GLOBALIZATION

GLOBALIZATION

 A world-wide integration of the  Globalization emphasizes the

government, policies, cultures, social increasing trans-border or
movements, and financial markets through transnational relations, which are
trade and the exchange of ideas.
occurring in the contemporary world.
 Anthony Giddens defines it as
“intensification of worldwide relationship
which link distant localities in such a way
that local happenings are shaped by
events occurring many mile away and vice
versa.
GLOBALIZATION

 Globalization is said to have begun after  Second is business escalating

WWII but has accelerated since the mid liberalization of trade and capital
1980’s driven by two factors. market.
 First is Technological advances.
 More and more government are
 Technological progress is a key driver of declining to protect their economies
improvements in incomes and standards of from foreign competition or influence
living. But new knowledge and through import tariffs and non tariff
technologies do not necessarily develop obstacle like import qoutas, legal
everywhere and at the same time.
Therefore, the way technology spreads
prohibition, and export restraint.
across countries is central to how global
growth is generated and shared across
countries.
 Some Problems with Globalization
(Dark Side)

 A. Globalization uses up finite resources quickly.

 B. Globalization increases world carbon dioxide emission.
 C. Globalization makes it virtually impossible for regulators in one country
foresee the worldwide implications of their actions.
 D. Globalization acts to increase world oil prices.
 E. Globalization transfers consumption of limited oil supply from developed
country to developing countries.
 F. Globalization transfers jobs from developed countries to less developed
countries.
 Some Problems with Globalization
(Dark Side)

 G. Globalization transfers investment spending from developed counties

to less developed countries.
 H. With the dollar as the world’s currency, globalization leads to huge US
balance of trade deficits and other imbalances
 I. Globalization tend to move taxation away from corporations, and
individual citizens.
 J. Globalization sets up currency “race to the bottom”, with each country
trying to get an export advantages by dropping the value of its currency.
 Some Problems with Globalization
(Dark Side)

 K. Globalization encourages dependence on other countries for essential

goods and service.
 L. Globalization ties countries together so that if one country collapses, the
collapse is likely to ripple through the system, pulling many other countires
wit it