Globalization Learning Module 1

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Questions and Answers

What is a significant advantage of globalization regarding productivity?

Countries can produce goods faster when they leverage their comparative advantage. (correct)

Productivity remains unchanged due to local markets.

Productivity increases solely due to technological advancements.

Productivity only decreases in export industries.

How does globalization impact living standards?

Living standards can increase more rapidly due to enhanced trade. (correct)

Living standards decrease uniformly across all countries.

Living standards remain stagnant regardless of globalization.

Living standards are negatively affected by increased imports.

What is one major disadvantage of globalization for workers in import-competing industries?

Job loss and wage reductions due to competition from imports. (correct)

There is less competition and higher prices.

Increased job security and better pay.

Workers face fewer demands on wages.

What trend is observed among jobs in export industries due to globalization?

They offer higher pay compared to jobs in import-competing industries. Signup and view all the answers

What is one consequence of increased global competition for domestic prices?

Competitors can provide cheaper imports, lowering price inflation. Signup and view all the answers

What threat do workers face as a result of wage concessions demanded by employers?

Layoffs if wage concessions are not accepted. Signup and view all the answers

How do unfettered capital movements affect workers?

They provide access to foreign investments, benefiting workers. Signup and view all the answers

In addition to blue-collar jobs, which other type of jobs are increasingly vulnerable to globalization?

Service and white-collar jobs. Signup and view all the answers

What is the narrow definition of globalization?

The instant movement of capital and rapid distribution of data Signup and view all the answers

What is a significant impact of globalization on nation-states?

Collapse under transnational economies Signup and view all the answers

How does globalization affect cultural diversity?

It leads to the erasure of differences for marketing purposes Signup and view all the answers

What does the phrase 'Americanization of the developed and developing world' refer to?

The global influence of US culture Signup and view all the answers

Which of the following is NOT mentioned as a consequence of globalization?

Political neutrality in cultural exchanges Signup and view all the answers

What is a potential danger of globalization mentioned in the text?

The trivialization of cultural practices Signup and view all the answers

What does the author imply about the future of borders in relation to globalization?

There may be an absence of borders and countries Signup and view all the answers

What underlying theme is suggested by the statement about the 'only passport' being 'the heart'?

Universal love is more important than national identity Signup and view all the answers

Which factor has significantly lowered the cost of transporting goods, facilitating globalization?

Development of containerization Signup and view all the answers

What major political event is considered a contributing factor to globalization?

Collapse of communism in the Soviet Union Signup and view all the answers

What role do transnational corporations (TNCs) play in the process of globalization?

They aim to profit from favorable production factors abroad. Signup and view all the answers

Which of the following is NOT considered a key feature of globalization?

Increased local autonomy Signup and view all the answers

How has the internet contributed to globalization?

By enabling organized trade on a global scale Signup and view all the answers

Which of the following best describes globalization?

Interconnectedness of people and places across various dimensions Signup and view all the answers

Which of the following is a disadvantage of globalization?

Widening economic disparities Signup and view all the answers

What is one of the primary motivations for countries to attract foreign direct investment (FDI)?

To increase economic growth Signup and view all the answers

Study Notes

Introduction to Globalization

Globalization involves the instant movement of capital and rapid distribution of data and products in a politically neutral environment influenced by multinational corporations.
It encompasses broader issues such as the demonization of embargoed states, the trivialization of negotiations with warlords, and the erosion of nation-states under transnational economies.
Key concerns include the dominance of Western culture, the Americanization of both developed and developing nations, and the potential erasure of cultural diversity due to globalization.

Definition and Features of Globalization

Globalization connects previously distant regions through commerce, communication, and travel, creating a significant shift in how societies interact.
Understanding globalization involves recognizing various definitions, key features, and contributing factors as well as its pros and cons.

Contributing Factors to Globalization

Reduced transportation costs due to containerization and bulk shipping facilitate cheaper import and export of goods.
The internet enables global trade organization and communication.
The lowering of trade barriers allows transnational corporations (TNCs) to thrive internationally.
Countries modify tax systems to attract foreign direct investment (FDI).
Significant investments by multinational companies in expanding operations internationally enhance globalization.
Events such as the collapse of communism in the Soviet Union and China's opening to world trade have accelerated globalization.

Advantages of Globalization

Increases productivity as countries specialize in goods and services they can produce most efficiently.
Can lead to rapid improvement in living standards through access to global markets.
Fosters global competition and low prices, keeping inflation in check and supporting economic growth.
Encourages technological development and innovation through exposure to global ideas.
Jobs in export industries often provide higher wages compared to those in import-competing sectors.

Disadvantages of Globalization

Millions of workers may lose jobs due to import competition and shifting production abroad, often resulting in lower-paying employment opportunities.
Economic instability is a concern for workers in industries affected by imports, leading to job insecurity.
Wage concessions may be demanded by employers, pressuring workers who wish to avoid job export overseas.
Vulnerability of jobs extends beyond blue-collar positions to service and white-collar jobs that can easily be outsourced.
Global capital movements can create competitive disadvantages for workers in regions struggling to retain foreign investment.

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Description

This quiz covers key concepts and challenges of globalization as introduced in the first learning module. Explore critical aspects that define globalization in the 21st century and its effects on the world. Prepare to engage with the material from September 14-18, 2020.