1. Globalization & Economics

2. What is Economic Globalization?
Interrelations
Capital & technology  trade
Shipping lanes

3. Brief Economic History
Post- WW II
Bretton Woods Agreement (1944)
IMF, IBRD (WB), GATT ( WTO)
US foreign investment
MNCs, military, IGO leadership
End of Gold Standard fixed exchange rate (1971)
Move to floating rate of exchange (1971)
Shift to neoliberal economic policies (1980s)
Remove gov’t from economy

4. Brief Economic History
Post- Cold War
Int’l of trade & finance
MNCs
Economic IGOs & agreements
Int’l Monetary Fund
World Bank
World Trade Org.
Regional economic IGOs
EU, ASEAN, etc.

5. How did trade and finance help to globalize the economic system?
Seek single global market
Est. economic regimes
IGOs (int’l & regional)
Free trade agreements
Desire financial mobility
Deregulation
Tariffs
Privatization
Foreign direct investment
Technology
Moving money

6. Economic IGOs & Agreements
Help globalize economy
Promote neoliberal economic system
Cooperation
Formal, informal pacts
Policy coordination
Finance, trade, investment
Open markets
Challenge cultural norms
Challenge state sovereignty

7. What are the criticisms of trade and finance? (WA Q1)
Colonizers
MNCs have $$$ = power
Challenge policies
Profit-driven
‘Race to the bottom’
Exploitative
Concentrate wealth
Lack global standards
Labor
Environment
Force to open economy

8. What are the criticisms of trade and finance? (WA Q1)
High risk transactions
‘Hedge funds’
Collateralized debt
Uneven access
Loan conditions

9. About Outsourcing Outsourcing Using 3rd party Offshoring Foreign party
Suppliers become competitors

10. How do Filipinos benefit from economic globalization? (WA Q2)
Domestic job options
Some work from home
Infrastructure
Important source of FDI
Helps stop brain drain

11. What are the consequences to Filipinos of this product of globalization? (WA Q3)
$ big appeal = ↓ in practicing profession, continuing education, etc.
Gov’t subsidies by some other countries
Grunt work v. innovation
Night shifts

12. Recap Neoliberal economic model GN dominates in all sectors
Push for global governance
Regimes to set norms
GN dominates in all sectors
Trade, investment, MNCs, in IGOs
Sovereign interests influence decisions
Use RTAs
Push for/ resist free exchange
Criticisms of neoliberalism
Global civil society