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Republic of the Philippines

EASTERN VISAYAS STATE UNIVERSITY
Tacloban, City
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Building Globally Competitive Professionals

ECONOMIC DIMENSIONS OF GLOBALIZATION

In partial fulfillment in the subject

The Contemporary World

Submitted to:
Ms. Melanie N. Engcoy

Submitted by:
Janya Carissa Macailao
Sunshine Moriles
Gina Reyes
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TABLE OF CONTENTS

Cover Page ……………………………………………................................ i

Table of Contents…………………………………………………………...…..ii

Objectives ……..…………………………………………………………….…... 1

Discussion………………………………………………………………………....2-4

Defining the Economics of Globalization……………………………..…2

Elements of Economic Dimension………………………………………..3

Tracing the Different Dimensions Facilitating Economic Globalization..3

Global Trade of Goods and Services…………………………………...…3

Global Financial, Capital, and Labor Markets…………………………….4

Globalization of Technology and

Communication………………………..4

Globalization of Production Processes……………………………………4

Assessment ………………………….................................................................4
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LEARNING OBJECTIVES

At the end of the discussion, students are expected to accomplish the

following learning objectives:

● Trace the different dimensions facilitating economic globalization

● Explore the different opportunities and challenges presented by

economic globalization.
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Economic Globalization

Economic globalization 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 borders. The term sometimes also refers to the
movement of people (labor) and knowledge (technology) across international
borders.

Elements of Economic Globalization

1. International Trade – The exchange of goods and services across

countries, increasing competition and expanding markets.

2. Capital Flows – Includes foreign direct investment (FDI), stock markets,

and other international financial transactions.

3. Multinational Corporations (MNCs) – Large companies operating in

multiple countries, such as Apple, Toyota, and Coca-Cola, which accelerate

globalization in business.

4. Global Labor Market – The movement of workers across borders,

including labor migration and outsourcing, allowing companies to access a

diverse workforce.

5. Technology and Innovation Transfer – The spread of new technologies

and innovations worldwide, improving productivity and economic growth.

6. International Economic Policies and Agreements – Trade agreements

like the World Trade Organization (WTO), and policies that facilitate

economic integration.

7. Global Financial Systems – International banking, currency exchange,

and financial institutions like the International Monetary Fund (IMF) and World

Bank that influence global economic stability.

Tracing the Different Dimensions Facilitating Economic Globalization

Economic globalization is driven by technology, trade liberalization, financial

integration, and multinational corporations. Advances in communication and

transportation improve global transactions, free trade agreements remove

barriers, financial markets enable cross-border investments, and multinational

corporations expand economic activities worldwide.

Opportunities and Challenges of Economic Globalization

Economic globalization creates opportunities like access to new markets,

more jobs, technological growth, and economic expansion. Businesses can

expand globally, and consumers benefit from diverse goods and services.

However, challenges include job losses due to outsourcing, rising economic

inequality, struggles for developing nations to compete, and global economic

crises affecting multiple countries.

Global Trade of Goods and Services

This aspect of globalization involves the exchange of products and services

across international borders. It allows countries to specialize in producing

goods where they have a comparative advantage and to import others,

leading to more efficient global resource allocation.

Global Financial, Capital, and Labor Markets

Globalization has led to the integration of financial systems, enabling capital

to flow more freely between countries. This integration allows for diversified

investment opportunities and access to international funding. Similarly, labor

markets have become interconnected, with workers moving across borders in

search of better opportunities.

Globalization of Technology and Communication

Advancements in technology and communication have diminished

geographical barriers, enabling instantaneous information exchange and

collaboration worldwide. This has accelerated innovation and the spread of

new technologies.

Globalization of Production Processes

Companies increasingly distribute different stages of their production

processes across various countries to capitalize on cost efficiencies and

specialized skills. This has led to complex global supply chains.

ASSESSMENT

1. Get a 1/2 crosswise sheet of paper.

2. Write a short essay (at least 5 sentences) explaining what you have

learned about the economic dimension of globalization today.