THE EXPANSION OF

ECONOMIC GLOBALIZATION
https://www.cremonaschool.ca/documents/homework/THE EXPANSION
OF ECONOMIC GLOBALIZATION.ppt
 Think about some of the ways that the
expansion of economic globalization has
affected people’s lives…

• Bottled Water: this industry didn’t exist ten

years ago…now it is worth $100 Billion US
per year…so, who should have control
over safe drinking water? The industry
(private businesses) or the government?
 Transnationals
• Transnationals: the sales of large
transnational corporations exceed the
GDP (Gross Domestic Product) of some
countries. What does this say about the
power of TNC’s in the global economy?
 Genetically Modified Food
• The agribusiness industry is able to
produce food with altered DNA codes.
This means that products like tomatoes
have a longer shelf-life. But what are the
implications of genetically altered food?
 Technology
• Advances in transportation technology
allow people and goods to be quickly
transported almost anywhere in the world.
On the other hand, what does the resulting
increased fuel consumption mean for the
environment?
 How have international
agreements and organizations
influenced economic
globalization?
• The World Trade Organization
– Works to improve trade relations among the
countries of the world
– Removes tariffs and other trade barriers or
disputes between countries
– It is the only organization that deals with the
global rules of trade among countries
 The World Trade Organization
• Trade disputes that arise among the WTO
member countries are brought before
tribunals of trade exports and lawyers.
• The tribunals decide which country is in
the wrong and what that country is
required to do to meet WTO regulations.
• Countries that refuse to abide by the
rulings can face economic sanctions fro
other members or be expelled from the
WTO.
 G8
• The Group of Eight (G8) is an informal
group of the eight major industrial
democracies.
• It was previously known as the G7, until
Russia became a full participant in 1998.
• G8 leaders and representatives from the
European Union meet at annual summits
to discuss economic and foreign policies.
 G8 Members
• Canada
• France
• Germany
• Italy
• Japan
• Russia
• United Kingdom
• United States
 G8
• The G8 is not an institution like the WTO,
or the United Nations, but it does play an
important role in global governance
because it is able to influence official
global institutions.
 GLOBAL GOVERNANCE
• According to the UN Report on Global
Governance, global governance is not
global government but a system of rules to
manage global affairs, to be “responsive to
the interests of all peoples in a sustainable
future,” to be “guided by basic human
values,” and to make global organizations
“conform to the reality of global diversity.
 This means…
• That global governance is different from global
government in that global governance is a
means of exerting influence and suggesting
rules of conduct in global affairs in a way that is
fair and inclusive; it is based on and requires
international cooperation.
• Governments enact and enforce laws. Global
government, if one were to exist, would require
nations to give up their sovereignty and allow it
to control and make decisions for everyone.
 For Example…
• The G8 countries have nearly 50% of the
vote in the World Bank and the
International Monetary Fund, and have a
considerable impact on the policies of the
WTO.
• In this way, the G8 has played a role in the
expansion of economic globalization.
 Criticisms of the G8
• Some experts say that the G8 countries
represent the interests if an elite group of
more developed countries and fails to
consider the needs of the rest of the world.
• They point to the fact that countries with
fast-growing economies and large
populations, such as China or India, are
not included in the G8, nor or African or
Latin American countries.
 The G8
• During annual summits, the
G8’s promotion of economic
globalization has often
resulted in anti-globalization
protests.
• Others maintain that the G8
has been instrumental in
aiding less-developed
countries.
• They point to the G8’s
campaigns to combat
disease (HIV/AIDS) as well
as development programs
and debt-relief plans.