Question 1: Globalization & Marketing Flashcards
What are the 5 Main Topics discussed in the Globalization Debate?
- Impact on Jobs and Wages
- Impact on Labour, the Environment and Markets
- Impact on Income Equality
- Impact on Culture
- Impact on National Sovereignty
What are the Main Points given by Critics for Impact on Jobs and Wages?
Job Elimination
- Relocation of jobs to countries with cheap labour
- Job losses in origin countries
Lowered Wages
- Wages offered to workers who switched jobs are lower
- Lowers employee morale, loyalty and job security
- Possible reduction in wages worldwide when corporate giants force even lower wages
Exploitation of Workers
- Sweatshops and child labor arises
- Workers toil in unhealthy environments
What are the Main Points given by Supporters for Impact on Jobs and Wages?
Wealth Increase
- Increased efficiency increases national production
- Raises per capita income by passing savings onto consumers
- Reduces inflation and boosts productivity
Labor Market Flexibility
- Job relocation allows redeployment of workers where they are highly valued
- Job change is easy and low-risk
Economy Advancement
- International outsourcing of firms for low wages
- Low-wage countries benefit, improving standard of living
- Workers, by worldwide comparison, earn the most in that particular field
What are the Main Points discussed in Impact on Labor, the Environment and Markets?
Labor Standards
- Reduces labor’s bargaining power to appeal to international firms
- Argument debunked by nations with strong union presence and unaffected investments
Environmental Protection
- Said to cause the deterioration of environmental conditions
- Argument debunked by pollution-intensive firms who invest in countries with stricter environmental legislations
- Protectionist economies tend to have poor environmental records
Future Markets
- International firms are claimed to exploit local labor markets and the environment to solely produce products
- Argument debunked by lack of evidence; firms support reasonable labor and environmental laws to expand into future local markets
What are the Main Points discussed in Impact on Income Equality?
Inequality Within Nations
- Argued that freer trade and investment results in plan relocation
- Leads to increasing wage gap between white-collar and blue-collar occupations
- Studies have mostly concluded that developing nations grow when the economy does
- New approach realizes that income is an inaccurate indicator of standard of living, taking into 10 basic factors instead
Inequality Between Nations
- Averages in income between high-, middle-, and low-income countries conceal differences
- Developing countries integrated in the economy are benefitting, as opposed to shut off countries
Global Inequality
- Most experts agree that inequality has fallen, although the extent is unclear
- Rich nations should take responsibility in closing the gap through:
- Foreign aid
- Forgiving debt burdens
What are the Main Points discussed in Impact on Cultures?
Homogenization of Society
- Eradication of cultural differences as Western values are promoted
- Corporate giants are blamed to put local firms out of business
Enables Specialization
- Through comparative advantage, countries enjoy products of high quality
A Force for Good
- Fosters values of tolerance and diversity
What are the Main Points discussed in Impact on National Sovereignty?
Against Globalization
- Empowers supranational institutions
- Undercutting the authority of sub-federal governments
- Entering binding international agreements on citizens’ behalf violates rights
For Globalization
- Helped to spread democracy worldwide
- Resulting in better educated, more informed nations
- Loss of sovereignty can be beneficial
Define National Sovereignty
A nation state that (1) is autonomous (2) can freely select its government (3) cannot intervene in the affairs of other nations (4) can control movements across its borders (5) can enter into binding international agreements
