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1
global economy AKA
world economy
2
the International exchange of goods and services
global economy
3
the free movement of goods, capital, services, technology and information
global economy
4
drivers of global economy:
1. Economic 2. Economic integration
5
What is happening in the Global Economy
economic
6
A situation where countries trade with many other countries and where trade barriers are being lessen to let countries free from restrictions on the flow of goods and services.
economic
7
an arrangement among nations to work together to come up with policies that would eliminate trade barriers and a common goal to strengthen trade and for the coordination of monetary and fiscal policies.
economic integration
8
factors of economic integration:
1. regional integration 2. Trade liberalization 3. Foreign direct investments
9
history of economic integration:
1. Barter system 2. Mercantilism 3. industrial revolution
10
Exchange of goods and services between 2 or more parties without the use of money
barter system
11
nation’s wealth and power come from increasing exports and trade
mercantilism
12
factory system that lead to mass production in a faster and easy way
Industrial Revolution
13
key players of economic globalization:
1. international 2. large manufacturing
14
types of economy in global economy
1. Protectionism 2. Trade
15
Protecting one’s economy from foreign competition by creating trade barriers
protectionism
16
Reducing trade barriers to make international trade easier between countries
trade
17
Protective barriers measure:
1. Tariff 2. Quota 3. Non tariff barriers
18
Tax on imported goods
tariff
19
Assigned or fixed number or quantity of imported goods
quota
20
domestic laws implemented to protect local or infant industries against foreign businesses.
non-tariff barriers
21
It occurs when prices among prices among different locations of related goods follow similar patterns over a long period of time.
market integration
22
Group of goods often move proportionally to each other and when this relation is very clear among different markets
market integration
23
It is chartered by more than one country and therefore are subjects to international law
International Financial Institution (IFI’s)
24
It's owners or shareholders are generally national goverments, although other international institutions and other organizations occasionally figure as shareholders.
International Financial Institution (IFI’s)
25
were established to assist and offer various ways and strategies to countries for economic cooperation particularly for global financial system management.
International Financial Institutions
26
It focused on trade goods through multinational trade agreements conducted in many rounds of negotiations.
GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) - 1947,
27
forum for the meeting of representatives from 23 member states.
GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) - 1947,
28
is an independent multilateral organization that became responsible for trade in services, nontariff-related barriers to trade
world trade organization
29
HISTORY OF MARKET INTEGRATION:
1. AGRICULTURAL REVOLUTION 2. INDUSTRIAL REVOLUTION 3. Information revolution
30
invention of steam engine
Industrial Revolution
31
EGONOMIC MODELS DURING THE INDUSTRIAL REVOLUTION:
1. Capitalism 2. Socialism
32
all natural resources and means of production are privately owned
capitalism
33
means of production are under collective ownership
socialism
34
property is owned by the government and given to all of people not just wealthy individuals
socialism
35
based on services and production of ideas rather than goods
information revolution
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