TOPIC: THE GLOBAL ECONOMY AND MARKET INTEGRATION
What Is Economic Globalization?
• Economic Globalization : has its roots in the institutionalization of international
monetary systems or the means for international payments
•GLOBAL ECONOMY : is all the economies of the world which we consider together as one
economic system
: it affects commodity, labor, asset and debts
PROCESS OF ECONOMIC GLOBALIZATION
• A. Economic Globalization as defined by the International Monetary Fund, is a historical
process representing the result of human innovation and technological process. It is characterized
by the increasing integration of economies around the world through the movements of goods,
services and capital across borders. (Claudio, 2018)
• B. The process is consisted of a collaborative effort between technological advancements and
information technology developments; and market-oriented forms, which help the main carriers
of economic globalization, corporations. (Scholte)
General Agreement on Tariffs and Trade (GATT)
–established by a multilateral agreement regulated international trade in 1948.
-aims to strengthen international trade
-covers only trade in goods
-has appellate the body to review findings and settle disputes.
World Trade Organization (WTO)
-replaced GATT in 1995
-aims to govern international trade
-covers trade in goods and services
-disputes are fixed by using multilateral systems
Theories of Economic Globalization
• METHODOLOGICAL INDIVIDUALISM
-The aims and decisions of individual actors shape the social structures.
