Globalization is defined as the expansion of economic and social ties between countries through the spread of corporate institutions and capitalist philosophy, shrinking the world economically. It has been made possible by technology, communication networks, internet access, growth of economic cooperation through trading blocs, the collapse of communism, and movement to free trade. Globalization results in increasing reliance between economies, and opportunities to buy and sell and locate labor and capital anywhere in the world, growing global financial markets. While it increases choice, growth, and employment opportunities through trade, it can also increase gaps between rich and poor and allow dominance and exploitation in global trade.

1. Globalization in Economy

2. 

Definition:
◦ An economic phenomenon?
◦ A social phenomenon?
◦ A cultural phenomenon?
The movement towards the expansion of
economic and social ties between countries
through the spread of corporate institutions
and the capitalist philosophy that leads to
the shrinking
of the world in economic terms.

3. 
Made possible by:
Technology
Communication networks
Internet access
Growth of economic cooperation – trading blocs
(EU, NAFTA, etc.)
◦ Collapse of ‘communism’
◦ Movement to free trade
◦
◦
◦
◦

5. 



The increasing reliance of
economies on each other
The opportunities to be able
to buy and sell in any
country in the world
The opportunities for labour
and capital to locate
anywhere in the world
The growth of global
markets in finance

6. 
Made possible by:
Technology
Communication networks
Internet access
Growth of economic cooperation – trading blocs
(EU, NAFTA, etc.)
◦ Collapse of ‘communism’
◦ Movement to free trade
◦
◦
◦
◦

7. 
Benefits of Trade:
◦ Increased choice
◦ Greater potential for growth
◦ Increase international
economies of scale
◦ Greater employment
opportunities

8. 
Disadvantages
of trade:
◦ Increase in gap between the
rich and the poor
◦ Dominance of global trade by
the rich, northern hemisphere
countries
◦ Lack of opportunities for the
poor to be able to have access
to markets
◦ Exploitation of workers and
growers