Y L K E

r w y π

CONSUMER EXPENDITURE

GOODS SERVICES

SUBSIDIES TAXES

INVESTMENTS SAVINGS

IMPORTS EXPORTS
Major goals of
-the process by which nations
export and import goods,
services and financial capital.
-is VITAL to economic growth
because it
1. Different nations are endowed
with various kinds and amount of
natural resources.
2. Various nations have different
specializations that
3. The production of varied goods and
services require different combinations
of economic resources and also
particular technology.
- is a historical process, the
result of human innovation
and technological progress.
It refers to the increasing integration of
economies around the world,
particularly through the movement of
goods, services, and capital across
The term sometimes also refers to the
movement of people (labor) and
knowledge (technology) across
international borders. (IMF, 2008]
POVERTY
 Amartya Sen (1998 Nobel
laureate in economics) argues
that the “capability function”
is what really matters for
status as a poor/non-poor
 “Economic growth cannot be
sensibly treated as an end in
itself.
Development has to be more
concerned with enhancing the
lives we lead and the
Large geographic zone within
which there is a division of
labor and hence significant
internal exchange of basic or
essential goods as well as
 A defining feature of a world-
economy is that it is not
bounded by a unitary political
structure. Rather, there are many
political units inside the world-
economy, loosely tied together
in our modern world system in
EU as a trading block
North Korea is supposed to be isolated but it has
continued to be a player in the global economy
trading with China, India, France
and the Philippines.
 What unifies the global
economic system most is the
DIVISION OF LABOR.
Although the economic global system
has some common cultural patterns,
called “GEOCULTURE”.
It does mean that neither political nor cultural
homogeneity is to be expected or can be found
in a world-economy.
Henry Sy and SM Holdings
 Economic Recession

-a downturn in real GNP for

two or more successive
quarters.
 Economic Depression
A prolonged period
characterized by high
unemployment, low output
and investment, depressed
business confidence, falling
prices, and widespread