GE 3 CONTEMPORARY WORLD MODULE

LESSON NO. 2.1

LESSON TITLE MARKET INTEGRATION
DURATION/HOURS 3 1/2 hours

Specific Learning Outcomes: During the students' learning engagements, they will be able to:

 Identify international financial institutions

 Examine the roles of each international financial institution in

relation to the country’s economy.

 Trace the history of global market integration.

 Create a comic strip showing the impact of a selected

multinational corporation to the country.

TEACHING LEARNING ACTIVITIES

OPENING GUIDE QUESTIONS (DO NOT ANSWER THIS)

1. Do you have any idea about MARKET INTEGRATION?

2. What are the international financial institution that you know?

3. Did you know how dollar become the global currency?

4. Can you cite differences between capitalism and socialism?

5. Can you name a particular global corporation? How does this corporation help the economy of the country?

Engaging Activity 1: Name Me (Answer This)

(Outcome 1; Identify international financial institution)

Direction:
ACTIVATING
PRIOR LEARNING 1. Identify the different international logos below.

2. Can you name these logos?

Can you identify
the logo of the
following
international
financial
institutions?
Can you name
them?

A B C
 D E F

logos taken from: https://www.google.com/search?sxsrf=ALeKk02uQrvjDLYiFP8ybY6D0LOysfRWNw

%3A1595399097574&ei=udsXX-rDIrqNr

Activity Processing:

1. Are you familiar with these logos?

2. What do these international financial institutions do to the country?

3. How do these institutions affect the economy of the world? And our country?

Ok, now that you already identified these international institution, let us now examine their roles in the world
economy as well as their impact to our country’s economy.

Engaging Activity 2: Read to Know (30 minutes)

(Outcome 2 : Examine the roles of each international financial institution in relation to the country’s economy)

Direction: You are going to read about the International Financial Institution. Then after reading, you are expected
to come up with a chart showing the different IFI’s and their details.

The International Financial Institutions

World economies have been brought closer together by globalization. It is reflected in the phrase
“when the American economy sneezes, the rest of the world catches a cold”. But it is not only the
economy of America that has impact to the world economy. Other countries have also
significant contribution to global market and finance.

-- (Adapted from: Aldama (2018) The Contemporary World)--

The Bretton Wood System

The major economies in the world had suffered because of World War I, the Great
Depression in the 1930’s and the World War II. Because of the fear of the recurrence of lack of cooperation among
nation state, political instability, and economic turmoil, reduction of barriers to trade and free flow of money
among nations became the focus to restructure the world economy and ensure global financial stability (Ritzer,
2015). Thus the creation of the Bretton Woods System.

Bretton Woods System generated the expression of currency in terms of gold value to establish a par
value (Boughton). For instance a 35 U.S dollar pegged by the United States per ounce of gold is the same as 175
Nicaraguan cordobas per ounce of gold. Secondly, two official monetary authority in each country ( A central bank
or its equivalent) would agree to exchange its own currency for those of other countries at the established
exchange rates, plus or minus one-percent margin‖ ( Boughton 2007:106-7). This made international trade
possible at or near the exchange rate for the currencies of the countries involved without the need for any outside
intervention. Thirdly the international Monetary Fund (IMF) was created (Babb 2007:128-64) to establish,
stabilize, and oversee exchange rates. Forty states became IMF members in 1946 and were required to deposit
some of their gold reserves with the IMF. The IMF was empowered to approve the par values of currencies and
member states could not change that value by more than 10 percent. If a currency was destabilized, the IMF was
prepared to lend member states the money needed to stabilize their currency. Fourthly, the member states
agreed to eliminate, at least eventually all restrictions.-- Adapted from:Aldama (2018) The Contemporary World)
—

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO)

One of the system born out of Bretton Woods was the General Agreement on Tariffs and Trade (GATT)
that was established in 1947 Goldstein et.al, 2007). GATT was a forum for the meeting of 23 member countries. It
focused on trade goods through Multinational trade agreement.

