Date post: | 14-Apr-2018 |
Category: |
Documents |
Upload: | sophia-zinampan |
View: | 233 times |
Download: | 0 times |
of 107
7/30/2019 Global Trade, Global Markets
1/107
ALONZO, RUTCHELL
CORDERO, HAZEL
FILIO, MICHAEL
MAGSARILI, LUISRAMIREZ, KRISTINA
ZINAMPAN, SOPHIA
7/30/2019 Global Trade, Global Markets
2/107
Alonzo, Rutchell
7/30/2019 Global Trade, Global Markets
3/107
Key mechanism for moving goods, and increasing
services around the globe
Central to technology transfer
Connects domestic markets to international markets
Emerged with the establishment of nation-states
7/30/2019 Global Trade, Global Markets
4/107
Trade has revolutionized the prospects of all industrialsectors
Trade has been entwined with the rise of the modernstate and its fortunes
Trade Globalization suggests the emergence ofworldwide markets for traded goods and services
7/30/2019 Global Trade, Global Markets
5/107
Trade Globalization implies the existence of
significant levels of interregional trade
Global Trade entails a new system of regularized
exchange of good and services at an interregionallevel
As transregional competition evolves, demand
and supply of goods increasingly operate at aglobal level
7/30/2019 Global Trade, Global Markets
6/107
How far contemporary flows of trade are consistentwith this notion of trade globalization?
How far markets for goods and services now operate at
the global level?
7/30/2019 Global Trade, Global Markets
7/107
GLOBAL MARKET
Requires the existence of regularized exchange of goodand services at interregional level
The most common type of global markets are those forsome primary commodities where trade is concentratedat handful of locations
Resulted from interpenetration of national markets thatcreated networks of trade
7/30/2019 Global Trade, Global Markets
8/107
Extensity refers to intercontinental flows and networks of trade
Regionalization (or globalization) refers to evolution of markets for trading goods
involving geographically contiguous economies
Intensity measure of the magnitude of global trading activity.
Estimated by the ratio of World Trade to World Output
7/30/2019 Global Trade, Global Markets
9/107
Impact trade-GDP ratios provide the starting for its qualitative
assessment
Structural economic impact- must form a non-trivialproportion of output and have developed beyond anenclave to become integral to production in theeconomy as a whole
7/30/2019 Global Trade, Global Markets
10/107
Distributional impact- it makes some groups richerand some poorer
Institutional impact- trade relations have been
institutionalized as global legal frameworks haveemerged governing the conduct and trade policy ofnations and firms
7/30/2019 Global Trade, Global Markets
11/107
7/30/2019 Global Trade, Global Markets
12/107
Intercontinental Trade dates back to antiquity
Early Mesopotamia, China (Via Silk Route), West Indies,Europe, Africa and Atlantic (Slave Triangle)
World Trade System is said to have emerged around 16th
century
Trade was in metals and luxury goods
Entrepots were home to merchant communities
7/30/2019 Global Trade, Global Markets
13/107
Technological innovations, improved navigations andbetter organization of trade lowered transport costs.
Banking Systems evolved to finance trade
Merchant courts developed wherein disputes among
merchants were settled
International legal framework for trade wasinstitutionalized
Protectionism emerged in the 17th century becausemercantilist achieved political dominance
7/30/2019 Global Trade, Global Markets
14/107
Trade played a significant role in the emergence ofcities and the rise of nation state
Mercantilism grew out of belief that an economy couldincrease its wealth through a trade surplus and
consequent accumulation of precious metals
Trade was thus conceived as a zero-sum competition:one states loss was another states gain
Maximize exports and minimize imports bypromoting domestic industry while limiting imports
7/30/2019 Global Trade, Global Markets
15/107
Trade was not significant enough by itself to
determine patterns of inequality
Trade was essential to the economic prosperity of the
major trading cities that comprised the worlds tradingposts, but its impact on economic activity moregenerally was limited.
7/30/2019 Global Trade, Global Markets
16/107
The Philippines have been a colony of Spain for 333years. The archipelago has been subjected to Spainstrade rules and regulations. They also have control
over the exports and imports of the country. Under theSpanish rule, the Galleon trade system replaced theancient system of trading known as Bartertrade.Products for the Philippines were shipped to Acapulco,
Mexico and then it will be sold to the EuropeanMarket.
