Globalization

Objectives :
Introduction about globalization;
What is globalization?
Types of globalization;
Causes of globalization;
Anti- globalization and Pro- globalization;
Advantages and Disadvantages of globalization;
Positive and Negative Impact of globalization;
Positive and Negative effects of globalization on
Economy, labor, and Migration;
Introduction....
> It is a common belief that globalization plays a role
just at international levels of trade and commerce,
but the fact is that it has played an important role in
making our lives much more comfortable too. The
phones, apparels, gadgets or accessories that we use
in our day to day life are be available to us through
globalization. Knowingly or unknowingly, we are all
under the impact of globalization, and more
importantly it has helped in bringing international
peace and justice to mankind.
What is
globalization?
 Globalization can be defined
as a process of rapid
economic, cultural, and
institutional integration
among countries.
 This unification is driven by
the liberation of trade,
investment and capital flow,
technological advances and
pressures for assimilation
towards international
standards.
 Globalization makes the
world more accessible to
everyone.
Globalization....
• Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in
lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages.
Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave
of globalization are similar to those prevailing before the outbreak of the First World War in 1914.
• But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so
large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the
volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to
$827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is
“farther, faster, cheaper, and deeper.”
• This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since
the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly
increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have
negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and
investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and
marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business
structure.
• Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed
economic life. Information technologies have given all sorts of individual economic actors—consumers, investors, businesses—valuable new
tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world,
easy transfers of assets, and collaboration with far-flung partners.
• Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop
economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free
market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people.
Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage
the flow of capital, labor, goods, and ideas that constitute the current wave of globalization.
Types of Globalization
1.Economic : countries that trade with man's others
and have a few trade barriers are economically
globalized.
2.Social : A measure of how easily information and
ideas pass between people in their own country and
between different countries ( includes access to
internet and social media networks).
3.Political : The amount of political co- operation
there is between countries.
Causes of Globalization
Trade liberalization
Improvements in technology.
Reduced cost / improvement of communication
and transportation.
 Deregulation of financial markets.
Increased significance of TNCs ( transnational
corporation).
Trade Liberalization
• Trade liberalization refers to a reduction of trade
barriers this will open up worldwide markets.
• Trade barriers have fallen since the Second World
War.
• New organizations were formed to increased
integration - GATT ( General Agreement on Tariffs
and Trade, WTO from 1995.
Improvements in
Technology

