Contemporary World
Contemporary
- Means today’s event
World
- Means where people live
Contemporary World
- Introduces students by examining
multifaceted phenom of globalization.
- Examines the economic, social, political,
and technological.
- Provides an overview debates:
A. Global Governance
Disadvantages of Globalization
B. Development
C. Sustainability
- Circumstances & ideas of the present
age. In modern times like these.
- Using the various disciplines of the
social sciences, it examines the
economic, social, political, technological,
and other transformations that have
created an increasing awareness of the
interconnectedness of peoples and
places around the globe.
- 195 countries and 7.6 billion people and
counting.
Structures of Globalizations
1. Economic Globalization\
- Increasing economic interdependence
of national economies across the world.
- Rapid increase in cross-border
movement.
2. Political Globalization
- On how to establish relationship to other
country.
- Refers to increasing trend toward
multilaterism.
3. Cultural Globalization
- “Way of Life/Living”
- Can be diverse/sity
- Interaction of cultures around the world
that are becoming more and more
similar.
Globalization
- According to sociologists, an on-going
process involves interconnected
changes in economic, cultural, social,
and political spheres of the society.
- Involves even-increasing integration of
these aspects between nation, regions,
communities, and isolated places.
Global Interdependence
- Human interactions and relationship
transcend national boarders & in which
social problems within any one country
& such as unemployment, drug
addiction, water shortages, etc. are
shaped by Special Forces & events
taking place outside the country.
Advantages of Globalization
1. Greater Understanding and Knowledge
of many countries culture.
2. Investment into developing country’s
economy.
3. Greater range and access to diff.
products.
4. Increased production of company due to
great demands.
5. Larger market Range
6. Job Creation
7. Greater innovation &development
products & technology
8. Cheaper products
1. Outsourcing of Services to other
countries.
2. Possible increase in unemployment.
3. Closure of small businesses.
4. Degradation of Environment.
5. Conflict between & among countries.
GLOBAL ECONOMY
-The world economy or global economy is
the economy of the world, considered as the
international exchange of goods and
services that is expressed in monetary units
of account.
Economy
- The wealth and resources of a country
or region, esp. in terms of the production
and consumption of good and services.
Economies
- ACCORDING TO Wallenius Wilhelmsen
ASA. US ECONOMY ACCELERATE
FURTHER.
-
- US economy accelerated strongly and
posted GDP growth of 2.3 percent in
2017, well above the 1.5% a year prior.
Barring major additional policy changes,
the World Bank sees momentum carrying
into this year and lifting the US another
2.5 percent in 2018
- AND US HAS BEEN THE WORLDS
BIGGEST ECONOMY SINCE 1871.
Philippine Economy
- ACCORING TO THE STUDY OF
FOCUSECONOMICS
-
- PH. The economy is expected to grow at
a brisk pace this year and next on the
back of elevated public spending and
fixed investment. Fiscal stimulus,
however, is causing economic
imbalances to build up and stoking fears
that the economy might overheat. Focus
Economics panelists see GDP growth of
6.7% in 2018, unchanged from last
month’s forecast, and 6.6% in 2019.
 - With 5 official members:
Indonesia, Malaysia, Philippines,
Import Singapore, Thailand
- Bring (goods or services) into a country - Next is:
from abroad for sale Cambodia, Lao, Myanmar, Vietnam,
Brunei Darussalam.
Export

- Send (goods or services) to another

country for sale
ASEAN Single Window
Crude Oil
- Allows trades to submit trade related
- Most imported product
documents in one place through
- $87.5 billion a year.
electronic exchange among ASEAN
Electrical Machinery countries.

