Kyla Lizette Morillo BSCE1D

GEC3: Globalization

1. Explain the following factors how they contributed to Globalization.

a. Opening of China to world trade
China has emerged as a prominent actor, furthering economic globalization with openness as a defining
feature and shared prosperity as the world's second-largest economy's goal. China being a large country, has
contributed hugely to global growth. China has become one of the prominent drivers of this trend. It has
helped the world economy create massive market opportunities. China has a lot of factors that can
contribute to the ongoing globalization such as its people, technological advancements, and many more.
b. The collapse of communism in Soviet Union.
The Soviet Union’s collapse brought the economic systems and trade relations throughout Eastern Europe
into a tailspin but also contributed to a lot of crime and corruption which also is a factor that hinders
globalization. With its end, the world became more interconnected and more intentionally isolated
countries began to integrate into the global market and its economy.
c. The role of TNC’s (Trans National Companies)
The TNC’s are the main and protagonists in the ongoing globalization process. Their ideas and strategies
determine the size and type of trade flows as well as financial flows. They directly affect the world trend in
the international business. To summarize it all, they are the major drivers of globalization.

2. Give 2 advantages of globalization in trading. Explain.

 Globalization is advantageous to countries that wants their culture to be discovered. Globalization
makes it easier to access foreign culture of a certain country. This way, it can also help in the economy
of the said country. If the culture is rich and vibrant, it can attract foreign visitors throughout the world.
 Globalization also helps in the growth of the economy. Globalization provides all countries with access
to a larger labor pool. Developing countries with a scarcity of knowledge workers, for example, may
"import" personnel to jumpstart industry. One of the key reasons nations trade is to obtain access to
resources they would not have otherwise. Many modern luxuries would be difficult to make or generate
without this cross-border movement of resources.

3. Give 2 disadvantages of globalization in trading. Explain.

 Policies that encourage globalization tend to favor enterprises with the means and infrastructure to
manage supply chains or distribution in many countries, which might disadvantage small local
businesses.
 Commodity prices have risen sharply due to increased demand for food and energy. Food price inflation
has put the lives of millions of the world's poorest people in jeopardy. Globalization has been connected
to increased income and wealth disparities. This causes political and social problems, as well as financial
insecurity, which stifles progress. Many of the world's poorest people lack access to essential technology
and public amenities. They are not eligible for the perks.