Good luck Kelly

To what extent can globalization be considered a positive process?

7–8
i. consistently uses a wide range of terminology effectively
ii. demonstrates detailed knowledge and understanding of
content and concepts through thorough, accurate
descriptions, explanations and examples.
- Frequent, accurate & relevant use of
terminology from course
- Thorough , concise, and grade appropriate
understanding of the forces of globalization
(causes, effects)

7- 8 - Integrates the sources into the

i. completes a detailed discussion of concepts,
issues, models, visual representation and
theories
ii. synthesizes information to make valid, well-
supported arguments
iii. thoroughly interprets a range of different
perspectives and their implications.
arguments presented
- has evaluated globalization from a
variety of perspectives
- The answer argues to a well-reasoned
conclusion that is consistent with the
evidence and arguments provided.

Main Factors of Globalisation:

1. Industrialization
a. Refers primarily to the emergence and expansion of manufacturing activity
b. Brought the import and export of market; making more goods and services more available
c. Increasing the quality of life and living standards for citizens
d. Enabling cross-border production, increasing production
e. There is more economic growth, the more efficient division of labour, and the use of
technological innovation to solve problem as opposed to dependency on conditions outside
of human control
f. Increased job opportunities
g. Production levels increased
h. Competition between markets were created
i.
2. Rise of TNCs and MNC (Transactional Corporations)
a. These companies shift production to LEDCs with a lower wage cost by outsourcing ,
3. Improved transport
a. Free movement of goods, services, cultures and people
b. allows the mobility of people, goods, and services, making the world more interconnected
4. Trade liberalization
a. The removal of trade barriers around the world allows trade and economy to increase as there
are more exports and imports shared around the world
5. Increased capital flows
a. Allow investors to diversify their risks and increase returns
6. Containerisation
a. The introduction of containers became standardized around the world as it was more efficient
and cost a lower price, making trade a lot more affordable. Pushing global trade and
globalization.
7. Comparative advantage
 a. When a country can produce a good or service at a lower opportunity cost than other/anyone
else
b. PROS to developing countries as they have much lower labor costs than industrialized
countries, this gives them a comparative advantage in many labor-intensive industries, such as
construction and manufacturing

c. CONS: transport costs may outweigh any comparative advantages / governments may restrict
trade / such nations may not be the “best” in producing certain goods even at a low cost of
labor
8. World Trade Organizations
a. Pushing world trades
b. Provide open lines of communication concerning trade among its members
c. Lowers trade barriers through negotiation and applies principle non-discrimination
d. There is reduced cost of production because imports used in production are much cheaper
e. Reduced prices of finished goods and services; therefore people have a lower cost of living
f. Can help stabilise the economy

Key terms to review:

Deregulation World Bank Industrialisation

the removal of regulations or Loans money to LEDCs for the
restrictions, especially in a purpose of pursuing capital Debt
particular industry. projects
Liberalization Specialization
the process of concentrating on Protectionism
Inequality
WTO and becoming expert in a
particular subject or skill. Legislation
World Trade Organisation
Comparative advantage
IMF
Political globalization
International Monetary Fund
TMC/MNC
Transnational corporation, Cultural Globalization
Anti-globalization Multinational corporation
Subsidy Primary Sources
Secondary Sources Sanction

Tertiary Sources

Key Essay Writing Terms:

Mobility Integration Retrospectively

Combination
False Stigma Exorbitant
unreasonably high
Exemplary
 Pros and Cons of Main Factors That Affect Globalisation:
Pros
TNCs ● Brings wealth and prosperity to LEDCs
as they promote local economic flow
through purchasing local goods and
exports
● Brings foreign income
● Stable income of economics and work
opportunity
● Inward investment where an TNC can
provide new skill or more houses
Examples:
Outsourcing ● Cheaper products for consumers
● Cheaper production cost
● Benefits TNCs and MNCs
● Stable job, income, skill
Examples:
Trade
Organisations
● Low price for consumers
● Wide variety of goods
● Greater competition as domestic firms
Cons
● Unjust exploitation of asian workers in
countries such as vietnam
● Inequality between the east and the west
● Does not improve the wealth gap
between LEDCs and MEDCs, doesn’t solve
poverty
● There are no guarantees that inward
investment will provide economical
prosperity
● Dominates domestic industries
● The export
Examples:
● Does not boost the economics of LEDCs
● People working for TNCs in factories are
given low waged incomes, and unequal
pay
● Orignal workers may face unemployment
as TNCs opt for workers in countries with
a low wage
Examples:
● Pose a threat to LEDCs because they are
forces to compete in a market with
MEDCs. They are faced with a
Trade will face more competition aboard disadvantage
Liberalisation/ which would result in more incentives
Free Trade to make goods cheaper and increase ● It is only beneficial to developing
the efficiency of production. countries without the influence of tariffs

● Allows countries to grow faster as it

provides jobs and export opportunities
to innovate and raise the economics

Examples: Examples:

● In the Philippines, the GPD has
increased by 18 quarters and is
experiencing exponential growth as
there is more job employment available.
●
● US free trade agreements are only
enforced towards MEDCs such as Korea
and Australia, it does not in anyway
benefit the LEDCs

Idea:

● When fostered and distributed well in terms of income, trade can be beneficial to both
developing countries and economically developed countries, allowing the world to have a
wider exchange of goods at a low price, whilst raising the living standards of LEDCs.

