Unit 1.

Globalization
GLOBALIZATION VOCABULARY

 Developing countries are countries with little industrial and economic

activity where people generally have low incomes.
 Contrarily, developed countries are countries with a lot of industrial and
economic activity where people generally have high incomes.

There is also another good term – emerging economy or emerging market

economy which means a nation’s economy progressing toward becoming developed
and advanced.

Now let’s talk about the term «global» and some combinations with it. Global village /
global economy / global trade:

 Global village – the idea that we became a single community due to

affordable and effective transportation, mass media, and electronic
communications.
Example: People are afraid that the evolution of a global village will raise
conflicts between cultures.
 Global economy refers to economy of the world comprising economies of
different countries closely interrelated. Example: Thanks to global economy,
a shirt is now likely to cost roughly the same amount of money in New York
as in New Delhi.
 And finally, global trade (often international trade) is simply the exchange
of goods and services between countries.

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 Example: Global trade not only results in increased efficiency, but also allows
countries to participate in global economy, encouraging the opportunity of
foreign investments.

Sweatshop and outsourcing:

 Sweatshop (sometimes sweat factory) is a workplace with unacceptably

severe conditions and usually extremely low wages.
Example: In 2006 Apple faced allegations that its iPod was being produced in
China’s sweatshop conditions. The Apple incident illustrates how
sweatshops can thrive with such practices as outsourcing.
 Outsourcing means just what it says – going out to find the source of what
you need. In the globalization context we usually use the term outsourcing to
describe a situation when businesses outsource production to countries with
developing economies.
Example: Outsourcing is often criticized, which can mean bad public
relations for a company.

Our next phrase is loss of identity.

And this is what can happen if the idea of global village develops further.
Example: Some people fear that globalization will inevitably lead to total loss of cultural
identity.
Our next group of words is prosperity, standard of living, and Human Development
Index.
 Prosperity. To put it simply, it is the state of being successful usually by
making a lot of money.
Example: Globalization plays an important role in contributing to sustainable
prosperity for all people.
 Standard of living could be described as a quality of life or level of material
prosperity available to an individual or a group of people.
Example: The standard of living includes factors such as: income, availability
of employment, affordability of housing, quality of healthcare, and many
others.

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 Our next term is consumerism.
It is the belief that it is good for people and society to spend a lot of money on goods and
services.
Example: Although consumerism can take many forms, it generally refers to very high
levels of excessive consumption.

And two more terms are cultural convergence which is a tendency for cultures to
blend and become more alike and cultural divergence which describes things that
make separations of cultures.
The English language is a prime example of cultural convergence on a global scale.
Here we have a couple of international agencies which directly influence globalization
development.
 World Trade Organization (WTO) – global organization that helps
countries and producers trade fairly and effectively.
 International Monetary Fund (IMF) - Intergovernmental organization with
its headquarters in Washington, D.C. that focuses on maintaining
international economic stability.

Additional vocabulary
 affluence – abundance of property.
 antiglobalization movement – is a social movement critical of the
globalization of corporate capitalism.
 borders – boundaries between countries.
 economic growth drivers – something that provides development and
growth of economy.
 economic superpower – an extremely powerful nation. While the USA was
once the great economic superpower of the twentieth century, it seems likely
that the world economy will be dominated by China and India in the twenty
first century.
 fair trade – trade in conformity with a fair-trade agreement.
 imbalance / inequality – a state or condition in which different things do
not occur in equal or proper amounts.
 integration (the act of bringing together smaller components into a single
system that functions as one) / cooperation (a situation in which people
work together to do something).
 interdependence – the mutual reliance between two or more groups.
 local (relating to a particular area, city or town) / national (relating to an
entire nation or country) / domestic (relating to or made in your own
country).
 multilateral (involving more than two groups or countries) / unilateral
(involving only one group or country).
 national sovereignty – the idea that independent nations, which have
declared their independence, have an organized government and are self-
contained, have a right to exist without other nations interfering.
 standardization – is the process of implementing and developing technical
standards.
 tariff – a tax on goods coming into or leaving a country.
 to accelerate – cause (something) to happen sooner or more quickly.
 to dominate – to have control of or power over (someone or something).
 trade barrier – a government-induced restriction on international trade.
 trading blocs - Increasingly, support is provided by trading blocs such as the
European Union and not simply by individual countries.

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 Watch this video containing useful words and phrases related to
globalization.

