Unit 19 Globalization Key Vocabulary cross-border — involves operating in more than one country diversity — existence of different people or things within a group or place domestic - relating to a particular country exploitation — unfair treatment of someone in order to take the benefits free trade —a system in which goods can be bought and sold between countries without any restrictions governance — the way something is managed homogenization — the process of making conditions the same or similar interdependence ~ a situation in which countries are related in such a close way that each one needs the others in order to exist liberalization — making rules or control less strict migration — moving to another area or country, especially in order to find work multinational — a company that has offices, factories, and business activities in many different countries supranational ~ not limited by established national boundaries or spheres of interest tariff—a tax on goods coming into a country or going out of it (= customs duty) Reading Section Globalization is changing the way we live our lives every day. It has become areality presenting us with both opportunities and challenges. The idea of glo- balization is not new, it has evolved over the years, The term ‘globalization’ got its present meaning in the 1980s, though it had first been used for a different process almost 20 years earlier.Unit 19. Globalization 197 There are innumerable definitions, varying in range and scope, describing globalization as a multifaceted phenomenon. Some definitions of globalization stress convergent patterns of production and consumption and a homogeniza- tion of culture, while others stress the potential of globalization to take many diverse and hybrid forms. Yet, it is commonly accepted that globalization refers to related processes in the economic, social, technological, cultural, political and ecological spheres, whereby global connectivity, integration and interde- pendence are constantly increasing. In economics, globalization is linked to the development of a global common market, based on the freedom of goods and capital exchange. As companies grow, they look for new markets to enter in order to sell their products to a greater number of customers. Globalization allows for the liberalization of in- ternational trade leading to an increased volume and variety of cross-border transactions. They are facilitated by the introduction of various multilaterally beneficial changes and regulations such as, ¢.g., the establishment of free tra- de zones that levy minimal or no tariffs, reduction in transportation costs or reduction in capital controls. Growth in free trade increases both the prosperity of countries and wealth of nations but, on the other hand, results in their interdependence on one ano- ther. Globalization is often used for its financial connotations but its aspects also include: ~ political - the rise of supranational governance and the growth of inter- national law; ~ informational — increase in information flows between geographically remote locations; — cultural ~ growth of cross-cultural contacts and diversity on the one hand, increasing similarities between cultures on the other and the spread of pop culture; and ~ ecological - the advent of challenges on a global scale, such as, e.g., envi- ronmental pollution, loss of biodiversity of the planet, climate change. Due to the widespread impact of globalization, it is not surprising that people perceive it in many different ways. Supporters of the process vouch for its long-term positive effects while adversaries stress its negative influence. The following table presents some of the frequently voiced benefits and costs of globalization.198 Business Matters of globalization Aspects | Positive results Negative results Free trade pro- Globalization increases |= It favours the rich and tion is much faster than in those closed to the forces of global tion; Globalization creates new investment oppor- tunities because reduced investment barriers result in an increase in foreign direct invest- ment; Very often capital (in the form of investments) flows from the rich to the poor, accelerating growth in developing countries. motion competition and reduces | _ industrialized, exac- prices; as a result con- erbating inequality as sumers have a greater the major economic variety of goods offered | powers have a key influ- for ence on global institu- It forces businesses to tions; innovate and improve __|- Trade liberalization the quality of their brings benefits mainly to products. competitive industries; = It may lead to unfavour- able changes in labour markets, .g,, by destroy- ing traditional sectors of the economy. Economic Growth in economies |~ Rapid movement of cap- growth open to globaliza- ital can be a source of instability; ~ Foreign investments are designed mainly to take advantage of low labour costs; ~ The increasing interde- pendence makes coun- tries more vulnerable to economic and financial crises.Unit 19. Globalization 199 Job creation | Global companies coop- |~ Creating new jobs may erate with local partners, | encourage cheap labour, often resorting to out- exploitation and the by- sourcing, big multina- passing of human rights tional companies create | in poor countries; new jobs in developing | The shift in outsourcing countries. may lead to job losses in higher-wage countris = The brain drain may incr -, a8 skilled people are recruited all over the world to serve the most powerful em- ployers to benefit from higher wages and better career opportunities. = Multinational companies can be a threat to small domestic companies. Cultural — Easier access to other — The ‘world culture’ that awareness de- | cultures leads to a great- | _ is being created nega- velopment er recognition of diversi- | _ tively affects national ty and cultural identities. | _ identity, uniqueness, and traditions which in some cases can be eroded