L1.

GLOBAL ECONOMY

The global economy refers to the worldwide system of interconnected economic activity, encompassing
the production, distribution, and consumption of goods and services across borders.

International trade is the buying and selling of goods and services between countries. It is a huge part of
the global economy, making up over half of the world's GDP.

Benefits of international trade for the global economy:

Economic efficiency: International trade allows countries to specialize in the production of goods and
services that they specialize at while importing things and services that they are less efficient at
producing

Lower prices and greater variety for consumers: International trade exposes consumers to a greater
range of goods and services at reduced prices.

Economic Indicators

Economic indicators include measures of macroeconomic performance (gross domestic product [GDP],
consumption, investment, and international trade) and stability (central government budgets, prices,
the money supply, and the balance of payments).

Macroeconomic Indicators

 GDP Growth Rates

 Interest Rates
 Labour market statistics

Financial Markets

A financial market is a place where firms and individuals enter into contracts to sell or buy a specific
product, such as a stock, bond, or futures contract. Buyers seek to buy at the lowest available price and
sellers seek to sell at the highest available price

Importance of financial Markets

1. Ensures Balanced Growth of Economy

2. Increases Growth of Financial Infrastructure

3. Offer Economic Discipline

4. Enhance Trade Development

The main factors affecting the global economy are population growth, the demand for resources, and
pollution. These make up the main global economic challenges today! Economic Challenges
Recent Economic Challenges

1. Economic slowdown

2. Increasing Debt Burden

3. Inflation

Sustainable Development -Sustainability refers to the ability to meet the current needs of society
without compromising the future. In 1987, the United Nations’ Brundtland Commission defined
sustainability as, “meeting the needs of the present without compromising the ability of future
generations to meet their own needs

Sustainable Development Goals

Emerging Trends

These emerging trends are likely to continue shaping the global economy, creating new economic
opportunities, influencing business strategies, investment decision and presenting challenges for
policymakers and businesses alike

1. DIGITAL CURRENCIES 3. RENEWABLE ENERGY

2. E-COMMERCE GROWTH

4 TYPES OF E-COMMERCE

1.BUSINESS-TO-CUSTOMERS (B2C)

2. BUSINESS-TO-BUSINESS (B2B)

3.CONSUMER-TO-CONSUMER (C2C)

4.CONSUMER-TO-BUSINESS (C2B)
L2. MARKETING INTEGRATION

MARKET INTEGRATION - Market integration occurs when prices among different locations or related
goods follow similar patterns over a long period of time. Groups of goods often move proportionally to
each other and when this relation is very clear among different markets it is said that the markets are
integrated.

PURPOSE OF MARKET INTEGRATION

Market integration presents a transformative opportunity to unlock global potential, drive economic
growth, and enhance competitiveness. By dismantling barriers, harmonizing regulations, and investing in
infrastructure, governments, businesses, and individuals can actively participate in and support this
process

GLOBAL INTEGRATION

The process by which a company combines different activities around the world so that they operate
using the same methods, etc.: Global integration can involve the processes of product standardization
and technology development centralization.

PROS & CONS OF MARKET INTEGRATION

POSITIVE EFFECTS

● Efficiency

● Competition

● Access to Resources

● Diversification

NEGATIVE EFFERCT

● Income Inequality

● Job Displacement

● Loss of Sovereignty

● Environmental Impact

THE CORPORATION MOVIE DOCUMENTARY

Market integration is typically associated with economic globalization, as it facilitates the exchange of
goods and services on a global scale. It can lead to increased competition, improved efficiency, and the
allocation of resources to their most productive uses.
Market integration can occur at different levels:

1. International: This involves the integration of markets between different countries, often through
trade agreements and international treaties.

2.Regional: In some cases, market integration occurs within a specific region, such as a group of
neighboring countries. The European Union's Single Market is a prominent example of regional market
integration, where goods, services, capital, and labor can move freely among member states.

3. Domestic: At the domestic level, market integration refers to the removal of barriers within a single
country, allowing for the free flow of goods and services across different regions or states.

Market integration is typically associated with economic globalization, as it facilitates the exchange of
goods and services on a global scale. It can lead to increased competition, improved efficiency, and the
allocation of resources to their most productive uses. However, it can also have social and economic
consequences, including job displacement, income inequality, and cultural changes.

