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Globalisation

DefinitionFour Kinds of Economic Integration. Free Trade of:

1. Trade Goods and Services e.g. 2. Labour e.g.3. Capital e.g.4. Technology and Intellectual Capital e.g.

These categories are a good way to start thinking about the process of globalisation

A historical process that is continually changing?Thoughts??

Spectrum of intervention:

From Theoretical Free Trade Economy right down to (Theoretical) Protectionist Economy.

Protection: Tariffs / Quotas / Import Taxes

Why Protect?

Globalisation

Key indicators of an increasingly globalised world:

Increase in Export and Import Trade Global recessions Degrading Environment Any more – ‘signals’ that we are

becoming more globalised…

Globalisation

Causes: complex mix of factors Increase in trade Increase in Liberalisation of Trade Rules Growth of MNCs / TNCs – why are companies

growing this way? Drives by countries to encourage FDI M n As Communications and IT e.g.

How has technology in the Past and Present fuelled increased trade and interdependence?

Globalisation

Effects: Prices: both rising and falling as a result.

Explain? Consumer Choice or Bland

homogenised ‘International’ Goods Global Income Levels and Income

distribution – role of Free Market Forces and Government Policy

Employment – winners and losers?

Globalisation

Effects: The Environment – as Global Demand

increases… Increased Specialisation – leads to

Economic Dependency. Explain? Cultural Impact? Loss of Political Sovereignty

Globalisation

Costs and Benefits

No Clear Definitive Answer if it is a good or bad thing.

textile case study

Globalisation

Questions on page 604.In pairs work on answers to help build up a profile of ‘Globalisation’o Does economic growth lead to an increase in economic welfareo Is economic growth unsustainable from an environmental standpointo Does protectionism rather than free trade promote economic growtho Do multinational companies have more power over economies than

most nation states and act purely to gain profit from their shareholders?

o To what extent are developing countries lifting themselves out of poverty? Is there any evidence to suggest that developing countries are catching up with developed countries?

o Is the rich developed world exploiting the poor developing world?o Are organisations, like the World Trade Organisation or the IMF,

which support or promote trade liberalisation, controlled by the rich countries of the world and do they act against the interests of poorer countries?

Globalisation

Anti-Globalisation

Pilger on Globalisation

Read the summary on the video link – shows the argument against the so-called benefits of the neoliberal globalisation agenda

Tutor 2 u links

balance of payments link

Unemployment in UK and EU