7/30/2019 Global Trade, Global Markets
17/107
The Philippine Archipelago is a strategic tradingnation because of its topography and geographiclocation. It is a country rich in natural resources- land,marine resources and minerals. The Philippiness main
exports are rice, sugar and coconut. Several companieshave expanded their business in the Philippines due tofavourable economic conditions that the country isexperiencing now. The Philippines, on the other hand,
imports mainly technology from western countriesand Asian countries like Japan and Korea
7/30/2019 Global Trade, Global Markets
18/107
Cordero, Hazel
7/30/2019 Global Trade, Global Markets
19/107
Foreign Trade
Most Favored Nation Principle (MFN) Trade preferences granted by one state to its most
favored trading partner are applied equally to all othercountries
Trade volumes grew from1820-1850 & 1870
7/30/2019 Global Trade, Global Markets
20/107
Industrialization
The Gold Standard (1870)
Protectionist Policy
Fredrich List emerging economies needed to shelter their industries
until they developed to the levels of the leadingeconomies
International Trade Diplomacy International agreements
7/30/2019 Global Trade, Global Markets
21/107
1929 -1930s Wide spread ofProtectionism and abandoned the
MNF Principle
Beggar-my-neighbor protection
Tariff protection (1920) Trade fell in 1930
Decline in word trade
The protectionist policies
US and Japan (new world trading powers)
7/30/2019 Global Trade, Global Markets
22/107
Trade Cause or a consequence of rapid economic growth According to Morris and Adelman(1988), Trade had a
significant positive impact on developing economies
depended on whether their domestic structure weresufficiently advanced to realize the gains from trade anddiffuse theme throughout the national economy
Impact on stimulating the development relations withinan economy
Role of primary exports, Demand of Goods andRevenues
Impact on domestic politics
7/30/2019 Global Trade, Global Markets
23/107
Trade Stratification Resources exporters countries
Manufacturers (Industrializing countries) Standard Trade Theory
Predicts that as countries became more open to tradethe returns to factors of production will converge
internationally Trade + Migration + International Capital Flows =
Global Competitive Pressures
7/30/2019 Global Trade, Global Markets
24/107
1870-1939 National patterns of production were influenced by
Global competition Standard Trade Theory
Extensity of trade
Intensity of trade
7/30/2019 Global Trade, Global Markets
25/107
Filio, Michael Angelo T.
7/30/2019 Global Trade, Global Markets
26/107
3.4.1 The development of global free trade
3.4.2 The extensity of trade and the emergence ofglobal markets
3.4.3 The growing intensity of postwar trade 3.4.4 Shifting patterns of trade stratification
3.4.5 The infrastructure and institutionalization ofglobal trade
Philippine Connection
7/30/2019 Global Trade, Global Markets
27/107
1944 Bretton Woods Agreement not only established asystem of fixed exchange rates but also the basis for amultilateral trading order.
Avoid Protectionism
General Agreement on Tariffs and Trade (GATT)
7/30/2019 Global Trade, Global Markets
28/107
Non-discrimination ( the MFN Principle)
Reciprocity
Transparency (nature of trade measures should be
clear) Fairness, so that practices like dumping of goods at
below market prices or predatory pricing by exporterswere deemed unfair and countries were entitled to
institute protection against them
7/30/2019 Global Trade, Global Markets
29/107
Not only did the GATT produce large reductions in
tariffs and thereby liberalize trade, but latterly itmoved into other sectors, notably reducing barriersto trade in services.
By the 1970s a largely free trade order had been
established among all the OECD countries and sincethe 1980s this has been extended to developingcountries and countries formerly closed to tradeunder communism, with the result that a global
trading system now exists.
7/30/2019 Global Trade, Global Markets
30/107
The emergence of global free trade provided the basisfor open worldwide markets.
Extensive as they are, trade networks still appear to be
concentrated within certain geographical areas:Europe, the Americas and Asia-Pacific.
Skeptics believed this development in trade isbecoming regionalized rather than globalized
7/30/2019 Global Trade, Global Markets
31/107
Regionalization-The process of dividing an area intosmaller segments called regions. Businesses also use
regionalization as a managementtool and a way tomake certain that needs unique to particular areas aremet.
Contemporary regional trading arrangements have
been designed to liberlaizer trade not to buildprotectionist fortresses, recognizing the potentialbenefits from freer trade but also the relative case ofreaching agreement at the regional, as opposed to
global level.
http://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/tool.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/tool.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/business.html7/30/2019 Global Trade, Global Markets
32/107
In the postwar period trade grew more rapidly thanworld income.