● Although freedom of trade will allow a more diversified spread of goods and produces, and a
more efficient

Specialisation ● Helps increase productivity ● transport costs may outweigh any

comparative advantages
● Reduces the cost of production (for
example, a specialized worker has a ● governments may restrict trade
higher output without increasing the
amount of labor required, therefore ● such nations may not be the “best” in
reducing labor costs producing certain goods even at a low
cost of labor
● It can help encourage trade between
countries as a country can get what it
needs at the lowest cost when it is
produced by another country that
specializes in that term.

● Help increase employment rate as the

increased number of people that it
employs is greater, both in exports and
imports

● Encourages maximum profit

Examples: Examples:

Nigeria is one of the countries that

LEDCs - aggregate growth and reduces poverty
- Providing more job opportunities for
low income people
- Capital investments
- Improvements in infrastructure
- Making production more available
- Increases economic growth
Less economically developed countries can be
harmed
- Increased inequality within developing
countries
- The volume and volatility of capital flow
increases the risks of banking and
currency crises
- Competition among developing countries
to attract foreign investments leads to a
“race to the bottom” in which countries
dangerously lower environmental
standards

Examples: Examples:

MEDCs

Industrialisation ● Increasing the quality of life and living

standards for citizens

● Enabling cross-border production,

increasing production and more exports

● Brought the import and export of

market; making more goods and
services more available

● There is more economic growth, the

more efficient division of labour, and
the use of technological innovation to
solve problem as opposed to
dependency on conditions outside of
human control

Improved ● Helps to raise awareness on global crisis

communication such as

Example: Example:

Environments ● The global connectivity allows the flow ● Caused by overspecialisation,

of environmental awareness
●

Examples: Examples:

Comparative ● developing countries have much lower ● transport costs may outweigh any
Advantage labor costs than industrialized countries,
this gives them a comparative
advantage in many labor-intensive
industries, such as construction and
manufacturing
● LEDCs are able to produce
comparative advantages
● governments may restrict trades
● such nations may not be the “best” in
producing certain goods even at a low
cost of labor

Examples: Examples:

Legislation ● ●

Examples: Examples:

Protectionism ● Beneficial to the countries that apply it ● Many view Protectionism as “inequality”
● between the west and the east because
the MEDCs are exploiting the workers

● putting tariffs on imported good may

cause LEDCs (esp those who specialise) in
agriculture to face a decline in
economics.

● Does not benefit LEDCs if the MEDCs cast

tariffs on primary, secondary and tertiary
export

Examples: Examples:

The US highly and subsidises agricultural

imports

Cultural ●
exchange

From the perspective of…

good/bad Why? Example:

TNCs/MNCs Good More resources and workers for a lower Multinational companies such as
cost Facebook and

MEDCs Good There is a wider section of

LEDCs Debatable

ECONOMISTS/ Good
ECONOMY

CONSUMERS Good Cheaper and a greater variety of goods

 are available to consumers.

ENVIRONMENT Bad Due to the increase in the use of non- Overfishing

renewable resources and transportation,
the environment is often harmed. It
contributes to pollution and global
warming.

TRADE Good
ORGANISATION
*positives outweigh the negative povs at the moment

In short the advantages are:

Cultural: undermines diverse culture and heritages, destroys national identity.

Countries are more heavily reliant on long supply chains

Essay Structure:
○ INTRODUCTION:
1. Hook
➢ Since the establishment of the Silk Road, Global trade and exchange have led rise to
the society we know today. From the exchange of goods, services, people, and
cultures, globalization is the key factor to building a more interconnected world. An
popular debate amongst economists and antiglobalists is whether globalization can be
considered a positive or negative process to our society today.
2. Roadmap
➢ Taking account of the (positive/negative) effects of the _______ , _______, and
______ impacts caused by globalization
3. Thesis
➢ One can consider Globalization a positive process to a great/limited extent
Exemplary Introduction:

○ BODY PARAGRAPH 1+2:

1. POINT
2. EVIDENCE
3. EXPLANATION
4. LINK TO THESIS/TOPIC
○ BODY PARAGRAPH 3:
1. COUNTER ARGUMENT
2. POINT
3. EVIDENCE
4. EXPLANATION
5. LINK TO THESIS/TOPIC
○ CONCLUSION:
 1.

How to Analyse a Graph:

●
●

Exemplary Paragraph:
How to Analyse an Article:
●
●

Exemplary Paragraph:

To what extent can globalisation be considered a positive process?