I. Complete the following sentences with globalization vocabulary.

Affluence
Blocs
Consumerism
Developing
Economic growth drivers
Emerging economy
Interdependent
National sovereignty
Outsource
Standard of living
Sweatshop
Tariff
Trade barrier

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 1. Companies that _____________ no longer have complete control over the processes
used by the business, since these functions will be handled by the other company
or individuals hired to work as independent contractors.
2. In the days before _____________, people were very mindful of what they bought or
acquired.
3. India is the third largest _____________ and the seventh largest economy in the world.
4. Entrepreneurship and self-employment are considered key _____________.
5. A _____________ is something that slows down or stops a company from exporting
goods or services to an overseas market.
6. Unsurprisingly, those with children require more income to maintain a decent
_____________.
7. Fair trade practices do not allow the use of child labour, _____________ type
environments, or slave labour in foreign nations.
8. I agree that in an _____________, economically integrated world, the pursuit of
_____________ is a delusion.
9. Britain wants to use its independent post-Brexit _____________ regime to help make
domestic manufacturers more internationally competitive.
10. The higher rates in London and the South East reflect the relative _____________ of
the area compared with the rest of the county.
11. The European Union is one of world’s most powerful trading _____________.
12. Poverty and overpopulation are two of the most serious issues in many
_____________ countries.

WORKING WITH INTERNATIONAL DATABASES: WORLD TRADE

ORGANIZATION (WTO)
The overall objective of the WTO is to help its members use trade as a means to
raise living standards, create jobs and improve people’s lives. The WTO operates
the global system of trade rules and helps developing countries build their trade
capacity. It also provides a forum for its members to negotiate trade agreements
and to resolve the trade problems they face with each other.
The WTO Terminology database provides quick and easy access to trilingual
terminology used in WTO.
I. Select the WTOTERM database (2022.01), search for 3 multi-word terms
containing the words given (tick “coincidencia parcial”) and provide their
translation into Spanish. An example is given to help you.

Word Multi-word term Spanish translation

Development  Sustainable  Desarrollo

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 development sostenible
 Rural development  Desarrollo rural
 Regional  Política de
development policy desarrollo regional

Consumer

Country

Domestic

Economy

Growth

Income

Market

Tariff

Trade

Trading

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 Access the WTO GLOSSARY for further terminology.

LISTENING COMPREHENSION

I. Listen to Mike O'Sullivan talking about “The end of globalization (and the
beginning of something new)” and fill in the gaps with the missing
vocabulary.
The end of globalization (and the beginning of something new)
We are at the end of globalization. We've taken globalization for granted, and as it drifts
into history, we're going to miss it. The second (1) _____________ of globalization began in the
early '90s, and it delivered a great deal. Billions of people rose out of (2) _____________. More
impressively, (3) _____________ per adult in countries like Vietnam and Bangladesh increased
by over six times in the last 20 years. The number of democracies rose, and countries as
diverse as Chile, Malaysia, Estonia, held free and (4) _____________ elections. The role of
women improved in many parts of the world, if you look at (5) _____________ in countries
like Spain, or access to education in countries like Saudi Arabia. Economically, (6)
_____________ spread like webs around the world, with car parts criss-crossing (7)
_____________ before the final product came into place. And globalization has also changed
the way we live now. It's changed our diets. It's changed how we communicate, how we
(8) _____________ news and entertainment, how we travel and how we work. But now,
globalization is on its deathbed. It's run into the limitations of its own success: inequality
and new, record levels of (9) _____________ -- for example, world debt-to-(10) _____________ is
now pushing levels not seen since the Napoleonic Wars 200 years ago -- show us that the
advantages of globalization have been misdirected. The Global Financial Crisis was the
result of this (11) _____________, and since then (12) _____________ have done little but contain,
rather than solve, the problems of our age. Now, some highly globalized countries such as
Ireland and the Netherlands, have managed to improve (13) _____________ in their countries
by better distributing the bounties of globalization through higher (14) _____________ and
social (15) _____________ programs. Other countries have not been as good. Russia and,
especially, the United States, have extreme levels of (16) _____________, more extreme even
than during the time of the Roman Empire. And this has convinced many people that
globalization is against them, and that the bounties of globalization have not been shared
with the many. And now, in 2020, we're confronted by the (17) _____________, which has
shaken the ground under us and further exposed the frailties of the globalized (18)
_____________. In past international crises, most of them economic or geopolitical, there has

