Contemporary World Compilation
Contemporary World Compilation
Contemporary World Compilation
Program/Yr./Sec: BSED-ENGLISH 2A
Course: Contemporary World
Economic Systems relate to the systems and procedures used in the creation,
distribution, and consumption of commodities and services within a society. It emerged
during the Industrial Revolution of the 18th and 19th centuries. New manufacturing
technologies affected the production and trade of commodities. Its three main categories
are Market Economies (demand and supply decide prices), Command Economies
(government regulates every area of the economy), and Mixed Economies (the first two
are present in here).
Skill specialization and the division of labor promoted economic prosperity (Hunt,
2017 as cited by Adam Smith). Circular Economy emphasizes sustainability and social
responsibility. Endorsed by the UN as a strategy in attaining sustainable development -
designing out waste and pollution, keeping goods and materials in use, and regenerating
natural systems.
Important Key Points of the Video:
Economic Growth. It is measured through the value of all products
manufactured and sold in a country of the course of one year, along with everything
that people do and get paid, amounts to the Gross Domestic Product (GDP). When
people with money buy more products, the economy of the country grows.
Politicians works to achieve greater employment, stable prices, and balance
between imported and exported goods. Healthy people, nature, and opportunities
serves also the basis of economic prosperity because both has the same value.
Globalization and Free Trade foster economic growth and advancement by providing
businesses with greater prospects to expand and function globally.
Free Trade Agreements (FTAs) are trade pacts.
• More than 300 regional trade agreements in place across the globe (World Trade
Organization). Trans-Pacific partnership (TPP), covering 11 nations in the Asia-
Pacific area, and North American Free Trade Agreement (NAFTA), involving the
US, Canada, and Mexico.
Important Key Points of the Videos:
Trans-Pacific Partnership (TTP). It is the world’s largest free trade area,
accounting 40% of the global economy. The agreement is expected to make a huge
difference to trade between its members with an estimation of $295 bn. within a
decade. Its goal is to support jobs, thrive sustainable growth, foster inclusive
development, and promote innovation across Asia-pacific region. Significantly, it sets
to achieve an ambitious, comprehensive, high standard, and balance agreement that
will benefit all nation’s citizens.
North American Free Trade Agreement (NAFTA). It was signed in 1994. Its
goal is to make North America a highly competitive commercial block on the global
stage, abolish trade obstacles, and boost investment opportunities in small and
medium enterprises. Canada and Mexico accounts almost one fourth of all US imports
including processed foods, crude oil, livestock, machinery, and vehicles. The
provisions of the agreement are the following: 1.) removal of non-tariff barriers; 2.)
tariff reductions for qualifying products; 3.) resolving trade disputes; 4.)
establishment of standards; 5.) intellectual property rights protection for industries;
and 6.) supplemental agreements.
Salient points, pros and cons of FTAs:
1.) Eliminate trade restrictions, such as tariffs and quotas among nations;
2.) Promote economic integration and growth while giving consumers and businesses
additional opportunities;
3.) Cover a wide range of trade problems – labor standards and environmental protection
as well as specific industries or products;
4.) Harm local economies, communities, and income inequality as well as labor and
environmental norms; and
5.) Essential tool for fostering global economic growth and integration.
Important Key Points of the Video:
Free Trade vs. Protectionism. Increase in trade helps a society prosper. The
advantages of Free Trade are the following: 1.) consumer’s choice of goods &
services; and 2.) cooperative relationships among countries. On the other hand,
Protectionism is about restricting trade to shield domestic industries from foreign
competition. There are laws created by importing countries. First, tariff – a tax
on imported goods, making the product expensive, and pushing people to buy the
domestic ones instead. Second, import quota is a limit placed on the amount of
a good that can be imported. Another trade barriers that government may done is
safety regulations and the need for business license to acquire license fees
in return. If it is politically driven, a country may impose sanctions – an action
being took in order to punish/put pressure to another country such as Embargo
– an official ban on trade. The advantages of Protectionism are the following: 1.)
helps industries that are hurt by foreign competition; 2.) helps infant industries or
those in early stages of development; and 3.) necessary in national security crisis.
Globalization and Economic Expansion
a. Globalization can promote economic growth by opening up new opportunities for
commerce, investment, and technical advancement.
b. Expanding markets and encouraging competition can help increase productivity, lower
costs, and generate new industries and jobs.
c. Help nations focus on producing goods and services where they have a comparative
advantage, increasing productivity and efficiency.
d. Globalization can also harm economic progress, particularly in underdeveloped
nations.
e. Increased competition from foreign producers due to trade and investment
liberalization may harm native industries and cause job losses.
f. Globalization can also aggravate inequality and environmental deterioration, which can
impede social stability and economic growth.