- Most imported product in PH. ASEAN Self Certification System

Mangoes - Allows exports to declare and self-certify

- Most exported product in Japan, Korea,
Singapore, and USA.
GDP
- Gross Domestic Product is the monetary
value of all the finished goods and
services produced within a country’s
borders in a specific time period.
- It’s significance is it measures a
country’s income
the ASEAN product content in their
products.
Benefits
- Better investments
- Implementation of trade, services,
investments
- Improving country’s location
- Make ASEAN region more competitive
AEC Agreements

The World’s top 10 Economies - ASEAN Trade In Goods agreements

(ATIGA)
1. U.S.A - Common Effective Preferential tariff
- $19.42 trillion (Cept)
- - 25% of the gross world product - ASEAN Framework Agreement on
2. China Services (AFAS)
- Economic growth with 10% annual - ASEAN Comprehensive Investment
increase Agreement (ACIA)
3. Japan
- $4.8 trillion Agreement aims to
4. Germany
1. Facilitate the movements of good,
- Exports of machineries
services, investments, capital, skills
5. United Kingdom
2. Increase trade and investments among
- $2.5 Trillion
member states.
6. India
3. Promote and expand regional
- $2.45 trillion
production sharing and networking.
7. France
4. Promote higher level of transparency
- $2.42 trillion
and predictability
8. Brazil
- $2.14 Trillion World Trade Organization (WTO)
9. Italy
- $1.81 Trillion - 3 common goals
10. Canada - Achieving higher living standards, full
- $1.6 Trillion employment, and sustainable
development.
Advantages of Global Economy - Open economies tend to grow faster
and more steadily
- International trade
- Jobs that are tied to trend tend to pay
- Capital flow
better.
- Foreign direct investment
MARKET INTEGRATION
Disadvantages of Global Economy
- Occurs when prices among diff locations
- Human Costs
or related goods follow similar patterns
- Insecurity
over a long period of time.
- Violence
- Groups of prices often move
ASEAN Economic Community (AEC) proportionally to each other and when is
very clear among different markets.
- Consists of 10 countries - Refers to the expansion of firms by
- Founded on Aug 8, 1967 consolidating additional marketing
 functions and activities under single
management.
- Examples of these are the
establishments of wholesaling facilities
by food retailers and the setting up of
another plant by a milk or processor.
Types of Market Integration
1. Horizontal Integration
- Where marketing agencies combine to
form a union to reduce their effective
number and the extent of actual
competition in the market.
- Advantages
 Lower Costs
 Higher Efficiency
 Increased Market Power
 Reduced Competition
 Access to New Markets
- Disadvantages:
 Destroyed Value
 Reduced Flexibility
2. Vertical Integration
- Occurs when a firms performs more
than one activity in the sequence of the
marketing process.
- Advantages:
 Allows you to invest in assets
that are highly specialized
 Gives you more control of your
Business
 Requires lower cost of
transactions
 Provides more competitive
advantages
 Ensures a high level of certainty
when it comes to equality.
-Disadvantages:
 It can bring more difficulties
 Requires huge amount of
money
 Creates barriers to market entry
 Decrease in flexibility
2 types of Vertical Integration
1. Forward Integration
- This happens when a firm assumes
another function of marketing which is
closer to the consumption function.
- Developing into activities concerned
with the inputs in the company’s current
business
2. Backward Integration
- Involves ownership or combination of
sources of supply.
- Development into activities concerned
with the outputs in the company’s
current business.
Conglomeration
- Combination of agencies or activities not
directly related to each other may
operate under a unified management.
- Eg. Ayala Buildings.
-Advantages:
 Can reduce investment risk
 Increases customer base of the
company
-Disadvantages:
 Management costs increases due to
size of the group.
 Taxation of group structure reduces the
taxation benefits.
Degree of Integration
1. Ownership Integration
- Decision and assets are assured by
another firm.
2. Contract Integration
- Agreement on both firms on certain
decisions while having separate identity.
GLOBAL INTERESTATE SYSTEM
Global
- Pertaining to the entire globe rather than
a specific region or country. Often used
interchangeably with the term
international, with one exception being in
regards to mutual funds among the
countries.
Interstate
- It is between the two or more states;
between places or persons among the
different states. Concerning or affecting
two or more states politically or
territorially.
System
