Globalization:pros and cons

1. GLOBALIZATION

2. Globalization is arguably the most important factor currently shaping the world economy.  Although it is not a new phenomenon (waves of globalization can be traced back to the 1800s) the changes it is bringing about now occur far more rapidly, spread more widely and have a much greater business, economic and social impact than ever before. On Your Way……….

3. Some special features of globalization in present days Growing interdependence of all processes Establishing of a global financial-economic area Information technologies - WWW Change in the state’s functions – vanishing of the national boarders Universality of the world – dissemination of the democratic system and socio – cultural values BACK TO FOCUS

4. What Is Globalization? Spread of; manufacturing, services, market, culture, life-style, capital, technology and ideas across national and boundaries around the world. Also the i n tegration of these geographically dispersed economic and and social activities. Huge impacts on people and nation. The whole world is affected by globalization. BACK TO FOCUS

5. Effects Of Globalization BACK TO FOCUS NEXT

6. Increased Standard of Living

7. Access to New Markets

8. Decreased Employment

9. Widening Disparity in Incomes

10. Impact on the Government Positive effects Increased economic development Expanded infrastructure Transfer of modern management techniques Greater interdependence among business partners Negative effects MNC power increased MNCs externalize cost to countries Competition results in too many concessions MNCs influence local policies Companies incorporate in low tax countries Pressure to reduce social benefits BACK TO FOCUS Labor

11. Impact on the Labor Positive effects Increased job opportunities Upgraded education system Increased training Negative effects Job displacement Loss of industries or economic groups Lowered labor standards Downward wage pressure Decreased union power Diminished social contract BACK TO FOCUS

12. “ Bright ” & “ Dark ” Side Of GLOBALIZATION BRIGHT

13. Bright Side…… Consumers also profit from globalization. Products become cheaper and you can get new  goods  more quickly. Globalization lets countries do what they can do best. If, for example, you buy cheap  steel  from another country you don’t have to make your own  steel . You can  focus on  computers or other things. Globalization gives you a larger market. You can sell more  goods  and make more money. You can create   more jobs. DARK

14. Dark Side….. Globalization  causes unemployment  in industrialized countries because  firms  move their  factories  to places where they can get cheaper workers. Globalization may  lead  to more   environmental  problems. A company may want to build  factories  in other countries because  environmental laws  are not as  strict  as they are at home. Poor countries in the Third World may have to cut down more trees so that they can sell wood to richer countries. NEXT

15. Globalization can  lead  to financial problems . In the 1970s and 80s countries like Mexico, Thailand, Indonesia or Brazil got a lot of money from  investors  who hoped they could build up new  businesses there . These new companies often didn’t work, so they had to  close down  and investors  pulled out their money. Some of the poorest countries in the world,  especially  in Africa, may get even poorer. Their population is not as  educated  as in  developed countries  and they don’t have the new technology that we do. Human, animal and plant  diseases  can  spread  more quickly through globalization. NEXT

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