Some studies related to Economic Globalization shows that nations with greater
trade openness typically gain economically more than nations with larger trade barriers.
While there may be some bad effects of globalization, there have also been some positive
effects, especially in reducing poverty.
Income and Wealth Inequality. There are two types of Economic Inequality.
Wealth Inequality is the unequal distribution of accumulated assets minus liabilities
while Income Inequality is the extent which income is distributed in an uneven
manner. The Industrial Revolution have created a lot of inequality between countries
but Globalization and International Trade have accelerated it in the present.
Globalization helped the world’s poorest people and the rich ones even more. Skill-
biased Technological Change creates a gap between the poor and the working class
because people with low skills are being left behind. Income Inequality is associated
with other issues such as violence and gender discrimination. Some says that
accessible education, increase minimum wage, proper child care, social safety net
pushing more people to work, and adjust tax to redistribute income can help in
eliminating it.
A WORLD OF REGIONS
Lesson 1: The Global Divides: The North and the South
The world is divided into North & South, and First, Second, & Third.
Global South is a metaphor for interstate inequality and a product of Western
imagination (Claudio, 2014). Countries that were colonized by the Spaniards in the
southern part of the American continent are collectively called Latin America.
Treaty of Tordesillas (1494), newly discovered lands outside Europe were divided
into two- the West belonging to the Crown of Castile (now part of Spain) and the
East belonging to the Portuguese Empire. There is also a split based on labor- the
core, semi-periphery, and the peripheries. It refers to the socio-economic and
political divide primarily focused on the southern hemisphere of the 1569-designed
Mercatorian map - Africa, Latin America, Asia, and Middle East. It connotes
developing countries as opposed to rich, industrialized, and wealthy nations.
Global North is the home of Group of Eight (G8) - Canada, France, Germany,
Italy, Japan, United Kingdom, Russia, and the United States of America. It is the
abode of the four powerful permanent members of the United Nations Security
Council and the developed countries in Asia, Australia, and New Zealand.
Economically poor families, under privileged individuals, unfair labor practices,
suppression of human rights, and other violations of basic rights in Europe, Australia, US,
and Canada are the pieces of evidence that people from developed countries also share
similar experiences with people from developing countries.
Global South and Third World are conceptually the same as they refer to
conditions usually found in developing countries. Third World is the antecedent of Global
South (Claudio, 2014) - ceased to exist when the Cold War ended.
The world was once categorized based on the economic ideology of Western
Capitalism against the Soviet Union’s Socialism. As formal economies, Capitalism
(First World) sustains consumer choice, private property, and economic freedom while
Socialism (Second World) is characterized by state control of the means of
production, distribution, and exchange. Third World - former colonies of European
countries (India as a colony of the United Kingdom and even the Philippines). It refers to
the countries that were neither Capitalists nor Socialists, the poor world (non-
industrialized and newly industrialized). They lacked the standards systems in banking,
finance, and trade.
Lesson 2: Asian Regionalism
China (one of the economic super giants of the world), Japan (incorporated itself
to the global economy), and Singapore (one of the emerging centers of different
cultures and a great cosmopolitan city-state) belongs to the continent of Asia, a
term that originated from the West, particularly from Ancient Greece. It has the
biggest population of at least two-thirds of the world’s inhabitants and one-third
of the world’s land mass. Association of South East Asian Nations 5 or the ASEAN
5 (Indonesia, Malaysia, Philippines, Vietnam, and Thailand) (Brunei, Singapore,
Laos, Myanmar, and Cambodia).
Most countries want to have collaborations with East Asian countries and the
Association of Southeast Asian Nations (ASEAN) members because economic and
political growth in these regions have started to shape up – collaborations and
cooperation based on respect. The United States strategically takes care of its allies
in Asia to maintain and further enhance its supply of raw materials, human
technological skills, and even its military force. Europe keeps its strong
relationship with Asian countries to expand its growing business in the field of
medical science and research.
2. Other countries make up their small size by taking advantage of their strategic
location.
3. Countries form a regional alliance for there are strength in numbers. For
Military Defense – North Atlantic Treaty Organization (NATO) – Western
European countries & US and Warsaw Pact – Eastern European countries under
Soviet Domination. Pool Their Resources – better export returns and leverage
expansion against trading partners. Protect Their Independence – from
pressures of superpower politics. Economic Crisis – compels countries to come
together.
