GEN 005: The Contemporary World

Module # 10 Student Activity Sheet

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

Materials: Activity Sheets

Lesson Title: Risks of Globalization References:
https://corporatefinanceinstitute.
com/resources/knowledge/other/
Learning Targets: At the end of the lesson, students should be globalization/
able to: https://www.coursehero.com/file/
1. describe the risks of Globalization in my own words; p35ifc2/Equity-Distribution-The-
2. explain the dangers of Globalization. risks-of-globalization-can-be-
unfairly-skewed/

A. LESSON PREVIEW/REVIEW

Introduction (2 min)

Hello! Good Day? Here we go again. What did you remember from our last topic? What did we discuss
then? We were able to discuss Technology and innovations how this is important to high-end virtual
communications and businesses. Are you ready for our new lesson today? Today’s lesson is about Risks in
Globalization. What are the risks of Globalization? What are the factors confronting this issue? Just listen, read,
and pay attention. After this class, you will gain more understanding of the topic. Before we proceed to our
topic today, please answer the statements below to check what you have learned from the last meeting.

Please read the learning targets before you proceed to the succeeding activities. The learning targets are
your goals. Remember, you need to achieve your learning targets at the end of the lesson.

Lesson Review
Direction: Fill in the Blanks. Read the statement carefully and write your answer on the space provided
for.
Radical Innovation
_______________________1. These innovations are revolutionary in nature.
_______________________2.
Technology It is the application of scientific knowledge for practical purposes or the branch
of knowledge concerned with applied sciences.
_______________________3. It is a creation of new product or service or process, innovation is the
. Invention
introduction of new product or service or process into the market place.

This document is the property of PHINMA EDUCATION 1

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

Architectural Innovation
_______________________4. These innovations take existing technologies and link new technologies in novel
ways.
_______________________5.
Education Technological changes in the educational industry have created new ways to
teach and to learn.
Check your answers against the Key to Corrections found at the end of this SAS. Write your score on your
paper.

B. MAIN LESSON

I think you are now ready to start with our lesson for today. Now, let’s move to the next set of activities. The
succeeding activities aim to develop your knowledge and understanding of the lesson.

1Activity 1: Content Notes (13 mins)

Hello guys, welcome to GEN 005 Contemporary World. Is there anybody here who hates unfair people?
Does it necessarily mean we are always equal in life? When someone is more prosperous than you, how would
you feel? Where did inequality come from? Why not were all Filipinos given the social amelioration subsidy in
times of calamity? Our topic for today is the risks of Globalization. Are you ready? Let’s begin.

Risks of Globalization

Globalization has offered the world significant advantages for economic gains and comfortable living.
But in the long run, it has the other side of the balance. The bad side of Globalization is all about the
new risks and uncertainties brought about by the high degree of integration of domestic and local
markets, intensification of competition, high degree of imitation, price and profit swings, and business
and product destruction, the most prevalent risks are: equity distribution, national sovereignty and
interdependence.

The risks of Globalization are more significant and more varied than the risks of domestic commerce.
Managing them is the key.

The Advantages of Globalization

Some positive aspects of Globalization include:

1. Building up the economic and social structures of struggling countries and economies through
free trade
2. Creation of a world-power and less and less compartmentalized power sectors
3. Learning about and sharing new and exciting cultures with one another

This document is the property of PHINMA EDUCATION 2

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

4. The opportunity and desire for prosperous nations to help countries struggling with severe
issues like unemployment, disease, and natural disasters
5. A more significant opportunity for travel and it increases free trade between nations.

The Disadvantages of Globalization

Though it comes with perks, there are several cons to Globalization that analysts and critics have noted
for years. They include:

1. The oppression of weaker and poorer economies by more robust ones; 'the rich get richer, the
poor get poorer.'
2. The danger of job loss, with specific industries and sectors sending jobs to countries where
workers are willing to do the same amount of work or more for smaller wages
3. Multinational corporations often get away with poor, unsafe, unethical, or exploitative working
conditions due to variations in laws and regulations from one country to another
4. Multinational corporations can exploit tax haven nations, sending large portions of revenue
offshore to avoid taxation.

