Chapter 1
Globalization
PPTs Available to You
My Web Page:
http://instruction2.mtsac.edu/rjagodka/
• Click on the “Courses” tab
“Lecture Slides” – in PDF for easy viewing …
How Much Do We Know?
How Much Do We Know?
How Much Do We Know?
How much do we know about the world?
How much do you know about geography?
We have much to learn . . .
So, let’s get started!
7 billion people FILM
What Is Globalization?
The world is moving away from selfcontained national economies toward an
interdependent, integrated global
economic system
Globalization has two facets:
1) Globalization of markets
2) Globalization of production
What Is The Globalization of Markets?
Globalization of markets refers to the merging of
historically distinct and separate national markets
into one huge global marketplace
In many industries, it is no longer
meaningful to talk about the
“German market” or the
“American market”
Characteristics:
Falling trade barriers
Converging consumer tastes
Same basic products offered worldwide
The Globalization Of Markets
Find a partner or two - Introductions
What was your most recent trip/vacation
abroad? (even if it was quite a while ago
…)
Did you buy anything unique while there?
Were products/services similar to what can
be found in the US?
Share ideas - debrief
Global Socializing Trends
Grab a cup of coffee
Dine out at your favorite restaurant
Global Socializing Trends
Spend some time at the museum
Relax at the beach
Go to a game
How much time do you
spend texting?
Are you addicted to
smart phones and
texting?
Technology in the classroom . . . Appropriateness
Texting in Class
If you have an emergency and
need to receive a text or call –
this is fine
If you habitually text in class –
this is NOT OK (even if you
are addicted to texting)
Laptop use OK - if it does not
cause any distractions – no
technology allowed during
exam review
The Globalization Of Markets
Lets test your knowledge
World Eating Quiz
200 counties over 200 years FILM
http://devdata.worldbank.org/DataVisualizer/
What is Globalized Production?
Globalization of production refers to the
sourcing of goods and services from
locations around the globe
Take advantage of Differences in the cost
and quality of factors of production
Land, labor, and capital
Lower
Costs
Improve
Quality
Selection of Country for Semester
We will each get one country to study
this semester.
Selection Process based on draw of
paper slips
You will get 5 minutes to walk around the
room and trade if you like.
The Emergence Of Global Institutions
Globalization requires basic ground rules
Institutions are needed:
manage, regulate, and police the global
marketplace
promote multinational treaties (to govern)
Global Institutions
WTO
IMF
World Bank
UN
G20
Polices world trade system
• Ensure nations follow rules
• In 2007, 150 nations
(97% of world trade) were
WTO members
• Promotes lower barriers to
trade and investment
Declining Trade And Investment Barriers
Average Tariff Rates on Manufactured Products as Percent of Value
Global Institutions
WTO
IMF
World Bank
UN
G20
Monetary cooperation
• Polices the international
monetary system
• Lender of last resort for
countries in crisis
• Provides temporary
financial assistance to
countries to help ease
balance of payments
adjustment
Global Institutions
WTO
IMF
World Bank
UN
G20
Economic development
• Financial and technical
assistance to developing
countries
• Is two unique development
institutions (owned by 185
member countries)
• International Bank for
Reconstruction and
Development (IBRD) and
• International Development
Association (IDA).
Global Institutions
WTO
IMF
World Bank
UN
G20
• Peace and security
• Develop friendly relations
among nations
• Cooperate in solving
international problems
• Promote respect for human
rights
• Harmonize the actions of
nations
Global Institutions
WTO
IMF
World Bank
UN
G20
• Largest 19 economies
• Finance ministers
• Central bank governors
• EU & EU Central Bank
• Originally coordinated
policy response to
financial crisis in
developing countries
• Forum through which major
nations tried to launch a
coordinated policy response
to the 2008-2009 global
financial crisis
Globalization
Globalization video (15 minutes)
Globalization
While watching, write answers to these
questions:
1. What are the 4 main arguments against
globalization?
2. Do you agree or disagree with each?
Only in . . .
Texas
Only in . . .
Bangladesh
Only in . . .
India
Only in . . .
Pakistan
Only in . . .
Japan
Only in . . .
Indonesia
Only in . . .
Thailand
Only in . . .
Australia
Only in . . .
Hawaii
Only in . . .
China