,,m .

bvgfrContemporary World
BTVTED-AT/1ST YEAR
5:00-6:00 PM
OUTLINE
MEMBERS:
QUINTERO, KRIS LAWRENCE G.
LU, CARL KENNETH
RAMOS, JB T.
AGUILAR, NIKKO ADRIAN
LOLOY, JESRAIL M.
ABOLOC, WENDIL
CINCO, JOHN DAVE C.
LEONES, JAIME M.
LABUAN, NIEL JOHN L.

INTERNATIONAL FINANCIAL INSTITUTIONS AND GLOBAL CORPORATION:

TOPIC 1 – A
Global economy refers to the interdependence and interconnectedness of economic activities
around the world and within different countries.
International Financial Institutions (IFIs) and Global Corporations are deeply connected to the
global economy through financial stability, trade, and investment.

How They Connect to the Global Economy:

IMF & World Bank’s Role
The IMF stabilizes economies by offering financial aid and policy guidance, preventing global
financial crises.
The World Bank funds infrastructure and development projects, boosting economic growth
worldwide.
Global Corporations’ Influence
Investment & Trade: MNCs drive globalization by expanding markets and supply chains across
countries.
Job Creation: They provide employment, especially in developing nations.
Financial Stability & Growth
IFIs ensure smooth capital flows and currency stability, making global trade more predictable.
MNCs depend on stable economies for profitable operations, often benefiting from IFI-backed
policies.

Topic 1-B
When analyzing the impact of multinational corporations (MNCs) on the global economy
through the lens of international financial institutions (IFIs) like the World Bank and IMF, key
areas of focus include the influence of MNC practices, policies, and governance on economic
development, market stability, and social responsibility, often leading to significant impacts on
developing countries, particularly regarding capital flows, technology transfer, employment
generation, and environmental regulations, sometimes raising concerns about potential
exploitation and uneven distribution of benefits.

GLOBAL GOVERNANCE IN THE 21ST CENTURY: THE GOVERNMENT AND THE

STATE:
Topic 2-A
In the 21st century, global governance involves governments, international organizations, and
civil society working together to address global issues.
Climate change is one of the major challenges in the 21st century, causing more frequent and
intense weather events, rising sea levels, and other changes to the environment.
A. The Role of the Nation-State
A nation-state is a group of people with a shared culture and heritage who also operate under a
common government. "Nation" refers to the shared culture, while "state" refers to the
government that has sovereignty over that nation.
This is the examples of nation states government and the challenges that they faced in
globalized world:
Philippines:
Natural Disaster Vulnerability:
Frequent typhoons and earthquakes cause significant economic damage and disrupt
development efforts.
Skilled Labor Shortage:
Lack of highly skilled workers limits the country's ability to attract high-value investments.
Weak Institutions:
Corruption and inefficient bureaucracy hinder business operations and investment.
Environmental Degradation:
Rapid economic growth can lead to environmental problems like deforestation and pollution.

Japan:
Labor shortages:
Due to the aging population, there is a growing shortage of skilled workers, impacting economic
growth and competitiveness.
Climate Change and Natural Disasters:
Japan is prone to natural disasters such as earthquakes, tsunamis, and typhoons. These pose
significant risks to infrastructure, economic stability, and the safety of its population.

Global Health Challenges:

The COVID-19 pandemic highlighted the vulnerability of countries worldwide to global health
crises. The world faced challenges with managing public health, maintaining economic activity,
and ensuring access to vaccines and medical supplies.

Topic 2-B
Effectiveness of Global Governance Frameworks and Institutions in Addressing Contemporary
Global Issues Global governance frameworks and institutions play a crucial role in managing
contemporary global challenges, including climate change, economic instability, conflict
resolution, public health, and human rights. Their effectiveness varies based on factors such as
institutional design, political will, and enforcement mechanisms. Below is an evaluation of some
key institutions and frameworks.
1.United Nations (UN)
Strengths: Comprehensive Mandate: Addresses a broad range of issues, from peacekeeping to
development. Global Legitimacy: Recognized by almost all countries, providing a platform for
international cooperation. Specialized Agencies: Bodies like WHO, UNDP, and UNEP play a
role in health, development, and the environment.
Weaknesses: Limited Enforcement Power: Resolutions often depend on member states’
compliance. Bureaucratic Inefficiencies: Slow decision-making and financial constraints. Veto
Power in Security Council: Limits effectiveness in addressing conflicts due to geopolitical
interests. Example: UN peacekeeping missions have had mixed results—successful in countries
like Liberia but struggling in conflicts like Syria due to political divisions
2. World Trade Organization (WTO)
Strengths: Promotes Global Trade: Ensures rules-based trade and dispute resolution. Facilitates
Economic Growth: Helps integrate developing economies into global markets.
Weaknesses: Dispute Settlement Challenges: The Appellate Body has faced paralysis due to US
blockages. Limited Power over Economic Inequality: Struggles to address the unequal
distribution of trade benefits. Example: WTO’s inability to resolve US-China trade disputes
highlights its limitations in managing economic tensions between major powers.
3. International Monetary Fund (IMF) & World Bank
Strengths: Financial Assistance: Provides economic stabilization for struggling economies.
Capacity Building: Supports structural reforms in developing countries.
Weaknesses: Structural Adjustment Criticism: Imposed austerity measures have led to economic
hardships.
Summary:
Topic 1-A
The interdependence of financial activities across nations shapes the global economy. By
offering financial assistance, advising on policy, and financing development initiatives,
international financial institutions (IFIs) such as the World Bank and IMF promote economic
stability. Through trade, investment, and the creation of jobs, especially in underdeveloped
countries, multinational firms propel globalization. By guaranteeing seamless capital flows, IFIs
contribute to the preservation of financial stability, which benefits international firms doing
business in stable nations. Economic growth and predictability in international commerce are
fostered by this interdependence.

Topic 1-B
According to IFIs like the World Bank and IMF, the effects of multinational corporations
(MNCs) on the global economy center on social responsibility, market stability, and economic
development. MNCs have an impact on environmental regulations, job creation, technology
transfer, and money flows, especially in developing countries. Although they promote growth,
worries about possible exploitation and unequal benefit sharing surface. IFIs use governance and
policy to help balance these effects.

Topic 2-A
In order to address global issues like climate change, governments, international organizations,
and civil society organizations work together in the twenty-first century. In a globalized world,
nation-states—which mix a common culture and independent governments—face particular
challenges. Natural disasters, a lack of trained labor, shoddy institutions, and environmental
degradation are all problems in the Philippines that impede economic growth. Because of its
aging population and frequent natural disasters that jeopardize stability and infrastructure, Japan
is experiencing a labor crisis. Global health emergencies such as the COVID-19 pandemic have
also shown weaknesses in economies, public health systems, and vaccine distribution across the
globe. Both successful national policies and concerted international initiatives are needed to
address these issues.

Topic 2-B

Though their efficacy varies, global governance frameworks and institutions aid in addressing
issues such as economic instability, climate change, and conflict resolution. Through its
specialized organizations, the UN offers a wide forum for global cooperation; nevertheless, as
evidenced by its uneven peacekeeping performance, it also faces political differences,
bureaucratic inefficiencies, and enforcement constraints. The WTO encourages international
trade and economic expansion, but it has trouble resolving disputes and tackling economic
injustice, as seen by its incapacity to control trade conflicts between the US and China. The
World Bank and IMF are criticized for enforcing austerity policies that might exacerbate
economic woes, even as they provide financial support and advocate for structural
improvements. All things considered, these institutions are essential, but they need to be
reformed to improve their effectiveness, enforcement, and influence on equity.