L3. Global Interstate System

STATE “State is an independent political community, each of which possesses government and asserts
sovereignty over a particular portion of the earth’s surface and particular segment of human
population.” (Hedley Bull)

INTERSTATE -A system of unequally powerful and competing states. In which no single states is capable
of imposing control on all others. These states are in interaction with one another in a set of shifting
alliance and wars and change in relatives power of states upsets any temporary set of alliances, leading
to a restructuring of balance of power.

NEOLIBERALISM- Economic and political ideology that emphasizes limited government intervention in
the economy, promotes free-market capitalism, privatization of public services, deregulation, and
individualism and competition as key principles.

ECONOMIC SOVEREIGNTY-

It is a complex concept that can vary in practice, as countries often engage in international economic
agreements and organizations like the World Trade Organization(WTO), International Monetary
Fund(IMF), and regional trade blocs.

PROPERTY VALUE

JOBS & OPPORTUNITIES

COMMUNITY EXPOSURE

DILEMMA FOR LOCAL GOVERNMENTS

A local government would like to attract major global investors in their Community by setting up for instance their
manufacturing firm in their area. This could generate jobs for local people and generate income for local businesses.
INSTITUTIONS THAT GOVERN GLOBALIZATION

A GLOBAL NETWORK

NON-STATE ACTORS

Non-government organizations, Volunteer organizations and Interest Groups.

INSTITUTIONS THAT GOVERN INTERNATIONAL RELATIONS

UNITED NATIONS

REGIONAL COMMISSIONS-are a group of officials in different countries that instruct, debate

and in charge in making a certain law, rights etc. to develop the economy and social. E.g. Human
Rights, Science and Technology.

ECA – ECONOMIC COMMISSION FOR AFRICA

ECE – ECONOMIC COMMISSION FOR EUROPE

ECLAC – ECONOMIC COMMISSION FOR LATIN AMERICAN AND THE CARIBBEAN

ESCWA – ECONOMIC AND SOCIAL COMMISSION FOR WESTERN ASIAN

ESCAP – ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

SELECTED INSTITUTIONS ASSOCIATED WITH WORLD TRADE

WORLD BANK GROUPS

● INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT (IBRD)

● INTERNATIONAL FINANCE CORPORATION (IFC)
● MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA)

SPECIALIZED AGENCIES

● INTERNATIONAL LABOR ORGANIZATION (ILO)

● FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
● UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION (UNESCO)

OTHER SPECIALIZED INTERNATIONAL INSTITUTIONS

● INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO)

● INTERNATIONAL MARITIME ORGANIZATION (IMO)
● INTERNATIONAL TELECOMMUNICATION UNION (ITU)
 ECONOMIC PARTICIPANTS

● ASIA-PACIFIC ECONOMIC COOPERATION (APEC)

● ASIAN DEVELOPMENT BANK (ADB)
● COLOMBO PLAN

INTERNATIONALISM GLOBALISM

A political movement which advocates greater political and economical cooperation and
coordination among different countries to achieve common goals.

GLOBALISM

It is an ideology based on the belief that people, information and goods should be able to cross
national borders without any restrictions.

L4. GLOBAL GOVERNANCE

GLOBALIZATION is the process of increasing.interconnectedness and interdependence

between.different countries and cultures. It has been driveN.by a number of factors, including
advances in .technology, transportation and communication

GLOBAL GOVERNANCE refers to the institution and processes that coordinate the behavior of
transnational actors, facilitate cooperation, resolve disputes and alleviate collective action
problems. It is essential for managing the challenges and opportunities of globalization.

THE NEED FOR GLOBAL GOVERNANCE Global governance is the network of formal and informal
institutions, rules, and norms that regulate international relations and address global problems.
It is a complex system that involves a wide range of actors, including states, international
organizations, non-governmental organizations (NGOs), and the private sector.

Climate change-Climate Change is a global problem that requires a global solution. Global
governance has played a key role in developing international agreements to reduce greenhouse
gas emissions, such as the Paris Agreement
Pandemics. Pandemics, such as the Covid-19 pandemic, can spread rapidly across borders.
Global governance played a crucial part for coordinating and distribution of vaccines and
treatments.

