Module 2 Market Integration The Global Interstate System and Global Governance
Module 2 Market Integration The Global Interstate System and Global Governance
Module 2 Market Integration The Global Interstate System and Global Governance
Objectives:
At the end of the lesson the students are expected to:
1. View market integration as merging and integrating globally, and thus, improve the growth
of global economy.
2. Understand that we evolve with other countries in almost all aspects and is inevitable
reality.
3. Better understanding of the role, effects and impact of interstate system(other system
besides the government).
4. Be critical thinkers about global governing.
Lesson 1:
I. Introduction to the study of market integration.
II. Contribution of the interstate system
III. The crucial role of global governance.
I. MARKET INTEGRATION
Market Integration can be viewed as the merging, integrating and understanding of the contribution of
the different financial and economic institutions and sectors that would facilitate the growth of the
global economy.
2. Secondary sector or intermediate sector – from raw materials to finished products, product
produced by farmers, miners are refined, finalized into usable goods. (example. From oil to refined gas,
from logs to finished tables and beds)
Economic systems
1. Capitalism – free trade, free economy where there is economic freedom, competition, profit
motives
2. Communism – there is central control/central government, the government provides all the
needs of the people and thus owns every thing
3. Socialism – combination of socialism and capitalism system where the major and minor business
and trade are controlled both by government and the people.
Financial Institution and economic organization that made countries even closer together in trade
relation
1. The Bretton System- established from the remnants of WW I and II in trade, the Focus were the:
b. Free flow of money and exchange due to the start of restructure or economy.
2. Establishment of official monetary authority in each country(ex. Phils-we have the central
bank)to agree with other countries currency = official exchange rate equivalent
- It focus on trade goods through multinational trade agreements conducted in many ‘rounds’ of
negotiation and from the agreement the world trade organization WTO was created
- Is an independent multilateral organization that became responsible for trade and services, non-
tariff-related barriers to trade(trade liberalization)
Critism on WTO
- Founded after the world war II, the establishment was mainly because of peace advocacy after
the war and aimed to help the economic stability of the world
- Trade pack between US, Mexico and Canada created on January 1, 1994 when Mexico joined
the two other nations
- Helps in developing and expanding world trade and increase cooperation for improving working
conditions in North America by reducing barriers to trade as it expands the markets of three countries.
- The institution that creates welfare and sets economic policies for the country
- A political unit that has a authority over its own affairs and in the global world recognizes its
borders
The treaty of Westphalia of 1648- a treaty signed by countries recognizing the idea of state sovereignty,
government control and state policies.
In the globalization of politics today – the treaty faces the challenges because it was not as simple as
recognizing borders or sovereignty today.
The state/country is not the soul actors in the global system but also includes:
- Multinational corporation
an effective global authority and a potential global way for the improvement of human life and the
development of more truly global structures and methods of dealing with various sort of issues and
problems.
- Flow of digital conformation – when strong countries interfere with the internet
- Mass migration of people and their country(illegally) uncontrol flow, flow of criminal elements
and their products(drugs, sex trafficking, laundered money,)
I. Traditional challenges
a. External intervention – invasion by other countries ( ex. Saddam Hussein ruler of Iraq took over
the oil fields of Kuwait but dislodged by an international coalition headed by the US .
b. Internal political intervention – coup that deposes present political leaders to restore stability
Others: regional challenges ( fighting for state autonomy, human right issues, territorial deputes )