Played an important role in the rise of GDP ofdeveloped and developing countries.
Classical Gold Standard Era.
Data on world trade in services only became availablefrom 1980 onwards are subject to a considerable
margin of error.
7/30/2019 Global Trade, Global Markets
33/107
Developments are indicative of a qualitative shiftin the intensity of postwar trade as nationalmarkets became increasingly enmeshed with eachother such that trade is now integral to national
economic prosperity.
7/30/2019 Global Trade, Global Markets
34/107
Developed states have dominated postwar trade
Decline or fluctuation in their share of world trade isattributed to oil-exporting developing countries.
Growth in trade shares is attributed to the rise of theEast Asian Tiger economies.
7/30/2019 Global Trade, Global Markets
35/107
For much of the postwar period, world trade has beenconcentrated among the developed countries.
Increased trade between developed and developingcountries.
From primary products as exports to manufactures andservices.
Trade has played a key role in the performance ofindividual developing countries.
Trade competition in the world economy led to divergingincome levels.
Polarization of economic fortunes in the global economyand new patterns of stratification.
7/30/2019 Global Trade, Global Markets
36/107
Intra-industry trade
Trade has expanded relative to output for most of the
postwar period not just because of decreasing tariffbarriers and transport costs, but also because of thechanging structure of global production.
Growing trade between developed and developing
countries in the 1980s also reflects a shift in the natureof production
7/30/2019 Global Trade, Global Markets
37/107
Improved transport and communications networkshave provided the infrastructure for a global tradingsystem while the institutionalization of tradeliberalization has contributed to the growing intensity
of trade activity. GATT trading regime and its structures was crucial to
postwar trade expansion
7/30/2019 Global Trade, Global Markets
38/107
GATTs success in developing and maintaining an opentrading system (at least for the manufactures) through
trade barrier reduction negotiations. Since Barriers were eliminated, interest has shifted
towards differences in the domestic regulations and lawsgoverning competition in different countries.
WTO and OECD states seek greater trade liberalization,the focus of their activity has shifted towards theharmonization of domestic competition and businessrules in so far as these are perceived as the major
barriers to global free trade.
7/30/2019 Global Trade, Global Markets
39/107
The Philippines has been a World Trade Organization(WTO) member since 1 January 1995.
Aside from the WTO, the Philippines is also a memberof ASEAN and APEC
7/30/2019 Global Trade, Global Markets
40/107
Since 1980s, the Philippines have opened their economyto foreign markets, and established a network of freetrade agreements with several countries. The UnitedStates is one of the Philippines top trading
partner. In 2010, according to US Department ofCommerce dad, trade between the Philippines and USamounts to US$15.4 billion. US is also the Philippineslargest foreign investor, with foreign direct investment
close to US$6 billion at the end of 2009.
7/30/2019 Global Trade, Global Markets
41/107
Primary exports - commodities: semiconductorsand electronic products, transport equipment,garments, copper products, petroleum products,coconut oil, fruits
Primary exports partners: US (17.6 percent of totalexports), Japan (16.2 percent), Netherlands (9.8percent), Hong Kong (8.6 percent), China (7.7percent), Germany (6.5 percent), Singapore (6.2percent), South Korea (4.8 percent)
7/30/2019 Global Trade, Global Markets
42/107
Primary imports - commodities: electronicproducts, mineral fuels, machinery and transportequipment, iron and steel, textile fabrics, grains,chemicals, plastic
Primary imports partners:Japan (12.5 percent oftotal imports), US (12 percent), China (8.8 percent),Singapore (8.7 percent), South Korea (7.9 percent),Taiwan (7.1 percent), Thailand (5.7 percent)
7/30/2019 Global Trade, Global Markets
43/107
The Transformation of Global Trade
7/30/2019 Global Trade, Global Markets
44/107
Gold was a primary means of exchange in the RomanEmpire, gold mining was an important motive forRoman invasion of Britain.
7/30/2019 Global Trade, Global Markets
45/107
7/30/2019 Global Trade, Global Markets
46/107
a monetary system in which the standard economicunit of account is based on a fixed quantity of gold.
In the 1850s, the industrial revolution was taking placein England.
In the United States, the Civil War (1861-1865) was just
over.
