GLOBALIZATION: 2.

Liberalism
- Increased movement of people, - Malayang pakikipagkalakalan
knowledge & ideas, and goods & money - No government is regulating
across national borders that led to - Individuals decide what to produce,
increased interconnectedness; how goods shall be distributed,
- Interaction, integration, interconnected and by what means production &
- Started after WW1 distribution shall be carried on
- One of the critical steps in the path of 2.1 : Neoliberalism
Globalization is the North American Free - Liberating individual entrepreneurial
Trade Agreement signed on 1993 freedoms and skills through Privatization
- Privatization : transferring of a property
FACETS (Theories): from public sector to a private sector;
1. Economic (World System) increases capitalism.
- Wallerstein Theory
- Expansion of capitalist system 3. Marxism
- Core Country - Semi-periphery - Karl Marx
Country - Periphery Country - Communism
2. Political (World Polity) - Communism : government runs
- Norms and culture everything and makes all decisions
- Facilitates through international - Bourgeoisie : the upper class;
standards and policies Proletariat : working for daily
- The interactions happening inside income
the world system theory
3. Socio-cultural (World Culture) INTERNATIONAL MONETARY SYSTEM:
- Compresses the world into a single - aka International Monetary and Financial
entity System & International Financial System
- Set of internationally agreed rules,
Possible Questions: conventions, and supporting institutions
a. Listening and Subscribing to Spotify that facilitate international trade, cross
- E & SC border investment, and allocation of
b. European Union capital between nations.
- P
c. ASEAN 4 ELEMENTS:
- P a. Exchange arrangements and exchange
d. Watching K-dramas rates
- SC b. International payments and transfers
e. Putting tariffs c. International capital movements
- E d. International reserves

HISTORY:
GLOBAL ECONOMY: 1. Bimetallism (before 1875)
- Gold and silver
World Economy - economic activity within each 2. Classical Gold Standard (1875-1914)
country between countries around the world - Gold is the medium of exchange
3. Interwar Period (1915-1944)
INTERNATIONAL ECONOMY PERSPECTIVES: - The Great Depression
4. Breton Wood’s System (1945-1972)
1. Mercantilism - Gold = 35 USD
- To pay for military power and state - USD is the global currency
security - Renminbi is the reserve Currency
- Protectionism: paglalagay ng (china’s currency)
taripa/taxes on imports 5. Flexible Exchange Rate System (1973 -
Present)
 - Growth Domestic Product : tracks - Lends money to members having financial
the health of a nation’s economy. obligations; for emergency crisis
- International Trade : exchange of
goods & services between MARKET INTEGRATION:
countries. - Markets of goods and services are
- Global Debt : government somehow related to one another
borrowings, hence interest rates - Attempts to combine separate national
are being put up so high to economies into large economic regions
discourage too much loans.
- Deficit Spending : intentional FORMS OF INTEGRATION:
excess spending to stimulate 1. Preferential Agreement
economy - Lower trade barriers among
- Foreign Direct Investment : countries w/c signed the
investment made by a firm or agreement; first & smallest step on
individual in one country into further integration.
business interests located in 2. Free Trade Agreement
another country - Reduces trade barriers to zero, but
each member country still has the
FINANCING: autonomy in deciding the external
A. Concessional Financing rate or tariff
- Grants or subsidized loans 3. Custom Union
B. Non-concessional Financing - Agree to a common external tariff.
- Loans that carry market or 4. Common Market
near-market terms - Free movement of labor and
capital
4 KINDS OF ASSISTANCE: 5. Economic Union
1. Official - Highest form of economic
2. Private Voluntary integration
3. Bilateral
4. Multilateral
SPATIAL MARKET:
- Markets aggregate demand and supply
TYPES OF MONEY: across actors distributed in space

1. Fiat - printed 1. Exchange Rate

2. Commodity - golds and silvers 2. Arbitrage
3. Commercial Bank - fiat money na prinint - Simultaneous purchase and sale in
dahil nangutang sa bank different markets
4. Fiduciary - rewards/vouchers 3. Law of one price
5. Electronic Money - Price of an identical commodity will
have the same price globally
WHY MONEY IS CREATED/PRINTED? 4. Law of Supply and demand
a. When government needs fund - Scarcity and shortage; if the supply
b. When people are lending in the banks is high and the demand is low
then, the price will drop; if the
supply is low and the demand is
WORLD BANK: high then, the price will increase.
- Provide long-term reconstruction and 5. Purchasing power parity
development of member countries - Exchange rate that allows you to
- Rebuilds war-torn European states after buy the same amount of goods
WW2
INTERNATIONAL MONETARY FUND COST-PUSH THEORY:
- w/ 182 countries
 - Kapag tumaas ang cost ng producers this region to maintain stability in
increase will be passed down to Europe
consumers After the Twin Tower (9/11) Incident:
- NATO became concerned with
DEMAND-PULL THEORY: global security problems such as
- Prices can be pulled higher when demand terrorisms and weapons of mass
exceeds supply; causes inflation destructions
GLOBAL INTERSTATE SYSTEM:
- Born in Europe w/ the Treaty of
Westphalia in 1648 after the Thirty Years 3. World Trade Organization
War. - Market integration
- Through the treaty mentioned, sovereignty - Previously known as General
was recognized Agreement on Tariffs and Trade
- Sovereignty means independency of one - Increases world trading capacity
nation

