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.