Globalization

Globalization

• Term:

  • globe

  • global/globalize

  • Globalization

  • Globalization

• process of interaction and integration

• associated with economical, social, cultural and political aspects

• role of technology

• stages of process - Friedman (countries, companies, everyone)

Environment a global challenge

• Climate change

• Pollution

• Deforestation

• Overpopulation

• Waste disposal

• Ozone layer depletion

Global economy

• cause of global economy: removal or disintegration of barriers to international trade (tariffs etc.)

• example of effect: global products available locally

• reason for trade benefits: countries have comparative advantages like an educated workforce, low wages, etc..

• companies use labor arbitrage - e.g. producing in low wage countries, outsourcing

• ambivalent effects: e.g. fast fashion

• global financial markets, stock markets etc.

Migration - jobs

• some migration simper today: communication, travel, policies/agreements (e.g. EU)

• Effects of globalization:

• differences in living standards obvious

• global competition for jobs

• global labor market (wage arbitrage) difficulty for low-skilled people in rich countries

• cultural effects of migration (e.g. USA)

Benefits vs problems

Benefits:

• cheaper, more diverse products

• often: increase in standard of living

• global communication, cooperation possible

• culture is enriched

Problems:

• price pressure on local products, reliance on foreign products, loss of jobs

• difficulties for low-skilled workers

• global competition

• local culture may be lost

• Effect: backlash (e.g. Trump, Brexit)