TCW chap 1-4 study set with complete solutions.

The contemporary world •is an ever-changing mix of social and political changes. • the circumstances and ideas of the present age; • "in modern times like these" modern times, modern world, present times. True True or False? While religious, political, and ethnic conflicts continue, we are currently living in one of the most peaceful eras in the history of the planet. Challenges of the 21st century include emerging technologies, health care, overpopulation, climate change, poverty, illiteracy, disease, and migration. Times • a more or less definite period of time • now or previously present; "it was a sign of the times" 1. Climate Change 2. Pollution 3. Violence 4. Social and Well Being 5. Lack of Education 6. Unemployment 7. Government corruption 8. Malnourishment and Hunger 9. Substance Abuse 10. Terrorism Top 10 Current Global Issues Climate Change − The global temperatures are rising and are estimated to increase from 2.6 degrees Celsius to 4.8 degrees Celsius by 2100. This would cause more severe weather, crises with food and resources and the spread of diseases. − The reduction of greenhouse emissions and the spreading of education on the importance of going green can help make a big difference. − Lobbying governments and discussing policies to reduce carbon emissions and encouraging reforestation is an effective way of making progress with climate change. Pollution - one of the most difficult global issues to combat, as the umbrella term refers to ocean litter, pesticides and fertilizers, air, light and noise pollution. − Clean water is essential for humans and animals, but more than one billion people don't have access to clean water due to pollution from toxic substances, sewage or industrial waste. It is of the utmost importance that people all over the world begin working to minimize the various types of pollution, in order to better the health of the planet and all those living on it. Clean Water is essential for humans and animals, but more than one billion people don't have access Violence Violence can be found in the social, cultural and economic aspects of the world. Whether it is conflict that has broken out in a city, hatred targeted at a certain group of people or sexual harassment occurring on the street, is a preventable problem that has been an issue for longer than necessary. With continued work on behalf of the governments of all nations, as well as the individual citizens, the issue can be addressed and reduced. Security and Well Being The U.N. is a perfect example of preventing the lack of ____________ that is a serious global issue. Through its efforts with regional organizations and representatives that are skilled in security, the U.N. is working toward increasing the well-being of people throughout the world. Lack of Education A current global issue, where More than 72 million children throughout the globe that are of the age to be in primary education are not enrolled in school. 1.Inequality, 2.Marginalization, 3.Poverty Lack of Education can be attributed to 1.__________ and 2._________ as well as 3.______________. Fortunately, there are many organizations that work directly with the issue of education in providing the proper tools and resources to aid schools. Unemployment − Without the necessary education and skills for employment, many people, particularly 15- to 24- year olds, struggle to find jobs and create a proper living for themselves and their families. This leads to a lack of necessary resources, such as enough food, clothing, transportation and proper living conditions. Fortunately, there are organizations throughout the world teaching people in need the skills for jobs and interviewing, helping to lift people from the vicious cycle of poverty. Government Corruption -is a major cause of poverty considering how it affects the poor the most, eroding political and economic development, democracy and more. -can be detrimental to the safety and wellbeing of citizens living within the corrupted vicinity, and can cause an increase in violence and physical threats without as much regulation in the government. Malnourishment & Hunger A current global issue, where people do not have enough to eat. Ending poverty. With fighting poverty through proper training for employment, education and the teaching of cooking and gardening skills, people who are suffering will be more likely to get jobs, earn enough money to buy food and even learn how to make their own food to save money. Long-term success to ending world hunger Substance Abuse A current global issue, where The United Nations reports that, by the beginning of the 21st century, an estimated 185 million people over the age of 15 were consuming drugs globally. marijuana, cocaine, alcohol, amphetamine stimulants, opiates and volatile solvents. The drugs most commonly used in substance abuse are: True True or False? Different classes of people, both poor and rich, partake in substance abuse, Terrorism -is an issue throughout the world that causes fear and insecurity, violence and death. Across the globe, terrorists attack innocent people, often without warning. This makes civilians feel defenceless in their everyday lives. Making national security a higher priority -is key in combating terrorism, as well as promoting justice in wrongdoings to illustrate