1. What are the characteristics and features of market, command, and mixed economic systems?

What system does work best for globalization?

a. Market Economy- A market economy is a system where the laws of supply and
demand direct the production of goods and services. Decision making of private
individuals is a determinant of a pure market economy. Economic freedom to
purchase and sell products, services, and properties. Market economy promotes
competition among businesses and firms. They actually compete for the quality and
price of their products. This allows consumers to enjoy their economic freedom to
choose products. Innovation is deemed as an advantage of this system as this
encourages competing producers to make and develop items that will provide comfort
and satisfaction to the market.
b. Command Economy- a central economic planning body handles the entire decision-
making in the operation of an economy. The quality and quantity of goods and
services produced in the market is based on the decision of the government.
Production quantity is dictated, consumer behaviour is dictated, and market operation
is controlled by a single authority. The objective of this system is to mobilize
resources for the common good of the public and for the interest of the nation.
c. Mixed Economy- this practice is a combination of market and command system of
economic planning and decision making. Some sectors are under the direction of the
private individuals while other aspects of the economy are left within the interest and
guidance of the government.
d. In countries where democracy prevails, its economic system is usually under
freedom, choice and decision of its citizens while countries that are under the control
of a single political party and authority, its system could be under the practice of
command economy.
2. Why are there so much fuss on liberalizing the global economy? What are its potential costs
and gains of global economic liberalization to domestic markets?

Economic Liberals, highlights the role of individuals in choosing economic activity.

It includes making decision and choices on comparing the costs of products to be
produced and traded, the availability of the product, and the efficiency of producing
and buying the products. Liberals suggests that individuals are the best economic
agents to solve the problems without intervention of the governments and its policies.
One advantage of this theory in international trade is deriving from the principle of
specialization and division of labor. However absence of government restriction also
means absence of standards that breeds inequality and unfair treatment among other
individuals.
3. How does international trade work? What are its requisites?
a. International trade is the process and system when goods, commodities, services cross
national economy and boundaries in exchange for money or goods of another
country. These are reasons explain why countries do engage in international trade:
i. use of excess capacity in demand- the inadequate domestic demand pushes
business organizations to expand their market base outside the national
territory.
ii. Cost reduction and increase profit- a market leader for a particular good or
service may garner a lower production cost by increasing its market in global
rather than domestic.
 iii. Cheaper supplies- a country imports goods from other countries because of
inexpensive raw materials and supplies used for production.
iv. Addition to product line – economies usually aim for a variety of products
and services available in the market.
v. Reduction of risk- importing products is seen as an alternative to countries
that are vulnerable to supply shortage
vi. Foreign policy tool- the membership of a country to regional market
integration and economic relationship is part of its foreign policy.

4. How do domestic polies affect the nature of international trade?

a. These domestic policies have direct implications with the kind of market in
international stage
i. Macroeconomic policies- these are monetary and fiscal policies that directly
affect the local economy.
ii. Microeconomic policies- these government policies provide precautionary
measures in price control, monitoring consumer behaviour and private firm
operation
iii. Governance policies- stability of the economy is always associated with the
ways the economy performs.
iv. Exchange rate policies- currency rule and policies of domestic market as
initiated by key country’s financial institution like central bank must be in
order based on the monetary condition of the global economy.
v. Trade policies- economic managers are usually very keen on the potential
impacts of balance of payments, customs tax, its quota and tariff.
vi. Foreign capital investment policy- is the influence of investments in the
country.
vii. Migration policies- domestic policies on migration are significant in
determining the labor availability in the market.
5. Are transnational corporations harmful or not? How will a win-win approach be applied to
TNC and the country/economy where it operates?
a. Transnational Corporation refers to business organizations and firms that compete in
regional or global markets. It operates in countries distribution and production. TNC
can control and monopolize the global market especially if it has huge pool of
resources making it one of the most powerful economic actors in the world. TNCs are
very powerful economic institutions because of their global influence in investment
and network distribution. Anti FTAs described this type of transnational market
system as complex and difficult to manage because of its win-win and win-lose
approach. On the other side of the structure, countries that do not have necessary
materials, logistics, and systems to compete with the more and most powerful
counties end up depending on the benefits of other countries and become free riders.
6. What are the roles of economic institutions in global economy? Do these organization have
accountability as far as the problem of globalization is concerned?
a. There are also major economic institutions that are key players in the operation and
management of global trade, investment and finance:
i. World trade organization
1. The World Trade Organization (WTO) is one of the three
international organisations (the other two are the International
 Monetary Fund and the World Bank Group) which by and large
formulate and co-ordinate world economic policy.
2. It can be argued that the WTO plays a particularly significant role in
the promotion of free international trade. The organisation acts as an
umbrella institution, that is an organisation covering the agreements
concluded at the Uruguay Round. The Uruguay Round was the
preparatory stage for the launch of the WTO. The Round was based
on the General Agreement on Tariffs and Trade (GATT).
3. The crucial role of the WTO is to provide a common institutional
framework for the implementation of those agreements. The
organisation is the result of the Uruguay Round of negotiations
(1986-1994) and was formally created in 1995.
ii. World Bank
1. The world bank is internationally recognized and supported that
provides technical and financial assistance to many developing
countries in the world. Also, it aids their advancement, in an
economy with a primary goal of reducing poverty. World bank has
the largest knowledge of developing countries. Also, they are the
largest source when it comes to funding.
2. The role of the World Bank is to address failures in international
markets and end poverty. It offers grants, zero interest credits and
low-interest loans or investments as well as advice and training.
Currently, it has over 10,000 employees and is comprised of five
institutions, including the International Finance Corporation (IFC)
and the International Bank for Reconstruction and Development
(IBRD).
3. The organization has been involved in more than 12,000
development projects since its inception. Currently, its primary goal
is to reduce the global extreme poverty rate to no more than 3 percent
by 2030. Another function of the World Bank is to promote
environmental sustainability and green growth. Furthermore, its
members sponsor and participate in conferences and other events that
tackle the world's development challenges.
iii. International Monetary Fund
1. The International Monetary Fund is a 189-member organization that
works to stabilize the global economy
2. The role of the IMF has increased since the onset of the 2008 global
financial crisis. In fact, an IMF surveillance report warned about the
economic crisis. World leaders soon regretted that they ignored it.
As a result, the IMF has been called upon more and more to provide
global economic surveillance. It's in the best position to do so
because it requires members to subject their economic policies to
IMF scrutiny. They have also committed to policies that keep prices
stable. For example, they agree to avoid manipulating exchange rates
for an unfair competitive advantage.
https://www.thebalance.com/what-is-the-imf-its-role-and-functions-3306115

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