- A regularly interacting group or
interdependent group of items forming a
unified whole.
The Modern World System
• Followed the crisis of the feudal
system in Europe and helps explain
the rise of Western Europe to world
supremacy between 1450 to 1670
 • World economic system emerged
• Now a global economy with a global
political system (the modern
interstate system)
• Structured politically as interstate
system – a system of competing
and allying states
• A single global economy composed
of international trade and capital
flows, transnational corporations
that produce products on several
continents, as well as all the
economic transactions that
occur within countries and at local
levels.
• Rise and fall of hegemonic powers
Global Interstate System
- It is a network wherein they have the
control in high speed highways which has
the authority in the national highways in
USA. It was opened for the public to
cross and deliver goods easily to other
people as well to different nations.
- It is also a structure of globalization
wherein there are many organizations
involve, they are the ones that complete
the globalization namely: institutions that
govern international relations, World
Bank group, specialized agencies, and
specialized international institutions.
World Bank Group
1. International Bank Reconstruction &
Development (IBRD) : offer loans to
middles class countries and improve
their economy.
2. International Development
Association (IDA): provide loans and
grant programs that boost economic
growth.
3. International Finance Corporation
(IFC): provide loans for private sectors
in developing countries.
4. Multilateral Investment Guarantee
Agency (MIGA): to promote foreign
direct investment in developing
countries.
5. International Centre for Settlement of
Investments Disputes (ICSID): forum
for investors in most of international
investments.
6. International Monetary Fund (IMF):
ensure the stability of international
monetary system.
WHO – World Health Org.
ILO - International Labor Org.
FAO – Food and Agriculture Org.
UNESCO – United Nations Educational,
Scientific, and Cultural Org.
State
- Community of persons more or less
numerous, occupying a definite portion
of a territory, independent form external
control and possessing a government to
which the great body of inhabitants
render habitual obedience
Elements of State
1. People
2. Territory
3. Sovereignty
4. Government
Global Economy
- Refers to the increasing integration of
economies around the world particularly
the movement of goods, services, and
capital across borders.
Macroeconomics
- The study of the behavior and decisions
of entire economies.
 Globalization
- A modern term used to describe the
changes in societies and the world
economy that result from dramatically
increased international trade and
cultural exchange.
The Phenomenon can Thus Several
Interconnected Dimension
A. The Globalization of Trade of Goods
and Services
B. The Globalization of Finance and
Capital Market
C. The Globalization of Technology and
Communication
D. The Globalization of Industry
Why do Nations Trade?
- They are diff. from each other.
- To achieve economies of scale in
production.
Drivers of Globalization
- The declined in barriers to the free flow
of goods services and capital that has
since the end of the WW2.
- The technological chance, particularly
the dramatic development in recent
years in communication, information
processing and transpo technologies.
The Globalization Market
- Merging of historically distinct and
separate national markets into one huge
global market place.
Trade Barriers
- Preventing a foreign product from freely
entering into a nation’s territory.
Types of Trade barriers
1. Import Quota
2. Voluntary Export Restraint
3. Tariff
4. Informal Barriers
5. Government Licensing Restrictions
6. Government Health and Safety
Requirements
Protectionism
- The use of trade barriers to protect
industries from foreign competition.
International Agreements
1. World Trade Org. (1995)
- Dealing with global rules of trade
between nations.
- Ensures trade flows as smoothly,
predictability, and freely as possible.
2. European Union (1951/1999)
- Regional Economic agreement among
27 countries across the European
continent.
3. NAFTA (1994)
- Removed most barriers to trade and
investment among the U.S.A, Canada,
and Mexico.
- All the non-tariff were eliminated.
Development
- A nation improves the economic,
political, and social wellbeing of its
people.
Indicator of Development
1. Per Capita GDP
2. Energy Consumption
3. Labor Force
4. Literacy
5. Infant Morality
6. Life Expectancy
7. Consumer Goods
Issues in Development
1. Rapid population growth
2. Resource distribution
3. Lack of Physical Capital
