Podcast
Questions and Answers
What effect does globalization have on food supply?
What effect does globalization have on food supply?
- Food supply is limited to local production cycles.
- Food quality declines due to increased shipping.
- Food prices become more stable and predictable.
- Food can be purchased from anywhere regardless of season. (correct)
How do multinational companies (MNCs) impact job security?
How do multinational companies (MNCs) impact job security?
- MNCs provide better benefits leading to job stability.
- Jobs in the global economy are more temporary and insecure. (correct)
- Job security increases due to global hiring practices.
- Jobs become more permanent as MNCs expand.
What cultural impact can result from the growth of multinational companies?
What cultural impact can result from the growth of multinational companies?
- Enhanced preservation of local traditions.
- Monoculture formation through reduced local competition. (correct)
- Creation of a diverse set of global brands.
- Increased interest in cultural exchange programs.
What role do multinational companies play in the division of labor due to globalization?
What role do multinational companies play in the division of labor due to globalization?
What environmental consequence is associated with increased trade from globalization?
What environmental consequence is associated with increased trade from globalization?
What was a significant economic shift that occurred after World War II?
What was a significant economic shift that occurred after World War II?
What primary effect does globalization have on economic integration among countries?
What primary effect does globalization have on economic integration among countries?
Which of the following factors contributed to the growth of globalization after World War II?
Which of the following factors contributed to the growth of globalization after World War II?
Which sector has globalization historically focused on before expanding to services?
Which sector has globalization historically focused on before expanding to services?
How have free trade agreements impacted global markets?
How have free trade agreements impacted global markets?
What is a direct consequence of companies outsourcing service activities?
What is a direct consequence of companies outsourcing service activities?
Which aspect is NOT a type of globalization mentioned in the content?
Which aspect is NOT a type of globalization mentioned in the content?
What role does global banking play in globalization?
What role does global banking play in globalization?
Which technological advancement has significantly aided in the mass movement of goods globally?
Which technological advancement has significantly aided in the mass movement of goods globally?
What has primarily driven the globalization of economic activities among countries?
What has primarily driven the globalization of economic activities among countries?
What has been a primary motivation behind the promotion of global free trade by multinational companies?
What has been a primary motivation behind the promotion of global free trade by multinational companies?
What is meant by political globalization?
What is meant by political globalization?
Which organization is known for promoting free trade on an international level?
Which organization is known for promoting free trade on an international level?
Which of the following best illustrates the integration of globalization in technology and services?
Which of the following best illustrates the integration of globalization in technology and services?
What impact did the decline in barriers to the free flow of goods have after World War II?
What impact did the decline in barriers to the free flow of goods have after World War II?
What benefit do countries experience when they have few trade barriers, according to the economic type of globalization?
What benefit do countries experience when they have few trade barriers, according to the economic type of globalization?
Flashcards
Globalization definition
Globalization definition
Globalization is the integration of countries through trade, investment, and technology.
Economic Globalization
Economic Globalization
Countries with high trade and few barriers are economically globalized.
Social Globalization
Social Globalization
Ease of information and idea flow between countries via internet/social media.
Political Globalization
Political Globalization
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Globalization Driver 1
Globalization Driver 1
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Globalization Driver 2
Globalization Driver 2
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Outsourcing Example
Outsourcing Example
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Globalized Product Example
Globalized Product Example
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Globalization and MNCs
Globalization and MNCs
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Globalization's food impact
Globalization's food impact
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Global division of labor
Global division of labor
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Job Security in Global Economy
Job Security in Global Economy
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Globalization and Environment
Globalization and Environment
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Post-WWII Trade Liberalization
Post-WWII Trade Liberalization
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Technological Change
Technological Change
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Transnational Corporations (TNCs)
Transnational Corporations (TNCs)
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Free Trade Agreements/Liberalization
Free Trade Agreements/Liberalization
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Improved Communications
Improved Communications
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Improved Transportation
Improved Transportation
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Global Banking
Global Banking
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Average Tariff Rates
Average Tariff Rates
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Study Notes
Globalization: Introduction
- Globalization is defined as the rapid integration of economic, cultural, and institutional factors among countries.