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usually ultimately been a sense of a committee to save the world. Leaders and leading
nations would come together. But this time, uniquely, there has been no such
collaboration. Against a backdrop of (19) _____________, some countries like the US have (20)
_____________ others for masks. There's been hacking of vaccine programs, and a common
enemy, the pandemic, has not been met with a common response. So any hope that we
might have a world vaccine or a world recovery program is in vain. So now we're at the
end of an era in history, an era that began with the fall of (21) _____________, that set in train
the flow of trade, of finance, of people and of ideas, and that now comes to an end with
events like the shutting down of (22) _____________ in Hong Kong. The question now is,
what's next? Well, if the era we're leaving was characterized by a connected world trying
to (23) _____________ and come together on the basis of economic goals and geography, the
new world order will be defined by (24) _____________, distinct and different ways of doing
things, and ultimately collaboration based on values, and this new world order is very
much a work in progress. "(25) _____________ " might be a better word, and it has been for
some time. But think appropriately of great sheets of ice breaking apart, some drifting
away and others later reforming. And the internet is a bit like this. It used to be global.
Google used to have 30 percent of the (26) _____________ in China, and now it has close to
zero percent. And the big regions of the world increasingly look at the internet from a
values-based point of view. America values (27) _____________ and its financial rewards.
China takes a political view of the internet and cordons it off, and at the same time China
has this incredible (28) _____________ that no other country has come close to matching. And
then there's Europe, and in Europe a conversation about the internet is effectively a
conversation about data and (29) _____________. So there you have it: one common problem,
and three increasingly different, (30) _____________ views.

II. Watch this video entitled “What’s the best country to live in?” and answer the
questions below:

1. What is GDP?
A Total value of everything that is bought in a country
B The total value of everything sold in a country
C Total monetary value of everything a country produces and sells on the market
D The total value of an entire country's infrastructure
2. What are some things GDP does NOT capture?

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A Services that are provided but not sold on the market place (like public schools and
firefighting).
B Levels of inequality (the amount of people who have wealth vs. who do not).
C How happy people are with their lives.
D All of the above.
3. _____ is an alternative to GDP that captures health, education, strong
communities and living standards.
A Gross National Happiness (GNH)
B Gross Domestic Wellbeing (GNW)
C Holistic Value-Added (HVA)
D Community Aggregate Valuation (CAV)
4. Which country comes closest to meeting the basic needs of their people while
using resources sustainably?
A France
B Kenya
C Costa Rica
D Colombia
5. Explain the cons of using GDP to measure a country’s well-being.

READING COMPREHENSION
Read the passage below and answer the questions:
The World Trade Organization (WTO) yesterday approved a request from the
European Union, Japan, Canada, Brazil, India, South Korea and Mexico to impose
sanctions on American products. This is in retaliation for damages incurred to
industries from those countries due to the US antidumping law known as the
Byrd Amendment. This law was ruled illegal by the WTO two years ago, but
Washington has continually ignored international requests to comply with the
ruling.

The law protects American companies from foreign imports, which are sold in

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 America at prices less than those in their country of manufacture. For example,
apples produced and sold in Mexico for $1 a piece are then sold in the USA for 80
cents. US companies receive compensation from the antidumping import taxes
levied on the foreign rivals’ goods in an attempt to keep the playing field level for
domestic producers. Products to be affected range from live pigs to peanut
butter to steel bars.

The countries are ready to hit the United States with up to 150 million US dollars
in sanctions early next year if Washington doesn't comply and quickly abolish
the Byrd amendment. Although this amount is a drop in the ocean, the WTO
action is significant as it involves several countries taking action against
America. This could start a trend among countries tired of unilateral American
trade practices, and view the USA as an international trade bully.

I. Match the following synonyms:

approve follow
impose tax
retaliate force upon
ignore eliminate
comply authorize
levy see
hit fight back/counterattack
abolish strike
view disregard

II. Say whether the following statements are true or false:

(a) The WTO approved a request to impose sanctions on American products. T /
F
(b) A similar WTO action was taken two years ago. T / F
(c) The USA always follows WTO rulings. T / F
(d) The Byrd Agreement protects American companies from foreign imports. T /
F
(e) Mexican apple growers will be happy. T / F
(f) US companies receive no compensation from antidumping import taxes. T / F
(g) The WTO ruling affects peanut butter. T / F
(h) The value of the sanctions represents a drop in the river. T / F
(i) The USA can be seen as an international trade bully. T / F

III. Match the following phrases taken from the article:

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 approve a for
impose level
in retaliation compensation from
country of request from
receive manufacture
keep the playing field the ocean
a drop in sanctions on

Read the passage below and answer the questions:

Global trade is an essential part of the modern economy. It allows countries to
exchange goods and services, creating a mutually beneficial relationship.
However, it's not always smooth sailing. Sometimes, countries may resort to
unfair practices that can harm other nations' industries.

One such practice is dumping. Dumping is when a country exports goods at a

price lower than their cost of production. This can be detrimental to local
industries as they cannot compete with the artificially low prices. To combat
this, anti-dumping duties may be imposed on the imported goods.