---Adapted from: Aldama (2018) The Contemporary World) ---

It operated until 1995 when it was superseded by the World Trade Organization (WTO). While GATT
focused on Trade and Goods, the WTO also took for the responsibility for the increasingly important trade in
service. While GATT was simply a forum for the meetings of representatives of countries, the WTO is an
independent organization. GATT was deemed more acceptable than the International Trade Organization (ITO) by
the US and other countries; and in 1947, a number of initial trade agreements were negotiated by 23 nations.
Since then multinational trade agreement have been negotiated under GATT‘s (and later the WTO‘s) institutional
umbrella. Over the years a number of ―rounds‖ of negotiation were completed. It was out of the Uruguay Round
(1986-1983) that an agreement that reached to create the WTO.

World Trade Organization (WTO)

The headquarter of WTO is located in Geneva, Switzerland with 152 members states as of 2008
(Trachtman, 2007) It is an independent multilateral organization that became responsible for trade in services,
non-tariff-related barriers and other broader areas of trade liberalization.

--Adapted from: Aldama (2018) The Contemporary World)—

While GATT focused on tariff reduction, the WTO has come to focus more of non-tariff related barriers
to trade. One example is the differences between nation in relation to regulations on such items as manufactured
foods or food. A given nation can be taken to task for such regulations if they are deemed to be an unfair restraint
to the trade in such items. However, the WTO has been criticized for not going far enough in countering the trade
barriers retain by developed countries in such domains as agricultural products and some services.

The International Monetary Fund (IMF) and the World Bank

 IMF and World Bank were founded after the World War II. Their establishment was mainly because of
peace advocacy after the war. IMF and World Bank were designed to complement each other.

The IMF’s main goal was to help countries in trouble at the time and who could not obtain money by any
means. Both institutions are basically banks. The IMF is lightning rod for critics who see it as supporting
developed countries and their efforts to impose their policies on less developed countries. It supporters see it as
key to emergence and further development of the global economy. As a result of changes of the global economy,
the nature and functions of the IMF have changed since its creation in 1944. In the beginning, it managed the
exchange rate system created in Bretton Woods. The IMF closely watch a nation‘s balance in order to be sure it
could sustain the agreed upon exchange rate for its currency. If there were problems in the latter, the IMF
concerned itself with two matters. The first was policy errors by the nation, which presumably could be corrected.
The second was fundamental economic problems (relating, for example the productivity). Above all, the IMF
wanted to be sure that a nation did not use such problems as an excuse to lower its exchange rate and therefore
improve its competitive position vis-ȁ-vis other nations. If a fundamental disequilibrium occurred, the IMF had the
power to authorize a change in the exchange rate of the nation‘s currency.

The World Bank, officially the International Bank for the Reconstruction and Development (IBRD) is the
most important element of the World Bank Group (WBG) (Gilbert and Vines 2000; Bradlow 2007:1262-7). The
IBRD or the bank was established in 1944 at Bretton Woods and began operations in 1946. Membership is open to
all member states of the IMF, and as of this writing, it includes 184 nations. It provides funds to government-
sponsored or guaranteed programs in so-called Part II countries (member states that are middle income or
creditworthy poorer nations). Among the missions of the bank are:

● encourage development of productive facilities and resources in less developed countries;

● funding for productive purposes when private capital cannot be obtained or reasonable Terms;

● encouraging international investment in order to promote international trade and development

and equilibrium in balance of payments; and

● helping member countries improve their productivity, standard of living, and labor Conditions

(Bradlow 2007:1264) Over the years, the bank has expanded for beyond its original focus on

The Organization for Economic Cooperation and Development (OECD), Organization of Petroleum Exporting
Countries (OPEC) and the European Union (EU).

The most encompassing club of the richest countries in the world is the Organization for Economic
Cooperation and Development (OECD) with 35 member states as of 2016.

In 1960, the Organization of Petroleum Exporting Countries (OPEC) was originally comprised of Saudi
Arabia, Iraq, Kuwait, Iran and Venezuela. They are the major exporters of oil in the world. OPEC was organized
because they wanted to increase the price of oil.

The European Union (EU) is made up of 28 member states. Member countries adopted the euro as basic
currency. Critics argue that the euro increased the prices in Eurozone and resulted in depressed economic
growth rates like Greece, Spain and Portugal.

