Feel free to download people.

2. Globalization: Good or Bad?

3. Let’s Try

18. Contd.
• Globalization is a consequence of
increase trade across nations.
• Anthony Giddens (1990) describes
globalization as “the intensifications
of worldwide social relations which
link distinct localities in such a way
that local happenings are shaped by
events occurring miles away.”

19. 1.Globalisation is the new buzzword that has
come to dominate the world since the nineties
of the last century with the end of the cold
war and the break-up of the former Soviet
Union.

20. 2. The term implies worldly
integration/amalgamation of various
cultures, styles, economic policies, ideas,
etc.

21. 3. It must not be confused with “making
things common around the world”. It is an
integration, not simulation.

22. Types of
Globalisation
1. Economic
Countries that trade with many
others and have few trade barriers are
economically globalised.
2. Social
A measure of how easily information
and ideas pass between people in their
own country and between different
countries (includes access to internet
and social media networks).
3.Political
The amount of political cooperation
there is between countries.

23. Causes of Globalisation:
1. Improved Communications
• The development of communicationtechnologiessuch as internet,
emailand mobile phones have been vital to thegrowth of globalisation
because they help MNCs to operate throughoutthe world.
• The development of satelliteTV channelssuch as Sky and CNN have
also provided worldwide marketingavenues for the concept and
products of globalisation.

24. Causes of Globalisation
2. Improved Transport
• The development of refrigerated and container transport, bulk shipping and
improved air transport has allowed the easy mass movementof goods throughout
the world. This assists globalisation.

25. Causes of Globalisation:
3. Free Trade Agreements
• MNCs and rich capitalist countries have always promoted globalfree trade as a
way of increasing theirown wealthand influence.• Internationalorganisations such as the World Trade Organisation and theIMF
also promote freetrade.

26. Causes of Globalisation:
4. Global Banking
• Modern communicationtechnologiesallow vast amountsof capital to flow
freely and instantlythroughoutthe world.
• The equivalentof up to $US1.3 trillion is traded each day through
internationalstock exchangesin cities such as New York, London and Tokyo.

27. Causes of Globalisation:
5. The Growth of MNCs
• The rapid growth of big MNCs such as Microsoft, McDonalds and Nike is a cause
as wellas a consequence of globalisation.
• The investmentof MNCs in farms, minesand factories across the world is a major
part of globalisation.
• Globalisation allows MNCs to produce goods and services and to sellproducts
on a massivescale throughout theworld.

29. The Effects of Globalisation:
1. Changed Food Supply
•Food supply is no longer tied to the seasons. We can
buy food anywhere in the world at any time of the
year.

30. The Effects of Globalisation:
2. Division of Labour
• Because MNCs search for the cheapest locations to
manufacture and assemble components, production
processes may be moved from developed to
developing countries where costs are lower.

31. The Effects of Globalisation:
3. Less Job Security
•In the global economy jobs are becoming more
temporary and insecure.
• A survey of American workers showed that people now
hold seven to ten jobs over their working life.

32. The Effects of Globalisation:
4. Damage to the Environment
•More trade means more transport which
uses more fossil fuels and causes pollution.
• Climate change is a serious threat to our
future.

33. The Effects of Globalisation:
5. Cultural Impact
•Websites such as YouTube connect people across the
planet. As the world becomes more unified, diverse
cultures are being ignored. MNCs can create a
monoculture as they remove local competition and
thereby force local firms to close.
Replacing

34. The Effects of Globalisation
6. Increase in anti-Globalisation Protests
• There is a growing awareness of the negative impacts of
globalisation. People have begun to realise that globalisation
can be challenged by communities supporting each other in
business and society and through public protest and
political lobbying.

35. 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

36. • 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

38. Consumers also profit from globalization. Products
become cheaper and you can get new goods more
quickly.
Globalization let 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.

39. 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.

40. 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.

41. Globalization in the Philippines

42. The country is taking part in the process
of globalization ever since the country
signed agreements with World Trade
Organization in 1995.

43. • Now, globalization is
very effective in the
Philippines, it has
allowed major
changes in the nation
like more labor, and
more Filipino and
foreign companies has
emerged in the nation
in order to help the
country’s developing
economy.

