Humanities S.2 Exam Prep: Unit 3 - Globalization

Globalization Definition

How trade and technology have made the world into a more connected and interdependent place.

Implications of Globalization

Economic Growth

Refers to the interconnectedness of economies through trade and the exchange of resources. Example: USA manufactures modern technologies and sells them to developing countries and trades them with natural resources that they have to developed countries.

Social Aspects

Social (Cultural) – To the sharing of ideas and information between and through different countries. Example: Could include international popular films, TV, social media which influence culture and society.

Cultural Aspects

  • One side effect of this development is the marginalization of languages spoken by smaller numbers of people. Many linguists are concerned about languages that are on the verge of extinction.

  • The widespread use of English also means that new words are created that reflect cultural and social developments at a time.

Political Aspects

The amount of political cooperation there is between different countries. Example: Global organizations such as (WTO) and (UN) and regional organizations such as (EU) help increase political globalization.

Advantages and Disadvantages of Globalization

Advantages

  • New jobs for local people

  • Brings foreign currency into local economy.

  • Mixes cultures, shares lifestyles, ideas, and food.

  • Migration fills labor shortages

  • Makes people aware of events in distant parts of the world.

  • Makes people more aware of global issues - global warming, deforestation

Disadvantages

  • Profits sent back to MEDC's

  • TNC's may drive local companies out of business

  • Globalization works in the interests of MEDC's

  • TNC's may operate in a way that would not be allowed in an MEDC - pollution, low wages, long hours, child labor

  • Drowns cultures

  • Migration can cause social tensions

  • TNC’s (Transnational Companies) – Companies that operate in more than one country.

  • Franchise – Permissions from a company or government to set up a commercial venture in a particular location. (Example: Starbucks, McDonalds, etc.)

  • MEDC’S (More Economically Developed Country) – Countries that are rich in resources and have higher income.

  • LEDC’S (Less Economically Developed Country) – Countries that are poor in resources and have lower income.

  • WTO (World Trade Organization) – A global international organization which deals with rules of trade between nations. Their goal is to help producers of goods and services, exporters and importers conduct business.

  • Exporter – A person, business, or country that sells goods and services to another country.

  • Importer – A person, business, or country that buys products from another country in order to sell them.

Causes of Globalization

  • Developments in transportation

  • Communication

  • Trade/ing

  • Labor availability

  • Migration and leading to a reduction of costs and increased profits

Related Facts and Information

Effects/Impacts of Globalization

Language

The marginalization of languages spoken by a smaller number of people. Many linguists are concerned about languages that are on the verge of extinction.

Economy/Business

The global economy grew in the industrial era, leading to the production of goods quickly and in large amounts (mass production) and worldwide distribution. Over time, franchises and TNCs began spreading around the globe. Some companies may not adapt to the changes.

Sports

Globalization has turned sports into a global industry, spreading games (football, basketball, etc) worldwide. TNCs support sports through advertising and sponsorship. Multiple athletes get paid a huge amount to represent their brand.

Entertainment

Globalization has changed the entertainment world by letting people around the world watch the same movies, play the same games, and listen to the same music on the internet. This has built a worldwide culture where entertainment brings people together and shares the same fun.