North American Free Trade Agreement (NAAFTA)

 The North American Free Trade Agreement (NAFTA) is a trade pact between the United States, Mexico,
and Canada created on January 1, 1994 when Mexico joined the two other countries. Originally in 1989 only
Canada and United States were trading partners. NAFTA helps in developing and expanding world trade by
broadening international cooperation. Its creation cause manufacturing jobs in developed countries to transfer to
less developed nations in order to reduce the cost of their products.

Watch this…

Knowledge Enhancer: https://youtu.be/fTTGALaRZoc

Engaging Activity 3: The Chart (Answer this)

Direction: Based on your reading, fill in the chart below with the details.

International With whom Where By When What Goal

Financial
Institution

1. IMF

Processing:

1. Which of the identified International Financial Institution have a great contribution to our country?

2. Are these International Financial Institution significant in strengthening a country’s economy?

You will be rated based on the following rubrics.

CHART RUBRIC

Exceeds Good Fair Poor

10 pts 7 pts 4 pts 2 pts

Good
Fair Poor
Exceeds
Chart meets all
required elements; Does not have all of The chart is
The chart however, it does the required lacking in
Chart includes all its not utilize the elements of the elements
Requirements required resources in the chart. Also, sources required and in
elements. It also most effective are not used in an resources used.
includes manner. Includes effective manner, or There are many
effective use of the minimum there is not enough gaps in
sources. amount of information information
required presented. presented.
information
 Poor
Exceeds
Good
Fair Work is done
The work done
with little effort,
exceeds all The work was done
quality is not
expectations and with good effort Work is done with
what the learner
Work shows that the that shows what fair effort, but the
is capable of. It is
quality/effort learner is proud the learner is quality is still not
evident that the
of his/her work. capable of. It is what the learner is
work was rushed
The effort that evident that time capable of. It is
and little time
was put into this was put into this evident that the
was spent on the
task is the best it poster and work was rushed.
final product.
can be by the presentation.
Work is
learner.
incomplete.

Exceeds
Poor
The chart has an Good Fair
element of
The chart lacks a
creativity and
The chart is clear The chart lacks style clear
Style/Mechanic style, and is not
and logical and and reads more like understanding of
s just a list of
contains facts as a list of facts than an the subject
facts. The chart
well as very few oral presentation. matter and there
is presented in a
mistakes. Good The chart lacks are many errors.
clear and concise
clear presentation. neatness and clarity Chart is not
manner with full
creative.
understanding of
the subject.

Engaging Activity 4: Arrange Me Orderly (5 minutes)

(Outcome 3: Trace the history of global market Integration)

Direction: Study the picture below and arrange them according how our economy progresses.

Picture 1 Picture 2

Picture 3 Picture 4

Pictures are taken from https://www.google.com/search?

q=industrial+revolution&tbm=isch&ved=2ahUKEwjk44jLneDqAhVK15QKHXEKBL0Q2-cCegQIABAA&oq=in
Engaging Activity 5: Match with the Pic (10 minutes)

Direction: With the picture given in activity no 4, match the description of the history of Global Market

Integration with the given explanation below.

1. When people learned how to domesticate plants and animals, they realized that it was much more
productive than hunting. So agricultural economy became the new trend. Farming helped societies
build surpluses and provide food for everyone.

2. In 1800, industry came the new economic tool, like steam engines, manufacturing and mass production.
Factories popped up and changed how work functioned. Productivity went up, standard of living rose
and people had access to a wider variety of goods due to mass production.

3. There are two competing economic models, that sprung up around the time of the industrial revolution,
as economic capital became more and more important to the production of goods. These were
capitalism and socialism. Capitalism is a system in which all natural resources and means of production
are privately owned (Aldama, 2018). Capitalism is an economic system where private entities own
the factors of production. The four factors are entrepreneurship, capital goods, natural resources,
and labor. The owners of capital goods, natural resources, and entrepreneurship exercise control
through companies. The individual owns his or her labor. The only exception is slavery, where someone
else owns a person's labor. Although illegal throughout the entire world, slavery is still widely
practiced. Socialism is an economic system where everyone in society equally owns the factors of
production. The ownership is acquired through a democratically elected government. It could also be a
cooperative or a public corporation where everyone owns shares. The four factors of production
are labor, entrepreneurship, capital goods, and natural resources(Kimberly Amadeo, 2020)

4. Technology has reduced the role of human labor and shifted it from a manufacturing based economy to
one that is based on service work and the production of ideas rather than goods. This has had a lot of
residual effects on our economy. Computers and other technologies are beginning to replace many jobs
because of automation or outsourcing jobs offshore.