- This integration is driven by trade liberalization, investment and capital flow, and technological advancements.
- Globalization makes the world more accessible to everyone.
Contact Details
- Office Hours: Thursdays, 12:30 PM - 1:30 PM
- Email: [email protected]
Course Assessment
- Participation: 10% (all semester)
- Attendance: 5% (all semester)
- Group Debate 1 & 2: 10% (all semester)
- Quiz 1: 5% (Week 5)
- Quiz 2: 5% (Week 6)
- Midterm Exam: 20% (Week 8)
- Presentation: 5% (Week 15)
- Final Exam: 40% (Week 16)
- Total: 100%
What is Globalization?
- Globalization is not just about manufacturing; modern communication allows companies to outsource service activities to low-cost nations.
- Globalization is evident in the example of the Vizio Flat Panel TV, designed in California, assembled in Mexico, with components from South Korea, China, and the US. This wouldn't be possible without globalization.
- Google outsources IT infrastructure management, software development, and maintenance to IT services firms in India for cost savings and expertise.
- Ford outsourced software development, engineering, and IT to India in 2013 to manage their e-commerce store and provide 24/7 customer support globally.
Types of Globalization
- Economic: Countries trading with many others, with few trade barriers.
- Social: Ease of information and idea transfer between people, including access to the internet and social media.
- Political: Level of political cooperation between countries.
Drivers of Globalization
- Decline in Barriers: Reduced trade barriers for goods, services, and capital flow since World War II.
- Technological Change: Pre-WWII nations created trade barriers; post-WWII industrial nations removed those to facilitate free flow.
- Tariff rates on manufactured products were notably high in the early 20th century (e.g., 44% in the US, 21% in France.) Rates have significantly reduced through to 2002.
Increasing Significance of TNCs
- After World War II, corporations gained more economic power and this accelerated growth.
- Transnational companies thrive in countries with favorable corporation tax rates and tax breaks. This is often cited as a major driver behind increased MNC activity.
- Examples of multinational corporations are included in an image that depicts their global reach.
Causes of Globalization (Improved Communication)
- Internet, email, and mobile phones facilitate global communication and operations of MNCs.
- Improved technology allows easier communication and information sharing globally.
- Satellite TV channels (like Sky and CNN) facilitate international marketing and product promotion.
Causes of Globalization (Improved Transport)
- Refrigerated and container transport, bulk shipping, and air transport enable easy global movement of goods.
- Efficient transportation is a crucial aspect of worldwide goods movement.
Causes of Globalization (Free Trade)
- Trade liberalization refers to reduced trade barriers, enabling worldwide markets.
- Multinational Corporations (MNCs) and rich countries actively promote free trade to enrich themselves and increase influence.
- International organizations such as WTO and IMF endorse free trade practices.
Causes of Globalization (Global Banking)
- Modern communication technologies enable swift and widespread capital flows.
- Approximately 1.3 trillion US dollars are traded daily through international stock exchanges in major financial centers.
Causes of Globalization (Growth of Multinational Companies)
- The significant growth of MNCs (e.g., Microsoft, McDonald's, Nike) is both a cause and consequence of globalization.
- Investments in farms, mines, and factories worldwide play a large role in globalization.
- Globalization enables MNCs to operate globally and sell on a massive scale.
Effects of Globalization
- Changed Food Supply: Global food supplies are no longer tied to seasons (e.g., availability of fresh produce year-round).
- Division of Labor: MNCs seek lower production costs in developing countries – resulting in production shifting in industries to those regions.
- Less Job Security: Jobs are often temporary or precarious in our current economy. Surveys show the trend towards workers holding multiple jobs over a working life in the USA.
- Damage to Environment: Increased international trade leads to more transportation, causing more pollution and climate change.
- Cultural Impacts: Websites like YouTube connect the world but can also diminish local cultures as multinational corporations like Starbucks or similar enterprises take over local cultural centers.
Debate Question
- The debate question is: "The Emirati identity won't survive in a globalized culture."
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