the enforcement of the law and the serious punishments for terror crimes. Globalization -is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. − means the speed up of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. Globalization is about the interconnectedness of people and businesses across the world that eventually leads to global cultural, political and economic integration. WHY IS GLOBALIZATION IMPORTANT? Economic Process Globalization as an_____________ − the increasing linkage of national economies through trade, financial flows, and foreign direct investment by multinational firms (Gilpin). − the removal of barriers to free trade and the closer integration of National economies (Stiglitz). Expanding economic activity - is identified as both the primary aspect of globalization and the engine behind its rapid development. Cultural Process Globalization as a _______________ − a densely growing network of complex cultural interconnections and interdependencies that characterize modern social life (Tomlinson) − Culture no longer remains tied to fixed localities such as town and nation but acquires new meanings that reflect dominant themes emerging in a global context. Political Process Globalization as a ____________ − the reduced control of national governments over economic policy − a process connected to the expansion of markets- in particular, steady advances in communication systems are the primary forces responsible for the creation of a single global market. (Bryan, Farrell) − gradual processes of 'relative deterritorialization' that facilitate the growth of 'supraterritorial' relations between people − allows many goods to be more affordable and available to more parts of the world. It helps improve productivity, cut back gender wage discrimination, give more opportunities to women and improve working conditions and quality of management, especially in developing countries. 1. Increased transportation 2. the global shift of polluting manufacturing industries has resulted in environmental degradation. 3. Pollution is affecting people's health 4. a negative impact on biodiversity levels globally. HOW DOES GLOBALIZATION AFFECT US? → Globalization Benefits World Economies → Foreign Direct Investment: Foreign direct investment (FDI) tends to increase at a much greater rate than the growth in world trade, helping boost technology transfer, industrial restructuring, and the growth of global companies. Who does globalization benefit? → Globalization creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world. Thus, businesses located in developing countries have more access to capital flows, technology, human capital, cheaper imports, and larger export markets. What is the impact of globalization? → Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure. What are the positive effects of Globalization? → They may pollute the environment, run risks with safety or impose poor working conditions and low wages on local workers. Globalization is viewed by many as a threat to the world's cultural diversity. What is the negative effect of globalization? → Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. ... Likewise, for centuries, people and corporations have invested in enterprises in other countries. What is globalization process? 1. THE ERADICATION OF EXTREME POVERTY AND HUNGER 2. ACHIEVING UNIVERSAL PRIMARY EDUCATION 3. PROMOTING GENDER EQUALITY AND WOMEN EMPOWERMENT 4. REDUCING CHILD MORTALITY 5. IMPROVING MATERNAL HEALTH 6. COMBATING DISEASES LIKE HIV/AIDS AND MALARIA 7. ENSURING ENVIRONMENTAL SUSTAINABILITY 8. HAVING A GLOBAL PARTNERSHIP FOR DEVELOPMENT EIGHT MILLENNIUM DEVELOPMENT GOALS 1890's What year was the 8 Milllenium Goals created? 2015 UN tried to achieve the SDG goals by the year _______ the POVERTY LINE or POVERTY THRESHOLD A Filipino making less than 100,534 pesos a year, around 275 pesos a day which is called the o Food o safe drinking water o sanitation facilities o health o shelter o education o information - According to the United Nations, a severe deprivation of basic human needs including: 1. better access to education 2. humanitarian aid 3. policies of international organizations like the UN Factors that would made a difference from extreme poverty falling: Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers and is an irreversible trend for the economic development in the whole world at the turn of the millennium." China, The United States and Australia In the Philippines, cross border trading can be best illustrated by the country's trading partnerships with 1.__________ 2.___________ 3.