Improve technology makes it easier communicate

and share information around the world.
The most important development in the recent
years is the internet.
Rreduced Cost and
Imprimprovement
Communications and
Transportation
Fall in the real cost of transporting goods has
allowed cheaper importation and exportation of
goods.
Decline the cost of communications has also
helped this.
Improvements in transportation have also allowed
firms to split up the production process to cash in
on varying cost conditions in different parts of the
world.
This has helped to facilitate the growth of TNCs.
Deregulation of Financial
Markets
There have been moves towards removing restrictions
on the movement of financial capital between countries.
Many countries have removed capital controls - made it
easier for firms to operate globally.
Reinforced by developments on technology that enable
financial transactions to be undertaken more quickly and
efficiently.
Financial markets have increased globalization due their
being set up in various countries.
They allow for more interface and communication
between different parts of the world over the trade of
financial assets.
Increased Significance of
TNCs
• After the Second World War more economic power
was shifted to corporation - accelerated growth.
• TNCs have grown even further due to favorable
corporation tax rates in many countries and tax
breaks, as TNCs supposedly bring in more jobs
• TNCs partake in foreign direct investment, which
increased the integration of economies.
• Many TNCs want to gain entry to, for example, the
EU due to its single market and china due to its
large and growing market.
Signs of Globalization
Signs of Globalization!!!
Increase in international trade at a faster rate than the growth
in the world economy.
Increased in international flow of capital including foreign
direct investment.
Greater transborder data flow, using such technologies such as
the internet communication satellites and telephones.
Greater international cultural exchange, for example through
the export of Hollywood and Bollywood movies.
Some argue that even terrorism has undergone globalization.
Terrorists now have attacked places all over the world.
Spreading of multiculturalism and better individual access to
cultural diversity, with on the other hand, some reduction in
diversity through assimilation, hybridization, Westernization,
Americanization or Sinosization of cultures.
Signs of Globalization!!!
Erosion of national sovereignty and national borders through
international agreements leading to organizations like the WTO
and OPEC.
Greater International travel and tourism.
Greater immigration, including illegal immigration.
Development of global telecommunications and infrastructure.
Development of a global systems.
Increase in the share of the world economy controlled by
multinational corporations.
Increased role of international organizations such as WTO, WIPO,
IMF, that deal international transactions.
Increase in the number of standards applied globally:e.g.
copyright law.
Anti - globalization....
• Many anti - globalism activists see globalization as
the promotion of a corporatist agenda, which is
intent on constricting the freedoms of individuals in
the name of profit. They also claim that increasing
autonomy and strength of corporate entities
increasingly shape the political policy of nation -
states.
• Globalization imposes credit based economies,
resulting in unsustainable growth of debt and debt
crises.
Pro - globalization (
globalism )
• Supporters of free trade point out that economic
theories such as comparative advantage suggests
that free trade leads to a more efficient - allocation
of resources, with all those involved in the trade
benefitting.
• In general, they claim that this leads to lower
prices, more employment and better allocation of
resources.
Advantages and
Disadvantages of
Globalization
Advantages
Peaceful Relations
Most of the countries have resorted to trade relations - with each other
in order to boost their economy, leaving behind any bitter past
experiences if any.
Employment
Considered as one of the most crucial advantages, globalization has led
to the generation of numerous employment opportunities. Companies
are moving towards the developing countries to acquire labor force.
Cheaper Prices
Globalization has brought in fierce competition in the markets.
Communication
Every single information is easily accessible from almost every corner of
the world. Circulation is no longer a tedious task, and can happen in
seconds. The internet global economy, thereby providing direct access
to information and products.
Advantages
Education
 A very critical advantage that has aided the population is the spread of
education. With numerous educational institutions around the globe, one can
move out from the home country for better opportunities elsewhere.
Product Quality
 The product quality has been enhanced so as to retain the customers may
comprise with the price range but not with the quality of the product. Low or
poor quality can adversely affect consumer satisfaction.
Transportation
 Considered as the wheel of every business organization, connectivity to various
parts of the world is no more a serious problem. Today with various modes of
transportation available one can conveniently deliver the products to a
customer located any part of the world.
GDP Increase
 Gross Domestic Product , commonly known as GDP, is the money value of the
final goods and services produced within the domestic territory of the country
during an accounting year.
Advantages
Free Trade
Free trade is a policy in which a country does not levy taxes, duties,
subsidies or quota on the import / export of goods or services from
other countries. There are countries which have resolved the free
trade in specific regions. This allows consumers to buy goods and
services, comparatively at a lower cost.
Travel and Tourism
Globalization has promoted tourism to great heights. International
trade among different countries also helps in increasing the number
of tourists that visit different places around the world.
External Borrowing
With the help of globalization there is opportunity for corporate,
national, and sub - national borrowers to have better access to
external finance, with facilities such as external commercial
borrowing and syndicated loans.
Disadvantages
Health Issues
 Globalization has given rise to more health risks and presents new threats and
challenges for epidemics.
Loss of Culture
 With large number of people moving into and out of a country, the culture takes
a backseat.. People may adapt to the culture of the resident country. They told
ND to follow the foreign culture more forgetting their own roots. This can give
rise to cultural conflicts.
Uneven Wealth
 It is said that the rich are getting richer while the poor are getting poorer. In the
real sense, globalization has not been able to reduce poverty.
Environment Degradation
 The industrial revolution has changed the outlook of the economy.Industries are
using natural resources by means of mining drilling, etc. which puts a burden on
the environment.
Disadvantages
Disparity
Though globalization has opened new avenues like wider markets
and employment, there still exists a disparity in the development
of the economies structural unemployment owes to disparity
created. Developed countries are moving their countries to
foreign countries where labor is cheaply available.
Conflicts
It has given rise to terrorism and other forms of violence .Such as
not only cause loss of human life but also huge economic losses.
Cut - throat Competition
Opening the doors of international trade has given birth to
intense competition. This has affected the local markets
dramatically. The local players thereby. Super huge looses and
they lack the potential to advertise or export their products on a
large scale. Therefore the domestic markets shrink.
Positive and
Negative
Impact of
Globalization
Impact of
globalization
 Disparity in the society.
 Ethical responsibility of
business has been diminished.
 Price hike of every daily usable
commodities.
 The local business has
perished.
 High growth but problem of
unemployment.
 Affected the agriculture sector.
Impact of
globalizatio
n
 Rapid growth of business
opportunity to go global.
 Introduction of various
new technology.
 Rise in access of
technology in rural area.
 New technology in the
agriculture literate
farmers.
 Rise in the literacy rate and
quality.
The Positive and
Negative effects of
globalization on
Economy , Labor ,
and Migration
Economy ....
Positive Effects Negative Effects
• More efficient marker • Global excess liquidity
• Increased competition • Growing debt
• Increasing protectionism
• Stabilized security
• Escalation of geopolitical
• More wealth equality conflicts
throughout the world. • Increase in social
instabilities
• Rising interest rates
• Technological disruption
labor ....
Positive Effects Negative Effects
• Increased job • Job displacement
opportunities • Loss of industries or
• Upgraded education economic groups
system • Lower labor standards
• Increased training • Downward wage pressure
• Increased lifestyle • Decreased union power
• Employment • Diminished social contract
opportunities
Migration ....
Positive Effects
• Payment of remittances. • Return of skilled person
increases local human
• Increase in wage for capital, transfer of skills and
substitutes of migrants. links to foreign networks.
• Transfer of technology and
• Relief of unemployment. investments by diaspora.
• Creation of induced • Circular movement of
skilled labour across
stimulus for investment nations, promoting
in domestic education exchange of capabilities
and individual human and integration into global
markets.
capital.
Migration ....
Negative Effects
• Loss of skilled and human
capital stock.
• Reductions in growth and
productivity due to the
lower stock of human
capital.
• Higher consumer prices in
labour intensive areas.
• Remittance - pull inflation.
• Risk of dependence on
remittances from skilled
migrants.
• Loss in physical capital
withdrawn by the
emigrant.
• Decline in aggregated
demand lower
employment.
• Social problems.
Group Members
Adrian Celorico
Rachel Labrador
Ma. Grazilda Estorque
Jesamie Dignomo
Chrisel Jane Gregorio
Lovelyn Jaime
Christy Marie Siason

Grade 12 - Deuteronomy