INTL 101- Globalization

8/8/2019 INTL 101- Globalization

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GROUP # 1


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1. Definition of Globalization

2. History of Globalization

3. Dimensions of Globalization

4. Pros & Cons of Globalization5. Impact of Globalization on Labour Market

6. Impact of Globalization on Pakistan economy


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Globalization has many definitions, butgenerally it refers to various globalinterconnections

The interconnections exist across avariety of human activitiesEconomicSocial

PoliticalCulturalBiological


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` Globalization can be described as a process by

which people of the world are unified into a single

society and functioning together.

` It is a combination of economic, technological,

socio cultural and political forces.

` We often use as an economic globalization

which national economies become the

international economy.


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` Economists have used Globalization since 1981

` Some believed that it stated before 16th century

` The extend of globalization largest in the time of

Portugal` Its viewed as a centuries long process


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` Globalization came into business since the

establish of Dutch East India Company, the first

multinational company

` Globalization develops rapidly in the last 50 years

` 19th Century is the first era of Globalization


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` The increasing reliance

of economies on each other

` The opportunities to

be able to buy and sellin any country in the world

` The opportunities for

labour and capital to

locate anywhere in

the world` The growth of global

markets in financeStock Markets are now accessible

from anywhere in the world!


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` Economic globalization is one of the most

frequently used in discussions of development,

trade, and IPE.

` It is a process by which the economies of theworld become increasingly integrated, leading to

global economy and, increasingly, global

economic policymaking, for example, through

international agencies such as WTO, IMF, andWB.


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` Social globalization means processes whereby manysocial relations become relatively delinked from territorialgeography, so that human lives are increasingly playedout in the world as a single place.

` Cultural globalization refers to an emerging globalculture, in which people more often consume similargoods and services across countries and use ofcommon language.

` Examples: Coco-Cola, Mc Donald and use ofEnglish.


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` In political studies globalization ideas have beensignificant in thinking about ideology and inpolitical behaviourin terms of issue areas suchas ecopolitics and human rights.

` In terms of the environment and human rightsclear evidence of the need for global codes ofconduct.


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` With globalization, there is a global market for

companies to trade their products and a wider range of

options for people, to choose from among the products

of different nations.

` Developing countries benefit a lot from globalization, as

there is a sound flow of money and thus, a decrease in

the currency difference.

` To meet the increasing demands that follow

globalization, there is an increase in the productionsector. This gives loads of options to the manufacturers

as well.


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` Competition keeps prices relatively low, and as a result,

inflation is less likely to occur.

` The focus is diverted and segregated among all the

nations. No country remains the single power head;

instead there are compartmentalized power sectors. The

decisions at higher levels are meant for the people at

large.

` Communication among the countries is on the rise,

which allows for better understanding and broadervision.


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` As communication increases amongst two

countries, there is interchange of cultures as

well. We get to know more about the other's

cultural preferences.` As we feed to each other's financial needs, the

ecological imbalance is also meted out.

Governments of countries show concern about

each other


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` Globalization is causing Europeans to lose their jobs aswork is being outsourced to the Asian countries. Thecost of labor in the Asian countries is low as compared toother countries.

` The high rate of profit for the companies, in Asia, hasresulted in a pressure on the employed Europeans, whoare always under the threat of the business beingoutsourced.

` Companies are as opening their counterparts in other

countries. This results in transferring the quality of theirproduct to other countries, thereby increasing thechances of depreciation in terms of quality.


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` There are experts who believe that globalization is the

cause for the invasion of communicable diseases and

social degeneration in countries.

` The threat that the corporate would rule the world is on

high, as there is a lot of money invested by them.

` It is often argued that poor countries are exploited by the

richer countries where the work force is taken advantage

of and low wages are implemented.


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` The term globalization is so overused that it is not clear

what it means.

` Economists would think about things like trade,

factormobility and diffusion of technology

` Otherdiscussants (trade unions, environmentalists,

development lobbyist, consumer groups, human right

activists, religious groups) often seem to talk about

(alleged) increased powerof large companies and

Americanization


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` One of the main topics is the impact on labor

market

` (1) Demand for laborshifts inward in capital

abundant countries` (2) the demand curve becomes more elastic

(change in wage rate creates now larger impact

on quantity of employment, i.e. production can be

moved abroad)


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` Assume that higher labor standards are imposed

(creates a new cost) supply curve shifts upward

wages increase, employment decrease

The more elastic the demand the moreemployment decreases, wages decrease and the

larger share of the cost is paid by employees


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` Growth Rates ofGNPData shows that in 1947 real GNP per capita was Rs.

1,476 which has multiplied three and a half fold to Rs.5,128 in 2001.

` Within five years, the maximum tariff rate declined 55percentage points from 150 percent in 1988 to 95% in1992, reducing the effective import duty rate from 38.4%to 30.3%. By 2001, the maximum tariff rate droppedfurther to 35% -------- about one-fifth of the 1998 level ----

-and the effective duty rate to 13 percent ----- about onethird of the 1988 level.


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` Pakistan has also made substantial progress ineliminating or reducing non-tariff barriers totrade: at present, there are only 32 products onthe negative list and import of 28 products isrestricted for health and safety regions.

` Pakistan provides a variety of incentivesincluding income and sales tax concessions,exemption from customs duty on imported

intermediate inputs and capital goods, and easyaccess to credit facilities.


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` Other export promotion measures include

provision of loans to exporters at concessional

rates of interest through the export finance

scheme


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` the decline in import growth is significantly greater

than in export growth.

` In 1999-00 export growth rate was 10.2 and import

rate 9.3 and in 2001-01 is 7.4 and 4.1.


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` Thus despite increase in growth rate of output,

trade and FDI. The unemployment rate, increased

from an average of 3.5% during 1981-90 to 5.7%

during 1991-2000, went up further to 6.7 percentin 2000-01


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` The anti-globalization

movement developed in

the late 20th century to

fight the globalization of

corporate economic

activity and the free trade

with developing nations

that might result from

such activity .


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` Is globalization beneficial for the economy or not?

` Does it cause Prosperity or Impoverishment?

` What will be the future results of globalization?

` Can globalization be eliminated from theeconomy?

Documents

INTL 101- Globalization