pr. 2 - globalization

7/31/2019 Pr. 2 - Globalization

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GLOBALIZATIONPushpakaran, K

MBA (SJP), PhD(Reading)

15th March, 2012


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Globalization in its current phase has

been described as an unprecedentedcompression of time and spacereflected in the tremendousintensification of social, political,

economic, and culturalinterconnections andinterdependencies on a global scale.

- Stegler


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Integration of Economies

The increasing reliance ofeconomies on each other

The opportunities to be able

to buy and sell in anycountry in the world

The opportunities for labourand capital to locateanywhere in the world

The growth of global marketsin finance

Stock Markets are now accessiblefrom anywhere in the world!


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Integration of Economies

Made possible by:

Technology

Communication networks

Internet access

Growth of economic cooperation trading

blocs (EU, NAFTA, etc.) Collapse of communism

Movement to free trade

Contd...


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Technological advances

Expansion of international commerce (exports

and imports)

Rising importance of private capital flows(stock markets and multinational corporations)

Increasing travel and migration (internationaltourism and domestic diversity)

Increased communication and interaction

between peoples (through all sorts of media)

Key Processes of Globalization


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Key Controversies of Globalization

The fact there are winners and losers, and societies vary inhow much they compensate the losers

Continuing poverty: worlds population below $1 a day;over below $2 a day: e. g., China, SE Asia, and India

Gap between rich and poor countries has widened.

Inequality between rich and poor is rising Environmental concerns and conflict over globalgovernance

Open borders and their effects (money laundering,

terrorism, disease, drugs, sex trafficking)


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Trade Vs Aid

Benefits of Trade: Increased choice

Greater potential forgrowth

Increaseinternationaleconomies of scale

Greater employmentopportunities

Trade has led to massive increases in wealthfor many countries.


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Trade Vs Aid

Disadvantagesof trade Increase in gap between

the rich and the poor

Dominance of globaltrade by the rich,northern hemispherecountries

Lack of opportunities forthe poor to be able to

have access to markets Exploitation of workers

and growersHow far does trade help children likethese?

Contd...


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Corporate Expansion

Multi-nationalor trans-nationalcorporations

(MNCs or TNCs)businesses witha headquartersin one country but

with businessoperations in anumber of others.

No matter where you go in the world, certainbusinesses will always have a presence.


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1. Whether globalization is aWestern curse?

2. Whether globalizationfairly benefits the poor?

3. Whether the institutional infrastructure

of globalization is adequate?- Amartya Sen

It is questionable


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Over the past decade globalization has

been driven by technological

advances..But globalization has also

been driven by policies and ideas- Bosworth & Gordon


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Food for Thought

Can globalization be a solution for alleconomic problems?


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Thank You

pr. 2 - globalization

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