CONTEMPORARY
WORLD
GLOBALIZATION
Globalization is the spread of products,
technology, information, and jobs across national
borders and cultures. In economic terms, it
describes an interdependence of nations around
the globe fostered through free trade.
Globalization represents the global integration of
What is international trade, investment, technology, and
cultures.
Globa liza tion On the upside, it can raise the standard of living
? in poor and less developed countries by
providing job opportunities, modernization, and
improved access to goods and services. On the
downside, it can destroy job opportunities in
more developed and high-wage countries as
the production of goods moves across borders.
World Health Organization defined Globalization as the
“interconnectedness and interdependence of peoples
and countries, is generally understood to include two
interrelated elements: the opening of the international
borders to increasingly fast flows of goods, services,
finance, people and ideas; and the changes in
What is institutions and policies at national and international
levels that facilitate or promote such flows.
Globa liza tion
Globalization has the potential for both positive and
negative effects on development and health”.
? Globalization motives are idealistic, as well as
opportunistic, but the development of a global free
market has benefited large corporations based in the
Western world. Its impact remains mixed for workers,
cultures, and small businesses around the globe, in both
developed and emerging nations.
Globalization aims to
benefit individual
economies around the
Importance world by making
of markets more efficient,
Globa liza tion increasing competition,
limiting military
conflicts, and
spreading wealth
more equally
Foreign Direct Investment: Foreign direct
investment (FDI) tends to increase at a much
greater rate than the growth in world trade,
helping boost technology transfer, industrial
restructuring, and the growth of global
companies. Technological Innovation: Increased
Some benefits competition from globalization helps stimulate
new technology development, particularly with
of the growth in FDI, which helps improve
economic output by making processes more
Globalization efficient.
Economies of Scale: Globalization enables
large companies to realize economies of
scale that reduce costs and prices, which in
turn supports further economic growth.
However, this can hurt many small
businesses attempting to compete
domestically
Interdependence: Interdependence
between nations can cause regional
or global instabilities if local
economic fluctuations end up
impacting a large number of
Some of the
countriesSovereignty:
National relying on them.
Some see the rise
of nation-states, multinational or global
firms, and other international
risks of organizations as a threat to sovereignty.
Ultimately, this could cause some
Globa liza tion leaders to become nationalistic or
xenophobic.
Equity Distribution: The benefits of
globalization can be unfairly skewed
towards rich nations or individuals,
creating greater economic
inequalities.
As more money is poured into developing countries, there is a
greater chance for the people in those countries to
economically succeed and increase their standard of living.
The global competition encourages creativity and
innovation and keeps prices for commodities/services in
check.
Positive Developing countries are able to reap the benefits of
current technology without undergoing many of the
aspects of growing pains associated with the development of these
technologies.
Globa liza tion Governments are able to better work together towards
common
goals now that there is an advantage in cooperation,
an improved ability to interact and coordinate, and a
global awareness of issues.
There is greater access to foreign culture in the form of
movies,
music, food, clothing, and more. In short, the world has
more choices.
More efficient markets
Increased
Positive
competition
aspects of
Stabilized security
Globa liza tion
More wealth equality
throughout the world
ADVANTAGES
AND
DISADVANTAGES
OF
GLOBALIZATION
Globalization allows us to pool all
our resources together.
Advantages Globalization would also reduce
of labor exploitation issues
Globalization reduces the
Globa liza tion
prospects of tyranny.
Globalization improves
communication access.
Advantages Globalization would help the
of developing world progress
faster
Globa liza tion
Globalization would reduce
Advantages currency manipulation problems
Globalization encourages free
of trade
Globa liza tion Globalization could create more
employment opportunities
Globalization benefits the
wealthy more than the poor
Globalization would
Disa dva nta ge
encourage disease transfer
s of Globalization could reduce
Globalization social safety net programs
Globalization would create a
new system of politics
Disa dva nta ge
Globalization would not
s of prevent resource
Globalization consumption Globalization
would make it easier for
people to cheat
Globa liza tion doesn’t fix a
la ck of skills
Globalization changes
Disa dva nta ge
how humans would
s of identify themselves
Globalization Globalization would
negatively impact
the environment
FACTORS
AFFECTING
GLOBALIZATIO
N
Technology
( communica tion
)
Factors Transportation
affecting Deregulations
Globalizatio Removal of
capital
n exchange
controls
Free Trade
Consumer tastes have
changed, and
consumers are more
willing to try foreign
Factors products
affecting Emerging markets in developing
countries
Globalizatio
Conta ineriza tio
n n
Technological
change
Economies of
scale
Factors Differences in tax
systems
affecting
Globalizatio Less
protectionism
n
Growth Strategies of
Transnational and
Multinational
Companies
Historica
Other l
Econom and
Resources
Factors
y
Markets Production
Infl uencing Issues Political
Globa liza tion Industrial
Organization
Technologies
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You
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