Equity Distribution.

The benefits of globalization can be unfairly skewed towards rich nations or individuals. This creates
greater inequalities and leads to potential national and international conflicts. As a result, “ the rich get
richer, the poor get poorer because the rich countries have more resources and capital to do business.
Their industries produced more chemicals damaging the environment, yet the worst damage was
experienced by the least contributors like the developing countries.

One way globalization can increase inequality is through the effects of increasing specialization and
trade. Although trade based on comparative advantage can stimulate economic growth and lift per
capita incomes, it can also lead to a rise in relative poverty.

Cross-country studies document that Globalization has been accompanied by increasing inequality
within developing countries, suggesting an offset of some of the poverty reduction. Finally, the evidence
suggests that relying on trade or foreign investment alone is not enough to alleviate poverty.

How equity differs from equality?

Equality generally refers to equal opportunity and the same levels of support for all segments of society.
Equity goes a step further and refers to offering varying levels of support depending upon the need to
achieve greater fairness of outcomes.

Example: 3 Children are watching games over the fence. The shortest one could not see, so he was
given a stool so they all could see the games over the wall. That is equity. If all of them were given a seat,

This document is the property of PHINMA EDUCATION 3

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

that's equality.

Interdependence.
Globalization leads to interdependence between nations, which could cause regional or global
instabilities if local economic fluctuations impact many countries relying on them.

How does Globalization lead to interdependence among nations?

The need for countries to rely on each other for these resources creates a global interdependence.
Hence, the drive of Globalization creates a robust interconnection of world networks through borderless
operations of countries, making it easier to interact, trade, and build a cooperative world.

Interdependence of Human Societies

Interdependence describes when two or more actors impact and rely on each other. Consider the flour
industry, for example. One person specializes in growing crops, another on milling, packing, distributing,
and finally selling it. They need each other to deliver the final product, and if one day the mill stops,
everyone is affected; they are all interdependent.

Think of those individuals as a country and the flour as the products and services we consume. This
gives you an idea of the interdependence of human societies. We fulfill our needs by relying on a
massive network of other people.

Nowadays, most countries are also interdependent because they rely on other countries to supply local
demand and sell local products. This interdependence is strong, and one nation's actions often have
consequences on others. For example, China's labor costs impact employment in other countries,
Russia's policies on gas affect transport costs in Europe, and air pollution generated in the United States
has global effects.

Most countries are interdependent: Globalization is often defined as the interaction and integration of
people in different world areas. This broad term groups together economic, social, and political
interactions.

Since antiquity, human societies have developed forms of Globalization. Galleon Trade connects Europe
and Asia in the 16th century. The Silk Road once connected China, Central Asia, Persia, and Europe, and
facilitated commercial and cultural exchange. However, the Globalization we are experiencing nowadays
is the biggest and fastest in human history.

Technological advances in communications and falling costs of transportation have facilitated

international exchanges. Multinational companies operating in several countries, outsourcing of services
and operations, global free trade agreements, internet access, and international migrations are
examples of Globalization. Transportation facilitates Globalization.

This document is the property of PHINMA EDUCATION 4

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

Effects of Human Interdependence and Globalization

Human interdependence and Globalization have had both positive and negative effects on economics,
societies, and politics. Let's examine some of these effects.

Economics

Competition is a positive effect. Domestic companies compete with foreign firms, often raising their
standards. Foreign businesses often bring innovations and new approaches, trying to capture the
consumer. This dynamic usually increases the quality of products and services and makes them more
affordable. For example, American oil companies operate in many developing nations and have formed
alliances with local capitals, bringing Technology, employment, and huge investments.

Most nations have opened to international trade, creating a global market and directing investments
into developing countries. Companies from industrialized nations look for new needs and possibilities
and sometimes open operations in new countries, bringing investments and employment.

Globalization also affects employment.

