all law enforcement agencies relative to transnational
crime committed against or affecting the Philippines;
b. Maintain records and minutes of all meetings of NCB-INTERPOL Manila.
c. Operate and maintain the operation center of NCB-INTERPOL Manila as the focal point for
international cooperation against transnational crimes for all law enforcement agencies in the
Philippines; and
d. The NCB-INTERPOL Manila also functions as a sub-committee of the NALECC for the
monitoring of the sensitive activities of the latter.
"CALUMPANG, J."
Internationalism vs Globalism
Internationalism
Internationalism is political, economic and cultural cooperation
between nations which promotes peace and security, self-
determination, economic stability, and humanitarianism.
For example, in a world international sporting event like the Olympics, the
host country will have great economic benefits because of attracting foreign
investment. The tourism generated by the event also boosts the economy. The
International monetary and WTO also promote Internationalism by giving
funds that encourage economic stability and help to solve poverty and hunger
around the world.
Internationalism can sustain quality of life of many nations.
It can also greatly improve the quality of life that nations
cannot achieve on their own. By interacting with other
nations either bilateral or multilateral, nations can achieve
many interests through internationalism.
Globalism
Is an ideology based on the belief that people, goods and
information ought to be able to cross national borders unfettered.
A socio-economic system dedicated to free trade and free access to markets.
The global north and global south also known as the North-South divide is used to
describe a grouping of countries along socio-economic and political characteristics.
The Global South is a term often used to identify lower-income countries on one side
of the so-called global North–South divide, the other being the countries of the Global
North (often equated with developed countries or wealthier countries). As such the
term does not inherently refer to a geographical south; for example, most of the Global
South is actually within the Northern Hemisphere.
In economic terms, as of the early 21st century, the North—with one quarter of the world
population—controls four-fifths of the income earned anywhere in the world. 90% of
the manufacturing industries are owned by and located in the North. Inversely, the
South—with three quarters of the world population—has access to one-fifth of the
world income. As nations become economically developed, they may become part of
definitions the "North", regardless of geographical location; similarly, any nations that
do not qualify for "developed" status are in effect deemed to be part of the "South".
Global South
vs
Third World
THEY MAY REFER TO THE SAME COUNTRIES, BUT THE TWO
TERMS ARE DIFFERENT!
WHAT IS THE THIRD
WORLD, ANYWAY?
The meaning of "Third World" has WE LIVE IN THE SAME WORLD, NOT THREE
mutated in modern times to
become a problematic label
BETTER DEFINED
LET'S USE
LESS HARMFUL CONNOTATIONS
GLOBAL
CARRIES NO BAGGAGE SOUTH
PROMOTES GLOBALIZATION
INSTEAD!
HOW DOES THE DIVISION WORK?
Before:
The "Brandt Line" was developed in the 1980s to demonstrate how the
world was geographically divided into richer and poorer nations.
With the exception of Australia and New Zealand, nearly all of the wealthier
countries are in the Northern Hemisphere.
The majority of the poorer countries are found in the tropical areas and in
the Southern Hemisphere.
THE BRANDT LINE
Today:
Over time, it became clear that this viewpoint was inaccurate and overly
simplistic.
Argentina, Malaysia, and Botswana all have GDP (PPP) per capita that is
higher than the global average, but they are nonetheless classified as
being in the "Global South."
Countries like Ukraine, on the other hand, appear to be among the poorer
countries by the same measure.
Today:
Many poorer countries have seen tremendous economic and social
improvement, making the world far more complex than the Brandt Line
represents.
Example: India
largest concentration of poor people
very sizable middle class
very rich elite
Some common causes of these inequalities:
Example:
Latin American Countries:
Natural resource exploitation in Latin American countries has become
one of the most controversial concerns in contemporary development.
Emanate of
global relations
from Latin
America countries
20 countries in Latin
America
competitive integration
of national economies
Mercosur into international
market
commitment to free
Pacific trade policies
Alliance
Why highlight the
Latin America in
the Global South?
competitive integration
of national economies
Mercosur into international
market
Future of
North-South
Divide
1. contraction of the division
2. more developing countries
in the South extend aid to
their neighboring countries
3. moving towards equality
References:
A 60 SECOND GUIDE TO . . . The Global North/South Divide. (n.d.).
https://www.rgs.org/CMSPages/GetFile.aspx?nodeguid=9c1ce781-9117-4741-
thank
af0a-a6a8b75f32b4&lang=en-GB.
Ayresa. (2015, September 10). Sociology – Seminar in Social Inequalities.
Sociology Seminar in Social Inequalities.
https://rampages.us/ayresa/2015/09/10/the-global-divide/.
Julius Baer. (2019, November 8). Latin America outlook [Video]. YouTube.
you
https://www.youtube.com/watch?v=92w9Bjx7zLA&list=WL&index=12
MERCOSUR in brief. (2018, November 6). MERCOSUR.
https://www.mercosur.int/en/about-mercosur/mercosur-in-brief/
Sawe, B. E. (2017, August 1). What is the North-South Divide? WorldAtlas.
https://www.worldatlas.com/articles/what-is-the-north-south-divide.html.
Silver, M. (2015, January 4). If You Shouldn't Call It The Third World, What
for
Should You Call It? npr.
https://www.npr.org/sections/goatsandsoda/2015/01/04/372684438/if-you-
shouldnt-call-it-the-third-world-what-should-you-call-it.
Silver, M. (2021, January 8). Memo To People Of Earth: 'Third World' Is An
Offensive Term! npr.
listening
https://www.npr.org/sections/goatsandsoda/2021/01/08/954820328/memo
-to-people-of-earth-third-world-is-an-offensive-term.
Stratfor - a RANE company. (2012, November 29). Latin America’s economic
divide [Video]. YouTube. https://www.youtube.com/watch?v=pAz-
gQd4QkM&list=WL&index=10
The Red Planet. (2021, March 16). The global divides - global south -
contemporary world [Video]. YouTube. https://www.youtube.com/watch?
v=Z-k-e4v2mZE&list=WL&index=13