Positives:
1. Free trade/trade liberalization
Free trade has allowed countries to specialise in producing products where they have a comparative
advantage. When countries specialise there are several gains from trade. Firstly, it provides a greater
variety of choices for consumers due to the increase in the movement of goods across the world. It
also increases competition as domestic firms will face more competition abroad, resulting in more
incentives to cut costs and increase efficiency of production. Lastly, countries that specialise in certain
goods can benefit from economies of scale and lower average costs. This will ultimately lead to lower
prices for consumers and greater efficiency for exporting firms.

2. Free movement of labour

Increased labour migration is advantageous for both workers and recipient countries. If a country
experiences high unemployment, there are increased opportunities to look for work in other
countries.

3. Increased economies of scale

Globalisation has allowed production to become increasingly more specialised as goods are produced
in different parts of the world, which enables lower average costs and lower prices for consumers.

4. Greater competition
Globalisation increases global competition, which drives prices down and creates a larger variety of
choices for consumers. Lower costs help people in developing countries and developed countries to
live better on less money.

5. Access to new cultures

Globalisation has made it easier than ever to access foreign culture, including food, movies, music and
art. This free flow of people, goods and information is the reason we can eat Chinese food in Canada
and watch basketball tournaments from America. As international trade becomes easier and more
widespread, more than just goods and services are exchanged. Cultural practises and expressions are
also passed between nations, spreading from group to group which is called diffusion. Ideas and
practices spread from where they are well known and frequently apparent to places where they are
new and not often observed. In the past, exploration, military conquest, missionary work and tourism
provided the means for the trading of ideas. But technology has exponentially increased the speed of
diffusion. Now, mass media and the internet allow the transfer of ideas almost instantaneously.
Negatives:
1. Free trade can harm developing countries
Developing countries often struggle to compete with developed countries, therefore, it is argued that
free trade benefits developed countries more. Industries in developing countries need protection from
free trade in order to develop.

2. Less cultural diversity

With the advancement in technology and the flow of goods, services, ideas and people increasing,
cultures from different parts of the world have also been able to spread globally and can be seen
practised in foreign countries. However, this can be problematic to certain groups of individuals as
globalisation causes unique societies to be meld together as a result of the success of certain cultures
all around the world, causing other countries to emulate them. Consequently, when cultures begin to
lose their distinctive features, global diversity would be lost as well.

In other words, globalisation has increased cultural homegenization, an aspect of cultural

globalisation. This term is usually used in the context of western culture dominating and destroying
other cultures, a process known as westernization. Westernization inevitably undermines the
development of indigenous cultures and destroys national identity.

3. Environmental costs
Globalization has led to the increased use of non-renewable resources and transportation, causing
carbon dioxide to be released into the atmosphere and thus, contributing to pollution and global
warming. As firms can outsource production to countries where environmental standards are less
strict, they are able to produce goods without being restricted on manufacturing due to
environmental impacts. As goods and finished products travel further around the globe, the increased
transport goods can impact increased emissions (contributing to pollution, climate change, and ocean
acidification around the world, significantly impacting biodiversity), habitat destruction (requires
infrastructure like roads and bridges, leading to habitat loss and pollution.

As globalisation boost productivity and efficiency, this often leads to overspecialisation which leads to
further environmental issues in the form of habitat loss, deforestation, or natural resource overuse.
For example, overfishing in coastal areas has significantly contributed to reduced fish populations and
oceanic pollution, over dependence on cash crops, such as coffee, cacao and others which has
contributed to habitat loss especially in tropical climates.

4. Heavy reliance on long supply chains

Today, the globalised trading system has grown to rely on long and complex supply chains. Specialised
supply chains are beneficial in terms of reducing operating costs and providing the required quality
levels, however, this strategy also poses high risks - supply chains are more vulnerable to
unanticipated disruptions such as the ongoing Covid-19 pandemic.

5. MNCs dominating domestic industries

MNCs will often locate their factories in whichever country can provide the cheapest labour in order
to save on expenses in the making of a product. As a result, developing countries will provide
incentives like tax-free zones or cheap labour so the TNCs will set up shops in their countries in hopes
of bringing jobs and industry to beleaguered agricultural areas. This promotes more rapid advances in
the developing nations because of the ideas and innovations brought over by the industrialized
nations. It also makes nations around the world more interdependent, minimizing the potential for
conflict.

However, these incentives often hurt the working population of developing nations. People working in
factories are exploited as it can result in substandard wages and poor working conditions. If the labour
laws in one country become too restricted to the TNC, they can just move their factory to another
country, leaving widespread unemployment in their wake.

Setting up factories in these developing countries may also hurt the core countries that these TNCs are
based on because many potential jobs are being sent abroad. When companies find people in order
countries willing to work for a lower wage, they will often employ them which is good for the company
because they save money and it is also good for the people because they now have a job. But it also
means that the people in the core country are losing their jobs and having difficulty finding new ones.

Multinational corporations such as Starbucks, McDonalds and Facebook dominate