ACTIVITY 3.1.

COMPREHENSION QUESTIONS

1. What experience does a Starbucks tell about globalization?

Global expansion is essential to successful companies; Starbucks is no exception. While

Starbucks was very successful in its domestic market, the leaders of the company knew they
would have to exploit globalization and expand the company to foreign markets to fully
utilize the potential that the company had. In 2003, Starbucks quickly expanded into foreign
markets and evolve into worldwide company we know today. As globalization has helped to
establish Starbucks as an international company, the company has run into problems. The
problems arose both internally, within the company’s international business model, and
externally, in the form of overseas competition. Rival coffee shop shops started copying
Starbucks’ business practices, name and even its company logo. Starbucks had to utilize
intellectual property laws to dispel customer confusion between itself and competitors; more
on intellectual property protections is covered in the proceeding section of the paper.

2. What are globalization’s driving forces?

The globalization’s driving forces are first globalization spread enormously over the last
half-century with the help of technology. Next is internet has revolutionized communication
and connectivity. Lastly, inventions and improvements of transport have allowed us to move
around the globe.

3. Explain the benefits and negative effects of globalization

Globalization has benefits that cover many different areas. It reciprocally developed
economies all over the world and increased cultural exchanges. It also allowed financial
exchanges between companies, changing the paradigm of work. Many people are nowadays
citizens of the world. The origin of goods became secondary and geographic distance is no
longer a barrier for many services to happen. The most visible impacts of globalization are
definitely the ones affecting the economic world. Globalization has led to a sharp increase in
trade and economic exchanges, but also to a multiplication of financial exchanges. Despite its
benefits, the economic growth driven by globalization has not been done without awakening
criticism. The consequences of globalization are far from homogenous: income inequalities,
disproportional wealth and trades that benefit parties differently. It also homogenized the
world’s cultures. That’s why specific cultural characteristics from some countries are
disappearing. From languages to traditions or even specific countries while some areas
flourished others floundered. Computers improved our lives but cyber criminals steal millions
of pounds a year. Global wealth skyrocketed and has global warming. Although many people
were lifted out of poverty, however not everybody has benefited. Globalization somehow
helps create more wealth to developing countries, it is not helping to close the gap between
the richest and the poorest nations. Globalization could lead to unparalleled prosperity and
peace.
ACTIVITY 3.1.2

SHARE IT!

Write in 150 words about your understanding of Globalization.

First and foremost globalization matters because of how it affects our lives whether
you are student, commoner, employees and so on. This helps us to improve not just in school
but in everything. The world is in mark up because we are now globalized, so its existence
had make up the world and its people to up lift in works including the education. We became
less ignorant on what is happening outside of our country since we are already indulging in
globalization. Globalization gives us the opportunity to become globally competitive. How it
works in our lives became sensational. It is a way why we have access in terms of
technology. Easy access of communication, transportation, and transactions as well as how
the trading system such as importing and exporting becomes easy and reliable. Being part of
globalization means that you or I am globally aware that I have the access, ability and
capacity to improve or excel.