Globalization
English Subject Curriculum
Culture, society and literature
• The aims of the studies are to enable pupils to
– elaborate on and discuss a number of international and global
challenges
What Is Globalisation?
•
Globalization is the process by which the world is
becoming increasingly interconnected as a result of:
–
increased contact between people and nations
throughout the world through various forms of
cooperation and exchange such as
•
•
•
•
•
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trade
cultural exchange
political cooperation across national borders
science
etc.
Globalization is the result of:
–
Technology which make it possible for people, goods,
money and information and ideas to travel the world
much faster than ever before
–
and the liberalisation (1) of world markets, making it
much easier to trade across national boundaries
•
Globalisation has been taking place for hundreds of
years, but has speeded up enormously over the last
half-century
1 - Liberalization of world markets involves less restrictions on trade
Factors Influencing Globalisation
Factors influencing globalisation include:
Communications:
– Cable TV, personal computers, telephony and the Internet have created a global village, tying the world
closer together.
– Businesses in the western world can have a call centre in India answering calls from western customers.
Transport
– has become cheap and quick.
– People, especially in the western civilization, travel all over the world
– People from other countries can travel to the west to seek better-paid jobs.
– Businesses can more easily ship products and raw materials all over the world - making products and
services from all over the globe available to customers.
Trade liberalisation:
– Governments around the world have relaxed laws restricting trade and foreign investment
– Countries in the developing world have opened up their countries to western businesses and investment
– Some governments offer grants and tax incentives to persuade foreign companies to invest in their country.
– The idea is that there should be no restrictions on trade between countries is known as free trade or free
market capitalism.
– Free trade involves a minimum of government intervention to regulate trade such as taxes on imported
goods and services, quotas on imported goods and services, and subsidies
– Protectionist trade policies involve government intervention in the market by regulating prices on goods
and services and supply restrictions. Such government interventions generally increase the cost of goods
and services to both consumers and producers. Interventions include subsidies, taxes on goods and
services, and other laws regulating the economic market and investments by for example by domestic and
foreign companies
Although globalisation probably is helping to create more wealth in developing countries – it is not helping to close the
gap between the world's poorest countries and the world's richest.
Multinational Corporations (MNC)
or
Transnational Corporations
•
Foreign investment in another country:
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•
Globalisation has resulted in many businesses setting up or buying services in other
countries. When a foreign company invests in a country, perhaps by building a factory or a
shop.
Multinational corporations or transnational corporations:
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Companies that operate in several countries are called multinational corporations (MNCs) or
transnational corporations (TNCs)
These companies are in constant competition with one another to expand into new markets
and increase their profits
McDonald's, the US fast food chain is a large MNC:
•
McDonald’s has nearly 30,000 restaurants in 119 countries
•
Brand names like Nike, Kellogg's, Microsoft, Sony, Adidas are recognised almost everywhere in the
world (see next slide)
•
Most MNCs come from developed countries:
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–
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The majority of MNCs come from more economically developed countries (MEDC) such as the US and UK.
Multinational corporations invest in other MEDCs - the US car company Ford, for example, makes large numbers of
cars in the UK.
But MNCs also invest in less economically developed countries - for example the British DIY store B&Q now has
stores in China.
Multinational Corporations
Factors Attracting MNCs to a Country
•
•
•
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Cheap raw materials
Cheap labour supply
Good transport
Access to market, where
the goods are sold
• Friendly government
policies
• Countries:
– India, South America
Asia in general
Positive Impacts of Globalisation
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Improved standard of living:
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More wealth to local economies:
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There is far more mixing of people and cultures from all over the world, enabling more sharing of ideas, experiences, and lifestyles.
People can experience foods and other products not previously available in their countries.
In this way globalization may diminish cultural barriers between people, and make people more open-minded to other cultures and
knowledgeable.
Greater awareness:
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–
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MNCs bring wealth / foreign currency to local economies when they buy local resources, products and services - providing
resources for education, health and infrastructure.
Cultural exchange and contact:
–
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Investment by MNCs helps countries by providing new jobs and skills for local people.