Some other regional organizations who dedicate themselves to specialized causes
includes:
Rainforest Foundation – protects indigenous people and rainforests of Brazil,
Guyana, Panama, and Peru.
Regional Interfaith Youth Networks – formed by young Christians from
Africa, Middle East, Americas, and Caribbean to promote conflict prevention,
conflict resolution, peace education, and sustainable development.
Migrant Forum Asia – committed to protect and promote the welfare of
migrant workers.
Contemporary Challenges to Regionalism:
1. Militant Nationalism and Populism – Examples: relationship of US with NATO and
UK trying to leave the European Union
2. ASEAN members disagreeing with sacrificing sovereignty for regional stability.
3. Differing visions of what regionalism should be for the Western World (economic
formations & political democratization) and Eastern World (Singapore, China, &
Russia sees democracy as an obstacle to the implementation & deepening of economic
globalization).
The factors leading to greater Asian Integration of the Asian Region are trade,
similar culture, common goals, mutual belief, and similar security needs.
Asian Economies are connected through trade, financial transactions, direct
investment, economic relationship, labor and tourist flows, and
technology.
Its importance are the following: help sustain region growth, underpin regions
stability, reduce inequality, marshal common response to major challenges, and
sustain global economic progress.
MARKET INTEGRATION
By reducing trade barriers and harmonizing trade rules and regulations, market
integration refers to the process of connecting national markets to create a larger
and more linked market.
Trade agreements negotiations help to facilitate this process, which may take place
at the international or regional levels
Advantages of Market Integration include increased commerce, economic
growth, and competition, which forces businesses to innovate and improve their
efficiency to survive
Market Integration unites national markets to create a larger, more linked market
by reducing trade obstacles and harmonizing trade rules and regulations. However,
smaller or less established economies may run into trouble when some industries can’t
compete with more powerful corporations in other markets. It may lead to a race to
the bottom in terms of labor standards and environmental protections,
Regional Market Integration refers to the economic integration of countries
within a certain region. It can be achieved by a variety of arrangements, including free
trade agreements, customs unions, and common markets. Increased trade, economic
expansion, and the formation of larger, fiercer marketplaces are possible benefits of
this integration. Additionally, it can enhance social and political stability and increase
foreign investment but also presents challenges, particularly for underdeveloped or
smaller economies. The incapacity of some industries to compete in other markets
against larger and more powerful firms may have detrimental economic implications.
However, promoting more cooperation, stability, and growth among the participating
countries, the integration of regional markets might have a positive overall impact
The European Union (EU), the African Continental Free Trade
Area (AfCTA), the Association of Southeast Asian Nations
(ASEAN), and the Mercado Comn del Sur (MERCOSUR) in South
America are examples of successful regional market integration. These
regional organizations have worked to promote commerce and economic
growth within their particular regions while addressing problems including
political turmoil, trade imbalances, and inequality.
Six Countries from the Arabian Peninsula came together to form the
political and economic (GCC) Gulf Cooperation Council to promote
cooperation and integration. These advances, which include a customs
union and single market for goods, services, and capital, have the potential
to encourage economic growth and diversification.
To establish a single market for goods and services in Africa, the (AfCFTA)
African Continental Free Trade Area is a regional market integration
organization. It aspires to enhance intra-African commerce and investment
by reducing trade barriers and serves a market of more than 1.2 billion
people with a combined GDP of over 3 trillion.
Asia – Largest continent in our plant with more than 17 million square miles.
Some notable countries includes China, Russia, India, Japan, South and North
Korea, Middle East, Pakistan, and Vietnam. (The Great Wall of China, Taj Mahal,
Mount Everest).
Africa – Second largest continent with 11.7 million square miles. It has 54 counties
such as Kenya, Egypt, Morocco, and Tanzania. Northern part has big sprawling
deserts, Middle has rain forests and variety of animal life – giraffes, zebra, lions,
hippos, cheetahs, gazelles, wild beasts, and Southern part is pretty cold in winter.
(Sahara Desert, Nile River, Mount Kilimanjaro, Egyptian Pyramids, Serengeti,
Victorian Falls).
Antartica – Fifth largest continent with 5.4 million square miles. Windiest and
coldest place on Earth. Estimated 12 million of Penguins lives here. One giant
continent with no countries. South Pole or “Bottom of the Earth” can be found in
here.
Europe – Sixth largest continent with 4 million square miles and 740 million
residents. It has 44 countries including France, United Kingdom, Germany, Italy,
and Spain. The smallest country is the Vatican City located in the heart of Rome
with a size of a small suburban neighborhood. (Eiffel Tower, Roman Coliseum,
Parthenon.