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 1.
TRANSITION
HEADLINE

What is globalization
for you?
INTRODUCTION AND MEANING
OF GLOBALIZATION

GOD is GREAT! ALL GLORY to HIM!

 Learning Targets:
Share a personal definition of Differentiate competing
globalization conception of globalizations
1 3

2 4

Describe the natures of Synthesize and agree on a

globalization working definition of
globalization
 DEFINITION OF GLOBALIZATION

➢ A term used to describe the changes in societies and the

world economy that are the result of dramatically
increased trade and cultural exchange.

➢ In specifically economic contexts, it refers almost

exclusively to the effects of trade, particularly trade
liberalization or "free trade".

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 DEFINITION OF GLOBALIZATION
➢ It is a common belief that globalization plays a role just at
international levels of trade and commerce, but the fact is
that it has played an important role in making our lives
much more comfortable too.
➢ The phones, apparels, gadgets or accessories that we use in
our day-to-day life are be available to us through
globalization. Knowingly or unknowingly, we are all under
the impact of globalization, and more importantly it has
helped in bringing international peace and justice to
mankind.

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 “
What is the
nature of
globalization?

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 01
Liberalization
It stands for the freedom of the
entrepreneurs to establish any
industry or trade or business
venture, within their own
countries or abroad.
 02
Free trade
It stands for the freedom of the
entrepreneurs to establish any
industry or trade or business
venture, within their own
countries or abroad.
 03
Globalization of
Economic Activity
Economic activities are be
governed both by the domestic
market and also the world market.
It stands for the process of
integrating the domestic economy
with world economies.
 04
Liberalization of
Import-Export
System
It stands for liberating the import-
export activity and securing a free
flow of goods and services across
borders.
 05
Privatization
Keeping the state away from
ownership of means of production
and distribution and letting the
free flow of industrial, trade and
economic activity across borders.
 06
Increased
Collaborations
Encouraging the process of
collaborations among the
entrepreneurs with a view to secure
rapid modernization, development
and technological advancement.
 07
Economic Reforms
Encouraging fiscal and financial
reforms with a view to give
strength to free world trade, free
enterprise, and market forces.
Globalization
● It accepts and advocates the value
of free world trade, freedom of access
to world markets and a free flow of
investments across borders.
● It stands for integration and
democratization of the world’s
culture, economy and infrastructure
through global investments.

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 GLOBALIZATION can mean:

The formation of a global Economic globalization

village
- closer contact between different - "free trade" and increasing
parts of the world, with relations among members of an
increasing possibilities of industry in different parts of the
personal exchange, mutual world (globalization of an industry),
understanding and friendship with a corresponding erosion of
between "world citizens", National Sovereignty in the
economic sphere.
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 What are the
signs of
globalization?

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 1. Increase in
international trade at
a faster rate than the
growth in the world
economy.
 2. Increase in
international flow of
capital including
foreign direct
investment.

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 3. Greater trans-
border data flow,
using such
technologies such as
the Internet,
communication
satellites and
telephones

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 4. Greater
international
cultural exchange,
for example through
the export of
Hollywood and
Bollywood movies.

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5. Some argue that
even terrorism has
undergone
globalization.
Terrorists now
have attacked
places all over the
world.

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 6. Spreading of
multiculturalism and better
individual access to
cultural diversity, with on
the other hand, some
reduction in diversity
through assimilation,
hybridization,
Westernization,
Americanization or
Sinonization of cultures.
7. Erosion of national
sovereignty and
national borders
through international
agreements leading to
organizations like the
WTO and OPEC.
 8. Greater
international
travel and
tourism.
 9. Greater
immigration,
including illegal
immigration.
 10. Development of
global
telecommunications
infrastructure.
11. Development
of a global
financial
systems.
12. Increase in the
share of the
world economy
controlled by
multinational
corporations.
13. Increased role
of international
organizations
such as WTO,
WIPO, IMF that
deal with
international
transactions.
14. Increase in the
number of
standards
applied globally;
e.g. copyright
laws.
 Are you in
favor of
globalization?
Against it?

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 Anti-Globalization

• Many anti-globalism activists see globalization as the promotion of

a Corporatist agenda, which is intended on constricting the
freedoms of individuals in the name of profit.
• They also claim that increasing autonomy and strength of corporate
entities increasingly shape the political policy of nation-states.
• Globalization imposes credit based economics, resulting in
unsustainable growth of debt and debt crises.

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 Pro-Globalization

• Supporters of free trade point out that economic theories such as

comparative advantage suggests that free trade leads to a more
efficient allocation of resources, with all those involved in the trade
benefitting.

• In general, they claim that this leads to lower prices, more

employment and better allocation of resources.

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 What are the
advantages of
globalization?