INTERNATIONAL ORGANIZATION GLOBALISM: around the world

- aka International Governmental REGIONALISM: same regions like south-east
Organizations; asian countries
- 2 or more countries; - Association of Souteast Asian Nations
- Private or public; August 8, 1967
- They settle disputes
- The Bretton Woods conference held in
1944 led to establishment of these IGOs INTERNATIONAL NON-GOVERNMENTAL
Eg: ORGANIZATIONS
1. UN (international peace and security) - aka Civil Society Organizations
5 Great Powers (UN Security Council): - May or may not concern politics
a. China - Facilities to poor population, support
b. France deprived areas
c. Russia
d. UK Eg: Unicef, WWF, Greenpeace
e. US
They have this VETO POWER wherein
any resolution proposed of the members MULTINATIONAL CORPORATIONS
can be rejected if any one of them - Business that operates in 2 or more
Refuses. countries

5 Areas that have gaps that UN filled:

a. Knowledge GLOBAL DIVIDES: NORTH and SOUTH
b. Normative - Mayayaman ang nasa north except
c. Policy Australia and New Zealand at ang nasa
d. Institutional south ay mahihirap
e. Compliance - This is according to Willy Brandt

2. North Atlantic Treaty Organization (NATO) GLOBAL NORTH: The G8 (US, Japan, Russia,
- 1949 Italy, UK, Germany, France, Canada), Western
- To provide collective defense Europe, Developed parts of Asia, Australia, and
against Soviet Union threat. New Zealand; Rich, industrialized, wealthy
nations; democratic; capitalist
Euro-Atlantic Partnership Council
Partnership for Peace GLOBAL SOUTH: Africa, Latin America, &
- Designed to prepare states for joint Developing Asia including Middle East;
peacekeeping operations in the developing nations; non-democratic
 CAPITALISM : COMMUNISM
STATE vs NATION vs COUNTRY
- State is a territory w/ its own institutions &
population; Nation is a group of people MEMBERS OF ASEAN:
sharing the same history; Country is the 1. Brunei
same with them 2. Thailand
WORLD WAR 1 (1914-1918) 3. Myanmar
4. Laos
1. Central Powers: 5. Indonesia
a. Germany 6. Malaysia
b. Austro-Hungarian Empire 7. Philippines
c. Ottoman Empire 8. Cambodia
d. Bulgaria 9. Singapore
10. Vietnam
2. Allied Powers:
a. Great Britain MEMBERS OF EU:
b. France 1. Austria
c. Russian Empire 2. Belgium
3. Bulgaria
Treaty of Versailles 4. Croatia
- Was signed on June 28, 1919 5. Cyprus
- Sinabi na Germany ang magdadala ng 6. Czech Republic
lahat ng burden and magbabayad sa lahat 7. Denmark
ng damages ng digmaang naganap 8. Estonia
9. Finland
IMPERIALISM : COLONIALISM 10. France
11. Germany
WORLD WAR 2 (1939-1945) 12. Greece
13. Hungary
1. Axis Powers: 14. Ireland
a. Nazi Germany (Hitler) 15. Italy
b. Fascist Italy 16. Latvia
c. Imperial Japan 17. Lithuania
18. Luxembourg
2. Allied Powers: 19. Malta
a. France 20. Netherlands
b. US (sumali officially matapos 21. Poland
bombahin ng Japan ang pearl 22. Portugal
harbor) 23. Romania
c. Soviet Union 24. Slovakia
d. UK 25. Slovenia
e. China (sumali dahil malaki ang 26. Spain
galit sa Japan) 27. Sweden
28. UK (umalis din subsequently dahil neutral
Nagsimula because of Hitler, dahil hindi sila lang daw)
sang-ayon sa naging kasunduan sa pinirmahang
Treaty if Versailles.

FASCISM : NAZISM
COLD WAR (1945-1991) SOUTH EAST ASIA TREATY ORGANIZATION
- US vs Soviet Union (1955-1977) ; against communism
- Labanan ng innovations 1. Australia
 2. France 23. Portugal
3. New Zealand 24. Romania
4. Pakistan 25. Slovakia
5. Philippines 26. Slovenia
6. Thailand 27. Spain
7. UK 28. Turkey
8. US 29. UK
30. US
THE G8:
1. Canada
2. France
3. Germany
4. Italy
5. Japan
6. UK
7. US
8. Russia (2013 when the other members
imposed removal for russia after they
invaded Crimea; 2017 when Russia
announced permanent withdrawal; hence,
they are only G7 now)

BRICS: leading economies

1. Brazil
2. Russia
3. India
4. China
5. South Africa

NORTH ATLANTIC TREATY ORGANIZATION

(1949-Present); north america & europe
1. Albania
2. Belgium
3. Bulgaria
4. Canada
5. Croatia
6. Czech republic
7. Denmark
8. Estonia
9. France
10. Germany
11. Greece
12. Hungary
13. Iceland
14. Italy
15. Latvia
16. Lithuania
17. Luxembourg
18. Montenegro
19. Netherlands
20. North Macedonia
21. Norway
22. Poland