3. Globalization
• “Processes by which goods, services, capital, people, information,
and ideas flow across national borders.” (Grewal/Levy)
• “Trend toward greater economic, cultural , political, and
technological interdependence among national institutions and
economies.” (Wild/Han)
4. What drive globalization?
1. Improved Communications
2. Improved Transport
3. Free Trade Agreements
4. Global Banking
5. The Growth of MNCs
5. Effect of globalization on economic
growth.
Advantage
• Increased free trade between nations
• Global mass media ties the world together
• Reduction of cultural barriers increases the global effect
• Increases in environmental protection
6. Disadvantage
• International organization like the World Trade Organization
infringe on national and individual issue
• Decreases in environment as polluting corporations take advantage of
weak regulatory rules in developing countries
• Increased flow of skilled and non-skilled jobs from developed to
developing nations as corporations seek out the cheapest labor
• Increased likelihood of economic disruptions in one nation effecting all
nations
• Greater chance of reactions for globalization being violent in an
attempt to preserve cultural heritage
• Greater risk of diseases being transported unintentionally between
nations
7. Conclusion
• Globalization is here to STAY
We need to learn how to reap Globalization benefits, and minimize costs.
• Understand its impacts
• Work to remedy the problems
• Work to spread the benefits as widely as possible
There was a time when most regions were economically self-sufficient. Locally produced foods, fuels and raw materials were generally processed for local consumption. Trade between different regions was quite limited.
Today, the economies of most countries are so interconnected that they form part of a single, interdependent global economy.
- “Processes by which goods, services, capital, people, information, and ideas flow across national borders.” (Grewal/Levy)
- “Trend toward greater economic, cultural , political, and technological interdependence among national institutions and economies.” (Wild/Wild/Han)
So, when did the globalization start?
We usually think that globalization have start in 18 century, but
Globalization have started since the first travelers come to another country, because they brought their culture, language and goods to different country.
And in recently, globalization become a trend and more popular around the world.
So what is the reason of globalization?I will present you 5 main reasons lead to globalization:
Increased free trade between nations
Increased liquidity of capital allowing investors in developed nations to invest in developing nations
Corporations have greater flexibility to operate across borders
Global mass media ties the world together
Increased flow of communications allows vital information to be shared between individuals and corporations around the world
Greater ease and speed of transportation for goods and people
Reduction of cultural barriers increases the global effect
Spread of democratic ideals to developed nations
Greater interdependence of nation-states
Reduction of likelihood of war between developed nations
Increases in environmental protection.
To conclude the benefits of economic reforms on the economy would get achieved, only if the negative impacts are settled or neutralized. Hence, along with globalisation and restructuring the economy, efforts.