The document discusses the history and effects of globalization. It describes how globalization has increased over time due to advances in technology and transportation. Some benefits mentioned include countries specializing in industries they have a comparative advantage in, larger markets for goods, and cheaper products for consumers. Potential downsides include unemployment in industrialized nations, greater environmental problems, and the risk of economic and health crises spreading more widely. The document also examines how globalization has increased the power of multinational corporations and international organizations.

1. GLOBALIZATION
good sides, bad sides
Units 11 and 12

2. Globalization
• Globalization is the system of interaction
among the countries of the world in order to
develop the global economy. Globalization
refers to the integration of economics and
societies all over the world. Globalization
involves technological, economic, political,
and cultural exchanges made possible largely
by advances in communication, transportation
and infrastructure.

3. History of
Globalization
• Globalization is not new. For thousands of years
people have been trading goods and travelling
across great distances. During the Middle Ages,
merchants travelled along the Silk Road, which
connected Europe and China.
• The modern age of globalization started with the
Industrial Revolution at the end of the 18th
century. New machines were able to produce
cheaper goods. Trains and steam-powered boats
transported products farther and faster.

4. • Since 1980, globalization has been moving at a
faster pace. Today it is easier for companies to
work in other countries. The Internet gives them
the chance of reaching more customers around
the world. Teleworkers work for firms that may
be far away.
• However , there is a growing debate over
globalization. Governments are in favour of
globalization because the economy can grow.
Other people are not so sure that there are only
advantages. Here are some arguments from both
sides:

5. Good sides…
1. 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.
2. Globalization gives you a larger market. You can
sell more goods and make more money. You can
create more jobs.
3. Consumers also profit from globalization.
Products become cheaper and you can get new
goods more quickly.

6. Bad Sides…
1. Globalization causes unemployment in
industrialized countries because firms move
their factories to places where they can get
cheaper workers.
2. 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.

7. 3. 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.
4. 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.
5. Human, animal and plant diseases can spread
more quickly through globalization.

8. • Many experts say that we need a different kind of
globalization in our world today. There must be
ways to make sure that all countries profit from
the good sides of globalization. We should help
poorer countries by giving them better education
and showing them how new technology works.
• Every year, leaders of the world’s biggest
industrial countries get together to discuss
economic problems. This meeting is called the G8
summit. In the last few years groups against
globalization have organized protest marches and
demonstrations to point out that not everyone is
happy with how the world’s economy is
developing.

9. Words…
• advantage = the good side of something
• age = period of history
• argument =reasons
• business = company
• cause =lead to
• cell phone = a mobile telephone
• close down = to stop producing goods
• connect = to link together
• create = make
• customer = a person who buys something
• debate = discussion
• develop =grow
• developed countries = rich , industrialized countries
• disease = illness
• distance =space

10. • economic =about the economy
• economy =the system of producing goods and products in a country and
selling them
• educated = if you have gone to school and learned a lot
• environmental = everything that is about the air, water or land around us
• especially =above all, more than others
• exchange = to give someone something and get something else in return
• factory = building in which you produce goods
• farther =here: over greater distances
• firm = company
• focus on = concentrate on
• G8 = Group of 8 = the most important industrialized countries in the world
• goods = things that you produce and sell
• government =the people who rule a country
• however =but
• in favour of = for something
• investor = a person who gives money to a company and expects to get
more money in return

11. • law = rules that a country has
• lead to =cause
• leader = the most powerful person of a country
• make sure = to check that something has been done
• merchant = someone who buys and sells goods
• pace = speed
• point out = to show
• produce = make
• pull out = take out
• reach = get to
• Silk Road = an old route on which silk was carried from Europe to Central Asia
• spread =to move from one place to another
• steam—powered =run by a steam engine ; power is produced by making water
hot so that it turns into a gas
• steel = a strong metal that you can form
• strict =exact
• summit = meeting for powerful leaders of a country
• teleworker = someone who works from home and uses a computer, telephone etc.
• trade = to buy and sell goods
• unemployment = if you don’t have a job

12. More Effects…
According to economists, there are a lot of global events connected with globalization
and integration. It is easy to identify the changes brought by globalization:
1. Improvement of International Trade. Because of globalization, the number of
countries where products can be sold or purchased has increased dramatically.
2. Technological Progress. Because of the need to compete and be competitive
globally, governments have upgraded their level of technology.
3. Increasing Influence of Multinational Companies. A company that has
subsidiaries in various countries is called a multinational. Often, the head office
is found in the country where the company was established.
An example is a car company whose head office is based in Japan. This company has
branches in different countries. While the head office controls the subsidiaries, the
subsidiaries decide on production. The subsidiaries are tasked to increase the
production and profits. They are able to do it because they have already penetrated
the local markets.
The rise of multinational corporations began after World War II. Large companies refer
to the countries where their subsidiaries reside as host countries. Globalization has a
lot to do with the rise of multinational corporations.

13. 4. Power of the WTO, IMF, and WB. According to experts, another
effect of globalization is the strengthening power and influence of
international institutions such as the World Trade Organization
(WTO), International Monetary Fund (IMF), and World Bank (WB).
5. Greater Mobility of Human Resources across Countries.
Globalization allows countries to source their manpower in
countries with cheap labour. For instance, the manpower
shortages in Taiwan, South Korea, and Malaysia provide
opportunities for labour exporting countries such as the
Philippines to bring their human resources to those countries for
employment.
6. Greater Outsourcing of Business Processes to Other Countries.
China, India, and the Philippines are tremendously benefiting from
this trend of global business outsourcing. Global companies in the
US and Europe take advantage of the cheaper labour and highly-
skilled workers that countries like India and the Philippines can
offer
7. Civil Society. An important trend in globalization is the increasing
influence and broadening scope of the global civil society.

14. • Civil society often refers to NGOs (nongovernment organizations).
There are institutions in a country that are established and run by
citizens. The family, being an institution, is part of the society. In
globalization, global civil society refers to organizations that
advocate certain issue or cause.
• There are NGOs that support women's rights and there are those
that promote environment preservation. These organizations don't
work to counter government policies, but rather to establish
policies that are beneficial to all. Both the government and NGOs
have the same goal of serving the people.
• The spread of globalization led to greater influence of NGOs
especially in areas of great concern like human rights, the
environment, children, and workers. Together with the growing
influence of NGOs is the increasing power of multinational
corporations. If the trend continues, globalization will pave the way
for the realization of the full potential of these two important global
actors.
CHECK THIS WEB: http://www.wango.org/resources.aspx?section=ngodir

15. SOURCES
• http://education.nationalgeographic.com/educati
on/encyclopedia/globalization/?ar_a=1
• http://www.english-
online.at/economy/globalization/advantages-
and-disadvantages-of-globalization.htm
• http://multigraffiti.blogspot.com.es/2011/04/defi
nition-of-globalization.html
• http://www.investorwords.com/2182/globalizati
on.html#ixzz2ROQ1Ot5o
• http://hotbabefatchicks.hubpages.com/hub/Defi
nition-of-Globalization