PRELIM - EXAM

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Market integration

Market integration

process by which economies are becoming more interdependent and interconnected in terms of commodity flows including externalities and spillover of impacts

International Financial Institutions or IFIs

institutions that provide support through loans or grants and technical advices to promote a country's economic and social development

Corporations

private institutions that produce or manufacture goods, products, and services for a more expanded market usually at the reach of regions or the world.

Transnational corporations (TNCs)

have a more complex setting where each foreign subsidiary is given some freedom to develop its own product lines and marketing

Multinational corporations (MNCs)

have more of a home or country base taking care of the R&D and marketing, and focus more on exporting their products and services

Philippines

has 851 BPO companies, more than half of which are call centers (429).

Philippines

the call center capital of the world, accounting to 18 percent of the global market share

Horizontal integration

happens when a firm gains control of other firms performing similar marketing functions at the same level in the marketing sequence.

Pixar

bought by Disney, which is also in the entertainment media, for $7.4 billion

Example of a local market integration

Landbank of the Philippines acquired the Philippine Postal Savings Bank, for the latter to focus on overseas Filipino worker clients.

Vertical integration

happens when one company owns the operations and products from one stage to the other along the supply chain

Example of vertical integration

an iron mining company operates the steel manufacturing firm

Example of vertical integration

McDonald's owns the land where its supplies are located to avoid cost of lease

International Financial Institutions or IFIs

are institutions that provide support through loans or grants and technical advices to promote a country's economic and social development

Global and regional IFIs

include International Monetary Fund (IMF) and multilateral development banks (MDBs) like the World Bank Group, the African Development Bank (ADB), the inter-American Development Bank, and the European Bank for Reconstruction and Development

IFI

provides financial and technical services and products not for profit but for overall economic and social development

IFI

also works with the private sector for investment and policy reforms to promote private sector expansion

Four key issues with IFIs

• legitimacy

• effectiveness

• support conditionality and financial capacity

• sustainability

Paris Declaration on Aid Effectiveness

focuses on the harmonization, alignment, and managing aid for results including monitoring systems and indicators

16th-18th century

the modern capitalist world economy was flourished

First period of globalization

The start of the modern global trade leading to 1914

First period of globalization

This is when trade, capital, and immigration flows grew tremendously and in large volume, but the global institutional architecture to manage these were quite limited

International convention and treaties also served as drivers for these large-scale global movements

• International Telegraph Union in 1865

• Universal Postal Union in 1874

• International Association of Railway Congresses (1884)

• International Sanitary Convention in 1892

The Second World War to the late 1990s

the modern international economic enabling architecture was established

The Second World War to the late 1990s

the expansion of MNCs across the globe, supported by enabling policies and improved communications and transport

Trade liberalization and free flow of capital in the world

resulted from political changes like the fall of the Berlin Wall, establishment of regional networks, and trade agreements

1994/95 Mexico crisis

When Mexico's multi-billion loan from IMF created a negative spillover effect on US, Europe, Portugal, and Spain

From the late 1990s until very recently

Third wave of market integration

Third wave of market integration

• The advent of the modern Internet

• The WTO establishment

• Formal entry of China into the trading system through its accession to international financial institutions

Global corporations

One of the major players in globalization and the modern capitalist market

Modern global corporations

Commonly referred to as multinational corporations and transnational corporations

IFIs and global corporations

Play a significant role in global wealth creation and distribution, including global economic development

Trends that complicates the significant growth of IFIs and global corporation

• Global inequality

• Systematic stability and viability of the global financial system and climate issues

• Issues on human security

Global governance

collective efforts to identify, understand and address worldwide problems that go beyond the problem-solving capacities of state

The post-American world

In which the United States retreats and the rest of the world advances in economic power and political influence

Nation-state

·        The sovereign territorial state

·        Most countries have lived under this kind of state since the late 18^th century or possible earlier

·        This kind of state has become the universal framework of social development

United Nations

·        Is an IGO designed to make the enforcement of international law, security, human rights, economic development, and social progress easier for countries around the world.

un general assembly

un security council

international court of justice

economic and social council

secretariat

5 (Five) branches of United Nations:

International law

·        Laws that regulate relations of states and international persons

·        It is derived from treaties, international customs and general principles of law

·        If conflict arises, the same is resolved through state to state transactions

National law

·        Laws that regulate individuals among themselves or within the state

·        Consists of statutory enactments, executive orders, and judicial pronouncements

·        If there is conflict, the same is redressed through local, administrative, and judicial processes

Treaty/International conventions

·        International agreements concluded between states

·        In written form

·        Governed by Internation law

·        Embodied in a single instrument or in two or more related instruments

2/3

·        No treaty or international agreement shall be valid and effective unless concurred In by at least ______ of all the members of the senate

bilateral treaties

multilateral treaties

two types of treaties

doctrine of incorporation

doctrine of transporation

two doctrines of Adoption

doctrine of Incorporation

Is a doctrine mainly based under section 2, Art. II of the 1987 constitutions states that:

“the Philippines adopts the generally accepted principles of International law as part of the law of the land”

Doctrine of Transportation

·        Requires the enactment by the legislative body of such international law principles as are sought to be part of municipal law