7/30/2019 Global Trade, Global Markets
47/107
In Japan, the military rule of Tokugawa shogunate(1603-1867) was just over, some ports were opened totrade with European countries, and Emperor Meijiwas instituting a major change in Japan.
Admiral Perry of the United States came to Uraga,Japan and forced Japan to open up to trade, causing
the fall of shogunate and triggering the MeijiRestoration.
The second Opium War (1856-1860) was just over and
imports of opium was legalized in China.
7/30/2019 Global Trade, Global Markets
48/107
The gold standard has no precise date of origin. It graduallyemerged around 1870-1880 when most of the industrial nationsof Europe adopted the gold standard. (Great Britain adopted thegold standard in 1821, Australia in 1852, Canada in 1853, Francein 1878, Germany in 1871, the US in 1879)
It lasted until 1914, before the outbreak of World War I. Duringthis period, most of the industrial nations linked theircurrencies to gold and inflation rates were about 0.1 percent.
When these nations were on the gold standard, there were noformal agreements with other nations. No treaty wassigned. Each nation defended its currency in terms of gold. Itstreasury or central bank was required by law to buy and sell gold
without limit at the stated price. The public had completeconfidence in the convertibility of its currency into gold.
7/30/2019 Global Trade, Global Markets
49/107
The gold standard is deflationary. In an open economy, a balance of payments deficit is
followed by a gold outflow.
Transmission of monetary shocks.
For the world as a whole, the growth of money supplyis regulated by the flow of newly produced gold.
7/30/2019 Global Trade, Global Markets
50/107
INTERWAR PERIOD, 1918-1940
During World War I the international gold standardceased to function.
European economies had been interlocked closely, butthey were suddenly cut loose from the connectivemechanism by war.
Countries diverged and developed in differentdirections during the war.
7/30/2019 Global Trade, Global Markets
51/107
After the war in 1918, US immediately announced thatit would maintain the dollar price of gold at its prewarlevel.
Britain resorted to a deflationary policy (1920-1925)
French Franc dropped from $0.18 in 1918 to $0.0392 in
1926, which stopped gold outflow from France. Afterthe depreciation, France returned to the goldstandard in 1928.
7/30/2019 Global Trade, Global Markets
52/107
The United States and Great Britain were to hold only gold asreserve asset.
Key reserve currencies, dollar and pound. Nonreserve countrieswere asked to hold dollar or pound (rather than gold) as reserve
asset (Hence, gold exchange standard.) Other currencies areconvertible into reserve currencies at fixed parities.
Dollar and pound were freely convertible into gold betweencentral banks, but not for the general public.
Most countries that were on the silver standard also pegged silverto the dollar, except China and Hong Kong.
7/30/2019 Global Trade, Global Markets
53/107
Deflationary policy stifles growth.
7/30/2019 Global Trade, Global Markets
54/107
Countries tried to manage or stabilize the flexibleexchange rates - by raising interest rate, but it did notprevent capital outflow.
Some countries devalued their currencies, but many
countries already did this without success.
Others imposed exchange control when faced withcapital flight.
7/30/2019 Global Trade, Global Markets
55/107
In April 1933, President Roosevelt suspended the goldstandard.
Gold Reserve Act of 1934
It prohibited gold coinage.
It allowed the President to change the gold content of
dollar.
France devalued Franc in 1936.
7/30/2019 Global Trade, Global Markets
56/107
The Bretton Woods system of monetary managementestablished the rules for commercial and financialrelations among the world's major industrial states inthe mid-20th century.
First example of a fully negotiated monetary orderintended to govern monetary relations amongindependent nation-states.
7/30/2019 Global Trade, Global Markets
57/107
1. The Flows of Globalization In a global economy, no nation is self-sufficient. Each
is involved at different levels in trade to sell what itproduces, to acquire what it lacks and also to produce
more efficiently in some economic sectors than itstrade partners.
7/30/2019 Global Trade, Global Markets
58/107
2. The Setting of the Contemporary Global Trade System International trade, both in terms of value and
tonnage, has been a growing trend in the globaleconomy.
The emergence of the current structure of global tradecan mainly be articulated within three major phases:
7/30/2019 Global Trade, Global Markets
59/107
First phase (immobile factors of production)
Second phase (mobility of factors of production)
Third phase (global production networks)
7/30/2019 Global Trade, Global Markets
60/107
3. Trade Facilitation
The facilitation of trade involves how the proceduresregulating the international movements of goods canbe improved. It depends on the reduction of thegeneral costs of trade, which considers transaction,tariff, transport and time costs, often labeled as the"Four Ts" of international trade.
