F. L. VARGAS COLLEGE
Tuguegarao City
GRADUATE SCHOOL

Introduction to Globalization

Presented by:

CB RONIE E. SUGAROL, MPBM

LEARNING OUTCOMES:
1. Instil what is meant by the term globalization.
2. Describe the global emergence of institutions.
3. Recognize the main drivers of globalization.

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 What is Globalization?

Process by which businesses or other organizations develop

international influence or start operating on an international
trade scale.

Process in which people, ideas and goods spread throughout

the world, spurring more interaction and integration between the
world’s cultures, governments and economies

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 What is Globalization?

Types of Trade – International Trade and Domestic

Trade
International Trade – exchange of goods or services
along international borders. Allows greater competition
and more competitive pricing in the market. (1) Import
Trade, and (2) Export Trade

Domestic Trade – exchange of goods, services at

domestic border.(1) Wholesale Trade; (2) Retail Trade

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 GLOBALIZATION OF MARKETS

1. Merging of historically distinct and separate national markets

into one huge global marketplace.
2. Falling barriers to cross-border trade to sell internationally.
3. Interdependent World Economy.

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 GLOBALIZATION OF PRODUCTION
1. Sourcing of goods and services from locations around
the globe to take advantage of national differences in
the cost and quality of factors of production (labor,
land, energy and capital).
2. Lowering overall cost structure or improve the quality
or functionality of their product.
3. Effective competition.

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 GLOBAL EMERGENCE OF INSTITUTIONS

1. General Agreement on Tariffs and Trade (GATT) to World

Trade Organization (WTO) – policing the world trading
system and making sure nation-states adhere to the rules
laid down in the trade treaties signed by WTO member
states.
2. International Monetary Fund (IMF)-maintain the order in
the international monetary system
3. World Bank – to promote economic development
4. United Nations – committed to preserving peace through
international cooperation and collective security.
5. G20tx – to formulate a coordinated policy response to
financial crises in developing nations.

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 DRIVERS OF GLOBALIZATION

The main drivers of globalization:

1. International Trade (lower trade barriers and more

competition)
2. Financial Flows (foreign direct investment, technology
transfer/licensing, portfolio investment, and debt).
3. Communications (traditional media and the Internet)
4. Technological advances (transportation)
5. Population (labor)

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
 References:

1. https://BusinessDictionary.com, What is international trade?

Definition and meaning
2. https://searchcio.techtarget.com, what is globalization?
3. International Business, McGraw-Hill Education 2013 edition

FLORENCIO L. VARGAS COLLEGE

Caritan, Tuguegarao City, Cagayan, Philippines
FLORENCIO L. VARGAS COLLEGE
Caritan, Tuguegarao City, Cagayan, Philippines