Ce diaporama a bien été signalé.
Nous utilisons votre profil LinkedIn et vos données d’activité pour vous proposer des publicités personnalisées et pertinentes. Vous pouvez changer vos préférences de publicités à tout moment.

The Contemporary World: Global Economic Structures

The Contemporary World: Global Economic Structures

  • Soyez le premier à commenter

The Contemporary World: Global Economic Structures

  1. 1. Prepared by: ANTONIO T. DELGADO
  2. 2. DISCUSSION OUTLINE ECONOMIC GLOBALIZATION THE BRETTON WOODS SYSTEM OTHER ECONOMIC ORGANIZATIONS THE MULTINATIONAL CORPORATION 01 02 03 04
  3. 3. 01
  4. 4. ECONOMIC GLOBALIZATION It refers to the increasing interdependence of world economies as a result of the growing scale of cross- border trade of commodities and services, flow of international capital and wide and rapid spread of technologies (Gao, 2000).
  5. 5. ECONOMIC GLOBALIZATION It is one of the three main processes of ‘generic’ globalization, with the two others being political globalization and cultural globalization.
  6. 6. WHEN DID IT START? According to Flynn and Giraldez (1995), economic globalization emerged with the founding of Manila in 1571.
  7. 7. Spanish galleon routes (white): West Indies or trans-atlantic route begun in 1492, Manila galleon or trans-pacific route begun in 1565. (Blue: Portuguese routes, operational from 1498 to 1640)
  8. 8. ATTRIBUTES OF THE GLOBAL ECONOMY • Global communication systems • Transportation systems • Transnational business strategies • Flexible forms of capital accumulation • Global agreements that promote free trade
  9. 9. ATTRIBUTES OF THE GLOBAL ECONOMY • Market economies and private enterprises • Abundance of global goods and services • Economic disparities • International workers, managers, and executives
  10. 10. A Prior Epoch of Globalization A global economic system, specifically a global capitalist system, emerged in about 1896 and reached something of a peak throughout the world by 1914.
  11. 11. Differences in: Then Now TRANSPORTATION railroads and steam ship airplane COMMUNICATIONS telegraph Internet THE GLOBAL ECONOMIC SYSTEM
  12. 12. THE GLOBAL ECONOMIC SYSTEM STRUCTURAL SIMILARITIES: THEN AND NOW • Large-scale flows of capital • Large-scale immigration • Global economic specialization • Specialization based on “law” of comparative advantage • Emphasis on free trade
  13. 13. THE GLOBAL ECONOMIC SYSTEM PROBLEMS CREATED: THEN AND NOW • The poor are subjugated by the operations of the global economy • Not all parts of the world gain equally • Certain industries and social classes lose out • The poor tend to suffer most when forced to repay debts
  14. 14. 02
  15. 15. BACKGROUND • Fear of the recurrence of the Great Depression • Fear of a resurrection of barriers to trade and the free flow of money • Concern for financial stability
  16. 16. • July 1944 • Mount Washington Hotel, Bretton Woods, New Hampshire BRETTON WOODS CONFERENCE
  17. 17. 5 KEY ELEMENTS OF BWS 1. Each participating state would establish a ‘par value’ for its currency expressed in terms of gold or in terms of the gold value of the US dollar as of July 1944 2. Each country would agree to exchange its own currency for those of other countries at the established exchange rates, plus or minus a one-percent margin
  18. 18. 5 KEY ELEMENTS OF BWS 3. The International Monetary Fund (IMF) was created to establish, stabilize, and oversee exchange rates 4. Member states agreed to eliminate all restrictions on the use of its currency for international trade 5. The entire system was based on the US dollar
  19. 19. ECONOMIC ORAGANIZATIONS CREATED BY BWS GATT General Agreement on Tariffs and Trade It was a system for the liberalization of trade It was superseded by the WTO in 1995. It is simply a forum. WTO World Trade Organization Its focus on trade places it at the heart of economic globalization. It is an independent organization