7/30/2019 Global Trade, Global Markets
61/107
Distribution-based
Regulation-based
Transaction-based
7/30/2019 Global Trade, Global Markets
62/107
4. Global Trade Flows
The nature of what can be considered internationaltrade has changed, particularly with the emergenceofglobal value chains and the trade of intermediarygoods they involve.
7/30/2019 Global Trade, Global Markets
63/107
5. International Transportation
The growth of the amount of freight being traded as well asa great variety of origins and destinations promotes
the importance of international transportation as afundamental element supporting the global economy.
Economic development in Pacific Asia and in China in
particular has been the dominant factor behind thegrowth of international transportation in recent years.
7/30/2019 Global Trade, Global Markets
64/107
7/30/2019 Global Trade, Global Markets
65/107
France Germany
Japan
Sweden United Kingdom
United States of America
7/30/2019 Global Trade, Global Markets
66/107
Sophia Zinampan
7/30/2019 Global Trade, Global Markets
67/107
Impact of international conditions on national
economies intensified
Domestic economic activity affect transmission ofeconomic fluctuations
7/30/2019 Global Trade, Global Markets
68/107
Protectionism vs. Free Trade
Transformation of trade towards intra-industry trade
7/30/2019 Global Trade, Global Markets
69/107
Demand for labour influence global competition
Technological advantage in production
Falling wages = rising unemployment
7/30/2019 Global Trade, Global Markets
70/107
Specialization among countries
Pressure to reallocate resources
Technological inferiority significantly differ inproductivity
As productivity rises in manufacturing, progressively
fewer and fewer workers are needed to produce a givenlevel of output
7/30/2019 Global Trade, Global Markets
71/107
Effects of Trade Liberalization on Agriculture in the
Philippines: Institutional and Structural Aspects(1998) by Minda C. Mangabat
The Philippines in the ASEAN Free Trade Area (2002)by Rodolfo C. Severino
7/30/2019 Global Trade, Global Markets
72/107
Ramirez, Kristina
7/30/2019 Global Trade, Global Markets
73/107
grown in unprecedented levels
intergral to postwar growth among OECD countries(1980s and 1990s and Post-war period)
intensified competition across national boundaries.Domestic economic activity
distribution of gains are uneven
7/30/2019 Global Trade, Global Markets
74/107
There are clear winners and losers from
trade. Economic globalization has brought with it anincreasingly unified world for elites
Developing countries are being re-ordered
divided nations and communities as the globalworkforce is segmented
Multiplicity of trade relationships
remain open to competition from the rest of the
world renegotiationWestphalian notion of state
sovereignity
7/30/2019 Global Trade, Global Markets
75/107
new global division of labour in the production of goodsis emerging
increasingly consume goods from abroad
their own production processes significantly dependent on components
produced overseas.
7/30/2019 Global Trade, Global Markets
76/107
IMPACT:
economic activity in any one country is stronglyaffected (through trade networks) by economicactivity in other countries.
The distinction between domestic economicactivity and worldwide economic activity, as therange of products in any superstore will confirm,
is becoming increasingly difficult to sustain.
7/30/2019 Global Trade, Global Markets
77/107
play an important role in ameliorating the impact ofstructural change arising from trade
Nation state used trade protection to:Raise revenues
Manage difficulty in balance of payments
Promote domestic industry
7/30/2019 Global Trade, Global Markets
78/107
Late 20th century InstitutionalConstraints
& Economic Cost Limited scope for national protectionism
Subjected to growing international scrutiny: Tariffs Quota restrictions Policies support domestic industry
Domestic laws w/ respect to: Business competition Safety standards
7/30/2019 Global Trade, Global Markets
79/107
Historical experience:
economic development through protection diminishedpolicy option (East Asian Crisis of 1997)
Enthusiasm human capital policieseducation &trainingreflects:
Academic & political interest potential of measures toameliorate consequences of global free trade
Foreclosing of other policy options
7/30/2019 Global Trade, Global Markets
80/107
Trade globalization is onlyonestrand in overall story of emergence
of todays global economy
7/30/2019 Global Trade, Global Markets
81/107
Transformed state autonomy and induced shifts instate policy
Contemporary financial globalization is amarket, rather than a state, drivenphenomenon. Financial liberalization
poses serious questions about the nature of state powerand economic sovereignty
7/30/2019 Global Trade, Global Markets
82/107
Operations of multinational corporations integrate
national and local economies into global and regionalproduction networks.
national economies No longer function as autonomous systems of wealth creation
distinction between domestic economic activity andworldwide economic activity becoming difficult to sustain.
