Globalization Challenges and Effects

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Questions and Answers

What is considered a major challenge in finding the right balance between the benefits and costs of globalization?

Insufficient economic resources

Resistance to cultural change

Lack of understanding of how globalization works (correct)

Inadequate global governance structures

What is an example of a normative issue in globalization?

Economic inequality

Reduction of protectionism (correct)

Cultural diversity

Environmental degradation

What is protectionism?

A strategy for promoting economic development

A form of government subsidy

A policy of free trade with no restrictions

An economic policy of restricting imports (correct)

What is one of the consequences of the gap between rich and poor?

Social unrest and conflict Signup and view all the answers

What is a by-product of the expansion of the global economy?

Pollution and resource shortages Signup and view all the answers

What is a crucial step in helping poor countries?

Providing aid and a fairer trading system Signup and view all the answers

What has been the effect of globalization on income inequality?

Widened income gaps within and between countries Signup and view all the answers

What is a recent call to action by the ILO?

For a fairer globalization Signup and view all the answers

What is the primary goal of globalization?

To create a unified system of global economics Signup and view all the answers

What has been the other principal driver of globalization, apart from international trade and investment?

Advances in information technology Signup and view all the answers

What is one of the effects of globalization on societies around the world?

Improved human physical well-being Signup and view all the answers

What is globalization seen as?

A conscious and active process of expanding business and trade Signup and view all the answers

What is the current role of national economies in the international economic system?

Major players in the existing international economic system Signup and view all the answers

What is a result of advances in information technology in the context of globalization?

Faster and more informed analyses of economic trends Signup and view all the answers

What is the ultimate goal of globalization in terms of economic development?

Sustainable development for the whole world Signup and view all the answers

What is the outcome of globalization in terms of economic and political activity?

A shift from national to a global sphere of economic and political activity Signup and view all the answers

Study Notes

What is Globalization?

Globalization is a process of interaction and integration among people, companies, and governments of different nations, driven by international trade and investment, and aided by information technology.
This process has effects on the environment, culture, political systems, economic development, and human physical well-being in societies around the world.

Characteristics of Globalization

Expanding business and trade across national borders to secure integration of economic interests and activities globally.
Aiming to create a truly interrelated, interdependent, developed global village.

Drivers of Globalization

International trade and investment
Advances in information technology, particularly in transforming economic life.

Ethical Issues of Globalization

Unfair Economic Practices

Reduction of protectionism can be unfair if not applied fairly.
Protectionism includes restricting imports from other countries through tariffs, quotas, and government regulations.

Exploitation and Inequality

Inequality of power can lead to massive exploitation by multinationals, especially with no or few trade unions.
The gap between rich and poor is still very large, with 40% of the world's population living on less than $2 a day.

Negative Consequences of Globalization

Economic globalization can marginalize the poor, destroy the environment, and damage cultures.
Globalization increases inequality and further impoverishes the poor.
Global problems, such as pollution, resource shortages, global warming, and health hazards, are by-products of the expansion of the global economy.

Poverty and Inequality

Poverty is still a significant issue, with many people dying due to poverty.
Aid and a fairer trading system are crucial to help poor countries.
Income gaps have widened both within countries and between countries.

UN Study on Fair Globalization

A recent UN study by ILO called for a fair globalization, highlighting that global trade increases wealth, but the benefits are not shared equally.

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Description

Explore the process of globalization, its effects on the environment, culture, and economic development, and the challenges it poses. This quiz delves into the concept of globalization and its implications on societies around the world.