Globalisation can help make people aware of events in far-away parts of the world.
For example, people in Norway were quickly aware of the impact of the 2004 Tsunami tidal wave on countries in South East Asia,
and were therefore able to send help rapidly.
Global cooperation/aid:
– It may help make people more aware of global issues such as
• Global warming
• Poverty
• Human trafficking
• Terrorism, etc.
• and alert them to the need for sustainable development (bærekraftig utvikling).
Negative Impacts of Globalisation
However not all people think that globalisation is such a great idea. Critics include many different groups such as
environmentalists, anti-poverty campaigners and trade-unionists.
Some of the negative impacts they point to are:
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Exploitation of developing countries: Globalisation operates mostly in the interests of the richest countries
which continue to dominate world trade, and at the expense of developing countries - whose role in the world
market is mostly to provide the North and West with cheap labour and raw materials.
•
Unemployment and ousting of local businesses: There are no guarantees that the wealth from inward
investment will benefit the local community. Often, profits are sent back to the MEDC where the MNC is based.
Multinational companies, with their massive economies of scale, may drive local companies out of business. If it
becomes cheaper to operate in another country the MNC might close down the factory and make local people
redundant.
•
Violation of international laws: Lack of strictly enforced international laws means that MNCs may operate in a
way that would not be allowed in an MEDC - for example polluting the environment, running risks with safety or
imposing poor working conditions and low wages on local workers.
•
A threat to cultural diversity: Globalisation is viewed by many as a threat to the world's cultural diversity drowning out local economies, traditions and languages and re-casting the whole world in the mould of the
capitalist North and West. An example is that a Hollywood film is far more likely to be successful worldwide than
one made in India or China, which also have thriving film industries.
Anti-globalisation campaigners sometimes try to draw people's attention to these points by demonstrating against the
World Trade Organisation, an inter-governmental organisation which promotes the free-flow of trade around the
world.
International Organizations Aiding Economic Globalization
International business is aided by
a number of international
organizations:
– World Trade Organization
(WTO)
– The International Monetary
Fund (IMF)
– World Bank
• These international
organizations help smooth the
way for international business
Anti-Globalization Movement
•
Globalization has set off hostile
reactions among many people
around the world
•
These people are often referred to
as the ”anti-globalization
movement”
•
This is a misleading term,
however, as most of these people
are not against bringing the
peoples of the world closer
together. On the contrary these
work hard to unite people from all
over the world to:
– Oppose the effects of an
international economic system
which they believe is destructive
Fears Held by Anti-Globalization Critics
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Local cultures and languages are destroyed
by an international corporate consumer
culture which often uses English as a lingua
franca
•
The un-ending and explosive economic
growth is badly damaging the ecology of the
planet and using up resources at the
expense of local populations and future
generations
•
The gap between the rich and poor nations
is widening because international
companies force weaker and poorer nations
to accept trade conditions that favour the
rich
•
That WTO, IMF and the World Bank create
trade conditions that benefit rich countries at
the expense of individuals in the poorer
countries
– Cheap labour
– Child labour
– Long working hours
– Bad working conditions
Defenders of Globalization
Defenders of globalization argue
that:
• Since 1985 the number of people living
on less than 1 dollar a day has been
halved
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Life expectancy in the developing
wolrd has doubled since WWII
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In 1960 56% of the world’s population
lived in nations with less than 2200
calories of food per day. Today it is
only 10%
•
Between 1950 and 1999, the number
of people in the world who can read
and write increased from 52% to 80%
•
Differences in income in the world
have been reduced over the past
decades
The Financial Crisis – Now What?
•
Economic globalization to blame?
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More restrictions put on trade between
nations?
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Protectionism
– Increased subsidies on locally
produced commodities?
– Increased taxes on imported
commodities?
– Restrictions on imported commodities?
– How will this affect developing
countries?
The level of consumption in both developed
and developing countries reduced
•
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Businesses facing bankruptcy
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Increased unemployment around the world
– This is happening at this very moment
in:
•
Norway, Iceland, USA, and Asia + many
other countries
By Nina Sandström Angelsen
Selbu videregående skole