Globalization is currently the most important factor shaping the global economy. While globalization has occurred in waves since the 1800s, the current phase is characterized by changes occurring more rapidly and having a greater impact than previous eras. Some key aspects of modern globalization include growing interdependence between all processes globally, the establishment of a unified global financial system, the role of information technologies in connecting the world, diminishing borders as nation-states take on changing functions, and the spread of democratic and socio-cultural values on a universal scale.

2. Globalization is arguably the most important factor
currently shaping the world economy. Although it is not
a new phenomenon (waves of globalization can be traced
back to the 1800s) the changes it is bringing about now
occur far more rapidly, spread more widely and have a
much greater business, economic and social impact than
ever before.

3. Some special features of globalization in
present days
Growing interdependence of all processes
 Establishing of a global financial-economic
area
 Information technologies - WWW
 Change in the state’s functions – vanishing
of the national boarders
 Universality of the world – dissemination of
the democratic system and socio – cultural
values


6. Increased Standard of Living

7. Access to New Markets

8. Decreased Employment

9. Widening Disparity in Incomes

10. Impact on the Government

Positive effects
 Increased
economic
development
 Expanded
infrastructure
 Transfer of
modern
management
techniques
 Greater
interdependence
among business
partners
o Negative
effects
 MNC power increased
 MNCs externalize cost to
countries
 Competition results in
too many concessions
 MNCs influence local
policies
 Companies incorporate
in low tax countries
 Pressure to reduce social
benefits

11. • Positive effects
• Increased job
opportunities
• Upgraded
education
system
• Increased
training

Negative effects
 Job displacement
 Loss of industries or
economic groups
 Lowered labor
standards
 Downward wage
pressure
 Decreased union power
 Diminished social
contract

13.  Globalization lets countries do what they can do
best. If, for example, you buy cheap steel from
another country you don’t have to make your
own steel. You can focus on computers or other
things.
 Globalization gives you a larger market.
You can sell more goods and make more
money. You cancreate more jobs.
 Consumers also profit from globalization.
Products become cheaper and you can get
new goods more quickly.

14.  Globalization causes unemployment in
industrialized countries because firms move
their factories to places where they can get
cheaper workers.
 Globalization may lead to more environmental problems. A
company may want to build factories in other countries
because environmental laws are not as strict as they are at
home. Poor countries in the Third World may have to cut
down more trees so that they can sell wood to richer
countries.

15.  Globalization can lead to financial problems . In the 1970s
and 80s countries like Mexico, Thailand, Indonesia or
Brazil got a lot of money from investors who hoped they
could build up new businesses there. These new companies
often didn’t work, so they had to close down and
investors pulled out their money.
 Some of the poorest countries in the world, especially in
Africa, may get even poorer. Their population is not
as educated as in developed countries and they don’t
have the new technology that we do.
 Human, animal and plant diseases can spread more
quickly through globalization.