ARTICLE 1:

WHAT IS GLOBALIZATION ANYWAY?

Alex Gray (World Economic Forum, 2017)

How globalization works

In simple terms, globalization is the process by which people and goods move easily across
borders. Principally, it is an economic concept – the integration of markets, trade, and investments
with few barriers to slow the flow of products and services between nations. There is also a cultural
element, as ideas and traditions are traded and assimilated. Globalization has brought many benefits
to many people. But not to everyone.

Storm in a coffee cup

To help explain globalization's economic side, let's take a look at the well-known coffee chain
Starbucks.
The first Starbucks outlet opened its doors in 1971 in the city of Seattle. Today it has 15,000
stores in 50 countries. These days you can find a Starbucks anywhere, whether Australia, Cambodia,
Chile, or Dubai. It's what you might call a truly globalized company.
And for many suppliers and jobseekers, not to mention coffee-drinkers, this was a good
thing. The company was purchasing 247 million kilograms of unroasted coffee from 29 countries.
Through its stores and purchases, it provided jobs and income for hundreds of thousands of people
all over the world. But then disaster struck. In 2012, Starbucks made headlines after a Reuters
investigation showed that the chain hadn't paid much tax to the UK government, despite having
almost a thousand coffee shops in the country and earning millions of pounds in profit there.
As a multinational company, Starbucks was able to use complex accounting rules that
enabled it to have profit earned in one country taxed in another. Because the latter country had a
lower tax rate, Starbucks benefited. Ultimately, the British public missed out, as the government was
raising less tax to spend on improving their well-being.

How did globalization happen?

We might think of globalization as a relatively new phenomenon, but it’s been around for
centuries.
One example is the Silk Road when trade spread rapidly between China and Europe via an
overland route. Merchants carried goods for a trade back and forth, trading silk as well as gems and
spices and, of course, coffee. (In fact, the habit of drinking coffee in a social setting originates from a
Turkish custom, an example of how globalization can spread culture across borders.)

What drives it?

Globalization has speeded up enormously over the last half-century, thanks to great leaps in
technology.
 The internet has revolutionized connectivity and communication and helped people share their
ideas much more widely, just as the invention of the printing press did in the 15th century. The advent
of email made communication faster than ever.
The invention of enormous container ships helped too. In fact, improvements in transport
generally – faster ships, trains, and airplanes – have allowed us to move around the globe much more
easily.

What's good about it?

Globalization has led to many millions of people being lifted out of poverty. For example,
when a company like Starbucks buys coffee from farmers in Rwanda, it is providing livelihood and a
benefit to the community as a whole. A multinational company's presence overseas contributes to
those local economies because the company will invest in local resources, products, and services.
Socially responsible corporations may even invest in medical and educational facilities.
Globalization has not only allowed nations to trade with each other, but also to cooperate with each
other as never before. Take the Paris Agreement on Climate Change, for instance, where 195
countries all agreed to work towards reducing their carbon emissions for the greater global good.

What's bad about it?

While some areas have flourished, others have floundered as jobs and commerce move
elsewhere. Steel companies in the UK, for example, once thrived, providing work for hundreds of
thousands of people. But when China began producing cheaper steel, steel plants in the UK closed
down, and thousands of jobs were lost.
Every step forward in technology brings with it new dangers. Computers have vastly improved our
lives, but cybercriminals steal millions of pounds a year. Global wealth has skyrocketed, but so has
global warming.
While many have been lifted out of poverty, not everybody has benefited. Many argue that
globalization operates mostly in the interests of the wealthiest countries, with most of the world's
corporate profits flowing back to them and into the pockets of those who already own the most.
Although globalization is helping to create more wealth in developing countries, it does not
help close the gap between the world's poorest and richest nations. Leading charity Oxfam says that
when corporations such as Starbucks can legally avoid paying tax, the global inequality crisis
worsens. Basically, done wisely (in the words of the International Monetary Fund), globalization
could lead to "unparalleled peace and prosperity." Done poorly "to disaster."

ARTICLE 2:

THE EFFECTS OF GLOBALIZATION ON GLOBAL COMMUNICATION

By: Anam Ahmed/Reviewed by: Elisa Shoenberger, M.B.A. / Updated November 21, 2018
Connecting with people on the other side of the world is now much easier than it was a few
years ago. Satellites, fiber-optic cables, and the internet make it effortless to share information with
those in different time zones and locations. Global communication is directly affected by
globalization and helps increase business opportunities, remove cultural barriers, and develop a
global village. Both globalization and global communication have changed the environmental,
cultural, political, and economic elements of the world.

Increased Business Opportunities

Many companies today hire employees that are located in other countries. Using communication
vehicles such as video calling makes it simple to converse with colleagues across the globe, almost
making it feel like they are in the same room. Technology also makes it easier to connect with
suppliers and customers all over the world and to streamline those relationships through improves
ordering, shipment tracking, and so on. With this kind of communication technology, many
businesses are able to take advantage of opportunities in different countries or cities, improving the
economic outlook on a global level.
Thanks to global communications, information itself can be transferred as a valuable business asset
from one country to another. This has the effect of making everyone's operations more modern and
efficient, regardless of where they are located.

Fewer Cultural Barriers

Many people perceive culture to be the root of communication challenges. When people from two
different cultures try to exchange information, the way they speak, their body language, or their
mannerisms can be interpreted differently by the other person. The way people approach problems
and how they participate in communities is influenced by culture.
Globalization has made it possible, for example, for someone in Japan to understand how
someone in the U.S. goes about their day. With television and movies, cultural barriers are becoming
less prevalent. Being able to communicate effectively and frequently with colleagues or friends
across the planet helps people understand each other’s cultures a little better.

Creation of a Global Village

You’ve likely heard of the phrase "global village," coined by theorist Marshall McLuhan.
Affected both by globalization and global communication, the global village is created when distance
and isolation no longer matter because people are connected by technology. Wide-spread telephone
and internet access have been life-changing for many people across the world, especially those in
developing countries. Many are now enrolling in universities across the world without having to
leave their desk chair. Virtual assistant jobs are becoming commonplace. Employees from developing
countries work with companies in North America or Europe, providing administrative support and
other business services that can efficiently be conducted over the phone or via the internet.
Globalization and global communication have made it easier to see people on the other side
of the world as neighbors instead of a stranger from a faraway land. There is so much knowledge
about other countries and cultures available online, that it’s no longer a complete mystery.