by the glo- balized culture; - Awareness of interna- tional differences leads to an increase in migra- | tions to richer countries. International | - With developments - Ease of communication communication | in information and com- | (mobile phones, wide development | munication technology, | access to the internet, the world has become lower costs of interna- a smaller place; tional calls) makes it = A far greater exchange | _ easier for a member of new ideas is possible. | of the family to migrate, often resulting in family split-ups.200 Business Matters Anti-globalization bodies oppose the expansion of big multinationals. They argue that global companies lack social responsibility and do not care for the environment. A lot of activists criticize multinational companies for their strategies of maximizing profits while ignoring ethical issues to the detriment of the state in which they operate. Voices that globalists get involved in arms trade and other illegal transactions to achieve their financial targets can also be heard. Comprehension Section 1. Decide if the sentences are true or false. 1, Globalization integrates economies, yet it destroys local culture and tradi- tions. 2. The WTO and IMF are often targets of anti-globalists’ criticism and pro- tests. . Globalization hampers cross-border social and cultural exchange. . Transnational companies exploit the resources of poorer countries. . Globalization encourages companies to ‘think globally’ but to adopt local methods and ways. 6. Going global is more difficult in countries with deregulated economies. Vocabulary Sect 1. Match the words with their definitions, 1. detriment a. say that something is true, good, correct 2. connotation b. harm caused to something as a result of some- 3. exacerbate thing else 4, advent c. introduction of a new idea, custom, etc. 5. vouch (for) d. containing many aspects , features, qualities 6. multifaceted e. make a problem worse f. an idea that is implied or suggestedUnit 19. Globalization 201 2. Use the words from the pool to complete collocations used in this unit. investment * company * identity * trade * responsibility * drain tariffs * market free le a8 1. 2. levy 3. labour 4. foreign 5. global 6. cultural 7. social 8. brain 3. Match the words that have si ilar meanings. 1. accelerate a. change 2, impact b. faraway 3. adversary c. speed up 4, shift d. similar 5. remote . influence 6. volume f. opponent 7. convergent g. amount 4. Explain the meaning of the following words i 1. arms 2. potent 3. favour 4, vulnerable 5, innumerable 6. perceive 5. Find the English equivalents of the following words and expressions. . wolny przeplyw towarow . naktadaé cla . firmy wielonarodowosciowe . inwestycje zagraniczne . rynki pracy wawee202 Business Matters 6. drenaé mézgow 7. tozsamosé narodowa 8. tania sila robocza 9, nickorzystne zmiany 10. wspotzaleznosé 11. wielostronnie korzystne 12, handel bronia 6. Word search Find words hidden in the grid and make collocations related to the topic of this unit. Blelol= e[mlol>/= >im|=lolal2l>/xlel =l>lal>[alclolol= a|>)=le al=|ml<|—-lolololazie I-|-[2)<)-]=||8]2/6/l == <|a)e/eloelefel/slele|ml{=lA/— rlelzle aleo]a[=]-|x/>/2/clo|[<[a]= @/@/2/e/=[=|=[=|4/e/ele|=|/z/= ele rlelsl m)-|e|>|=|ml/2/-lel/=|/m/elelalm|alal> Speaking Section 1. Discuss the following statements. — Think globally, act locally. ~ Not all members of the society can benefit equally from globalization. lobalization contributes to political changes in many states.Unit 18. Globalization 2. Here are some opinions regarding local companies and multinationals. Compare local and multinational companies using these opinions as prompts. Add some examples to illustrate them. Local companies Multinationals — local stafi, local executives ~ local staff, foreign executives ~ traditional, local products = global products — low staff turnover ~ high staff turnover — fair wages ~ using cheap labour — small batches = mass production ~ taxes are paid — tax avoidance or even tax evasion — traditional technology ~ sophisticated technology — lower investment ~ higher investment ~ free market competition = oligopoly, monopoly ~ local language, traditions and culture ~ limited advertising budget specific corporate culture a lot of money spent on advertising 3. Present the advantages of big multinational companies (for employees, local community, customers). 1g Section 1, Translate the sentences into English. 1. Globalizacja jest stosunkowo mlodym terminem, dlatego tez nadal pojawiaja sig nowe definicje majace na celu jej jednoznacene zdefiniowani 2. Do umocnienia sig procesu globalizagji przyczynila sie liberalizacja warun- kow przeplywu kapitalu, towardw, ustug i wiedzy. 3. Liberalizacja handlu wiaze sie z obnizaniem i eliminowaniem stawek celnych oraz innych pozataryfowych barier, kt6re wplywaja na koszty handlu. 4. Czynnikiem sprzyjajacym globalizacji jest ujednolicenie wzorcéw konsump- ji, co sprawia, #e konsumenci w réznych czesciach globu poszukuja w coraz wigkszym stopniu tych samych d6br, ustug i wartosci. 5. Przejawem globalizacji aktywnosci firm jest przemieszczanic produkcji cechujacej sig znacznym naktadem pracy lub ustug zwiazanych z procesami biznesowymi do dowolnego miejsca na Swiecie. 6. Nie tylko produkcja, ale takée wiele rodzajéw ustug np. call centres prze- noszone jest do krajéw rozwijajaeych sig, w ktorych coraz wigce} jest tanic), dobrze przygotowanej do ich wykonania sily roboczej.208 Business Matters 7. Globalizacja moze doprowadzié do powstania globalnych dysproporgji, w wyniku kt6rych zdecydowana wigkszos¢ kapitatu nalezeé bedzie do nie~ wielkiej liczby paristw. 8. Zagorzali przeciwnicy globalizacji upatruja w niej koniec tozsamosci naro- dowej, przejecie obcych wzordw czy nawet upadck wartosci 2. Write an essay Comment on one of the statements in about 300 words. 1. Badly managed globalization may bring more costs than benefits. . We are moving towards living in a borderless world.