GROUP 2
MARKET
INTEGRATION
MARKET
INTEGRATION
It was in 1994 that the Bretton Woods System
was inaugurated during the United Nation
Monetary and Financial Conference. This
system was largely influenced by British
economist John Maynard Keynes(1883-1946)
who believed that economic cries occur when
money is not being spend and there not
MARKET
INTEGRATION
Governments have to revitalize
markets with infusions of capital.
(Claudio, 2018)
International
Monetary Fund
(IMF)
was created,the valuation of gold and
important to this day. It is an international
organization that aims to promote global
economic growth and financial stability to
encourage international trade and reduce
poverty. Its activities are monitoring, capacity
building, and lending.
The World Bank
Group (WBG)
was also created following the Bretton Wood
Agreement to provide financial assistance to
countries affected by World War I for
reconstruction project in 1945. It has two
ambitious goals to end extreme poverty and
promote shared prosperity.
International Bank for Reconstruction and
Development (IBRD), International Development
Association (IDA), International Finance Corporation
(IFC), Multilateral Investment Guaranteed Agency
(MIGA), International Centre for Settlement of
Investment Disputes (ICSID)
are the largest and well-known bank in the
world that is focused on granting loans and
assistance to developing countries.
General Agreement on tariffs and trade (GATT).
Twenty-three nations signed the legal
agreement in Geneva on 1947and took effect
on 1948 after World War II. The promotion of
reducing or eliminating trade barriers such as
tariffs and quotas in the international trade wa
over all purpose. Until 1995,it was superseded
by World Trade Organization (WTO)
The World Trade
Organization
The World Trade Organization deals with the
global rules of trade between states and
nations. Its main function is to ensure smooth,
predictable, and free trade flows as possible.
Its goal is to help producers of goods, and
services, exporters and importers conduct their
business.
Martin Khor (2002) contented that WTO does
not manage the global economy, impartially
but is biased towards rich and multinational
corporation. Hence, harming smaller countries
which have less negotiation power.
Labor and environment are constantly ignored,
that in the absence of proper environment
regulation and resources management,
increased trade might cause so much adverse
damage that the gains from trade would be
less than the environment costs
(Charnovitz,2007)
Attributes of
Global
Corporation
Global Corporation is operating in two or more
countries and face a lot of challenges and
opportunities in their quest to capture value in
the world market. This includes multinational
and transnational corporations
Advantage of
Global Corporation
Cheaper
labor Broader
it can operate in
countries where
market base Job
where it mean more
labor is not
expensive. opportunities to creation
develop and cater more employment
products and services opportunities
that fit in the needs of especially in
the costumers. developing
countries.
Advantage of Global Corporation
Tax cut
• is one of the strategies
implemented by most
countries to attract
investment pouring in the
various country.
Disadvantage of
Global Corporation
Disadvantage of Global
Corporation
Potential abuse of
workers
• lot of people need jobs,
international corporations can
demand cheaper labor and
lesser benefits.
Disadvantage of Global
Corporation
Threat to local
business may
arise
• giant corporations may
dominate industries due to
financial resources to buy in
bulk.
Disadvantage of Global
Corporation
Loss of job
• may result for people living in
developed countries.
Global corporation are
important, still there is a need
to create policies to create a
balance between the
developed and developed
countries.
The Global
Interstate
System
Countries around the world are exercising
different forms of government. Political
scholars may have different observation on a
certain country based on their interest.
The Global
Interstate
System
One perhaps focused on history of the
government: on exportation and importation of
goods; or on local politics Another scholar may
examine how the country interact and establish
relationship with other countries.
Internalization
Internalization is the process of increasing the
involvement of business in the international
arena. There is an increase importance of
international trade, alliances, and treaties.
However, this does not equal to globalization
which encompasses a lot of things. It tries to
erase national boundaries for economic
Four key attributes
in world politics
today:
• There are states that are
independent from one
another.
• These states interact with
one another through
diplomacy.
Four key attributes
in world politics
today:
• International organizations
exist to facilitate these
interactions.
• Beyond Facilitating meeting
among states, these
organizations also take lives
on their own (Claudio 2018).
It is essential to understand
what is a country that is called
a nation-state. However, a
state may not be nation or a
nation may not be a state.
There are four
essential elements of a
state:
• People
• Territory
• Sovereignty
• Government
States
States is a community of person, more or less
numerous, permanently occupying a fixed
territory and possessed an independent
government organized for political end to which
the great body of inhabitants render habitual
obedience(Cruz, 1989) . In the absence of one
elements, a state cease to exist. Such may be
Nation
Nation, on the other hand refers to a group of
people who shared common characteristics like
history or origins, cultures, religions,and
language. A nation may consist of many states.
Further, a state may compose of many nations
The nationalism among the people actually
initiated the formation of states. People came
up with social contract agreement that there
must be a government where it will serve as an
instrument to through which their will is
expressed, formulate and realized. Hence,
state and nation are closely realted to each
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
BASED FROM THE STUDY DONE BY MOHAMMAD
ABO GAZLEH (2001) THE FOLLOWING ARE THE
POSITIVE EFFECTS BROUGHT ABOUT BY
GLOBALIZATION:
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
1. In communication, subscribers and user
of the internet are remarkably increasing
2. In education, new communication and
technologies enabled the students and
researchers, both young and old to access
ideas and information from the best
libraries around the globe
3. In different fore issues, almost everyone
Is made aware of the rights of women and
children, health, environment,
discrimination, and inequalities through
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
increased media coverage.