Processing: (SHORT ANSWER)

1. How did the history of global market integration help you understand the movement of a country’s
economy?

2. Is our country already in the Industrial stage?

Knowledge Enhancer: https://youtu.be/Yocja_N5s1I

https://youtu.be/zhL5DCizj5c
Engaging Activity 6: Chain of Events (DO THIS)

(Outcome 3: Trace the history of global integration)

Direction: Based on activity no. 3 & 4 create a chain of events showing the history of Global Market Integration.

THE HISTORY OF GLOBAL MARKET INTEGRATION

Rubric for chart maybe used for this activity (please refer to Activity no.3)

Processing:

1. What are the effects of information revolution in today’s global market?

2. Which of the two models, socialism or capitalism, would work in our country?

Congratulations! you are now ready to talk about global corporations

Engaging Activity 7: Let Talk About Corporations (5 min)

Can you
determine the 1. Touch the Perfection
multinational 2. The power of Dreams
corporation with
these tagline/ 3. Digitally Yours
slogan ? 4. What we’re Made Of

5. Taste The Feeling

Guide Questions:

1. Could there be a party without the soda?

2. Would you say that Samsung is a good product and a good company?

3. Which one would you prefer to buy a Toyota or a Honda?

4. Where would you like to eat McDonalds or Jollibee?

5. Which do you prefer to drink Coke or Pepsi?

 These products are manufactured by multinational corporations or global corporations.

GLOBAL CORPORATIONS

The increase in international trade has both created and been supported by international regulatory groups,
WTO. The regulatory groups and agreements regulate the flow of goods and services between countries. Thus,
companies can produce their goods and services across many different countries. For instance, you can have a
backpack that was designed in US but the materials came from China and put together in Mexico.

These companies that extend beyond the borders of one country are called Multinational or Transnational
Corporations (MNCs or TNCs) They intentionally surpass national borders and take advantage of opportunities in
different countries to manufacture, distribute, market and sell their products. Global corporations locate their
factories in countries with cheap labor to save up expenses of the product.

By most accounts, the other major player in economic globalization (beyond the nation-state and the
organizations discussed above) is the multinational corporation (MNC). Also of importance are transnational
corporations (TNCs). While TNCs involve operations in more than one country, MNCs operate in more than two
countries. We will generally use the term MNC in this book to encompass both MNCs and TNCs. There are many
who believe that the MNC has grown more powerful, perhaps much more powerful, than the nation-state and any
of the organizations described above that are based on nation-states. For example, dela Dehesa (2006:85) argues:
―We have to get used to the fact that, thanks to the globalization process, companies rather than states will be
the lead in g actors in the world economy. " There is no question that MNCs are increasingly important on the
global scene. Adapting Dicken's (2007:106) definition of a TNC, an MNC is "a firm that has the power to coordinate
and control operations" in more than two countries, "even if it does not own them.‖ This means that they operate
in an array of economic, political, social and cultural environments. While MNCs have proliferated and grown in
recent years, companies that operate, have interests, and have activities outside a home country are not new, and
this was exemplified by, among others, the East India Trading Company and the Hudson's Bay Company.

Why do companies become multinational or transnational? One set of reasons relates to market-oriented
investments made necessary by the geographic unevenness of markets. A company may reach a saturation point
in its domestic market: identify new markets that require its direct presence, find that unless it becomes
transnational or multinational it will have its markets restricted because of political regulations, find a foreign
market is so idiosyncratic that it can deal with it only by being physically present in it, or discover that there are
strong cultural and political reasons for it to be present in other countries. There are also reasons relating to
market-oriented investment necessitated by the geographic.

Knowledge Enhancer: https://youtu.be/5C8hLIpZcXo

https://youtu.be/RP0FvlTGuvo

Engaging Activity 8: Let’s Do Comics

(Outcome 4: Develop a comic strip showing the impact of a selected

multinational corporation to the Philippines- 30 min.)