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 01
Peaceful Relations
Most of the countries have
resorted to trade relations with
each other in order to boost their
economy, leaving behind any
bitter past experiences if any.
 02
Employment
Considered as one of the most
crucial advantages, globalization
has led to the generation of
numerous employment
opportunities. Companies are
moving towards the developing
countries to acquire labor force.
 03
Education
A very critical advantage that has
aided the population is the spread
of education. With numerous
educational institutions around
the globe, one can move out from
the home country for better
opportunities elsewhere.
 04
Product Quality
The product quality has been
enhanced so as to retain the
customers. Today the customers
may compromise with the price
range but not with the quality of
the product. Low or poor quality
can adversely affect consumer
satisfaction.
 05
Cheaper Prices
Globalization has brought in
fierce competition in the markets.
 06
Communication
Every single information is easily
accessible from almost every
corner of the world circulation of
information is no longer a tedious
task, and can happen in seconds.
The Internet has significantly
affected the global economy,
thereby providing direct access to
information and products.
 07
Transportation
Considered as the wheel of every
business organization,
connectivity to various parts of
the world is no more a serious
problem. Today with various
modes of transportation available,
one can conveniently deliver the
products to a customer located at
any part of the world.
 08
GDP Increase
Gross Domestic Product,
commonly known as GDP, is the
money value of the final goods
and services produced within the
domestic territory of the country
during an accounting year
 09
Free Trade
Free trade is a policy in which a
country does not levy taxes,
duties, subsidies or quota on the
import/export of goods or services
from other countries. There are
countries which have resolved to
free trade in specific regions. This
allows consumers to buy goods
and services, comparatively at a
lower cost.
 10
Travel and Tourism
Globalization has promoted
tourism to great heights.
International trade among
different countries also helps in
increasing the number of tourists
that visit different places around
the world.
 11
External Borrowing
With the help of globalization,
there is opportunity for corporate,
national, and sub-national
borrowers to have better access to
external finance, with facilities
such as external commercial
borrowing and loans.
 What are the
disadvantages
of
globalization?

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 01
Health Issues
Globalization has given rise to more
health risks and presents new threats
and challenges for epidemics. The
dawn of HIV/AIDS. Having its origin
in the wilderness of Africa, the virus
has spread like wildfire throughout the
globe in no time. Food items are also
transported to various countries, and
this is a matter of concern, especially
in case of perishable items.
 02
Loss of Culture
With large number of people moving
into and out of a country, the culture
takes a backseat. People may adapt to
the culture of the resident country.
They tend to follow the foreign culture
more, forgetting their own roots. This
can give rise to cultural conflicts.
 03
Uneven Wealth
Distribution
It is said that the rich are getting
richer while the poor are getting
poorer. In the real sense, globalization
has not been able to reduce poverty.
 04
Environment
Degradation
The industrial revolution has changed
the outlook of the economy. Industries
are using natural resources by means
of mining, drilling, etc. which puts a
burden on the environment.
 05
Disparity
Though globalization has opened new
avenues like wider markets and
employment, there still exists a
disparity in the development of the
economies. Structural unemployment
owes to the disparity created.
Developed countries are moving their
factories to foreign countries where
labor is cheaply available.
 06
Conflicts

It has given rise to terrorism and other

forms of violence. Such acts not only
cause loss of human life but also huge
economic losses.
 07
Cut-throat
Competition
Opening the doors of international
trade has given birth to intense
competition. This has affected the
local markets dramatically. The local
players thereby suffer huge losses as
they lack the potential to advertise or
export their products on a large scale.
Therefore, the domestic markets
shrink.
 What are
types of
globalization?
 01
Political Globalization
It refers to the diplomatic negotiations
between nation-states. It includes the
standardization of global rules around
trade, criminality, and the rule of law.
International bodies including the United
Nations, European Union and World Trade
Organization are key multinational
organizations designed to facilitate
increasing political globalization. This
includes growing free trade and multilateral
agreements on investment.
 02
Social Globalization
It refers to the idea that we now live in a
shared society. There are many different
cultures within a society. But a society is a
group of people who all live together. We are
now in a common society who need to learn
to get along despite our different cultures
and beliefs because what we do affects
people all around the world.
 03
Economic Globalization
It refers to the ways corporations do
business as multinational organizations
nowadays. Whereas once McDonald’s only
existed in the USA and HSBC only existed in
the UK, now these companies are all over
the world in a ‘globalized economy’.
You will also notice the movement of
manufacturing industries to developing
nations to make the most of low wages and
lowers the price of goods.
 04
Technological
Globalization
It refers to the spread of technology around
the world. Examples of this include the
spread of the internet, solar panel
technology and medical technologies –
which can all help improve the lives of
people around the world.
 05
Financial Globalization
It refers to the ease at which money can be
spread around the world. The growth of
stock exchanges like the PSE (Philippine
Stock Exchange) and FTSE (Financial Times
Stock Exchange)
as well as internationalization of financial
markets has made it easier for people to
transfer money internationally.
 06
Cultural Globalization
It refers to the spread and mixing of cultures
around the world. Arjun Appadurai talks
about the possible effect of ‘homogenization’
of culture, where dominant nations like the
United States spread their cultures through
television and movies, which leads to the
dilution and loss of local and indigenous
cultures.
 07
Ecological Globalization
It refers to the idea that the world needs to
be considered one interconnected ecosystem.
This means that the world needs to work
together to address ecological issues that
cross the borders of nation-states.

To address these issues, climate accords like

the Kyoto Protocol and the Paris Climate
Agreement have been put into place, where
each nation agrees to invest in lowering its
carbon emissions.
 08
Geographical
Globalization
Geographical globalization refers to the idea
that the world is no longer seen as groups of
distinct nations as much as it once was. We
now work in multinational blocs to make
decisions, and nations work together to
solve problems.

It also refers to the fact that we’re now able

to travel between nations with increasing
ease. You can go from the United States to
Europe within a day, for example.
Do you have
questions?
 No generation has had the
opportunity, as we now
have, to build a global
economy that leaves no-one
behind. It is a wonderful
opportunity, but also a
profound responsibility.
- Bill Clinton

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Thank you for attending our
class today!
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healthy and happy! ☺