Economic Globalization

ECONOMIC
GLOBALIZATION
ECONOMIC
GLOBALIZATION
COMMUNICATION
TRANSPORTATION
TRADE
3
4
5
DISTINCTION BETWEEN
GLOBALIZATION AND
ECONOMIC GLOBALIZATION
Foreign Direct Investment

Technological Innovation
Economies of Scale
6
COMMUNICATION
icon icon
 MODERN  IT’S RELATIVELY

COMMUNICATION
TECHNOLOGY AND EASY AND
MASS MEDIA ARE INEXPENSIVE TO
GLOBAL STANDARD STAY IN TOUCH
7
TRANSPORTATION
TRAVEL AND
SHIPPING ARE
CHEAP AND SAFE
8
TRADE
MULTI – NATIONAL CORPORATION
HAVE GLOBAL REACH AND
INCREASING POWER
e.g.. McDonald Corp., Intel Corp. etc.
GOVERNMENTS HAVE DECREASES

TARIFFS AND REGULATION ON INT’L
TRADE
9
FORMS OF ECONOMY
PROTECTIONISM
VS.
TRADE LIBERATION
9
PROTECTIONISM
Protecting one’s economy from foreign competition by creating
trade barriers.
Domestic products > Imported goods
 TARIFF – taxVICTORIA
ALEXANDER MARTENSSON leviedLINDQVIST
by a government MIRJAM on imports andANGELICA
NILSSON exports. ASTROM
The money
Lorem ipsum dolor sit amet,
collected
consectetuer adipiscing elit. from tariffs
consectetuer adipiscing elit. is called a custom
duty.
consectetuer adipiscing elit.
 IMPORT
Maecenas porttitor congue
massa. Fusce posuere, magna QUOTA – limits
massa. Fusce posuere, magna on the number of products
massa. Fusce posuere, magna that
Fusce can
massa. posuere, magna
be imported
sed pulvinar ultricies, purus
lectus malesuada libero, sit
into a country.
 commodo
amet
BANS
magna eros
quis urna.
– forbid products
amet commodo magna eros
quis urna.
on import goods.
quis urna.
quis urna.
11
TRADE LIBERATION
 also called “ FREE TRADE”

Act of reducing trade barriers to make
international trade easier between countries.
x TARIFF
x IMPORT QUOTA
x BANS
12
HOW TO MAKE TRADES EASIER?
 FREE TRADE – trading of goods and services between two or more
countries without tariffs or taxes.
e.g. connection between Canada and South korea (March 11, 2014)
TRADE BLOC – agreement between governments to reduce oe
eliminate trade barriers.
ALEXANDER MARTENSSON VICTORIA LINDQVIST MIRJAM NILSSON ANGELICA ASTROM
e.g.
Lorem ipsum dolor NAFTALorem
sit amet, (NORTH AMERICA
ipsum dolor sit amet, FREE TRADE
Lorem ipsum dolor sitAGREEMENT)
amet, consist
of CANADA,
MEXICO
and UNITED
STATES.
massa. Fusce posuere, magna massa. Fusce posuere, magna massa. Fusce posuere, magna massa. Fusce posuere, magna
sed pulvinar ultricies, purus sed pulvinar ultricies, purus sed pulvinar ultricies, purus sed pulvinar ultricies, purus
OUTSOURCING – subcontract work: to buy labour or parts from a
source outside a company or business rather than using the company’s
quis urna. quis urna. quis urna. quis urna.
staff or plant (factory).

13
INSTITUTION OF GLOBALIZATION
 World Bank
 International Monetary Fund (IMF)
 World Trade Organization (WTO)
- originates after the World War II by

United States and United Kingdom (Bretton
Woods Conference, 1944).
14
WORLD BANK
 also called Int’l Bank for Reconstruction
and Development (IBRD)
 Increases in economic growth and
decreases poverty in developing
countries.
e.g. Increases in education since 1962 like
Bangladesh, Chad and Afghanistan
15
WORLD TRADE ORGANIZATION (WTO)
Formerly known as General Agreement on
Tariffs and Trade (GATT)
Deals with the rules of trade between nations,
settles trades disputes and conduct straight
negotiations.
e.g. (May 2013) Japan and European Union bought a case
to WTO regarding unfair renewable energy serves offered in
Ontario.
16
INTERNATIONAL MONETARY FUND (IMF)
 Provides short terms loans to countries

when an emergency occurs.
e.g. Yemen receive 93 Million USD (2012) during struggle
to terrorism.
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BENEFITS VS DRAWBACKS
 WORLD TRADE ORGANIZATION
 Solves trade disputes between countries in a peaceful ways
× But only focuses on developed nation
 Lowers the cost of goods and services for those developed
nation
× To achieve low cost, labour rights and environmental concerns
are ignored
 Promotes economic growth in developed countries
× Favour the rich nations and powerful trans-national
corporation.
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SUSTAINABILITY
 The degree to which the Earth can provide resource for
human needs
SUSTAINABLE DEVELOPMENT
 Specifically developing the world in a way where the needs of a
present day generations are met while preserving resources for
future generations.
(2008) Canada pass the Federal Sustainable Development Act

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Economic Globalization

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ECONOMIC

Foreign Direct Investment

 MODERN  IT’S RELATIVELY

GOVERNMENTS HAVE DECREASES

 also called “ FREE TRADE”

staff or plant (factory).

- originates after the World War II by

 Provides short terms loans to countries

(2008) Canada pass the Federal Sustainable Development Act

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