Globalization Unit 4

12 Questions

What is globalization, according to the IMF?

The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions

What was a major example of early globalization?

The Silk Road

What has increased in recent years due to globalization?

The volume of international trade

What is one benefit of globalization to citizens in poor countries?

Better quality of life due to increased investment

Why has the flow of goods increased globally?

Due to improved methods of transportation

Which region is a significant supplier of clothing exports?

Asia

What is the pattern followed by countries to achieve excellent results in the clothing industry?

Achieve excellent results in their own country, then cut down production and invest in other low-cost countries

What is a consequence of low demand for clothing in the garment industry?

Forced layoffs and shortened work weeks

What is the term used to describe the phenomenon where corruption is exacerbated by the consequences of the development gap?

Resources Trap

What is a characteristic of sweatshops in the clothing industry?

Workers are paid according to the number of pieces they can produce

What is a reason why some countries or regions are wealthier than others?

Corruption resulting in money being diverted from development

What is the estimated number of children under 5 who die from preventable diseases?

Study Notes

Definition of Globalization

Globalization is the growing interdependence of countries worldwide through cross-border transactions, international capital flows, and the diffusion of technology.

Early Examples of Globalization

The Silk Road (1st century BCE-1400s) was a trade route connecting Venice to China, SE Asia, and Somalia.
Christopher Columbus "discovered" the Americas in 1492, marking the beginning of globalization.

Characteristics of Globalization

Shift from independent/separate states to a more interdependent world.
Boundaries (political, economic, social) become less important.
The world has "gotten smaller" due to improved technology, leading to increased movement of people, goods, ideas, and money.

Effects of Globalization

Increased trade and flow of investment, leading to development and better quality of life.
Improvements in transportation, allowing for faster and more efficient shipping of goods worldwide.
Companies now have access to more markets for goods, services, labor, and capital.

Clothing Industry

A significant portion of world clothing exports are manufactured in low-income countries, particularly in Asia.
The emergences of Korea, Singapore, Hong Kong, Taiwan, Philippines, Indonesia, Thailand, Malaysia, Bangladesh, Pakistan, Sri Lanka, Laos, Vietnam as major world suppliers in the clothing industry have occurred in three successive waves.

Benefits of Globalization in the Clothing Industry

Boosted economies
Created job opportunities
Consumers have access to a variety of clothing, styles, etc.
Extremely profitable market
Developing countries can make a profit from their exports

Drawbacks of Globalization in the Clothing Industry (Sweatshops)

Factory workers are employed at very low wages for long hours and under poor conditions.
Children are often employed without proper safety regulations or training.
Workers are paid according to the number of pieces they can produce, leading to low pay and repression.
Hard work, repetitive tasks, and low pay are common in sweatshops.

Global Inequality

Some geographical regions of the world are richer and more developed than others.
The development gap is attributed to factors such as corruption, open economies, foreign investment, and natural resources.

Consequences of the Development Gap

⅕ of the population lives on < $2/day
11 million children under 5 die from preventable diseases due to inability to combat diseases.