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WHAT IS GLOBALIZAITON?According to the Oxford English Dictionary, the word "globalization" was first employed in a publication entitled Towards New Education in 1952, to denote a holistic view of human experience in education. An early description of globalization was penned by the founder of theBible Student movement Charles Taze Russell who coined the term 'corporate giants' in 1897, although it was not until the 1960s that the term began to be widely used by economists and other social scien



What is Globalization?

Increasing global connectivity. Integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres. An umbrella term and is perhaps best understood as a unitary process inclusive of many sub-processes that are increasingly binding people and the biosphere more tightly into one global system.

The influence of globalization

Industrial - emergence of worldwide production markets and broader access to a range of goods for consumers and companies. Financial - emergence of worldwide financial markets and better access to external financing for corporate, national and subnational borrowers. Economic - realization of a global common market, based on the freedom of exchange of goods and capital.

The influence of globalization

Political - Political globalization is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalization. Social - the achievement of free circulation by people of all nations. Informational - increase in information flows between geographically remote locations.

The influence of globalization

Cultural - growth of cross-cultural contacts; cultural diffusion; "world culture". Ecological- the advent of global environmental challenges that can not be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species.

Other faces of Globalization

Globalization= Imperialism Globalization = Americanization Globalization = Delocalization Globalization = Multinational corporations Globalization = Branding Globalization = the rich gets richer, the poor gets poorer

Other Faces of Globalization

Economical Exploitation of the resources in the third world country

Local Industries are being taken over by Multinationalists. The benefits of Globalization are not universal, the richer gets richer and the poor gets poorer.

Other Faces of Globalization

Political There are international and regional trade agreements, and powerful international lobby and pressure groups in various fields.

Globalization includes penetration of political ideas and practices across borders. It includes infusion of cultural and religious beliefs and practices, resulting in weakening of some cultures

Other Faces of Globalization

PoliticalMulti-national Companies and Corporations which were restricted to commercial Activities are increasingly influencing political decisions.

Other Faces of Globalization

CulturalFast Food Chains like KFC & McDonalds are spreading.

Local or minority culture are facing the fate of disappearing Western culture invaded into developing countries Example: McDonalds

More than 100 countries 30,000 restaurants Serves 50 million people daily

Other Faces of Globalization

Cultural Infusion of cultural and religious beliefs and practices, resulting in weakening of some cultures. Bad aspects of foreign cultures are affecting the local cultures through T.V and Internet. Threat that control of world media by a handful of corporations will limit cultural expression

Other Faces of Globalization

Environmental Aggravated pollution, Global warming, losses in biodiversity and species extinction. Average global temperatures are estimated to rise 1- 3.5 centigrade (33.8 38.5 degrees) by 2050. Developed industrial countries export hazardous waste to third world countries. Deadly Diseases are being spread by travelers to the remote corners of the world.

Other Faces of Globalization

Women and children

90% of the workers at the sweatshops are women Child labor hired by global companies in developing countries

Example: 14-year-old workers in Nike factories in Indonesia

Other Faces of Globalization

Human rightsMore and more strict immigration restrictions in developed countries, no free move for labors In sweatshops in developing countries, harsh working conditions, low pay and overtime working are common Example: The Pouty Bratz dolls factory in Southern China

Working 94 hours a week 17 cents, workers are paid for making each doll; $19, retail price in US More than 120 million Bratz dolls sold since 2001

Other Faces of Globalization

Exploitation of LaborJob insecurity and Low-Wages due to competition. Prisoners and Child labors are working in Inhumane conditions. Safety Standards are ignored to produce cheap goods.

Other Faces of Globalization

Social The unequal wealth distribution worldwide The gap between the developed countries and the third world counties The gap between the poor and rich

Who is The Beneficiary ?

Per-Capita IncomeGlobalization leads to a shift in wealth from workers, consumers, and developing countries to multinationals.

Example:McDonalds is accused of preventing union formation and paying substandard wages in its restaurants abroad.

Per-Capita Income$40,000Luxembourg


$30,000Ireland Netherlands

R2 = 0.56

Per-capita Trade (US$)



Lower middle, and low income countriesBahrain


$10,000Japan US


$0 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Per-capita Income (US$)

Who is Beneficiary ?

Income DistributionGlobalization results in a concentration of income so that the few benefit disproportionately to the many. Example: Bill Gates, Sam walton, Mukesh Ambani etc .

Income Distribution$40,000



Hong Kong$30,000 er-capita Trade (US$)


Ireland Netherlands Switzerland Norway Austria Finland Canada Germany Israel Slovenia Denmark Sweden




France Malaysia US Gabon South Africa


$0 15.0











Gini Coefficient (0 = equitable, 100 = inequitable)Source: International Financial Statistics, International Monetary Fund, December 2001, and Measuring Income Inequality: A New Database, Deininger, Klaus, and Lyn Squire, World Bank, 2002

Who is Beneficiary ?

Life Expectancy:Increases in life expectancy, decreases in infant mortality, better nutrition accrue mostly to developed countries. Globalization causes a reduction in health measures for lesser developed countries. Globalization causes agricultural resources to be diverted to meet the needs of exporters rather than local needs. People driven off rural land are forced to work in overcrowded cities without proper water and sanitation. Foreign-owned firms, unfettered by environmental and health regulations, pollute the environment of lesser developed countries and maintain inadequate working conditions.

Life Expectancy$100,000

og rithmic cale)


R2 = 0.59 $1,000


r de (U


Pakistan India

P r-



$1 30.0


50.0 Lif E p

60.0 t n y (y r )




Who is Beneficiary ?

Environment:Firms in developed countries have incentive to exploit the environment in developing and underdeveloped countries. Greater industrialization puts greater stress on the environment. Deforestation. Co2 Emissions.

CO2 Emissions$100,000 Hong Kong Belgium Switzerland l i s $10,000 US Singapore Luxembourg R = 0.722



US , l


Poland Russia Kazakhstan Ukraine




Countries that are more globalized generate more CO2. This is to be expected because greater globalization usually implies greater industrial and consumer activity.$10 0 5 10 CO2 E issi s r 15 i ri s 20 25


Source: International Financial Statistics, International Monetary Fund, December 2001, and World Development Indicators, World Bank, 2002

Can All Countries Benefit from Globalization?

Establish international monitoring systemDomestic:

each country should build up a system that can integrate into the global market protectionism in the domestic market International institutions should reform to fit into the needs of the globalization, such as IMF, World Bank, UN Be more responsible for all the countries, rather than some or few countries Be more transparent and be monitored by member countries from third world.


Can All Countries Benefit from Globalization?

To enhance corporations between countries and regions Make free trade free and fair for both developing and developed countries Eliminate or reduce the trade barriers Get more countries involved into the global market Equal and balance development in the global market

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