Post on 27-Mar-2015
Globalization
What Is Globalization?
Globalization is the process of national economies, politics, cultures, and societies become combined and integrated with other surrounding nations.
Globalization has developed over the years through…
… travel, migration, trade, and the spread of culture.
The Pace of Globalization has greatly increased!!!
• The trend accelerated in the late 1900's, largely as a result of technological developments.
Now, businesses develop international products, services, and organizations in an effort to do business in a number of countries.
Effects of globalization:
1.Globalization creates interdependence, outsourcing, Financial changes in oil/natural resources, and multinational corporations.
2.Globalization brings attention to issues that would be normally ignored:
Nuclear proliferation, terrorism, genocide, etc
3.Globalization also makes connections between neighboring countries’ decisions and policies.
This affects how sensitive and/or vulnerable each individual country is to one another and the decisions they make.
4. Developed countries control developing countries.
How Do the Developed Countries Control? Developed countries
outsource, or send work to developing countries to get the job done more cheaply and effectively.
India, Russia, China, and the Philippines
How Do the Developed Countries Control? (Cont.)
Developed countries also control through multinational corporations. These are companies that are located and buy and sell goods in multiple countries around the globe.
When supply of something, such as oil or money, is changed, then the entire global economy could be affected.
How Do the Developed Countries Control? (Cont.)
How do Developed Countries Control? (Cont.)
A financial crisis in one country could spread to other countries and create crisis there.
What are the affects of globalization and free trade on America and the rest of the world?
Affects of Globalization
The U.S. has the world’s largest economy.
U.S. leads the world in exports
U.S. leads the way in new technology industries
Globalization Cont.
U.S. economy is greatly affected by international markets.
U.S. no longer dominates the world manufacturing market
U.S. Domination?
U.S. is biggest borrower in the world!
Huge Budget deficitsLarge trade deficit instead of trade surplus
Results of Free Trade U.S., Japanese, and Western
European’s per capita income and economy has increased.
U.S. takes advantage of a cheap labor force.
Foreign companies take advantage of the American market.
Trade Policy/ Developing World
Promotes Democracy, human rights, and environmental protection
Subsidies & Foreign Aid hurt developing economies.
World Communities
Fear for the “Americanization” of their country.
Other countries believe U.S. values are hurting their own culture and tradition.