4. Lack of Human Capital
 Health/Nutrition
 Education/Training
 “Brain Drain”
5. Political Factors
 Shifting from Colonial
Dependency
 Government Corruption
 Political Instability (civil wars,
social unrest, lack of
government infrastructures)
6. Debt
World Bank
- Vital source of financial and technical
assistance to developing countries
- Made up of 186 member countries
- Provide low interest loans
- Est. 1944 in Washington, D.C
- 3 Pillars of World Bank:
 Results
 Reform
 Resources
International Monetary Fund
- Started in 1944 in Bretton Woods
Conference
- Foster global monetary cooperation, etc.
- Creates structural adjustment programs
in less developing countries.
World Trade Org.
- Dealing with rules of trade bet. nations
- Est. Jan 1, 1995 Geneva, Switzerland
- 153 countries
- Functions:
 Administering WTO Trade
agreements
 Forum for trade Negotiations
 Handling trade disputes
 Monitoring national trade
policies
 Technical assistance and
training for developing countries
 Cooperation with other
international org
WORLD OF REGIONS: GLOBAL DIVIDES –
THE NORTH AND SOUTH
Global North
- Include the U.S.A, Canada, Europe,,
developed parts of Asia, as well as
Australia and New Zealand.
- Defined as the richer, more developed
region.
- 95% of the North has enough food and
shelter
Global South
- Is made up of Africa, Latin America, and
developing Asia including the Middle
East.
- South largely corresponds with the 3rd
World.
GLOBAL INTERSTATE SYSTEM
What is GLOBALIZATION?
- An ongoing process of integration
between different nations to encourage
the flow of goods, services, capital and
labor.
Global Interstate System
- Refers to a controlled access for
national relations. It is the study of
interconnected of social, politics,
economics, and low on a global level.
The Union of International Associations (UIA)
- A research institute and documentation
centre, based in Brussels, was founded
over 100 years ago, in 1907 by Henri La
Fontaine and Paul Ollet, a founding
father of what is now called Information
Science.
- Non-profit, apolitical, independent, and
non-governmental in nature, the UIA
has been a pioneer in the research,
monitoring, and provisions of info. On
International Org., International
associations, and their global challenges
since 1907.
- The UIA has consultative status with
ECOSOC and associate status with
UNESCO.
UNESCO
- Intergovernmental org. tasked to
promote international co-operation and
create and maintain international order.
- Objectives include maintain international
peace and security, promoting human
rights, fostering social and economic
development, protecting the
environment, and providing
humanitarian aid in cases of famine,
natural disaster, and armed conflict.
- The UN is the largest, most familiar,
most internationally represented and
most powerful intergovernmental org. in
the world.
6 Main Organs of UN
1. General Assembly
- Main deliberative organ of the UN
comprised of all member states, each of
which has one vote.
- Its resolutions are only
recommendations to the Member
States, but as they represent the
majority of the world’s view they carry
heavy moral weight and often lead
countries to join international
agreements called treaties.
2. Security Council
- Has primary responsibility under the UN
Charter to maintain international peace
and security. Unlike the Gen. Assembly,
the Security Council does not hold
regular meetings. It can be conveyed
anytime, whenever international peace
is threatened.
- Per Lasson Khrog (Jun 18 1889-Mar 3
1965) was a Norwegian artist. He is
most frequently associated with the
mural he created for the United Nations
Security Council Chamber, located in
the United Nations building in New York
City.
3. United Nations Economic and Social
Council (ECOSOC)
- ECOSOC brings people and issues
together to promote collective action for
a sustainable world
- At the centre of the UN development
system, we conduct cutting-edge
analysis, agree on global norms and
advocate for progress.
- Central body for coordinating the
economic and social work of the United
Nations and the UN System.
4. The Trusteeship Council
- The system was created at the end of the
World War II to promote the
advancement of the inhabitants of those
dependent Territories and their
progressive development towards self-
governance or independence.
- Council is comprised of the permanent
members of the Security Council—
China, France, the Russian Federation,
the United Kingdom and the United
States.
- 11 trust territories
Western Samoa
Tanganyika
Rwanda-Urundi
Cameroons under British administration
Cameroons under French administration
Togoland under British administration
Togoland under French administration
