Globalization; winners and losses

Question 1

Globalization

Answer 1

The increasing interdependence among countries, regions and people due to the integration of trade, culture, finance, people and ideas in one global marketplace.

Question 2

Advantages of Globalization 1

Answer 2

Increased economic growth; economies that have access to more markets, workers and resources are more likely to grow. This can mean more wealth for more people.

Question 3

Advantages of Globalization 2

Answer 3

Improved standards of living; workers who work within growing economies have more purchasing power and can access a wider variety of ideas, products and services.

Question 4

Advantages of Globalization 3

Answer 4

Globalized countries can become more democratic; economies that become more financially open usually have to become more politically open. Greater freedoms are enjoyed by people living in politically open states

Question 5

Advantages of Globalization 4

Answer 5

Cultural development; globalized cultures tend to embrace modern ideas, for example, with regards to women’s rights, children’s rights, worker rights and the rights of other minority groups (i.e LGBTQ and racial minorities)

Question 6

Advantages of Globalization 5

Answer 6

Transnational problems (i.e environmental pollution, climate change, threat of terrorism), all of which impede the goal of sustainable human development, can be managed and handled more effectively.

Question 7

Disadvantages of Globalization 1

Answer 7

Loss of jobs for people in countries with high cost of living as factories and manufacturing units are shifted to underdeveloped countries that provide cheaper labor and materials.
While this may mean greater employment opportunities in underdeveloped countries, there is a greater likelihood of the exploitation of local labor, including working conditions that present a threat to life.

Question 8

Disadvantages of Globalization 2

Answer 8

Growing wealth gap: in a globalized marketplace, wealth can become concentrated within an elite.

Question 9

Disadvantages of Globalization 3

Answer 9

Wage competition: workers have to compete with workers in other countries and this places pressure on wages. This result is potentially lower wages, as multinational corporations can threaten to relocate their factories to places with lower worker wages. While this may be good for corporate profits, it is bad for workers

Question 10

Disadvantages of Globalization 4

Answer 10

Price competition: there is global price competition, meaning prices are sometimes lowered. However, the option to buy abroad is usually only of benefit to large corporations and not individuals.

Question 11

Disadvantages of Globalization 5

Answer 11

Regulation avoidance: corporations locate factories in countries where regulations are less strict. Regulations might cover workers’ rights, health and safety, ot child labor.

Question 12

Disadvantages of Globalization 6

Answer 12

Lack of cultural diversity: globalization does not always lead to an equal exchange of ideas, products and services.
English is becoming a dominant language. At the same time, Western corporations are dominant within marketplaces, while non-Western corporations go bankrupt, finding it difficult to compe