1.3 - globalization

Question 1

what is globalization?

Answer 1

the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.

Question 2

how has globalization affected the world

Answer 2

• globalization has led to a celebration of individualism, largely in response to the failure of communism
• group mentality was very prominent before individualism
  • before individualism became
    widespread, the mindset most
    people held was that they needed
    to protect their family — their
    “group”

Question 3

how has globalization affected individuals?

Answer 3

• beginning with the concept of capitalism and property ownership, the global mindset has slowly shifted to the idea that people must live for themselves
• when north america was discovered, the world got much bigger and there were relatively few people to occupy it
  
  • people realized that because of how
    much space they had, they could
    afford to stop believing in the king
    and start believing in themselves
• individualism also led to broken families
  
  • when peoples own desires trump
    their need to help your family, often
    they decide to just up and leave
  • global divorce rates skyrocketed
    massively

Question 4

what is a criticism of globalization?

Answer 4

critics of globalization say that the economic inequality between the poor and the rich is only growing because of trade

Question 5

what are some pros of globalization

Answer 5

• more choice for consumers
• global competition means better pricing
• allows developing nations to join the global economy
  
  • not just seeing a few big players,
    even small countries can have an
    impact

Question 6

what are some cons of globalization

Answer 6

• problems with products can spread faster
  
  • ex. covid spread so fast because of
    globalization
• everyone is connected — if one country stops producing, it’ll affect every other nation too
• environmental concerns
• labour concerns
• some can’t participate

Question 7

globalization of markets

Answer 7

brands and brand images are being created which are not only national but also international.

ex: coca cola and mcdonalds are companies that can be recognized anywhere in the world

however, you don’t have to be a big company to engage. with the help of the internet, over 300,000 US companies with <100 employees had foreign sales in 2015. the figure has since grown.

Question 8

corporate globalization

Answer 8

supply chain globalization: companies supply their parts from all over the world (ex. toyota)

globalization of capital base: companies may gain capital not only from their home soil but from foreign countries as well (ex. china.com)

globalization of the corporate mindset

Question 9

globalization - jobs

Answer 9

firms move jobs to lower income countries. this can increase their economy but may also lead to income inequality.

Question 10

globalization - labour

Answer 10

firms may also move labour to countries with weak labour laws. however, economic progress will lead to stronger laws, which will then incentivize the creation of wealth and technological advancement

Question 11

what are some organizations in favour of globalization?

Answer 11

intergovernmental organizations (IGOs), formed by states (ex. EU)

International Nongovernmental
Organizations (INGOs), members are individuals, companies, or associations (ex. World vision international)

Multinational Corporations (MNCs),
for-profit enterprises that operate in several countries. (ex. mcdonalds)