Direction:

1.Select a multinational corporation we have in the Philippines.

 2.Develop a 2 page comics with 6 frames each page

showing the impact to the Philippine economy

Sample comic taken from: https://www.google.com/search?

q=comics&tbm=isch&ved=2ahUKEwi8l9mrn-
DqAhVWyosBHZHjCwUQ2-

Short answer: (Answer this)

Processing: 1. Do you think the positive effects of multinational corporations outweighs the negative effects?

Why? Or why not?

2. Of your chosen multicultural corporation, what benefits did our country enjoy?

Rubric taken from: https://www.google.com/search?

q=comic+rubric&sxsrf=ALeKk015O1KWp418yiQiUA7KmXWu7dehpw:1595400213822&tbm=isch&source=

Knowledge Enhancer: https://youtu.be/GmomzubjO1I

SYNTHESIS:

CLOSING GUIDE : (DO THIS)

To check your understanding let us do this activity

1. Make a slogan about your understanding on different International Financial Institutions.

2. Make a “hugot” line about global corporation.

Criteria:

 3 points max - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas

 2 points max - effective manner or structure of explanation of knowledge or ideas (grammar and
convincing or persuasiveness factor)
QUESTIONS. (Answer This)

1. How the different financial and economic institution did facilitated the growth of the global economy?

2. What is your idea of market integration?

3. Can you cite the various financial institution that have impact to the country’s economy?

4. Should capitalism or socialism be followed in the Philippines?

5. Do global Corporation have social responsibility to end poverty? Justify your answer.

6. What do you think would be the role of the nation-state with respect to the changes in the world economic
system?

Criteria:

 8 points max - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.

 2 points max -statements and responses structure and grammar

REFLECTION STATEMENTS (Short answer)How is studying Market Integration help you understand
the flow of economy?
(ANSWER THIS)

ASSESSMENTS(ANSWER THIS) (I) All competencies/outcomes based teaching-learning activities serve

as the major assessments.

(II) Identification

Directions. Identify the following questions below:

_______1. A forum for the meeting of representatives from 23 member

countries. It focused on trade goods through multinational trade
agreements conducted in many “rounds” of negotiation.

_______2. When was Bretton Wood system established?

_______3. It is an independent multilateral organization that became

responsible for the liberation of trade.

_______4. It is the second major economic revolution

_______5. A trade pact between the US, Mexico and Canada

(III) TRUE or FALSE.

Directions: Write TRUE if the statement is True, write the correct

answer if the statement is False.

______1. Capitalism is a system in which all natural resources and

means of

Production are privately owned.

______2. Robber Barons made distinction between two systems of

 globalization.

______3. OECD means Organization for Economic Corporation and

Development

______4. The European Union is the world’s largest common market,

composed of 28 European nations

______5. The Organization of Petroleum Exporting Countries (OPEC)

was formed because member countries wanted to increase the price of
oil.

ASSIGNMENTS A. The students will answer the following:

(ANSWER THIS)

1. What is the current state of the market in your

barangay/municipality/city/region?

Explain each.

2. How can you assess our Government here in the Philippines in

handling the economy amidst this pandemic?

3. Do you think that the Global Market can recover? When and
how?

B. Research on The Global Interstate System:

1. Effects of Globalization to Government

2. The Interaction between the nation-state and international

organization.

3. The Challenges Encountered in Globalization

4. The Relevance of the State amid Globalization

RESOURCES: Aldama, P. (2018). The contemporary world. 856 Nicanor Reyes, Sr.
Street Recto Avenue

Manila Philippines: Rex Bookstore.

Amadeo, Kimberly (2020) Capitalism: Its Characteristics, Pros and Cons

Retrieved from

http://www.thebalance.com/capitalism.

Claudio, L. & Abinales P. (2018). The contemporary world 839 EDSA,

South Triangle,

QuezonCity: C&E Publishing.

Globalization. (2019). In Wikipedia, the free encyclopedia.

Retrieved from https://en.wikipedia.org/wiki/Globalization

San Juan, D. (2018). Journeys through our contemporary world. 1253 G.

Araneta Avenue
 cor. Ma Clara Street, Talayan, Quezon City: Vibal Group.

Industrial Revolution ( https://www.investopedia.com).