GLOBALIZATION ELF GEN 2010503027 1 WHATS GLOBALIZATION Globalization

GLOBALIZATION ELİF GENÇ 2010503027 1

WHAT’S GLOBALIZATION? Globalization is a process of interaction and integration among the people, companies and governments of different nations, a process driven by international trade and investment and aided by information technology. 2

Globalization has vorious aspects which affect the world in several different ways: Industrial Financial Economic Political Informational Technical Cultural 3

INDUSTRIAL Emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is "farther, faster, cheaper and deeper. " 4

FINANCIAL Emergence of worldwide financial markets and better access to external financing for borrowers. By the early part of the 21 st century more than $1. 5 trillion in national currencies were traded daily to support the expanded levels of trade and investment. 5

ECONOMIC Realization of a global common market, based on the freedom of exchange of goods and capital. The interconnectedness of these markets, however, meant that an economic collapse in one area could impact other areas. 6

POLITICAL Some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. 7

Politically, the United States has enjoyed a position of power among the world powers, in part because of its strong and wealthy economy. 8

INFORMATIONAL Increase in information flows between geographically remote locations. Arguably this is a technological change with the advent of fiber optic communications, satellites and increased availability of telephone and Internet. 9

Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life. 10

TECHNICAL Development of a Global Information. System, global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites, submarine fiber optic cable and wireless telephones. 11

CULTURAL Growth of cross-cultural contacts; advent of new categories of consciousness and identities which embodies cultural diffusion, the desire to increase one's standart of living and enjoy foreign products and ideas, adopt new technology and practices and participate an a "world culture". Some bemoan the resulting consumerism and loss of languages. 12

CULTURAL EFFECTS Globalization has influenced the use of language across the world. This street in Hong Kong, a former British colony, shows various signs, a few of which incorporate both Chinese and British English. "Culture" is defined as patterns of human activity and the symbols that give these activities significance. Culture is what people eat, how they dress, the beliefs they hold and the activities they practice. Globalization has joined different cultures and made it into something different. 13

POSITIVE EFFECTS The benefits of globalization and financial diversification Since the mid-1970 s, it has been argued that geographic diversification would eventually generate superior risk-adjusted returns for long-term global investors by reducing overall portfolio risk while capturing some of the higher rates of return offered by emerging markets. 14

Increased opportunity in the Third World Workers in developing countries now have more occupational choices then ever before. Educated workers in developing countries are able to compete on the global job market for high paying jobs. Production workers in developing countries are not only able to compete on the global job market for high paying jobs. Production workers in developing countries are not only able to compete, they have a strong advantage over their counterparts in the industrialized world. 15

NEGATIVE EFFECTS Globalization has generated significant international opposition over concerns that it has increased inequality and environmental degradation. In the Midwestern United States, globalization has eaten away at its competitive edge in industry and agriculture, lowering the quality of life. 16

Brain Drain Opportunities in rich countries drives talent away from poor countries, leading to brain drains. Brain drain has cost the African continent over $4. 1 billion in the employment of 150. 000 expatriate professionals annually. Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually. 17

Income Inequality The globalization of the job market has had negative consequences in developed countries. This has resulted in a growing gap between the incomes of the rich and poor. This trend seems to be greater in the United States than other industrial countries. 18

Thanks for listening… 19