Globalization & Interdependence - Benefits, Drawbacks, Industries - PDF

UNIT 1 LEARNING GOALS Let's turn the following expectations into student friendly learning goals……… Demonstrate an understanding of how globalization has affected international business Describe ways in which international business activity develops interdependence among nations Evaluate the...

UNIT 1 LEARNING GOALS Let's turn the following expectations into student friendly learning goals……… Demonstrate an understanding of how globalization has affected international business Describe ways in which international business activity develops interdependence among nations Evaluate the benefits and drawback of international trade GLOBALIZAT ION AND INTERDEPE NDENCE C H. 1 – W H AT I S T R A D E ? SUCCESS CRITERIA I will be successful when I can ………… list and define the 3 different types of industries explain how international trade creates interdependence in these 3 industries Discuss the Canadian government’s current approach within the oil industry GLOBALIZA TION The process whereby national or regional economies and cultures have become integrated through: New global communication technologies (skype, zoom, etc) Foreign direct investment International trade Migration New forms of transportation (plane, drone, cold chain logistics) Flow of money Why globalization occurs? Trade barriers has been reduced or removed!  Outsourcing when company gets raw material and labor in cheaper price, they will be more competitive by offering customer lower price of goods Lower prices increase competition from foreign firms>>domestic firms will lower the price to attract customers Less poverty PROS OF Innovation GLOBALIZ company can exchange technology know-how. Ideas flow through advanced communication tech ATION Resources optimization when country produced products that they have competitive advantage, productivity rises, improved living standards Better job Export job requires high education and skill level, the workers will be paid more Increase capital flow Companies from smaller countries can borrow money from FI in other countries  Lost jobs and fear of job loss Because of outsourcing -- cheaper labor sources in some country, people might lose their jobs Loss of Canadian productivity Some Canadian companies will lose their competitive advantages to country with cheaper labor Cheap labor exploitation CONS OF More pollution Companies move their factory to countries with looser pollution GLOBALIZ regulation so they can cut cost Safety concerns ATION Many products sold by international business have adverse effect on health, their factory environment are less regulated Spread of diseases Diseases such as Ebola and Zika virus are spread by travelers Larger income gap Disappearing “middle class” Influence of Multinational corporations on government Powerful MNCs (monopoly, oligopoly) can manipulate global policies INTERDEPE The reliance of people on each other for goods, NDENCE services, or ideas is interdependence There are 3 main areas of interdependence: – Primary Industries – Secondary Industries – Tertiary Industries PRIMARY INDUSTRY The sector of the economy characterized by the extraction of natural resources from the earth or sea. SECONDARY INDUSTRY Industries that create a finished, usable product. TERTIARY INDUSTRY (SERVICE SECTOR) Industries that do not make a product or extract resources from the earth, but provide necessary services to consumers and other businesses. ARTICLE – DISCUSSION QUESTIONS 1. Based on what you read, what would be the benefit of building another refinery? What would be the drawbacks? 2. What improvements are being made within the Canadian oil industry? SUCCESS CRITERIA I will be successful when I can ………… list and define the 3 different types of industries explain how international trade creates interdependence in these 3 industries Discuss the Canadian government’s current approach within the oil industry