Jobs are generated in new areas but are sometimes lost elsewhere. Imagine you own a company with
100 workers and decide to relocate to Thailand, where labor costs are lower. There you hire 150
workers, which means 150 new positions for Thailand, but 100 people just became unemployed back
home. The world has 50 more people earning wages, but there were also losers in this process. The
lower cost of Chinese labor is attractive to many multinational firms.

Globalization has helped some areas progress towards industrialization, including India, the Philippines,
Mexico, and Brazil. On the other hand, some areas of North America and Europe have lost jobs and
businesses.

More Negative Effects on employment

1. Adverse effects occur due to large-scale technological developments that accompany this
phenomenon, which will reduce the demand for unskilled labor. Even direct foreign investment
does not care for cheap workers but only for highly skilled workers.

2. The traditional nature of "work" might disappear due to the rapid advances in technology while
at the same time creating new and innovative occupations in favor of the highly specialized
professions.

3. An increase in hidden unemployment, lack of new job openings, and the deterioration of real
wage rates are the consequences of Globalization. In most developing economies, which were
unable to adopt the latest technologies, if the labor clause is enforced through the WTO, this will

This document is the property of PHINMA EDUCATION 5

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

negatively impact economic growth and employment in many developing countries, where child
labor exists, and working conditions are miserable.

4. Most trade liberalization benefits will be received by the manufacturing-producing countries,

while the smallest share will be going to the agricultural-producing countries (developing
countries).

5. In addition, policies of structural adjustment such as privatization imply an increase in

unemployment since privatization is usually accompanied by a reduction in the demand for labor.

6. Finally, the theoretical predictions about the employment consequences of trade liberalization are
based on assumptions of full employment of resources and flexible labor markets. These
assumptions might not hold in developing countries where labor markets are inflexible due to
structural factors.

National Sovereignty

The supreme, absolute, and uncontrollable power by which an independent state is governed and from
which all specific political powers are derived; the intentional independence of a state, combined with
the right and authority of regulating its internal affairs without foreign interference.

Some see the rise of nation-states, multinational or global firms, and other international organizations
as a threat to sovereignty. Ultimately, this could cause some leaders to become nationalistic or
xenophobic.

The sovereign States increasingly measure their vulnerability, not to one another but forces beyond
their control. Globalization is frequently discussed as a counterpoint to national sovereignty. It is
commonly asserted that Globalization has eroded national freedom or that it has rendered borders
obsolete.

Globalization has had a dual effect on the nation-state's sovereignty. Yet, simultaneously, economic
integration has limited the range of policy options available to states. This has diminished their capacity
to meet these obligations. Sovereignty is the absolute authority over a specific territory.

Does Globalization weaken national sovereignty?

Globalization, thus, has powerful economic, political, cultural, and social implications for sovereignty.
Globalization has led to a decline in the power of national governments to direct and influence their
economies (especially about macroeconomic management) and determine their political structures.

This document is the property of PHINMA EDUCATION 6

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

Activity 2: Check for Understanding (5 mins) (18 mins + 2 mins checking)

I hope that activities on this part will help you achieve your learning targets. The next set of exercises
will help you deepen your understanding of the lesson.

Directions: Based on your readings, give your definitions of the following terms below.

National Sovereignty - it
is the power to do
Interdependence Equity Distribution - everything in a state
- dependence equal distribution in without accountability;
terms of to make
of countries on aids/assistance, laws, to execute and to
each other apply them: to impose
wealth, and power and collect taxes, and
levy, contributions; to
make
war or peace; to form
treaties of alliance

Exercise # 2: How would you feel when you experience inequality in life? Some are richer others are
poorer? What will you do? Explain in your own words.
_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

_____________________________________________________________________________________________________________

This document is the property of PHINMA EDUCATION 7

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

Exercise 3: Let’s do it again. Please read the statement, and answer it with True or False.

T
_____1. Globalization has lots of advantages as well as disadvantages.

_____2.
T Businesses are interdependent; there's no solo business.

_____3.
T Problems on one side of the equation will destroy the balance of related businesses.

T
_____4. Equity is mandatory assistance to the neediest, while equality is assistance for all.

T
_____5. National sovereignty is weakened by the policies of multinational companies foreign direct

investors.

