Learning Area Applied Economics Grade Level 12

W 6-8 Quarter Fourth Quarter (4th QTR) Date

I. LESSON TITLE Globalization and Developing Country Business
II. MOST ESSENTIAL LEARNING
COMPETENCIES (MELCs) The learner defines globalization and discuss its effect to developing countries
III. CONTENT/CORE CONTENT . Globalization and Its Effect on Developing Countries
IV. LEARNING PHASES AND LEARNING ACTIVITIES
I. Introduction (Time Frame: 20 minutes)

Good day! At the end of the lesson, you will be able to:
1. define globalization,
2. discuss the effects of globalization to developing country, and
3. analyze the positive and negative effects of globalization.

Directions: Give the meaning of the following words and use it in a business sentence. Write it in your notebook.
1. Globalization 4. Export
2. Trade 5. Import
3. Tariff
D. Development (Time Frame: 320 minutes)
Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In
economic terms, it describes an interdependence of nations around the globe fostered through free trade.
Globalization's motives are idealistic, as well as opportunistic, but the development of a global free market has
benefited large corporations based in the Western world. Its impact remains mixed for workers, cultures, and small businesses
around the globe, in both developed and emerging nations.

Types of Globalization

Economic globalization is the development of trade systems within transnational actors such as corporations or NGOs;
Financial globalization can be linked with the rise of a global financial system with international financial exchanges and
monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when
one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
Cultural globalization refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs,
and costumes of other nations, losing their unique culture to a unique, globalized supra-culture;
Political globalization, the development and growing influence of international organizations such as the UN or WHO means
governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like
Doctors without borders or Oxfam;
Sociological globalization information moves almost in real-time, together with the interconnection and interdependence of
events and their consequences. People move all the time too, mixing and integrating different societies;
Technological globalization is the phenomenon by which millions of people are interconnected thanks to the power of the
digital world via platforms such as Facebook, Instagram, Skype or YouTube.
Geographic globalization is the new organization and hierarchy of different regions of the world that is constantly changing.
Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is
possible to travel the world without barely any restrictions;
Ecological globalization accounts for the idea of considering planet Earth as a single global entity – a common good all
societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it
is often said that the poorest countries that have been polluting the least will suffer the most from climate change.
https://www.tutor2u.net/politics/reference/types-of-globalisation

Learning Task 1
Directions: Identity the types of globalization mentioned below. Write the answer in your notebook.
1. The World WildLife Fund (WWF) campaigns on protecting endangered species
2. The Association of Southeast Asian Nations (ASEAN) agrees to have an affordable toll on transportation.
3. The Department of Science and Technology (DOST) participated in the latest Covid 19 vaccination webinar.
4. The online survey of medical frontliners about the feedback of the people on Covid 19 vaccine.
5. A survey on qualities of ASEAN leaders
6. A webinar conducted by different religions in Asia that focuses on Covid 19 prevention.
7. A Report on European Stock Market from the last quarter of 2020
8. Abolishment of Tariff on meat products in the countries of Asia and the Pacific
9. 2021 Campaign on Coastal Cleanup
10. The Celebration of 2021 Earth Day

Benefits of Globalization
1. Access to new cultures
Globalization makes it easier than ever to access foreign culture, including food, movies, music, and art. This free flow of people,
goods, art, and information is the reason you can have Thai food delivered to your apartment as you listen to your favorite UK-
based artist or stream a Bollywood movie.
2. The spread of technology and innovation
Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly.
Because knowledge also transfers so fast, this means that scientific advances made in Asia can be at work in the United States in
a matter of days.
3. Lower costs for products
Globalization allows companies to find lower-cost ways to produce their products. It also increases global competition, which
drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and
already-developed countries live better on less money.
4. Higher standards of living across the globe
Developing nations experience an improved standard of living—thanks to globalization. According to the World Bank, extreme
poverty decreased by 35% since 1990. Further, the target of the first Millennium Development Goal was to cut the 1990 poverty
rate in half by 2015. This was achieved five years ahead of schedule, in 2010. Across the globe, nearly 1.1 billion people have
moved out of extreme poverty since that time.
5. Access to new markets
Businesses gain a great deal from globalization, including new customers and diverse revenue streams. Companies interested in
these benefits look for flexible and innovative ways to grow their business overseas. International Professional Employer
Organizations (PEOs) make it easier than ever to employ workers in other countries quickly and compliantly. This means that, for
many companies, there is no longer the need to establish a foreign entity to expand overseas.
6. Access to new talent
In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current
market. For example, globalization gives companies the opportunity to explore tech talent in booming markets such as Berlin or
Stockholm, rather than Silicon Valley. Again, International PEO allows companies to compliantly employ workers overseas,
without having to establish a legal entity, making global hiring easier than ever.
https://velocityglobal.com/blog/globalization-benefits-and-challenges/

