1. Globalization & Economics

2. What is Economic Globalization?
Interrelations
Capital & technology  trade
Types of trade
Primary goods
Manufactured goods
Shipping lanes
Services

3. Globalizing the Economic System
Bretton Woods Agreement (1944)
IMF, WB
US foreign investment
MNCs, military, IGOs
End of Gold Standard (1971)
Fixed to floating rate
Shift to NEM  single global market
Remove gov’t from economy
WTO, Free Trade Agreements (FTAs)
↑ regional economic IGOs = regimes
EU, ASEAN, etc.

4. Globalizing the Economic System (cont.)
Financial mobility
Deregulation
Tariffs
Privatization
Foreign direct investment (FDI)
Technology
Moving money
Bottom line
Market globalism dominates
More people than not benefit

5. Trade & Finance Criticisms (DQ 1)
General
Challenge cultural norms
Challenge state sovereignty
Finance
High risk transactions
‘Hedge funds’
Collateralized debt
Uneven access
Loan conditions
More volatile system

6. Trade & Finance Criticisms (cont.)
Colonizers
MNCs have $$$ = power
Challenge policies
Profit-driven
‘Race to the bottom’
Exploitative
Concentrate wealth
Concentrates wealth
Lack global standards
Labor
Environment
Force to open economy

7. About Outsourcing Reshoring Outsourcing Using 3rd party Offshoring
Foreign party
Suppliers become competitors
Reshoring
Jobs return

8. How the Filipinos Benefit (DQ 2)
Domestic job options
Some work from home
Foreign job opportunities
Balikbayan
Infrastructure
Important source of FDI
Helps stop brain drain

9. Consequences to Filipinos (DQ 3)
$ big appeal =
↓ in practicing profession, continuing education, etc.
Gov’t subsidies by some other countries
Grunt work v. innovation
Night shifts
Better pay overseas = brain drain

10. Recap Neoliberal Economic Model GN dominates in all sectors
Push for gl. governance
1 rule for all
Regimes to set norms
GN dominates in all sectors
Trade, investment, MNCs, in IGOs
Sovereign interests
Use IGOs, FTAs
Push for/ resist free exchange
Criticisms of neoliberalism
Global civil society