GLOBALIZATION good sides, bad sides

Units 11 and 12

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.

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.

• 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:

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.

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.

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.

• 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.

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

• 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

• 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

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.

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.

• 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

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/definition-of-globalization.html

• http://www.investorwords.com/2182/globalization.html#ixzz2ROQ1Ot5o

• http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization