CHANGES  IN  GDP  
   
AND  WORLD  TRADE    
EMERGENCE    
"COLOQUE  AQUÍ  UNA  
  OF  GLOBAL  
CITA  PARA  RESALTAR  
 

United States although it is still the INSTITUTIONS  

ESTE  NÚMERO  DEL  
   

largest industrial power since 2018

significantly decreased its relative
BOLETÍN".  
size in other countries increased
their participation in global
 
production as China.    
Institutions were created in order to
      manage, regulate, monitor the world In the last three decades we live
        the multinational
market and promote in a world in which the volume of
treaty establishments that govern the goods, services and investments
global business system. that cross national borders
  expands faster than world
production on a constant basis, is
WTO (world trade organization)
encourages the reduction of trade a world in which the symbols of
barriers. popular culture they are
     
increasingly universal, a world in
IMF (international monetary fund)
maintains order in the international
which products are made with
monetary system. inputs that come from all regions
CALLE   of the planet.  
World Bank promotes economic
CIUDAD,  PROVINCIA,  CÓDIGO   POSTAL.  
development MEMBERS:  
NÚMERO  DE  TELÉFONO  
UN (Unites national) preserves peace
SITIO  WEB   Samantha Alvarado, Luis Guaman,
international cooperation. Elizabeth Jarro,
     
      Michelle Orellana, Luis Pañi.
GROUP:  2  
      
         
  GLOBALIZATION  DEBATE     DRIVERS OF GLOBALIZATION   GLOBALIZATION    

  There are two general factors that are the

  basis of the growing trends that drive
Extend different points of view globalization and are:
on globalization because some  
 
Ø The reduction of barriers in free Definition:
people have points in favor and
 
transit of goods,
 
services and Refers to the shift toward a  
others against.
capital:   more integrated and
interdependent world
Helps companies to have greater economy. Has several facets,
Against:   participation with international
  trade and to   including the globalization of  
locate their production in an optimal place. markets and the of production.
§ Loss of jobs in different sectors  
by foreign competitors Benefits:
§ Suppresses manufacturing jobs • They have access to international
in rich and advanced trade. Globalization of market:
economies.        
• They can make a direct foreign
Refers to the merging of
In favor: investment.
      historically distinct and  
ü Stimulates economic growth. separate national markets into
Ø Function   of   the   technological  
ü Generates jobs. one huge global Marketplace
change:   it   has   generated   great      
ü Increases income levels.
ü The benefits outweigh the   advances  in  theology
  .
  costs. Globalization of production:
   

  Refers to the 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
 
           
 
 HDI IS BASED ON THREE ECONOMIC
MEASURES SYSTEMS
Can   identify   three   broad   types   of   economic  
systems.  
MARKET   ECONOMY:   Supply   and   demand  
determined   production   and   this   affects  
producers  through  the  price  system.  
COMMAND   ECONOMY:   The   government  
plans   the   goods   and   services   that   a   country  
produces   the   quantity   in   which   they   are  
produced  ant  the  prices  at  which  are  sold.  
    MIXED   ECONOMY:   Certain   sectors   of   the  
economy   are   left   to   private   ownership   and  
STATES IN v free  market  mechanisms,  while  other  sectors  
have   significant   state   ownership   and  
TRANSITION government  planning.  
Transition   of   the   states   is   given   by   two  
 
