Globalization involves increasing economic integration between countries through mechanisms like free trade, financial flows, and technology sharing. While globalization has increased world wealth, questions remain about how evenly benefits and costs are distributed. Supporters argue it can reduce poverty through growth, but others worry about issues like working conditions and environmental protection when prioritizing open markets over other concerns. Formalizing property rights is presented as key to allowing all people to leverage assets for economic opportunity.

1. Globalization
To trade or not to trade?
That is the question!
For richer of for poorer!
For better or for worse?
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2. under Globalization
 the United States and
economically
developed nations will
promote
• open trade
• open financial flows
• democracy
• economic development
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3. under Globalization
 the integration of national economies
into the international economy will
be promoted through
• facilitating expanded trade levels
• facilitating direct foreign investment (by
corporations and multinationals)
• facilitating short-term capital flows
• facilitating international flows of workers
and humanity generally, and
• facilitating flows of technology
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4. Globalization
 can be caused in response to:
• Military change
• political change
• economic change and
• technological change.
 Geographic and political borders are
becoming less effective as barriers to
economic exchange and economic
expansion and economic integration
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5. Globalization
 increases employment
 but may raise other issues
• women’s relative economic strength
• child labor
• working conditions
 four (4) questions to be posed
• Does the wage reflect the relative scarcity of
the worker?
• Are the workers working voluntarily?
• Is the job better than their best alternative?
• What can be done to improve their situation?
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6. causes of Outsourcing?
 U.S. is a net exporter of service jobs.
 most job losses are the result of the 80%
drop in voice and data transmission from
2000 thru 2004.
 the service job losses make up only 2%
of all U.S. job losses.
 Many of these jobs were held by low
income workers.
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7. Globalization
creates wealth
 capable of leading to expanded
and widespread economic growth
 true growth can reduce poverty
 but for whom?
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8. the International
Monetary Fund &
the World Bank
 IMF was founded to stabilize international
currencies and support world trade
 World Bank’s mission is to assist and
support developing nations’ efforts
 There are ongoing accusations of counter
productive policies doing more harm than
good 8

9. The Environment
 The World Trade
Organization and
other international
trade groups are not
the way to protect
the environment;
their mission and
goal is to promote
free and open trade.
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10. Property Rights
& Capital
 Hernando de Soto Polar
• squatters may hold “plenty” of land
• they don’t hold property rights
• the key to development is
establishment of property rights so
that the poor can use “their
property” to get loans to access
economic development 10

11. Hernando de Soto Polar
 Hernando de Soto Polar (or Hernando de
Soto; born 1941) is a Peruvian economist known
for his work on the informal economy and on the
importance of business and property rights
The main message of de Soto Polar's work
and writings is no nation can have a strong
market economy without adequate
participation in an information framework
recording ownership of property and other
economic information. Unreported,
unrecorded economic activity results in
many small entrepreneurs lacking legal
ownership of their property, making it
difficult for them to obtain credit, to sell the
business or to expand 11

12. Main Points
 The U.S. and other western nations are
trying to promote open trade and the
financial flows and democracy.
 This effort has led to the increased
globalization and the increased integration
of world economies
 the current wave of globalization is
occurring in response to and as a result of
military, political, economic, and
technological change
 While globalization has led to increased
world wealth there is some question with
respect to globalization’s distribution
effects 12

13. other Main Points
 Globalization and open trade have led to
increased employment but some question the
nature of the employment and continue to
remain concerned about sweat shops and
child labor practices
 Outsourcing destroys jobs in some service
sectors. The U.S. is a net exporter of service
jobs and services
 As evidenced by the Tuna versus Dolphin and
the Shrimp versus Turtle cases ~ international
trade organizations are not likely to be major
enforcers of environmental protection
 Hernando de Soto Polar claims property rights
and the consequent creation of capital hold
the answer to the eradication of poverty.
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