__________ Moreover, the flow of international capital can be observed in Foreign Direct Investments. FDI (Foreign Direct Investments) - a type of investment in which a company establishes a business in another country for production of goods or services and still takes part in the management of the business. - Example: Toyota Motor Philippines Corporation which is a subsidiary of Toyota Motor Corporation based in Toyota Japan. - This flow of international capital can also be observed in: o foreign portfolio investments o trade flows o external assistants o external commercial borrowings o private loan flows INTERNATIONAL MONETARY FUND (IMF) - regards "economic globalization" as a historical process representing the result of human innovation and technological progress. - Characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders o movement of goods o services o capital across borders - These changes are products of people, organizations, institutions, and technologies. As with all other processes of globalization, there is a qualitative and subjective element to this definition. The IMF is characterized by: Silk Road -a network of pathways in the ancient world that spanned from China to what is now the Middle East and to Europe - oldest known international trade route - called as such because one of the most profitable products in the network was silk which was highly priced in the areas such as Middle East and in the west which is today's Europe. Traders used Silk Road regularly from 130 BCE when the Chinese Han Dynasty opened trade to West until 1453 BCE when the Ottoman Empire closed it (historically, these routes led to the discovery of the Philippine islands when Portuguese and Spanish envoys were in search of spices, which then spawned colonization.) What Dynasty and year during the Silk Road? False. while the Silk Road was international, it was not truly "global" because it had no ocean routes that could reach the America continent. True or False? The silk road was considered "global" According to Flynn and Giraldez (historians): → "the age of globalization began when all important populated continents began to exchange products continuously- both with each other directly and indirectly via other continents and in values sufficient to generate crucial impacts on all trading partners " When did full economic globalization begin? GALLEON TRADE IN 1571 - connected Manila in the Philippines and Acapulco in Mexico; traced back by Flynn and Giraldez - first time that the Americans were directly connected to Asian trading routes - for Filipinos it is crucial to note that economic globalization began on the country's shores globalization of: 1. trade of goods and services cial and capital markets 3. technology and communication 4. production Four interconnected dimensions of economy: Globalization of trade of goods and services o demonstrated in the establishment of the: WORLD TRADE ORGANIZATION (WTO - 1995) ▪ the first dimension of economic interconnectedness is demonstrated in the establishment of WTO that eases trade among countries ▪ WTO ensures that trade flows as smoothly, predictably, freely as possible o another indicator is the emergence of China as a major supplier and exporter of manufactured goods that has affected the world economy. China made products or parts that are sent to the United States. To meet these demands, China creates more jobs for its citizens. 2. globalization of financial and capital markets o evident in the liberalization of financial and capital markets o this is seen in cross listing of shares of one or more foreign stock exchange 3. globalization of technology and communication o emphasizes that various transactions and interactivities that transpire instantly due to the internet and communication and technology globalization of production o illustrated by the existence of MULTINATIONAL CORPORATIONS (MNCs) and TRANSNATIONAL CORPORATIONS (TNCs) o Coca Cola company is an example of an MNC based in Atlanta, Georgia, USA o Toyota motor corporation is also an MNC the economy The social institution that has one of the biggest impacts on society people What composes the economy? Primary, Secondary and Tertiary Three sectors of production Primary Sector - sector that extracts raw materials from natural environments. Examples: Workers like farmers or miners . Secondary Sector - sector that gains the raw materials and transforms them into manufactured goods. For example, someone from this sector extracts oil from the earth then someone from the secondary sector refines the petroleum to gasoline. Tertiary Sector - sector that involves services rather than goods. It offers services by doing things rather than making things. Global Market Integration • was the result of the establishment of a global economy that involved the homogenization of trade and commerce. o international trade o exchange of goods and services ▪ were already practiced prior to the trends in globalization of the 20th century Harvey (1990) - because of the developments in shipping and navigation, cities and countries were able to extend their reach beyond borders and patterns of trade and technology and this was observable in the development of maritime transport throughout history. 1) colonialism 2) imperialism → ** new ways of putting order to the economic interrelationships among countries Colonialism • is defined as "control by one power over a dependent area or people." It occurs when one nation subjugates another, conquering its population and exploiting it, often while forcing its own language and cultural values upon its people. Imperialism • can be defined as a doctrine, political strategy, practice, state policy, or advocacy that consists in extending power by territorial acquisition or by extending political and economic control outward over other areas. 