Unit 4 Economic Globalizationp.38,40-41

Lesson 6

What you should learn? (p.38)

Economic globalization has brought about more unemployment (失業 ) problems

In order to maximise profits, multinational corporations try to reduce costs through international division of labour.

E.g. Nike keeps moving its factories in order to maintain its growth of profits.

Japan Taiwan & Korea mainland of China, Malaysia & other Southeast Asian countries

Since corporations have been trying to maximise profits, globalization have an adverse (不利的 ) effect on low-skilled workers or workers in the manufacturing industry.

Even for high-tech production stages, as long as place can offer higher cost effectiveness (成本效益 ), corporations will outsource (外判 ) the production procedure there.

E.g. Computer and TV games: Invented (發明 / 創造 ) by American and European

enterprises. Research (研究 ) work takes place in India.

Due to globalization, the threat of unemployment becomes more serious.

And it affects different types of jobs, not just low-skilled ones.

What you should learn? (p.40-41)

Global Interdependence (互相依賴 ) Economic globalization brings about a lot of

advantages. 1. It provides a large market for products. 2. It reduces the production costs to a great

extent. 3. It brings capital to developing countries.

Therefore, globalization is an essential factor which supports the continuous economic growth of different countries around the world.

However, countries have also become more interdependent because of economic globalization.

This has made the global economic system more vulnerable (易受打擊 ).

Increasing influence of external factors on economies

Due to globalization, more and more countries rely on international trade for their economic development.

As a result, if the trading partners of these countries suffer from an economic downturn (經濟不景 ), they will be affected.

This problem is especially serious in countries which rely on exports (出口 ).

E.g. America main importing country

When the purchasing power (購買力 ) of Americans becomes weaker, countries which rely on the American market will suffer seriously.

Between 2001 and 2002, the American economy was very weak and this affected the economies of many Southeast Asian countries (東南亞國家 ).

Unit 4 - Summary

Summary

1. Due to economic globalization, the mobility (流動性 ) of capital, labour and goods has become relatively higher.

Multinational corporations operate their capital raising (資金籌集 ), production and marketing activities globally.

2. Globalized production is carried out by international division of labour.

It enables multinational corporations to reduce their production costs considerably.

3. Globalized production provides opportunities, such as employment and production technology, for developing countries.

At the same time, it may bring a lot of labour and social problems, such as exploitation of workers and environmental problems.

4. In a bid to fight for the contracts offered by multinational corporations, manufacturers would try their best to reduce production costs and production time.

They may neglect (忽視 ) the interests and the rights of the workers and even abuse (虐待 ) them.

6. Economic globalization has made countries become more interdependent.

The economy of a country is more easily affected by external factors.

The increased mobility of capital brought by globalized capital market (資金市場全球化 ) has also increased the risk of global financial crisis (國際金融危機 ).

Quiz 2

Corrections

Write the correct sentence for 2 times at the back of the Quiz paper

Hand in the file after the Test (8th April)

Answers – Quiz 2

1. transportation 2. trade 3. labour 4. communication 5. barriers 6. capital 7. corporations 8. Internet 9. interactive 10. transmission

Reminders

Revision Exercise (Open book)Economic globalization29/3 (Day 7)

Test Unit 1, 2, 48/4 (Day 7)