7/30/2019 Global Trade, Global Markets
83/107
Central to the organization of this new globalcapitalist order
Today transnational production considerably exceedsthe level of global exports Account for at least 20% of world production and 70% of
world trade
increasingly important sites through which
economic globalization is contested, byweaker states and by the agencies oftransnational civil society.
7/30/2019 Global Trade, Global Markets
84/107
Political dynamics of multilateral institutions tend to mediate great power control
consensual modes of decision making,
such that they are never merely tools of dominant states
and particular social groupings.
7/30/2019 Global Trade, Global Markets
85/107
exceeds the regulatory reach of national governments existing multilateral institutions of global economic
governance have limited authority States refuse to cede these institutions substantial power
global markets may effectively escape politicalregulation
7/30/2019 Global Trade, Global Markets
86/107
Economic globalization has been accompanied by asignificant internationalization of political authority
associated with a corresponding globalization ofpolitical activity.
7/30/2019 Global Trade, Global Markets
87/107
7/30/2019 Global Trade, Global Markets
88/107
MANILA The Philippines is NOT immune to a
financial crisis elsewhere inAsia
ifa BOP crisis breaks out elsewhere, the Philippineswont be spared the contagion, and no economy in Asia
ex-Japan would," -Tim Condon-
ING chief economist inAsia
7/30/2019 Global Trade, Global Markets
89/107
"The Philippines is less vulnerable to contagion thanits South East Asian neighbors because it has astronger external payments position," Condonsaid.
7/30/2019 Global Trade, Global Markets
90/107
7/30/2019 Global Trade, Global Markets
91/107
Spanish trading galleons regularly sailed across the Pacific Oceanbetween Manila and Acapulco, trading spices and silk from Indiaand China for silver from the vast mines in Mexico and Peru. Theties between what was known as the East Indies and the West Indies
were deep, and profitable.
Today, we are witnessing an intensification of those historic East-West ties and Asia and Latin America are two vital engines ofgrowth on which the rest of the world's economies increasinglydepend.
.
7/30/2019 Global Trade, Global Markets
92/107
There is no single, all-encompassing definition of globalization. Instead, it has become a broad heading for a multitude of global
interactions, ranging from the expansion of cultural influences acrossborders to the enlargement of economic and business relations throughoutthe world.
The protectionism which emerged in international trade after the WW IIgave way to gradual liberalization, comprising both unilateralliberalization and rules-based multilateral liberalization spearheaded byGATT.
From a multidisciplinary angle, globalization may be treated as aphenomenon, a philosophy and a process which affect human beings asprofoundly as any previous event.
Several factors have been responsible for this phenomenon and confines its
attention to four growth-enhancing facets of globalization that have beenamong its key drivers, namely, trade, finance, communications andtransport.
7/30/2019 Global Trade, Global Markets
93/107
Developing country like the Philippines , is one of the countries in Asia wherethe country has been effected by globalization. The country is taking part inthe process of globalization ever since the country signed agreements withWTO (World Trade Organization) in 1995. Since then, the nation had hope forWTO to bring developments within the nations poor economy and also tohave a role within the global economy and trade. Now, globalization is very
effective in the Philippines, it has allowed major changes in the nation likemore labor, and more Filipino and foreign companies has emerged in thenation in order to help the countrys developing economy. Generally, thePhilippines is one of the developing countries that is rapidly dealing withglobalization ever since the influence of the US during the World War II.
7/30/2019 Global Trade, Global Markets
94/107
Asian and Pacific states have developed numerousmultilateral trade agreements, particularly among PacificRim states. A region with some of the highest economicgrowth rates in the world, the Pacific Rim has seen tradeagreements flourish as countries have begun workingtogether to lower trade barriers and encourage economicgrowth. The trade agreements listed here is not complete
by any means, but should cover all of the major,multilateral agreements.
Asean Free Trade Area (AFTA)-AFTA is a part of the larger ASEAN tradeagreement and works to lower tariff barriers between member countries The
7/30/2019 Global Trade, Global Markets
95/107
agreement, and works to lower tariff barriers between member countries. TheASEAN free trade area (AFTA)is to be phased in over the next 15 years, and aims toincrease trade among ASEAN members; it may also lead to free trade arrangementswith other countries.