·        Related to the power of the president to enter into treaties wherein rule and principles embodied in said treaties would be transformed into Philippine Law and would become valid and effective upon the concurrence of two-thirds (2/3) of all members of the senate

International Customs

·        Also known as Customary law

·        Consists of rules of law derived from the consistent conduct of states, acting out of the belief that the law required them to act that way

state practice

opinion of law or necessity

two elements to be deemed as an international custom

regional custom

special/local custom

kinds of international custom

jus cogens

·        Another category of International Customs

·        Refer to norms that command peremptory authority, superseding conflicting treaties and customs which can neither be derogated nor modified

·        Enjoy a higher rank in the international hierarcy than treaty law and even ordinary customary rules

Obligation Erga Omnes

·        refers to an obligation under general international law that a state owes in any given case to the international community, in view of its common value and its concern for compliance, so that breach of thar obligation enables all states to take action

states

·        Entities that have rights and responsibilities under international law and which have the capacity to maintain their rights by bringing international claims

Permanent population

Defined territory

Government

Capacity to enter into relations with other states

elements of states

discovery and occupation

prescription

cession

accretion

conquest

states are created through:

wilson/tobar

betancourt

lauterpacht

stimson

landmark doctrines in state recognition

jurisdiction

equality

individual or collective self-defense

independence

legation

rights of states

principle of non-refoulement

 principle wherein in addition to not returning the refugee to his/her own state, he/she must not be sent to a third state if his/her life or freedom would there be threatened on account of his/her race, religion, nationality, membership of a particular social group or social opinion

development paradigm

idea of prescribed path to attain development through certain set of activities, according to a defined vision

globalization

mainly conceptualized as intensified transference or exchange of things across existing boundaries

globalization

primarily an economic process, the drive toward integration of economies throughout the world. Achieved through trading and financial flows across countries’ borders

trading, capital flows, movement of people

3 important aspects of globalization

trading

economic exchanges and deals between countries;

concerns importation and exportation

capital movement

There was an increase in the capital flows to poor countries during the 1990s

Foreign investment

one manifestation of capital movement _____ ;

can be categorized as commercial loans, official flows, or foreign direct investment.

commercial loans

are money lent to foreign businesses or governments.

official flows

refer to development aid or money granted by rich countries to developing nations.

foreign direct investment

refers to buying or putting up a firm in a foreign country or contributing to the enhancement of an existing firm (Levin Institute, n.d.).

movement of people

People can migrate to other countries in search of better employment opportunities.

2.3 million

The number of Overseas Filipino Workers during the period April to September 2018

cultural globalization

increasing "contact between people and their cultures-their ideas, their values, their ways of life" (Kumaravadivelu, 2008, p.33).

political globalization

is the enlargement of the international political system and its establishments, where inter-regional dealings, including trade, are managed (Modelski, Devezas and Thomson, 2007:59)

transnational corporations

international businesses called _________ are important players in globalization

world bank, international monetary fund, world trade organization

3 International Financial And Trade Institutions

Deregulating Businesses

is to reduce the control of government over businesses, making them more powerful in implementing their visions, goals, and operations.

increase income, more employment, less poverty

3 Contrasting Evidence of Positive Effects

globalization

process of expanding various sociocultural and socioecological processes from national to international and transcultural level

global connected index (GCI)

measurement of flows and interconnections of a country

globalization

has been a critical discourse in the international development policy arena.

netherlands

world’s most globally connected country

europe

most highly globally connected continent

cambodia, malaysia, singapore, vietnam

economies in Southeast Asia that have exceeded expectations for global connectivity, particularly in trade flow

2017

the world’s level of connectedness in terms of international trade, capital, information, and people is at its peak in year ____

20

percentage of the global economic output of the countries is exported from the home countries.

3

percentage of people are living outside the countries they were born in.

general agreement on tariffs and trade

richer countries banded together to reduce taxes on imports or tariffs under the ______, which was later transformed to the WTO

Modern Technology Developments

Key driver of globalization that facilitated faster communication and access to data or information.

sub-saharan Africa

where almost half of the world’s extremely poor population lives ($1.90/day), has been especially marginalized by globalization.

global interstate system

institutional arrangement of governance that addresses regional and globalized issues that go beyond the scope of nation-state

internationalism

puts emphasis on diversity and celebrates multiculturalism

defined as political, economic, cultural cooperation between nations

globalism

focuses more on the economic aspects of the exchanges among countries and society

ideology based on the belief that flow of people, goods and information should flow freely across national borders

interstate system

system of unequally powerful and competing states in which no single state is capable of imposing control on all others

form of governance for a globalization

montreal protocol on substances

one example of a global treaty

united nations

there are several institutions that govern international relation and affairs. First and foremost is the _____________

with 192 members states, it is seen as the facilitator of global governance

regional commissions

group of officials from different countries that instruct and debate

world bank

international financial institution that provides loans to countries of the world for capital projects

international monetary fund

looks at the stability of the international monetary system

world trade organization

regulates international trades, ensure smooth flow of trade

world health organization

responsible for global researches on medicines and vaccines

organization for economic cooperation and development (OECD)

thirty five member countries aim to stimulate economic progress

international labor organization (ILO)

deals with labor problems and international labor standards