E. Engagement (Time Frame: 200 minutes)

Learning Task 2
Directions: Identity the benefits of globalization mentioned below. Write the answer in your notebook.
1. Online hiring of nurses all over the world
2. Online buying and selling of goods
3. Increased employment rate thru globalization
4. More available products in the world market
5. Easy transmittal of programs and software applications
6. The popularity of K-Pop in high school students

Challenges of Globalization
1. International recruiting
It’s not surprising that 30% of U.S. and UK tech leaders cited international recruiting as their most common challenge. Recruiting
across borders creates unknowns for HR teams. First, companies create a plan for how they will interview and thoroughly vet
candidates to make sure they are qualified when thousands of miles separate them from headquarters. Next, companies need
to know the market’s demands for salaries and benefits to make competitive offers. To ensure successful hires, HR teams must
factor in challenges like time zones, cultural differences, and language barriers to find a good fit for the company.
2. Managing employee immigration
Immigration challenges cause a lot of headaches internally, which is why 28% of U.S. and UK tech leaders agreed it was one of
their top challenges. Immigration laws change often, and in some countries, it is extremely difficult to secure visas for employees
that are foreign nationals. The U.S., for example, is getting stricter with granting H-1B visas, and Brexit makes the future of
immigration to the UK uncertain.
3. Incurring tariffs and export fees
Another challenge both U.S and UK tech leaders said they face in the report is incurring tariffs and export fees—29% agreed this
is a challenge for their global businesses. For companies looking to sell products abroad, getting those items overseas can be
expensive, depending on the market.
4. Payroll and compliance challenges
Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing
employment and tax laws. This management task gets even more difficult if you’re trying to manage operations in multiple
markets.
5. Loss of cultural identity
While globalization has made foreign countries easier to access, it has also begun to meld unique societies together. The success
of certain cultures throughout the world caused other countries to emulate them. But when cultures begin to lose their distinctive
features, we lose our global diversity.
6. Foreign worker exploitation
Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap
labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where lax
regulations make it easier to exploit workers.
7. Global expansion difficulties
For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is
difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, sometimes up to
$20,000, and costs of $200,000 annually to maintain the business. Additionally, global businesses must keep up with different and
ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate
new legal systems. Otherwise, missteps lead to impediments and severe financial and legal consequences.
8. Immigration challenges and local job loss
The political climates in the United States and Europe show that there are different viewpoints on the results of globalization.
Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new
countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies
moving their operations abroad to save money on labor costs.
https://velocityglobal.com/blog/globalization-benefits-and-challenges/

A. Assimilation (Time Frame: 110 minutes)

Learning Task 3
Directions: Identify the missing letters to name the different challenges of globalization. Write the answer in your notebook.
1. C _ L _ U _ E 5. C _ M _ L _ A _ C _
2. E _ P _ O _ T _ T _ O _ 6. E _ _ _ R _
3. E _ P _ N _ I _ N 7. I _ _ I G _ A _ I _ N
4. J _ _ L _ _ _ 8. R_ C _ U _T _ E _ T

