OCTOBER 2018

“Globalization is not new concept. In ancient times, traders traveled vast distances to buy rare
commodities such as salt, spices and gold, which they would then sell in their home countries. The 19 th
century Industrial Revolution brought advances in communication and transportation that have removed
borders and increased cross-border trade. In the last few decades, globalization has occurred at an
unprecedented pace.”

(Investopedia, 2018)

Based on the quotation from the excerpt above:

a) Define the concept of “globalization”. (4 marks)

Globalization is a process of interaction and integration among the people, companies, and
governments of different nations, a process driven by international trade and investments, and
aided by information technology.

This process has effects on the environment, culture, political systems, economic development
and prosperity and on human physical well-being in societies around the world.

With globalization, there is also an increase in interaction of people, states or countries through
the growth of the international flow of money, ideas and culture.

There are three types of globalization which are political globalization, economic globalization,
and cultural globalization. Political globalization refers to the formation and growth of
international organizations composed of states as well non-state actors, in pursuing a common
objective. Meanwhile, economic globalization is the intercontinental exchange of products,
services, and labour. On the other hand, cultural globalization is the spread of one culture across
national borders.

b) Briefly explain TWO (2) causes of globalization. (6 marks)

1. The development of technology

The development of technology includes information technology, where it transmits and store
information that could speed up the technological innovation, such as the usage of the Internet
to find information faster. Furthermore, E-commerce also spread the operations of global
enterprise. Moreover, mobility also increased with the advancement in transportation system, as
now we have transportation that can bring us to a certain place faster, for example airplanes.

2. Human desire to explore

There is a movement of large number of people from one part of the world to another over a
short period of time. It is human instincts to be curious and look for other resources. Therefore,
migration occur because human wants to seek for better life. For instance, African ancestors
migrated because of geographical problems that lead to conditions such as draught and lack of
food.
c) Discuss TWO (2) positive effects and TWO (2) negative effects of globalization to Malaysia.
(10 marks)

POSITIVE EFFECTS

1. Promotes economic wellbeing.

Globalization helps to economic development and growth in Malaysia. For instance, the exports
product of Malaysia increases, and the consumer welfare has been improved because we can
export our goods and services to another country. Therefore, with products produced locally to
be exported to another nations, Malaysia's Gross Domestic Product (GDP) has increased. At the
same, considering some of Malaysian who are working overseas, our Gross National Product
(GNP) also increases.

2. Encourage global connectivity.

Globalization can encourage global connectivity in terms of exchanging of thought, ideas, and
information. Due to technological innovations, we can connect more conveniently. For instance,
nowadays we can connect using any communication platform such as Twitter, Instagram and
Facebook with our acquaintances in other countries all over the globe. With these tools, we can
easily exchange information with others in just a click. Therefore, travelling costs are reduced
and information spread faster. As an illustration, during the Covid-19 earlier outbreak in Wuhan,
China, through online communication platform, we already know about the disease even before
it arrives at our country. Thus, we can take precautions so that we are more ready to face the
disease once it spreads in our country.

NEGATIVE EFFECTS

1. Spread of disease

Globalizations can indirectly cause the spread of disease across borders. Highly infectious
disease can spread easier when the numbers of travelers that are travelling to our country
increase. For instance, one of the main factors that spread Covid-19 in Malaysia is by the tourist
from China, the Covid-19 origin country.

2. Decrease in skill labour

Globalizations leads to globalized competition in the workforce field. As Malaysia is still a

developing country, some professionals and skilled workers opt to migrate to developed
countries because they would want to benefit from higher wage rate and greater lifestyle
prospects that developed countries offer. Thus, this causes a waste of resources in terms of skill
labour.