4. In culture, clear and shape
understanding of the different communities
with their practices and religions is greater
than before which leads to a possible
demonstration of sympathy and
compassion with one another in time of
calamities and tragedies.
5. In resources, since developed countries
need natural and human resources while
developing countries need capital,
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
technology and brainpower there is a
growing interdependence among these
countries.
6. In investment, developed countries flow
investment to developing countries which
pushes up the reserve of foreign exchange .
7. In competiton, every global corporation as
well as domestic corporation will improve
the quality of their product and services to
compete globally, resulting a survival of the
fittest situation.
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
AT THE SAME TIME, THERE ARE ALSO NEGATIVE
EFFECTS OF THIS PHENOMENON IDENTIFIED BY
GAZLEH (2001)
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
1. In culture, globalization is a challenge to
culture and language. The scientific and
economic superiority of developed
countries imposing certain languages
particularly in English .
2. In developing countries, although they
contributed a lot in the system, they do not
yield benefits from such contributions.
Global corporations have the tendency to
cause damage to the environment of these
countries in addition to dangerously
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
marketing expired products and illegal
goods. The world has become a “global
pillage instead of global village”. (Giddens,
2000).
3. In religion, exchange of information on
different opinions various religions are
made easier by globalization, however the
religions value lose their influence on
people’s behaviors due to the promotion of
pure secular system values.
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
Corruption of value find a way into the
minds of individuals,
4. In morals, immoral acts are not only
globalized but also becoming a disease.
Many people are wasting a lot of time on
the Internet for unnecessary purposes. With
the use of internet young people can have
direct access to immoral materials.
5. In international politics, the collapse of
some countries like the Soviet Union has
led powerful countries like the US to control
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
Global system and international relations.
This opens to a lot of opportunities for
developed countries to defend their own
national interest globally, ignoring the role
of the United Nations and the International
law.
6. In economy, many national economics
collapsed dues to the emergence of global
corporations that offer cheaper product and
services. It has led to fluctuation in price.
EFFECTS OF GLOBALIZATION
ON GOVERNMENT
7. In science, although globalization
remarkably contributes to new scientific
revolution in many fields, especially in
space and computer science, there new
revolutions paved the way to be used for
immoral purposes and to damage the
dignity of man who is created by God
including the environment.
Institution Governing
International Relations
Institution Governing International
Relations
International institutions form a vital part of
contemporary international relations. They are
the central focus of policy making efforts
around the world.
Institution Governing International
Relations
International non-governmental organizations
(INGO’s) and intergovernmental organizations
(IGO’s) - these institutions are classified under:
generalist inter state organizations; (e.g, Unites
Nations and Organization of Islamic
Cooperation);
Economic institution(e.g,Asian Development
Institution Governing International
Relations
;international legal bodies (e.g, Human rights
Committee and International Criminal court)’
and regional security arrangement
(e.g,Collective Security Treaty Organization and
North Atlantic Treaty Organization).
Institution Governing International
Relations
The generalist inter-state organizations are
composed of different nations with its member
states having the same aims and purpose.
Internationalism vs
Globalism
Internationalism vs Globalism
When different nations decided to cooperate with one
another in political ,economic and cultural aspects for
the promotion of the common good this is a principle
of internationalism.
Globalism is an ideology based on the belief that
people, goods and information ought to be able to
cross national borders unfettered. It is the attitude of
putting the interest of the entire world above the
Three types of internationalism
Hegemonic internationalism - is the dominance of
one country over a nation or nation-state. Most often,
nations with ruling power will bring their succession
to the less influenced states. Nations are integrated
based on unequal terms. Colonialism and imperialism
are example of this. The colonization of the
Philippines by Spain imposing their own example of
Filipinos and their own cultural practices.
Three types of internationalism
Liberal Internationalism - is a belief introduced by
Immanuel Kant (1724-1804) that nation-states should
give up some of their freedoms and establish a
continuously growing global system consisting of
various nations working together to prevent
lawlessness in the world. Nations cooperate with one
another to achieve common goals like peace and
prosperity.
Three types of internationalism
Revolutionary internationalism- believes that conflict
in the society are due to international factors and
alliances. Nation-state are forced to do what they
think is right.
German philosophers Karl Marx (1818-1883) and
Friedrich Engles (1820-1895), who gave voice to the
interest of the proletariat, always recognized that the
socialist-working class movement is always an
internationalist one.
With this socialist internationalism existed in which
people belong in the working class nation unite one
another to protect themselves against exploits,
abuser and oppressions done by the capitalist class.
Globalism is the network of nation-states. The degree
of relationship, how thick or thin globalism is, refers
to globalization which focuses on the changes on the
forces, dynamism or speed. The distinct dimensions
of globalism are economic, environmental and social
or cultural (Nye,2002)
Economic globalism involves long distance flows of
goods, services, capital and information that
accompany market exchange.
Environmental globalism refers to the distant
transportation of materials in the aerial, fluvial, or
terrestrial aspects.
Military globalism includes long distance network in
which force, and the threat or promise of force, are
deployed.
Social or cultural globalism involves movements of
information, ideas, images and of people who carry
those by people themselves.
Changes in the various dimensions do not necessarily
go together but one dimensions may be affected by
another dimensions. Globalism is not certain. There is
continuous increased in its complexity that
stakeholders continue to exert efforts to comprehend
and manage these process.
THANK YOU
Group 2