factors:   The   spread   of   democracy,   and   the  
spread  of  free  market  economies.   NATIONAL
The  spread  of  democracy   LAW SYSTEMS DIFFERENCES IN
Democracy   is  a  good  engine   of   growth,   only   a  
POLITICAL ECONOMY
totalitarian   regime   committed   to   a   free   Refers   to   the   rules,   or   laws,   that   regulate  
market   system   and   that   protects   property   behavior   along   with   the   processes   by   which   International   business  in  much   more  
rights   is   capable   of   boosting   economic   the   laws   are   enforced   and   through   which   complicated  than  domestic  business  
development.   redress  for  grievances  is  obtained.   International
because   business
countries   differ   in  in many  
much more
complicated
ways.   than domestic
Countries   business because
have   different  
COMMON   LAW:   is   based   on   tradition,  
Dissemination of market precedent,  and  custom.  
countries differ in many ways.
political,   economic   and   legal   Countries have
different   All  political,
systems.   economiccan  and legal
these   differences  
systems
The foundation's economic freedom index is CIVIL   LAW:   is   based   on   detailed   set   of   laws   systems.
organized  into  codes.   and   do   have  All these
major   differencesfor  
implications   can and do
based on the following indicators - the extent have major implications for the practice of
THEOCRATIC  LAW:  is  one  in  which  the  law  is   the   practice   of   international  
to which the government intervenes in the international business.
based  on  religious  teachings.   business.  
economy.
   

 
The foundation's economic freedom index is POLITICAL ECONOMY POLITICAL
based on the following indicators - the extent v
AND ECONOMIC SYSTEMS
to which the government intervenes in the
economy DEVELOPMENT
- Business rules
- Degree to which property rights are
protected      
 
-Regulation of foreign investment
The  political,  economic  and  legal   systems   of   a   It   is   the   system   of   government   of     a  
-Financial standards country   have   a   profound   effect   on   the   level   nation  are  evaluated  in  two  dimensions  
  of  economic  development   of  a  country.  
 
1. COLLECTIVISM  OR  INDIVIDUALISM  
Dissemination  
  of  democracy     • COLLECTIVISM:  gives  primacy  to  
DIFFERENCES IN
  collective   goals   rather   than  
There are three main reasons for the spread of ECONOMIC individual  ones.  
democracy.   DEVELOPMENT • SOCIALISM:   it   is   a   social   and  
The   indicators   to   measure   the   economic   economic   system   characterized  
 
- Many totalitarian regimes did not generate development  of  a  country  are:     by  control  by  society.  
economic progress
  for the vast majority of the
Gross   national   income   (GNI):   This   measures   • INDIVIDUALISM:   the   individual  
population.
  the   total   annual   income   received   by   the   must   be   free   to   seek   their  
-The new information and communication economic  and  political  interests.  
  inhabitants  of  the  same.    
technologies  
Purchasing   power   parity   (PPP):   This  
 
-The economic advances that have generated 2. DEMOCRATIC  OR  TOTALITARIAN    
measures   the   total   annual   income   received    
increasing prosperity in the middle and by  the  inhabitants  of  the  same.  
  • DEMOCRACY:   it   is   the   political  
working classes, which have driven
  system   in   which   the  
democratic   reforms. BROADER
government   belongs   to   the  
  CONCEPTIONS
  OF people.  
 
DEVELOMENT    
Sen   explains   that   development   should   be   • TOTALITARIANISM:   It  is   a  way   in  
  evaluated   with   fewer   measures     of     which  a  person  or  political  party  
production  and  more  with  the  services  and   exercise  absolute  control.  
 
opportunities   that   people   have,   based   on  
this   the   UN   developed   the   Human  
 
Development   Index   (HDI)   to   measure   the  
  various  nations.  
quality  of  human  life  in  
 

 
IMPLICATIONS  OF  CHANGING   NATURAL OF ECONOMY
POLITICAL  ECONOMY     TRANSFOMATION  
An economic market system has several stages:
• Deregulation,    
  • Privatization  and    
  • Creation   of   a   legal   system   to   protect  
property  rights.  
 

Deregulation  

Involves   removing   legal   restrictions  

to  the  free  play  of  market.    

Privatization  
It   is   a   governmental   measure,   which  
transfers   the   ownership   of   state  
companies   to   private   individuals,  
usually  through  public  sale.  
 

Legal System  

it   serves   to   protect   the   rights   of  

private   property   and   offer  
mechanisms  to  enforce  contracts.