Name: Ronnel Sayson

Subject: The Contemporary World (SOCSCI032)

Schedule: MWF 1:30PM-2:30PM (Room 200)

The Structures of Globalization

The Global Economy

The global economy is the world economy or the worldwide economy.

It is all the economies of the world which we consider together as one economic system. Put
simply; it is one giant entity. It is also the system of trade and industry across the world that has
emerged due to globalization. In other words, the way in which countries’ economies have been
developing to operate collectively as one system.

The term has two meanings:

1. The economy of the whole planet, i.e., global GDP. GDP stands
for Gross Domestic Product.
2. The way the world is today, with countries’ economies so intertwined and
interdependent that they all seem like parts of one whole. That ‘whole’ we call the ‘global
economy.’

When we say ‘We live in a global economy,’ we are describing how intertwined countries’
economies currently are.

Market Integration

Market Integration as a process which refers to the expansion of firms by consolidating

additional marketing functions and activities under a single management.

Examples of market integration are the establishment of wholesaling facilities by food retailers
and the setting up of another plant by a milk processor. In each case, there is a concentration of
decision making in the hands of a single management.

There are three basic kinds of market integration, Horizontal integration, Vertical integration,
and Conglomeration.

Global Interstate System

The Global Interstate System is the fundamental basis of the competitive commodity economy
at the system level. Thus the interaction of world market and statesystem is fundamental to an
understanding of capitalist develop- ment and its potential transformation into a more
collectively rational system.
Contemporary Global Governance

Global governance or world governance is a movement towards political cooperation

among transnational actors, aimed at negotiating responses to problems that affect more than
one state or region. Institutions of global governance—the United Nations, the International
Criminal Court, the World Bank, etc.—tend to have limited or demarcated power to enforce
compliance. The modern question of world governance exists in the context of globalization and
globalizing regimes of power: politically, economically and culturally. In response to the
acceleration of worldwide interdependence, both between human societies and between
humankind and the biosphere, the term "global governance" may name the process of
designating laws, rules, or regulations intended for a global scale.

Global governance can be roughly divided into four stages:

1. agenda-setting;
2. policymaking,
3. implementation and enforcement, and
4. evaluation, monitoring, and adjudication.
World authorities including international organizations and corporations achieve deference to
their agenda through different means. Authority can derive
from institutional status, expertise, moral authority, capacity, or perceived competence.