Financial crises. Financial crises can have a devastating impact on the global economy. Global
governance helps to prevent and manage financial crises by promoting financial stability
andregulating the global financial system.
Terrorism. Terrorism is a transnational threat that requires a global response. Global
governance gives assistance to coordinate international counter-terrorism efforts and share
intelligence.

THE CHALLENGES OF GLOBAL GOVERNANCE

Sovereignty: Stated are reluctant to cede sovereignty to international institutions.

Unequal Power: States have different levels of power and influence, which can make it difficult
to reach agreement on global governance issues.

Relevance of the state to globalization

Regulation: By employing policies, laws, and regulations, states wield control over economic
activities, trade, and foreign investments, ultimately shaping the scope and nature of
globalization within their borders.

International Agreements: Nations engage in negotiations and ratify international treaties and
agreements that can either facilitate or hinder the flow of capital, goods, and services across
borders, exerting a direct impact on globalization.

Infrastructure: It falls upon states to establish and maintain the essential physical and digital
infrastructure necessary for interconnectedness, encompassing communication and
transportation networks."

THE ROLE OF INTERNATIONAL INSTITUTION

International institutions play a key role in global governance. Some of the most important
international institutions include:

The United Nations (UN): The UN is the primary global organization for promoting international
peace and security, sustainable development and human rights

THE PURPOSE OF UNITED NATIONS ARE THE FOLLOWING:

• Maintaining worldwide peace and security

•Developing relations among nations
• Fostering cooperation between nation and order to solve economic, social, cultural, or
humanitarian international problems
•Providing a forum for bringing countries together to meet the UN's purposes and goals.
ROLE OF UNITED NATIONS TO GLOBAL GOVERNANCE

The UN’s main functions in global governance include:

1. Maintaining International Peace and Security

2. Promoting Sustainable Development

3.Protecting Human Rights

4. Delivering Humanitarian Aid

5. Promoting International Law

THE ROLE OF NON-STATE ACTORS

Non-state actors play a variety of roles in international relations and domestic affairs. Some of
the key roles include:

1. Advocacy and Activism

2. Humanitarian Assistance
3. Terrorism and Insurgency
4. Economic Influence
5. Cyber Warfare

The future of global governance Global governance is evolving to meet the challenges of the
21st century

The rise of new global actors: New powers, such as China and India, are playing a more
prominent role in global governance.

The growth of multistakeholderism: Global governance is increasingly involving non-state

actors, such as multinational corporations, NGOs, and civil society groups.

The use of new technologies: New technologies, such as the internet and social media, are
changing the way that global governance is conducted.
L5. Global Divides The North and the South “focus on the Latin America”

Global Divide- In a global context, the terms "North" and "South" are alternate terms for
"developed" and "developing" states. It represents almost the entire world's population.
The socioeconomic and political division of nations into the North and South emerged
during the Cold War in the middle of the 20th century. Previously, nations were generally
grouped based on how closely they aligned with the American West and the Russian East.

First World countries

West- the United States and its allies

Second World countries

East- the Soviet Union and China

The poor countries were eventually labeled as Third World countries.

The categorization was abandoned after the Second World countries joined the First
World countries, new criteria was established to categorize countries which was named the
North-South divide.

Five Major Dimension that Differentiate the North and the South:

● POLITICS
● COLONIALISM
● TECHNOLOGY
● WEALTH
● DEMOGRAPHY

North, South, and Latin America

Latin America refers to the nations colonized by Spain and their ancestors, including all
countries south of the United States, including South America. It encompasses countries in
the Western Hemisphere that speak Spanish and Portuguese and is a cultural entity with a
diverse group of people based on nationality, race, ethnicity, and culture. Spanish is
common throughout Latin America, while Portuguese is the main language in Brazil.

Global Divides is the idea of a division or separation between the (Global North) and the
(Global South) in terms of wealth and development.

North America is a continent in the Northern and Western Hemispheres. North America
is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the
 southeast by South America and the Caribbean Sea, and to the west and south by the
Pacific Ocean.

South America is a continent entirely in the Western Hemisphere and mostly in the
Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the
northern tip of the continent. It can also be described as the southern sub region of a single
continent called America.

Causes of the Division Between the North and South America?

