This course was Business ethics taught by Institute of Business Management in which we are talking about globalization and its ethics..

1. Ethics of globalization
By
Arsalan Humayun
Humaid Zahid

3. Toyota manufacturing
The manufacturing of a Toyota car contain the parts flow
to factory as:
 Chase is made in England.
 Engine is made in Wales.
 Tires are made in Japan.
 Seat belts are made in Czech republic.
 Head lights are made in France.
 Wires are made in China.
This means that 5 companies of different countries helps
Toyota to manufacture its cars at Toyota city in Japan.

4. What is Globalization?
 Globalization is a process by which businesses or
other organizations develop influence or start
operating on an international scale.
 It arises form interchanging of world views,
products, ideas and other aspects of culture.
 Advances in transportation, telecommunication,
internet and mobile phones has been the major
factors in globalization.

5. TYPES OF GLOBALIZATION
ECONOMIC GLOBALIZATION:
One country which is capital-rich invests in another country which is poor. One who has better
technologies sells these to others who lack such technologies.
CULTURAL GLOBALIZATION:
Harry Potter has readers almost all over the world. English movies are seen almost in all countries. Western
pop music has become popular in developing countries.
POLITICAL GLOBALIZATION:
A number of regional organizations like European Union, ASEAN, APEC and SAARC, and multicultural
economic organizations such as WTO have come up in the world.

6. Key Players in Globalization
 Multinational Enterprises that carry out their operations overseas
 The World Trade Organization (WTO) through which international trade agreements are
negotiated and enforced
 The World Bank and International Monetary Fund (IMF) which are meant to assist governments in
achieving development aims by providing loans.
 National governments who work together through these international institutions.

7. Benefits by Globalization
 Free trade, by reducing trading barriers has made easy import/export of products.
 Economic growth, create jobs, make companies more competitive and lower prices for
consumers.
 Provides poor countries, through foreign capital and technology, with the chance to
develop economically and by spreading prosperity.
 Consumers have access to products of different countries.
 Gradually there is a world power that is being created instead of compartmentalized
power sectors. Policies is merging and decisions that are being taken are actually
beneficial for people all over the world.
 There is more interchange of information between two countries.

8. Benefits by Globalization
 Each country is learning about cultures of other country.
 Socially we have become more open and tolerant towards each other and people who
live in the other part of the world are not considered aliens.
 Speedy travel, mass communication and quick spread of information is possible
because of globalization.
 Labors can move country to country to market their skills.
 Sharing technology with developing nations will help them progress.
 Multinational companies investing in installing plants in other countries provide
employment for the people in those countries often getting them out of poverty.

9. Drawbacks of Globalization
 It has made rich richer and the poor poorer.
 Globalization is supposed to be about free trade where all barriers are eliminated but
there are still many barriers. Like Value Added Taxes(VATs).
 The biggest problem for developed countries is that jobs are lost and transferred to
lower cost countries.
 Workers in developed countries face pay-cut demands from employers who threaten
to export goods. This has created a culture of fear for many middle class workers who
have play little part in this global game.
 Large multi-national corporations have the ability to exploit tax havens in other
countries to avoid paying taxes.

10. Drawbacks of Globalization
 Multi-national corporations are accused of social injustice, unfair working conditions
(including slave labor wages, living and working conditions), as well as lack of concern
for environment, mismanagement of national resources and ecological damage.
 Multi-national corporations are gaining more power and are influencing political
decisions.
 Building products overseas in countries like China puts technologies at risk of being
copied or stolen.
 It is also leading to the increment of communicable diseases.
 Prisoners and child workers are used to work in inhumane conditions. Safety standards
are ignored to produce cheap goods.

11. Is Globalization good or bad for Rich and
Poor?
 Global Income is more than $31 trillion a year, but 1.2 billion people of the world’s population
earn less than $1 a day.
 80% of the global population earns only 20% of global income, and within many countries there
is a large gap between the rich and the poor
 In 2002, there were 364 people per 1000 using internet in high income countries while there were
only 10 people per 1000 in low income countries`

12. `
So far, almost all of the evidence from the past three decades (1970-
2000) - the period of economic globalization's most rapid ascendancy - shows that it is
bringing exactly the opposite outcome that its advocates claim.
Clearly, poverty and inequality are rapidly accelerating everywhere on earth. A 1999
report by the United Nations Development Program found that inequalities between rich
and poor within and among countries are quickly expanding, and that the global trading
and finance system is one of the primary causes.

13. Even the U.S. Central Intelligence Agency (CIA) confirms the United Nations' (UN)
conclusions, agreeing that globalization brings massive inequalities. The benefits of
globalization do not reach the poor, says the CIA, and the process inevitably brings
increased global protest and chaos.
Robert Wade of the London School of Economics, wrote
"Global inequality is worsening rapidly...Technological change and financial liberalization result in a
disproportionately fast increase in the number of households at the extreme rich end, without
shrinking the distribution at the poor end”
The Economist (2001),

14. DO RULES LAID BY IMF AND
WTO FAVOR THE RICH NATIONS
OVER THE POOR NATIONS???

15. THE ANSWER… YES

16.  The U.S. is the largest shareholder with a quota of 18 percent. Germany, Japan, France, Great
Britain, and the US combined control about 38 percent.
 The disproportionate amount of power held by wealthy countries means that the interests of
bankers, investors and corporations from industrialized countries are put above the needs of the
world's poor majority.

17. Alexander Hamilton (January 11, 1755 or 1757 – July 12, 1804) was the First
Secretary of Treasure of the United States. He was the founder of the
Federalist Party, the first Political party of United States.

18. Hamilton has been portrayed as the "patron saint" of the American School of economic philosophy
that, according to one historian, dominated economic policy after 1861.
Hamilton opposed the British ideas of free trade, which he believed skewed benefits to colonial and
imperial powers, in favor of protectionism, which he believed would help develop the fledgling
nation's emerging economy.

19. Thank you….!
Any Questions????