New Guinea
Nauru
Strategic Trust Territory/ Trust Territory
of the Pacific Islands
Italian Somaliland
5. The International Court of Justice
- Is the UN’s main judicial organ, located
in The Hague, Netherlands. Established
in 1945, the ICJ, or “World Court”
assumed its functions in 1946. The
Court settles legal disputes only
between nations and not between
individuals, in accordance with
international law.
6. The Secretariat
- The Secretariat is made up of an
international staff working at UN
Headquarters in New York, as well as
UN offices in Geneva, Vienna, Nairobi
and other locations.
Regional Commissions
- The Secretariat is made up of an
international staff working at UN
Headquarters in New York, as well as UN
offices in Geneva, Vienna, Nairobi and
other locations.
 Regional Commissions
 ECA - Economic Commission for
Africa
 ECE - Economic Commission for
Europe
 ECLAC – Economic Commission
for Latin America and Caribbean
 ECSCAP - Economic and Social
Commission for Asia and the
Pacific
 ESCWA - Economic and Social
Commission for Western Asia
The Role of Regional Commission
- UN Implementation of the 2030 Agenda
for the Sustainable Development Goals
that have been made on September 27,
2015.
1. Integrating SDGs into national
development planning and fiscal
frameworks
2. Promoting policy coherence,
consistency and coordination
3. Enhancement of data and statistical
capacities of member states for
implementation of the 2030 Agenda
4. Identify and promote alternative and
innovative sources of financing for
development
5. Leverage science, technology and
innovation in support of Agenda
2030
6. Tapping South – South and
regional partnerships
7. Translating regional models into
public goods
Institutions Related to World Trade
1. World Bank - the international
financial institution that provides
loans to countries for capital projects
2. International Bank Reconstruction
and Development (IBRD) - offers
loans to middle-income countries to
develop and improve their economy
3. International Finance Corporation
(IFC)- providing loans for private
sectors in developing countries to
create markets that open up
opportunities for all.
4. Multilateral Investment Guarantee
Agency (MIGA) - to promote foreign
direct investment (FDI) into
developing countries to help support
economic growth, reduce poverty,
and improve people's live.
5. International Centre for
Settlement of Investment Disputes
(ICSID) - administered the majority of
all international investment cases. It
is the forum for investor in most of
international investment treaties and
in numerous investment laws and
contracts.
6. International Monetary Fund
(IMF) - ensure the stability of the
international monetary system. It
does so in three ways: keeping
track of the global economy and
the economies of member
countries; lending to countries with
balance of payments difficulties;
and giving practical help to
members.
7. World Trade Organization (WTO) -
regulates international trades, deals
with the rule of trade between
nations, ensures the trade will flows
smoothly, predictably
and freely as possible.
8. Organization for Economic
Cooperation and Development
(OECD) - Providing a platform to
compare policy experiences,
seeking answers to common
problems, identify good practices
and coordinate domestic and
international policies of its members.
SPECIALIZED AGENCIES
1. International Labor Organization - a
United Nations agency dealing with
labor problems, particularly international
labor standards, social protection, and
work opportunities for all.
2. Food and Agriculture Organization of
the United Nations (FAO) –
- a specialized agency of the United
Nations that leads international efforts to
defeat hunger.
- Help eliminate hunger, food insecurity
and malnutrition, Reduce Rural Poverty,
Make agriculture, forestry and fisheries
more productive and sustainable
- Enable inclusive and efficient
agricultural and food systems increase
the resilience of livelihoods to threats
and crises
3. United Nations Educational,
Scientific and Cultural Organization
- To contribute to peace and security by
promoting international collaboration
through educational, scientific, and
cultural reforms in order to increase
universal respect for justice, the rule of
law, and human rights along with
fundamental freedom. Contribute to
build peace.

4. World Health Organization

Building a better, healthier future for
people all over the world, Concern about
public health , Prime concern is to
eradicate and combat dangerous
diseases like AIDS/HIVS and Make
researches in medicines and vaccines
to eliminate diseases, and development
of nutritious foods
Responsible for World Health Report
and Survey