1. equity 2. corporate ownership 3. management subsidiaries 4. central headquarters - w/c supply and distribute goods and services → For instance: o Spanish government in the 1600s - made use of its colonies like the Philippines and Mexico as suppliers of the resources for trade. The following were established through colonialism: The integration of the global market - did not happen overnight, this started when big American corporations began to emerge after the Second World War with the rise of new conglomerates • International Telephone and Telegraph bought: o Avis Rent-a-Car, Continental Banking, Sheraton Hotels and Hartford Fire Insurance • Japan and Europe followed suit. Japanese global automobile corporations like : o Toyota, Nissan, and Isuzu = took off after the giant American companies flourished • These companies prospered as the primary and global makers of trucks for the Japanese military. o Renault automobiles, a French multinational automobile manufacturer, was also used to help in the military post- war operations. The rise of American, Japanese, and European global corporations paved the way for the further development trade. Examples of Conglomerates International companies identified differences among international, multinational, transnational, and global companies: - are importers and exporters with no investments outside their home countries. Multinational companies (MNCs) identified differences among international, multinational, transnational, and global companies: - have investments in other countries. Global companies identified differences among international, multinational, transnational, and global companies: - have investments and are present in many countries. Transnational companies (TNCs) identified differences among international, multinational, transnational, and global companies: - have investments in foreign operations. Multinational companies (MNCs) were described to be a particular corporate form to dominate global production and exchange. the United States (US), the European (EU), and Japan The TRIAD (the major economies of the world). 1. Investment-based period () 2. Trade-based period () 3. Digital globalization (1995 onwards) Three Structural Periods in the existence of global corporations after the war: Trade-based period () • global corporations were controlled by producer- driven commodities, resulting to firms characterized by large amounts of concentrated capital focused on large-scale or capital-intensive manufacturing. Producer-Driven value streams have integrated their corporate structures to reduce the effects of time and distance in the production and consumption of goods Buyer-Driven value streams have changed the behavior of corporations in retailing their goods and services via the internet Digital globalization (1995 onwards) • affected the operation of global corporations since technology became integrated in both production and consumption. Foreign Direct Investment (FDI) • defined as funding made to acquire lasting interest in enterprises operating outside the economy of the investor in which their purpose is to gain an effective voice in the management of the enterprise (UNCTAD, 2011) • major drivers of global corporate development (cited by UN, 1960) ascent The __________ of global corporations is a reflection of a globalized market integration. 1. an agent of desired economic development 2. an economic prominence 3. a very powerful entity that can create a crisis Global Corporations' common attributes: International Financial Institutions play an important role in the social and economic development programs of developing and transitional nations. They are instrumental in the functionality of the global economy which is reliant on global corporations. Addtn'l Info 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." • 1. The Bretton Woods System • 2. The General Agreement on Tariffs and Trade (GATT) • 3. World Trade Organization (WTO) • 4. The International Monetary Fund (IMF) • 5. World Bank • 6. North American Free Trade Agreement (NAFTA) • The following are the financial institutions and economic organizations made countries even closer together, at least, when it comes to trade: The Bretton Woods System - created following World War II and was in place from 1945 to 1972. - At a 1944 summit in Bretton Woods, New Hampshire, officials from 44 countries created a new post-war global monetary system. -This approach promoted the use of gold- and foreign-currency-based exchange standards. The The U.S. dollar took over as the primary world currency, replacing the gold standard. -made America the leading economic force in the world. America was the only nation with the authority to print money once the agreement was signed. The Bretton Woods System resulted in countries pegging their currencies to the U.S. dollar. GATT Approved on January 1, 1948, after being signed by 23 countries. The World Trade Organization (WTO) was developed as a result of eight rounds of negotiations. -Trade in goods was the main emphasis of the GATT. By lowering tariffs and removing quotas among member nations, it sought to liberalize trade. Each GATT member was required to remove trade discrimination by equitably opening their markets to other GATT participants. Emphasis of GATT World Trade Organization (WTO) is an international organization created to regulate and liberalize international trade. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1947 in the expectation that it would soon be replaced by a specialized agency of the United Nations (UN) to be called the International Trade Organization (ITO).