The American Civil War was brought on by a number of factors. Although the
fundamental reason for the conflict is usually attributed to slavery, there were other
political and cultural divides between the North and the South that also played a role. Here
are a few of these variations and how they led to the division between the North and the
South and ultimately the Civil War.

Causes that created a divide between the North and the South that eventually caused
the Civil War.

● Expansion
● Slavery
● Abraham Lincoln
● Secession
● Industry vs. Farming

The Global South refers to the developing world, including Africa, Latin America, and Asia, as
well as developing countries and regions

Global North - Wealthy industrialized countries primarily in the northern hemisphere

Stages of Growth

● Traditional
● Pre-conditions
● Take-off
● Drive to Maturity High Mass Consumption

Dependency Theory- Dependency theory was initially developed by Hans Singer and Paul
Prebish in the 1950's and has been improved since then. Dependency is the condition in which
the development of the nation-states of the south contributed to a decline in their
independence and to an increase in economic development of the countries of the North
(Cardoso and Felato, 1979).
The Two Main Sub-Theories

1. North American Neo- Marxist approach (1969)

2. Latin American Structualist Approach

L6.ASIAN REGIONALISM

Asian regionalism refers to the various efforts and initiatives aimed at promoting cooperation,
integration, and collaboration among countries in the Asian continent. It encompasses a wide
range of economic, political, and security-related endeavors.

ECONOMIC INTEGRATION

Economic integration, or regional integration, is an agreement among nations to reduce or

eliminate trade barriers and agree on fiscal policies.

APEC (Asia-Pacific Economic Cooperation)

APEC is a forum of 21 Pacific Rim economies, including Asian nations, focused on trade and
economic cooperation. - Belt and Road Initiative (BRI): Led by China, the BRI is a massive
infrastructure and economic development project spanning Asia, Europe, and Africa, with the
goal of enhancing connectivity and trade.

ECONOMIC INTEGRATION

Asia’s trade and investment ties are particularly advanced, and the regional integration of
production has become central to Asia’s leadership in global manufacturing.

POLITICAL COOPERATION

Political cooperation in Asian regionalism refers to the collaborative efforts among Asian
countries to address common political and security challenges. This cooperation can take
various forms, such as regional organizations, alliances, and diplomatic initiatives.

1. ASEAN (Association of Southeast Asian Nations): ASEAN is a regional organization

comprising ten Southeast Asian countries that work together on political and security
issues, promoting stability and conflict resolution in the region
2. SCO (Shanghai Cooperation Organization): The SCO includes countries from Central Asia,
South Asia, and East Asia and focuses on enhancing cooperation in security, counter-
terrorism, and regional stability
3. SAARC (South Asian Association for Regional Cooperation): SAARC brings together
South Asian countries to collaborate on various issues, including political and security
matters, economic development, and social welfare.
4. The Quadrilateral Security Dialogue (Quad): Comprising the United States, Japan, India,
and Australia, the Quad is an informal strategic forum aimed at enhancing security and
stability in the Indo-Pacific region.

SECURITY AND DEFENSE

Security and defense in Asian regionalism are complex and multifaceted topics. Asian
regionalism refers to the cooperation and integration of countries in the Asian region to
address various political, economic, and security challenges.

Cultural and People-to-People Exchanges

Cultural and people-to-people exchanges play a significant role in Asian regionalism,

fostering understanding, cooperation, and connectivity among countries in the region.

1. Cultural Diplomacy
2. Educational Exchanges
3. Tourism
4. Language Learning
5. Youth Programs
6. Interfaith Dialogues
7. Arts and Entertainment
8. Cultural Festivals

FUTURE PROSPECTS

The future prospects of Asian regionalism are influenced by a complex interplay of

geopolitical, economic, and social factors. Here are some key considerations and potential
developments

1. Economic Integration
2. Geopolitical Shifts
3. Security Cooperation
4. Belt and Road Initiative (BRI)
5. Digital Integration
6. Environmental Cooperation
7. Cultural Exchanges
8. Institutional Developments
9. Pandemic Preparedness
10. Demographic Changes
11. Regional Conflicts

The future of Asian regionalism will be shaped by how countries in the region navigate
these factors and their willingness to work together in addressing common challenges. It's
likely to be a dynamic and evolving process, with both opportunities and potential pitfalls
along the way.