GLOBALIZATIONgood sides, bad sidesUnits 11 and 12
Globalization• Globalization is the system of interactionamong the countries of the world in order todevelop the global economy. Globalizationrefers to the integration of economics andsocieties all over the world. Globalizationinvolves technological, economic, political,and cultural exchanges made possible largelyby advances in communication, transportationand infrastructure.
History ofGlobalization• Globalization is not new. For thousands of yearspeople have been trading goods and travellingacross great distances. During the Middle Ages,merchants travelled along the Silk Road, whichconnected Europe and China.• The modern age of globalization started with theIndustrial Revolution at the end of the 18thcentury. New machines were able to producecheaper goods. Trains and steam-powered boatstransported products farther and faster.
• Since 1980, globalization has been moving at afaster pace. Today it is easier for companies towork in other countries. The Internet gives themthe chance of reaching more customers aroundthe world. Teleworkers work for firms that maybe far away.• However , there is a growing debate overglobalization. Governments are in favour ofglobalization because the economy can grow.Other people are not so sure that there are onlyadvantages. Here are some arguments from bothsides:
Good sides…1. Globalization lets countries do what they can dobest. If, for example, you buy cheap steel fromanother country you don’t have to make yourown steel. You can focus on computers or otherthings.2. Globalization gives you a larger market. You cansell more goods and make more money. You cancreate more jobs.3. Consumers also profit from globalization.Products become cheaper and you can get newgoods more quickly.
Bad Sides…1. Globalization causes unemployment inindustrialized countries because firms movetheir factories to places where they can getcheaper workers.2. Globalization may lead to more environmentalproblems. A company may want to buildfactories in other countries becauseenvironmental laws are not as strict as they areat home. Poor countries in the Third World mayhave to cut down more trees so that they cansell wood to richer countries.
3. Globalization can lead to financial problems . Inthe 1970s and 80s countries like Mexico,Thailand, Indonesia or Brazil got a lot of moneyfrom investors who hoped they could build upnew businesses there. These new companiesoften didn’t work, so they had to close downand investors pulled out their money.4. Some of the poorest countries in the world,especially in Africa, may get even poorer. Theirpopulation is not as educated as in developedcountries and they don’t have the newtechnology that we do.5. Human, animal and plant diseases can spreadmore quickly through globalization.
• Many experts say that we need a different kind ofglobalization in our world today. There must beways to make sure that all countries profit fromthe good sides of globalization. We should helppoorer countries by giving them better educationand showing them how new technology works.• Every year, leaders of the world’s biggestindustrial countries get together to discusseconomic problems. This meeting is called the G8summit. In the last few years groups againstglobalization have organized protest marches anddemonstrations to point out that not everyone ishappy with how the world’s economy isdeveloping.
Words…• advantage = the good side of something• age = period of history• argument =reasons• business = company• cause =lead to• cell phone = a mobile telephone• close down = to stop producing goods• connect = to link together• create = make• customer = a person who buys something• debate = discussion• develop =grow• developed countries = rich , industrialized countries• disease = illness• distance =space
• economic =about the economy• economy =the system of producing goods and products in a country andselling them• educated = if you have gone to school and learned a lot• environmental = everything that is about the air, water or land around us• especially =above all, more than others• exchange = to give someone something and get something else in return• factory = building in which you produce goods• farther =here: over greater distances• firm = company• focus on = concentrate on• G8 = Group of 8 = the most important industrialized countries in the world• goods = things that you produce and sell• government =the people who rule a country• however =but• in favour of = for something• investor = a person who gives money to a company and expects to getmore money in return
• law = rules that a country has• lead to =cause• leader = the most powerful person of a country• make sure = to check that something has been done• merchant = someone who buys and sells goods• pace = speed• point out = to show• produce = make• pull out = take out• reach = get to• Silk Road = an old route on which silk was carried from Europe to Central Asia• spread =to move from one place to another• steam—powered =run by a steam engine ; power is produced by making waterhot so that it turns into a gas• steel = a strong metal that you can form• strict =exact• summit = meeting for powerful leaders of a country• teleworker = someone who works from home and uses a computer, telephone etc.• trade = to buy and sell goods• unemployment = if you don’t have a job
More Effects…According to economists, there are a lot of global events connected with globalizationand integration. It is easy to identify the changes brought by globalization:1. Improvement of International Trade. Because of globalization, the number ofcountries where products can be sold or purchased has increased dramatically.2. Technological Progress. Because of the need to compete and be competitiveglobally, governments have upgraded their level of technology.3. Increasing Influence of Multinational Companies. A company that hassubsidiaries in various countries is called a multinational. Often, the head officeis found in the country where the company was established.An example is a car company whose head office is based in Japan. This company hasbranches in different countries. While the head office controls the subsidiaries, thesubsidiaries decide on production. The subsidiaries are tasked to increase theproduction and profits. They are able to do it because they have already penetratedthe local markets.The rise of multinational corporations began after World War II. Large companies referto the countries where their subsidiaries reside as host countries. Globalization has alot to do with the rise of multinational corporations.
4. Power of the WTO, IMF, and WB. According to experts, anothereffect of globalization is the strengthening power and influence ofinternational institutions such as the World Trade Organization(WTO), International Monetary Fund (IMF), and World Bank (WB).5. Greater Mobility of Human Resources across Countries.Globalization allows countries to source their manpower incountries with cheap labour. For instance, the manpowershortages in Taiwan, South Korea, and Malaysia provideopportunities for labour exporting countries such as thePhilippines to bring their human resources to those countries foremployment.6. Greater Outsourcing of Business Processes to Other Countries.China, India, and the Philippines are tremendously benefiting fromthis trend of global business outsourcing. Global companies in theUS and Europe take advantage of the cheaper labour and highly-skilled workers that countries like India and the Philippines canoffer7. Civil Society. An important trend in globalization is the increasinginfluence and broadening scope of the global civil society.
• Civil society often refers to NGOs (nongovernment organizations).There are institutions in a country that are established and run bycitizens. The family, being an institution, is part of the society. Inglobalization, global civil society refers to organizations thatadvocate certain issue or cause.• There are NGOs that support womens rights and there are thosethat promote environment preservation. These organizations dontwork to counter government policies, but rather to establishpolicies that are beneficial to all. Both the government and NGOshave the same goal of serving the people.• The spread of globalization led to greater influence of NGOsespecially in areas of great concern like human rights, theenvironment, children, and workers. Together with the growinginfluence of NGOs is the increasing power of multinationalcorporations. If the trend continues, globalization will pave the wayfor the realization of the full potential of these two important globalactors.CHECK THIS WEB: http://www.wango.org/resources.aspx?section=ngodir