  20. 20. ECONOMIC ORAGANIZATIONS CREATED BY BWS IMF International Monetary Fund It deals with exchange rates, balances of payments, international capital flows, and monitoring of macroeconomic policies WB World Bank It provides funds to government- sponsored or - guaranteed programs in so-called Part II countries .
  21. 21. THE END OF BWS On August 15, 1971. President Richard Nixon took the US off the gold standard, resulting in a devaluation of the dollar and the end of the standard by which the currencies of other nations operated.
  22. 22. 03
  23. 23. OTHER ECONOMIC ORGANIZATIONS Organization for Economic Cooperation and Development (OECD) European Union (EU) It is a broad group 36 developed nations (as of 2019). It is “the most encompassing ‘club’ of the world’s rich countries” The European Union (EU) encompasses 27 member states (after the United Kingdom left on January 31, 2020). It is the second largest domestic market in the developed world.
  24. 24. OTHER ECONOMIC ORGANIZATIONS United States–Mexico–Canada Agreement (USMCA) MERCOSUR It is the successor agreement to the North American Free Trade Agreement (NAFTA). It took effect on July 1, 2020. It was created by the Treaty of Asuncion in 1991 with the goal of a common market in South America by 1995.
  25. 25. OTHER ECONOMIC ORGANIZATIONS Organization of Petroleum Exporting Countries (OPEC) Trans‐Pacific Partnership (TPP) It includes the major oil exporters and has succeeded in greatly increasing the price of oil. In addition to deepening economic ties and expanding trade, the agreement is also considered “a not‐so‐secret gambit to keep China at bay.”
  26. 26. OTHER ECONOMIC ORGANIZATIONS Brazil, Russia, India, China, & South Africa (BRICS) Association of Southeast Asian Nations Plus China, Japan and South Korea (ASEAN+3) These countries have very large and growing populations that could serve as a massive work force and untapped consumer market. It was established in the late 1990s when ASEAN countries decided to enhance cooperation with other major economies of Asia against the backdrop of economic globalization.
  27. 27. 04
  28. 28. THE MULTINATIONAL CORPORATION (MNC) • It is a major player in economic globalization. • While transnational corporations (TNCs) involve operations in more than one country, MNCs operate in more than two countries.
  29. 29. MNC ACTIVITIES Foreign Direct Investment (FDI) Portfolio Investment It involves investments by one firm in another firm that exists abroad in a different nation-state, with the intention of gaining control over the latter’s operations. It involves the purchase of equity in companies in other countries, but the motivation is financial gain and not to obtain control over those companies.
  30. 30. REVIEW ECONOMIC GLOBALIZATION THE BRETTON WOODS SYSTEM OTHER ECONOMIC ORGANIZATIONS THE MULTINATIONAL CORPORATION 01 02 03 04
  31. 31. ANY QUESTIONS?
  32. 32. CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik You can contact me thru: Facebook.com/kazekage15 Twitter.com/SirTonyDelgado THANKS FOR LISTENING!
  33. 33. REFERENCES 1. ASEAN Secretariat Information Paper. (April 2020). Overview of ASEAN Plus Three Cooperation. Retrieved from https://asean.org/storage/2016/01/APT-Overview-Paper-24-Apr-2020.pdf 2. Babones, S. (2007). "Studying Globalization: Methodological Issues". In George Ritzer (ed.). The Blackwell Companion to Globalization. John Wiley & Sons. p. 146. 3. Flynn, D., & Giráldez, A. (1995). Born with a "Silver Spoon": The Origin of World Trade in 1571. Journal of World History, 6(2), 201-221. Retrieved August 14, 2020, from www.jstor.org/stable/20078638 4. Gao, S. (2000). Economic Globalization: Trends, Risks and Risk Prevention. https://www.un.org/en/development/desa/policy/cdp/cdp_ background_ papers/bp2000_ 1.pdf 5. Ritzer G. (2011). Globalization: The Essentials. Chichester, West Sussex: Wiley-Blackwell. 6. Ritzer, G. (2019). Globalization: The Essentials, Second Edition. Chichester, West Sussex: Wiley- Blackwell 7. Rowntree, et al. (2017). Globalization and Diversity : Geography of a Changing World. Hoboken, NJ : Pearson

×