Globalization is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalization has increased the production of goods and services. The biggest companies are no longer national firms but multinational corporations (MNCs) with subsidiaries in many countries.
Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last half-century. Although globalisation is probably helping to create more wealth in developing countries, it is not helping to close the gap between the world’s poorest countries and the world’s richest.
Short: Globalisation is the worldwide movement toward economic, financial, trade, and communications integration.
Globalization 1.0 (1492-1800)
Physical power of countries and governments
Countries struggle for colonies
Imperialism
World "shrank" from large to medium
Globalization 2.0 (1800-2000)
Multinational companies, global markets
Companies struggle for success/profit
Industrialization, falling costs
expansion; steam engine & railroad
world shrank from medium to small
Globalization 3.0 (2000 until now)
personal computer; workflow software, fibre optic cable
more opportunities to work
world went from small to tiny
Developing countries:
hope to get work and prosperity
new jobs are available and access to world market
many people still suffer from malnutrition or die of diseases
increasing independence on foreign support, credits and investment
unfair/inhumane working conditions
dependency on developed countries
Industrial world/Economy:
exports improve economy (international/free trade)
wide range of products/food at any time
growing prosperity for producers
countries can help each other Industrial world/Economy:
people in industrial countries lose jobs
financial crisis in one country can affect others as well (global crisis)
Politics
spread of freedom, democracy & human rights
reduction of wars and conflicts worldwide
peaceful, borderless world of shared universal values, ecological stability Politics:
massive illegal immigration
danger of increasing corrupt governments
increasing of power of global players (loss of control)
international affairs more important than national
clash between political systems
Slide 5
Culture:
greater understanding & tolerance
spread of traditions and culture
clash of cultures
regional and ethnic tensions (racism)
fear that individual cultures will blend into a single global culture (loss of cultural diversity)
Environment:
pollution
higher co2 emissions
global warming
For humankind in general:
fast/better communication and exchange
technological progress
easier travelling, wider range of products
international cooperation to solve problems (global challenges)
wider gap between rich and poor
diseases can easily spread all around the globe (pandemia) (example: Ebola)
Inward investment by big global companys (MNCs) helps countries by providing new jobs and skills for local people.
MNCs bring wealth and foreign currency to local economies when they
buy local resources, products and services. The extra money created by
this investment can be spent on education, health and infrastructure.
The sharing of ideas, experiences and lifestyles of people and
cultures. People can experience foods and other products not previously
available in their countries.
Globalisation increases awareness of ecents in faraway parts of the
world. For example, the UK was quickly made aware of 2004 tsunami tidal
wave and sent help rapidly in response.
Globalisation may help to make people more aware of global ussues
such as deforestation and global warming – and alert them to need for
sustainable development.
Slide 8
Globalisation operates mostly in the interests of the richest
countries, which continue to dominate the world trade at the expense of
developing countries. The role of LEDCs (less economically developed
country [„third world country“] ) in the world market is mostly to
provide the North and West with cheap labour and raw materials.
Transnational companies (TNC), with their massive
economies of scale, may ruin local companies. If it
becomes cheaper to operate in another country, the TNC might close down
the factory and make local people redundant.
In detail: Negatives effects
An absence of strictly enforced international laws means that MNCs
may operate in LEDCs in a way that would not be allowed in for example a European country. They
may pollute the environment, run risks with safety or impose poor
working conditions and low wages on local workers.
Globalisation is viewed by many as a threat to the world’s
cultural diversity. It is feared it might drown out local economies,
traditions and languages. An example of this is that Hollywood
film is far more likely to be successful worldwide than one made in
India or China.
Industry may begin to thrive in LEDCs at the expense of jobs in manufacturing in the UK and other MEDCs, especially in textiles