Negative Aspects of Globalization

1. Globalization uses up finite resources more quickly. As an example, China joined the world trade organization in December
2001. In 2002, its coal use began rising rapidly.
2. Globalization increases world carbon dioxide emissions. If the world burns its coal more quickly, and does not cut back on
other fossil fuel use, carbon dioxide emissions increase.
3. Globalization makes it virtually impossible for regulators in one country to foresee the worldwide implications of their actions.
Actions which would seem to reduce emissions for an individual country may indirectly encourage world trade, ramp up
manufacturing in coal-producing areas, and increase emissions over all.
4. Globalization acts to increase world oil prices.
The world has undergone two sets of oil price spikes. The first one, in the 1973 to 1983 period, occurred after US oil supply began
to decline in 1970.
5. Globalization transfers consumption of limited oil supply from developed countries to developing countries. If world oil supply
isn’t growing much, and demand is growing rapidly in developing countries, oil to meet this rising demand must come from
somewhere. The way this transfer takes place is through the mechanism of high oil prices.
6. Globalization transfers jobs from developed countries to less developed countries. Globalization levels the playing field, in a
way that makes it hard for developed countries to compete. A country with a lower cost structure (lower wages and benefits for
workers, more inexpensive coal in its energy mix, and more lenient rules on pollution
7. Globalization transfers investment spending from developed countries to less developed countries. If an investor has a chance
to choose between a country with a competitive advantage and a country with a competitive disadvantage,
8. With the dollar as the world’s reserve currency, globalization leads to huge US balance of trade deficits and other imbalances.
9. Globalization tends to move taxation away from corporations, and onto individual citizens. Corporations have the ability to
move to locations where the tax rate is lowest. Individual citizens have much less ability to make such a change. Also, with
today’s lack of jobs, each community competes with other communities with respect to how many tax breaks it can give to
prospective employers.
10. Globalization sets up a currency “race to the bottom,” with each country trying to get an export advantage by dropping the
value of its currency. Because of the competitive nature of the world economy, each country needs to sell its goods and
services at as low a price as possible. This can be done in various ways–pay its workers lower wages; allow more pollution; use
cheaper more polluting fuels; or debase the currency by Quantitative Easing (also known as “printing money,”) in the hope that
this will produce inflation and lower the value of the currency relative to other currencies.
11. Globalization encourages dependence on other countries for essential goods and services. With globalization, goods can
often be obtained cheaply from elsewhere. A country may come to believe that there is no point in producing its own food or
clothing. It becomes easy to depend on imports and specialize in something like financial services or high-priced medical care–
services that are not as oil-dependent.
12. Globalization ties countries together, so that if one country collapses, the collapse is likely to ripple through the system, pulling
many other countries with it. History includes many examples of civilizations that started from a small base, gradually grew to
over-utilize their resource base, and then collapsed. We are now dealing with a world situation which is not too different. The big
difference this time is that a large number of countries are involved, and these countries are increasingly interdependent.
https://oilprice.com/Finance/the-Economy/12-Negative-Aspects-of-Globalization.html

V. ASSESSMENT (Time Frame: 60 minutes)

Learning Task 4
Directions: List 5 advantages and 5 disadvantages of Globalization to our country. Explain why you think they are advantages
and disadvantages. Write the answer in your notebook.

VI. REFLECTION (Time Frame: 10 minutes)

• In your notebook, write your insights about the lesson using the prompts below.
I understand that ___________________.
I realize that ________________________.
I need to learn more about __________.

• Communicate your personal assessment as indicated in the Learner’s Assessment Card.

Personal Assessment on Learner’s Level of Performance

Using the symbols below, choose one which best describes your experience in working on each given task. Draw it in the column for Level
of Performance (LP). Be guided by the descriptions below:
✰ - I was able to do/perform the task without any difficulty. The task helped me in understanding the target content/ lesson.
✔ - I was able to do/perform the task. It was quite challenging, but it still helped me in understanding the target content/lesson.
? – I was not able to do/perform the task. It was extremely difficult. I need additional enrichment activities to be able to do/perform this task.
Learning Task LP Learning Task LP Learning Task LP Learning Task LP

Number 1 Number 3 Number 5 Number 7

Number 2 Number 4 Number 6 Number 8

VII. REFERENCES Leano, Roman D. Applied Economics, (MindShapers Co. Inc., 2016) pages 207-211
McCartney, Mike “Types of Globalization” Last modified April 28, 2021
https://www.tutor2u.net/politics/reference/types-of-globalisation
Stevens, Paul “Globalization Benefits and Challenges” Last modified March 30, 2020
https://velocityglobal.com/blog/globalization-benefits-and-challenges/
Tverberg Gail, “Twelve Negative Effects of Globalization” Last Modified March 2, 2013
https://oilprice.com/Finance/the-Economy/12-Negative-Aspects-of-Globalization.html

Prepared by: Renato L. Berosil Jr. Checked by: Adora G. Del Mundo, Dr. Josephine P. Canlas Alfredo G. Buhain Jr.,
Feliz A. Tayao