Globalization

Globalization

1. Definition

   • the process of international integration arising from
     • the interchange of
       • world views
       • products
       • ideas
       • and other aspects of culture

2. Four basic aspects of globalization:

   • Trade and transactions
   • Capital and investment movements
   • Migration and movement of people
   • Dispersion of knowledge

3. First age of globalization

   • mid-1800s to 1920s
     • Labor was highly mobileup to 1 million people were leaving Europe each year
       • Driven by
         • Trains
         • Airplanes
         • Boats
         • Telecommunication

4. WHAT DRIVES THE MORE RECENT WAVE OF GLOBALIZATION?

   • MNEs
     • a business that has direct investments abroad in multiple countries
     • Is this a good thing?
       • YES
         • For the nations they enter, MNEs generate
           • significant jobs
           • investments
           • tax revenues

5. IS GLOBALIZATION POSITIVE OR NEGATIVE?

   • Pro's
     • LINK
     • Growth of free trade
     • Increasing competition thus reduction of prices
     • cultural exchange
     • economic growth and increased standards of living
   • 4 Con's
     • It has made the rich richer while making the non-rich poorer
     • MNEs sometimes use tax havens to avoid paying taxes
     • MNEs get too much power in negotiating with national governments
     • MNEs accused of social injustice
       • Unfair working conditions
       • Lack of environment concern