Another issue in global trade is subsidies. Subsidies are financial assistance

provided by governments to domestic industries. While subsidies can help these
industries become more competitive, they can also create an uneven playing
field for international trade. In some cases, subsidies may be seen as a form of
free-riding, where one country benefits from another's investment without
contributing to it.

To promote fair trade, many countries have established free trade areas. These
areas eliminate tariffs and other barriers to trade between member countries.
However, even within these areas, issues can arise. For example, if a country
violates the tariff binding agreement, other countries may retaliate by imposing
tariffs or seeking a waiver from the agreement.

In conclusion, while global trade can bring many benefits, it's important to
ensure that it's conducted fairly. Anti-dumping duties, subsidies, and free trade
areas are just a few ways that countries work towards creating a level playing
field for international trade.

Definitions:
a. Taxes imposed on imported goods that are priced lower than their fair market
value to protect domestic industries from unfair competition.
b. An official document that allows someone to be exempted from a requirement or
obligation, such as paying a fee or following a rule.
c. A person or company that benefits from a public good without contributing to its
costs.

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d. An agreement between two or more countries to maintain a certain level of
import taxes for a specific period of time.
e. Financial assistance given by a government to a business or industry to support
it, often with the aim of promoting economic growth or social welfare.
f. A geographic region where countries have agreed to eliminate tariffs and other
barriers to trade among themselves.
g. The practice of exporting goods at a price lower than the cost of production in
order to gain an advantage over competitors in another country.

Words:
1. dumping
2. free trade area
3. free-rider
4. anti-dumping duties
5. tariff binding
6. subsidy
7. waiver

Questions:
1. What is global trade?
A. A mutually beneficial relationship between countries.
B. A way for countries to harm each other's industries.
C. A practice where countries export goods at a higher price than their cost of
production.
D. A way for countries to avoid financial assistance from governments.

2. What is dumping?
A. Exporting goods at a price lower than their cost of production.
B. Financial assistance provided by governments to domestic industries.
C. Eliminating tariffs and other barriers to trade between member countries.
D. A form of free-riding where one country benefits from another's investment.

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3. What are anti-dumping duties?
A. Duties imposed on imported goods to combat dumping.
B. Financial assistance provided by governments to domestic industries.
C. Areas that eliminate tariffs and other barriers to trade between member
countries.
D. A way for countries to retaliate against tariff violations.

4. What are subsidies?

A. Financial assistance provided by governments to domestic industries.
B. Duties imposed on imported goods to combat dumping.
C. Areas that eliminate tariffs and other barriers to trade between member
countries.
D. A way for countries to retaliate against tariff violations.

5. What are free trade areas?

A. Areas that eliminate tariffs and other barriers to trade between member
countries.
B. Duties imposed on imported goods to combat dumping.
C. Financial assistance provided by governments to domestic industries.
D. A way for countries to retaliate against tariff violations.

6. What can happen if a country violates the tariff binding agreement in a

free trade area?
A. Other countries may retaliate by imposing tariffs or seeking a waiver from the
agreement.
B. The country violating the agreement will be banned from the free trade area.
C. The country violating the agreement will be fined.
D. Other countries will ignore the violation and continue trading as usual.

7. What is the author's main point about global trade?

A. It's always smooth sailing.
B. It can bring many benefits, but it's important to ensure that it's conducted fairly.

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C. Dumping and subsidies are necessary for global trade to work.
D. Free trade areas are the only way to promote fair trade.

WORD FORMATION
I. Use the words in brackets to form a new word that fits into the gap.

1. Both foreign recruits and national employees learn from each other, and that helps
_____________ the company. (GLOBE)
2. Cities have to be made _____________, liveable, and economically viable.
(GOVERNMENT)
3. In Mexico the national government is carrying out a consistent policy of
_____________ its railway lines. (DEVELOPMENT)
4. Raising income tax is considered _____________ dangerous. (POLITICS)
5. The manager of the planning department thanked her colleagues for being so
_____________. (COOPERATION)
6. The Prime Minister is incompetent to _____________ the country. (GOVERNMENT)
7. I have a habit of only buying domestic goods, instead of things that have been
_____________ from overseas. (IMPORT)
8. Many jobs in _____________ were lost during the recession. (MANUFACTURE)
9. We must oppose all forms of trade protectionism and any attempt to _____________
economic and trade issues. (POLITICS)
10. Most financial planners recommend that investors _____________ their assets.
(DIVERSITY)
11. The company has a complex _____________ structure. (ORGANIZATION)
12. They moved, in short, from _____________ products to exporting jobs. (EXPORT)

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