Globalization CreationCausesEffects What is Globalization Economic globalization is
Globalization Creation/Causes/Effects
What is Globalization? Economic globalization is how countries come together as one big global economy, making international trade easier. Accomplished by: qlowering tariffs, or taxes on goods that are imported from other countries. q. Free Trade Agreements (No tariffs between ) Ex: NAFTA
Political Globalization Political globalization is how institutions and countries influence the whole world. Ex: The UN (United Nations) The United Nations purpose is to provide peace and security, using hard and soft powers with the goal to punish, deter, and to rehabilitate. . Soft Powers (inspirational/persuasive/influence): Set cultural/political/enironmental trends/examples/models to follow Hard Powers: Military force (invasion, blockades), Economic sanctions (a penalty) - tariffs and embargoes (A trade restriction that prevents a country from trading with another)
Social/Cultural Globalization Cultural globalization is how culture is becoming homogeneous, which means that people from all over the world act in similar way. • Cultures are blending/converging (sharing common music, fashion, entertainment) • English is the common/universal language • Internet/social media are bringing more exposure and lessening unfamiliarity between cultures.
Causes of Globalization q Improved Communication: the internet, email, mobile devices, social media, 24 hour news coverage, multiple information access points q. Improved Transportation: bulk shipping, airplanes, refrigerated transport q. Free Trade Agreements: A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange q. The Growth of MNC’s: A MNC is a multinational corporation (MNC) that has facilities and other assets in at least one country other than its home country.
Effects of Globalization • Increased competition - multiple producers competing cause an increase in the quality of goods and services available. • Stabilized security - globalization has halted many conflicts that would have ensued if country’s financial health didn’t depend on other countries • More wealth equality throughout the world - hundreds of thousands of people around the world in developing countries now have access to jobs and higher wages giving them the ability to provide comfort for their families. • Lower prices - international trade/outsourcing (lower cost of production) reduces the prices of goods we consume (due to global market competition) • Gives Access to a Larger Market - Through globalization countries and companies have access to a bigger consumer base. Instead of only selling products in their country a business can expand to other regions • Innovation – global competition leads to new ideas for profit and new goods for consumption
Effects of Globalization • Change in Food supply: food is no longer tied to specific seasons, we can access it year round. Mass production of food increases the amount of food available • Labor Exploitation: MNC’s search for the cheapest areas to produce their goods and cheapest labor to employ • Less job security: Local workers can be put of business by MNC’s, you are competing on a global market • Environmental Damage: Pollution from factories, overuse of areas from mass production of food goods, deforestation, overuse of natural water tables • Outsourcing/offshoring: forced labor/slave labor/child labor and human rights abuse • Increased Lifestyle diseases - consumption of processed foods, planting crops using chemicals to minimize the duration of growth and increase profit impact health.
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