GLOBALIZATION

AN ANALYSIS
Economic Level Impacts
• Because of globalization the economies of the world are
being increasingly integrated, example mobile phones
and internet have brought people closer. The world is
becoming a smaller place. Work can be outsourced to any
part of the world that has an internet connection because
of improvements in traffic infrastructure one is able to
reach one’s destination in a short time.
BUSINESS level IMPACTS
• Globalization simplifies business management in
the world. This is due to the advancement in
technology, transport, communication, education,
and regulations of trade that makes trade fair to all
parties. This attracts more people to engage in
international business and international trade. 
Case Study 1
• Bangladesh Garment Workers
• Thegarment industry in Bangladesh makes clothes that are then
shipped out across the world. It employs as many as four million
people, but the average worker earns less in a month than a U.S.
worker earns in a day.
Case Study 2
• Domestic manufacturing in Bolivia has been crushed by the influx of cheap
foreign goods, mainly from China. Bolivian products cannot compete in the
global market because of the small-scale production, the strict labor law
which keeps labor cost high, and the frequent political unrest which hurt
competitiveness by raising costs. The Bolivian economy is reliant on raw
material extraction, and its trade deficit keeps widening. Although the
government is making an effort to raise tariffs and create state-owned
companies to save jobs, globalization seems to have caused more bad than
good in Bolivia.
CASE STUDY 3
• The 2008 economic crisis which started in US (due to US housing crisis) quickly
spread across the world, it impacted EU the most.
• A decade later many countries are just getting out of it, while some still under its
impact
• One such example is Greece
FUTURE OF GLOBALIZATION
• Regardless of the downsides, globalization is here to stay. The result is a smaller,
more connected world. Socially, globalization has facilitated the exchange of ideas
and cultures, contributing to a world view in which people are more open and
tolerant of one another.
Analysis
• It is true that many developing economies with a high degree of financial
integration have also experienced higher growth rates. It is also true that, in
theory, there are many channels through which financial openness could
enhance growth. A systematic examination of the evidence, however,
suggests that it is difficult to establish a robust causal relationship between
the degree of financial integration and output growth performance. From the
perspective of macroeconomic stability, consumption is regarded as a better
measure of well-being than output; fluctuations in consumption are therefore
regarded as having negative impacts on economic welfare
 HOW DO WE MAKE
GLOBALIZATION MORE JUST?

QUESTION