C. LESSON WRAP-UP

Frequently Asked Questions (FAQs)

Question 1. Is there a need for a poor country to take the risk to compete globally?

Answer: Based on my readings, yes, poor countries need to take risks in competing globally. If not, they will
be left behind by the globally competitive industrialized countries. Poor countries will have a hard time make
equally competitive with these wealthy countries. They were exploiting their labor workforce, lower prices of
export goods, and other raw materials available in their country to compete internationally.

Question 2. What is the role played by Globalization to the poor countries?

Answer: The role played by Globalization to poor countries, as I have read, from the researches conducted
about Globalization, "Globalization is playing an increasingly important role in the developing countries. It can
be seen that Globalization has certain advantages such as economic processes, technological developments,
political influences, health systems, social and natural environment factors. It has a lot of benefits on our daily
life. It created new opportunities for developing countries, such as Technology, greater opportunities to access
developed countries markets, growth and improved productivity and living standards." Globalization also
brought up new changes because of Technology and innovations. (https://www.linkedin.com/pulse/impact-
globalization-developing-countries-fairooz-hamdi/). They are helping poor countries enhance their
economy and improve the lives of their people.

This document is the property of PHINMA EDUCATION 8

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

Thinking about Learning (5 mins)

My Learner Tracker

What contributed to the

What lesson# did you
do? What were the What were your scores in
What’s the date today?
learning targets? What
activities did you do?
quality of your
performance today?
What will you do next
the activities?
session to maintain your
performance or improve
it?

Directions: Since you are done with today's lesson, please carefully read the questions below and give
your honest answer to them.

What was the most important thing you learned during this class?

_____________________________________________________________________________________________________________

____________________________________________________________________________________________________________

What important question remains unanswered?

_____________________________________________________________________________________________________________

____________________________________________________________________________________________________________

KEY TO CORRECTIONS
Lesson Review
1. Radical Innovation 3. Invention 5. Education
2. Technology 4. Architectural Innovation

This document is the property of PHINMA EDUCATION 9

 GEN 005: The Contemporary World
Module # 10 Student Activity Sheet

Exercise 1: Proposed answer

1. Interdependence - dependence of countries on each other
2. Equity Distribution - equal distribution in terms of aids/assistance, wealth, and power
3. National Sovereignty - it is the power to do everything in a state without accountability; to make
laws, to execute and to apply them: to impose and collect taxes, and levy, contributions; to make
war or peace; to form treaties of alliance
Exercise 2: See rubric for checking the answers for the essay questions
Exercise 3: 1. True 2. True 3. True 4. True 5. True
Scoring Rubric for Essay

4 3 2 1 0 SCORE

Content Write-up is Write-up is accurate Write-up is not Write-up is Questio

comprehensive, but not complete. completely stated. incomplete. Key ns are
(50%) accurate, and Key points are Key points are not points are lacking. not
complete. Key stated but not addressed and not It does not answer
ideas are clearly supported. Include supported. It does incorporate ed.
stated and some pertinent and not include information from
supported. Include detailed pertinent class discussions
pertinent and information from information from
detailed class discussions. class discussions.
information from
class discussions.

Organiz Well organized, Mostly clear and Inadequate Organization and Questio
ation developed, and easy to follow. organization. The structure draw ns are
easy to follow. Usually maintains structure of the away from the not
(30%) Maintains focus on focus but answer is not easy answer. Provides answer
the topic. occasionally to follow. Presents no information ed.
presents information that is that can be
information that is sometimes unclear. understood.
different from the
topic.

Spelling Grammar, spelling, Contain few Contain substantial Contain enough Questio
and punctuation, and distracting distracting distracting ns are
Gram- sentence structure problems. There problems. There grammar, spelling, not
mar have no errors. are one or two may be three to punctuation, and answer
errors in grammar, four errors in sentence structure ed.
(20%) spelling, grammar, spelling, problems to make
punctuation, and punctuation, and it substantially
sentence structure. sentence structure. incomprehensible

This document is the property of PHINMA EDUCATION 1