Members (7): Brunei , Indonesia, Malaysia, the Philippines, Singapore, Thailand,Vietnam
Asia-Pacific Economic Cooperation Forum (APEC)- Founded in 1989 to providea discussion forum for countries to discuss a wide range of economic issues,promote multi-lateral cooperation amoung market-oriented economiesthroughout the Pacific Rim. APECs 18 member countries hope to achieve free andopen trade and investment throughout the region by the year 2020.
Members (18): Australia , Brunei, Canada, Chile, China, Taiwan, Hong Kong,Indonesia, Japan, Mexico, New Zealand, North Korea, Papua New Guinea, thePhilippines, Singapore, South Korea, Thailand, United States
South Pacific Regional Trade & Economic Cooperation Agreement(SPARECA)- Trade agreement between Australia and New Zealand to encourageeconomic growth between the two countries and around the Pacific Rim.
7/30/2019 Global Trade, Global Markets
96/107
Rising incomes will propel millions of Asians into themiddle class, affecting not only intra-regional tradebetween rapid growth markets, but global trade as well.
Rapid growth markets in Asia-Pacific can benefit from
expected trade growth in the region. Through verticalspecialization, the contributions of these economies areincreasingly complementary, enabling every country in theregion to thrive.
For most Asia-Pacific economies, trade with the MiddleEast and Africa (MENA) will grow faster than trade to theEurozone. Meanwhile, India will be the fastest-growingtrade route for almost every economy in the region.
7/30/2019 Global Trade, Global Markets
97/107
In the Philippines, the most evident effects or trends withreference to globalization both on firm and industry levelsare, trends toward labor flexibilization, trends toward theinformalization of labor, trend toward an HRD strategy.
poses threat on job security which could increase the
countrys unemployment and underemploymentconditions, restriction on legislation matters, basereduction for union organizing and difficulty in collectivebargaining.3
Such effects create greater instability in the Philippine
Industrial Relations System as it already is. The outcomeillustrates the weakening power and influence of the laborsector which could result in the ineffectiveness of thecountry to deal with such crisis.
http://antocometa.wordpress.com/2007/10/14/impact-of-globalization-on-trade-unions-in-the-philippines/http://antocometa.wordpress.com/2007/10/14/impact-of-globalization-on-trade-unions-in-the-philippines/http://antocometa.wordpress.com/2007/10/14/impact-of-globalization-on-trade-unions-in-the-philippines/7/30/2019 Global Trade, Global Markets
98/107
7/30/2019 Global Trade, Global Markets
99/107
7/30/2019 Global Trade, Global Markets
100/107
Globalization to a certain extent pushes workers in the formal sector tothe other end. These include economic restructuring, market-drivenpolicies, technological change, the degree of government interventionin labor markets and industrial relations, flexibility in the way work isorganized and growing diversity of work, and the increasing dichotomyin terms of employment and income opportunities between workersfrom both formal and informal sectors.
Globalization has taken its socio-economic toll in the exploitation of
the labor sector, primarily those located in third world countries suchas the Philippines. The old model of the international division of laborhas been replaced by a more exploitative paradigm having direct effecton those that belongs in the working class and its trade unions.
7/30/2019 Global Trade, Global Markets
101/107
Addressing the economic needs by adapting to thechanging conditions brought about by globalization isessential for the countrys survival. However, interests of
workers in the formal labor sector should also be taken intoconsideration to fully capitalize on the changing trend inthe economy.