44. Globalization can make the Philippines into a better nation if
the Philippine leaders to make their economy more advance
through global trading and allowing more foreign investors to
the help boost the economy. And by accomplishing those
goals, the Philippines should be able to reduce the poverty
level as well as increase labor force for job opportunities for
those that are in need for a living.

45. However, since the poverty level is still increasing,
most Filipinos has managed to find work overseas
and they have managed to seek better living than
in the Philippines.The most effective factor in the
Philippines is education.The society’s mentality is
to be educated and it’s with education that people
in the nation see their opportunity for a better life
in the future.

46. Advantage

47. Peaceful Relations
Most of the countries haveresortedto traderelations with
eachother in orderto boost their economy,leavingbehind
any bitter past experiencesif any.

48. Employment
Consideredas one of the most crucial advantages, globalization
has led to the generation of numerous employment
opportunities.Companiesare moving towards the developing
countries to acquire laborforce.

49. Education
A very critical advantage that has aided the populationis the
spread of education.With numerouseducational institutions
aroundthe globe,onecan move out fromthe homecountry for
better opportunities elsewhere.

50. Product Quality
The productqualityhas beenenhancedso as to retain the
customers. Today the customers may compromisewith the price
range but not with the qualityof the product. Low or poorquality
can adversely affect consumer satisfaction.

51. Cheaper Prices
Globalizationhas broughtin fierce competition inthe markets.

52. Communication
Every singleinformation is easily accessible from almost every
corner of the world.Circulationof informationis no longera
tedioustask, and can happenin seconds. The Internet has
significantlyaffected the globaleconomy,therebyproviding
directaccess to informationand products.

53. Transportation
Consideredas the wheel of every business organization,
connectivity to various parts of the world is nomore a serious
problem.Todaywith various modesof transportation available,
one can convenientlydeliver the productsto a customer located
at any part of the world.

54. GDP Increase
Gross DomesticProduct, commonly known as GDP, is the
money value of thefinal goods and services produced within
the domestic territory of the country during an accounting
year.

55. FreeTrade
•Free trade is a policyin whicha countrydoes notlevy taxes,
duties, subsidies or quota onthe import/export ofgoodsor
services from other countries. There are countries which have
resolved to free trade in specific regions.This allows consumers
to buy goods and services, comparatively at a lowercost.

56. Travel andTourism
•Globalizationhas promoted tourism to great heights.
International trade among differentcountries also helps in
increasing the number oftourists that visit differentplaces
around the world.

57. External Borrowing
•With the helpof globalization,there is opportunityfor corporate,
national, andsub-national borrowers to have better access to
external finance, with facilities such as external commercial
borrowingand syndicated loans.

58. DisAdvantage

59. Health Issues
Globalizationhas given rise tomore healthrisks and presents new
threats andchallengesfor epidemics.
- the dawnof HIV/AIDS. Havingits origin in the wildernessof Africa, the
virus hasspread like wildfirethroughoutthe globe in no time.
- Fooditems are alsotransportedto variouscountries,and this is a matter
of concern, especiallyin case of perishableitems.

60. Loss of Culture
With large numberof peoplemoving intoand out of a country,
the culture takes a backseat. Peoplemay adapt to the culture of
the resident country.They tend to followthe foreignculture
more, forgetting their own roots.This can give rise to cultural
conflicts.

61. UnevenWealth Distribution
It is said that the rich are getting richer whilethe poorare getting
poorer.In the real sense, globalizationhas not beenable to
reduce poverty.

62. Environment Degradation
The industrial revolution haschanged the outlookof the
economy.Industries are using natural resources bymeans of
mining,drilling,etc. whichputs a burdenon the environment.

63. Disparity
Thoughglobalizationhas openednew avenues likewider
markets andemployment,there still exists a disparity in the
developmentof the economies.Structural unemploymentowes
to the disparity created. Developedcountries are moving their
factories to foreigncountries where laboris cheaply available.

64. Conflicts
It has givenrise to terrorism and other forms of violence.Such
acts not onlycause loss of humanlife butalso hugeeconomic
losses.

65. Cut-throat Competition
Openingthe doorsof international trade has givenbirth to intense
competition.This has affected the local markets dramatically. The
local players therebysuffer hugelosses as they lack the potential
to advertise or export their products ona large scale. Thereforethe
domestic markets shrink.

66. • Mukherjee, T. Narula, H. (2011), Globalization and its crises around
the world, university of Tennessee.