7/30/2019 Global Trade, Global Markets
102/107
7/30/2019 Global Trade, Global Markets
103/107
Burgonio, M. E. (2013, August 26). Business News: Interaksyon.Retrieved August 26, 2013, from Interaksyon Website:http://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----ing
Held, D., & McGraw, A. (1999, March). Essays: Globalization (Entry for
Oxford Companion to Politics). Retrieved July 23, 2013, from TheGlobal Transformations Web Site:http://www.polity.co.uk/global/globalization-oxford.asp
Held, D., McGrew, A., Goldblatt, D., & Peratton, J. (1999, March).Essays: What is Globalization?Retrieved July 23, 2013, from The
Global Transformations Website:http://www.polity.co.uk/global/whatisglobalization.asp
http://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.polity.co.uk/global/globalization-oxford.asphttp://www.polity.co.uk/global/whatisglobalization.asphttp://www.polity.co.uk/global/whatisglobalization.asphttp://www.polity.co.uk/global/whatisglobalization.asphttp://www.polity.co.uk/global/whatisglobalization.asphttp://www.polity.co.uk/global/globalization-oxford.asphttp://www.polity.co.uk/global/globalization-oxford.asphttp://www.polity.co.uk/global/globalization-oxford.asphttp://www.polity.co.uk/global/globalization-oxford.asphttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----inghttp://www.interaksyon.com/business/69335/despite-strength-philippines-not-immune-to-global-market-turmoil----ing7/30/2019 Global Trade, Global Markets
104/107
http://www.economywatch.com/world_economy/philippines/export-import.html
http://www.wto.org/english/thewto_e/countries_e/philippines_e.htm
http://www.businessdictionary.com/definition/regionalization.html#ixzz2d4VclAr6
http://www.economywatch.com/world_economy/philippines/export-import.htmlhttp://www.economywatch.com/world_economy/philippines/export-import.htmlhttp://www.wto.org/english/thewto_e/countries_e/philippines_e.htmhttp://www.wto.org/english/thewto_e/countries_e/philippines_e.htmhttp://www.businessdictionary.com/definition/regionalization.htmlhttp://www.businessdictionary.com/definition/regionalization.htmlhttp://www.businessdictionary.com/definition/regionalization.htmlhttp://www.businessdictionary.com/definition/regionalization.htmlhttp://www.wto.org/english/thewto_e/countries_e/philippines_e.htmhttp://www.wto.org/english/thewto_e/countries_e/philippines_e.htmhttp://www.economywatch.com/world_economy/philippines/export-import.htmlhttp://www.economywatch.com/world_economy/philippines/export-import.htmlhttp://www.economywatch.com/world_economy/philippines/export-import.htmlhttp://www.economywatch.com/world_economy/philippines/export-import.html7/30/2019 Global Trade, Global Markets
105/107
http://www2.econ.iastate.edu/classes/econ355/choi/golds.htm
http://www.time.com/time/business/article/0,8599,1852254,00.html
http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/ch5c2en.html
https://www.boundless.com/sociology/understanding-economy/the-transformation-of-economic-systems/global-trade-inequalities-and-conflict/
7/30/2019 Global Trade, Global Markets
106/107
Dudovskiy, J. (2012, June 23). Inter-industry and intra-industry trade. Heckscher-Ohlin Model. Retrieved fromResearch Methodology: http://research-methodology.net/inter-industry-intra-industry-trade-heckscher-ohlin-model/
Heakal, R. (2012, March 12). Currency Exchange:Floating Rate Vs. Fixed Rate. Retrieved fromInvestopedia:http://www.investopedia.com/articles/03/020603.asp
Irwin, D. A. (2009). Avoiding the 1930s-styleprotectionism: Lessons for today. Insights, 8-11.
7/30/2019 Global Trade, Global Markets
107/107
(n.d.). Retrieved August 25, 2013, from Hubpages.com:
http://villanueva21.hubpages.com/hub/Globalization-in-the-Philippines (Pitman Potter and Ljiljana Biukovic). (2011). Globalization and Local Adaptations in International
Trade Laws. University of British Columbia Press.
Bank, W. (n.d.). Globalization and International Trade.
Globalization, trade, and the peoples of Asia and the Pacific:case studies from Australia, Bangladesh,Indonesia, Japan, and the Philippines. (n.d.). Manila: Legal Rights and Natural Resources Center(Philippines).
Globalization: Opportunities and Challenges. (n.d.). Philippiines.
John H. Power, G. P. (1971). The Philippines: industrialization and trade policies. Oxford UniversityPress.
Kuroda, H. (4 May 2012). From Galleons to Globalizatio. China Daily; Bangkok Post; New StraitsTimes; South China Morning Post; Express-Tribune; Economic Times (India); Jakarta Post.
Lynch, D. (2010). Trade and Globalization: An Introduction to Regional Trade Agreements. Rowman &Littlefields Publishing Inc.
LAbor Arena. (October, 14 2007). Retrieved August 25, 2013, from Wordpress.com:
http://antocometa.wordpress.com/2007/10/14/impact-of-globalization-on-trade-unions-in-the-philippines/
Trade, G. B. (2012). Ernst & Young Website. Ernst & Young.