Chapter 1

Globalization
 PPTs Available to You

My Web Page:
http://instruction2.mtsac.edu/rjagodka/
• Click on the “Courses” tab
“Lecture Slides” – in PDF for easy viewing …
How Much Do We Know?
How Much Do We Know?
 How Much Do We Know?

How much do we know about the world?
How much do you know about geography?

We have much to learn . . .

So, let’s get started!
7 billion people FILM
 What Is Globalization?

The world is moving away from self-
contained national economies toward an
interdependent, integrated global
economic system

Globalization has two facets:

1) Globalization of markets
2) Globalization of production
 What Is The Globalization of Markets?

Globalization of markets refers to the merging of
historically distinct and separate national markets
into one huge global marketplace

In many industries, it is no longer

meaningful to talk about the
“German market” or the
“American market”

Characteristics:

Falling trade barriers

Converging consumer tastes

Same basic products offered worldwide
 The Globalization Of Markets

Find a partner or two - Introductions

What was your most recent trip/vacation
abroad? (even if it was quite a while ago
…)

Did you buy anything unique while there?

Were products/services similar to what can
be found in the US?

Share ideas - debrief
 Global Socializing Trends
Spend some time at the museum Relax at the beach

Go to a game

How much time do you

spend texting?
Are you addicted to
smart phones and
texting?
Technology in the classroom . . . Appropriateness
Texting in Class
If you have an emergency and
need to receive a text or call –
this is fine

If you habitually text in class –

this is NOT OK (even if you
are addicted to texting)

Laptop use OK - if it does not

cause any distractions – no
technology allowed during
exam review
 The Globalization Of Markets

Lets test your knowledge

World Eating Quiz

200 counties over 200 years FILM

http://devdata.worldbank.org/DataVisualizer/
What is Globalized Production?

Globalization of production refers to the
sourcing of goods and services from
locations around the globe

Take advantage of Differences in the cost

and quality of factors of production

Land, labor, and capital

Lower Improve
Costs Quality
 Selection of Country for Semester
We will each get one country to study
this semester.

Selection Process based on draw of

paper slips

You will get 5 minutes to walk around the

room and trade if you like.
 The Emergence Of Global Institutions

Globalization requires basic ground rules

Institutions are needed:

manage, regulate, and police the global
marketplace

promote multinational treaties (to govern)
 Global Institutions
WTO Polices world trade system
• Ensure nations follow rules
• In 2007, 150 nations
IMF (97% of world trade) were
WTO members
World Bank • Promotes lower barriers to
trade and investment

UN

G20
Declining Trade & Investment Barriers

Average Tariff Rates on Manufactured Products as Percent of Value

 Global Institutions
WTO Monetary cooperation
• Polices the international
monetary system
IMF • Lender of last resort for
countries in crisis
World Bank • Provides temporary
financial assistance to
countries to help ease
UN balance of payments
adjustment
G20
 Global Institutions
WTO Economic development
• Financial and technical
assistance to developing
IMF countries
• Is two unique development
World Bank institutions (owned by 185
member countries)
• International Bank for
UN Reconstruction and
Development (IBRD) and
• International Development
G20 Association (IDA).
 Global Institutions
WTO • Peace and security
• Develop friendly relations
among nations
IMF • Cooperate in solving
international problems
World Bank • Promote respect for human
rights
• Harmonize the actions of
UN nations

G20
 Global Institutions
• Largest 19 economies
WTO • Finance ministers
• Central bank governors
• EU & EU Central Bank
IMF • Originally coordinated
policy response to
financial crisis in
developing countries
World Bank
• Forum through which major
nations tried to launch a
coordinated policy response
UN to the 2008-2009 global
financial crisis

G20
 Globalization
Globalization impacts countries differently

World Bank Economist Branko Milanovic

Elephant in the Room - video

How does this make you feel?

 Globalization
Globalization video (15 minutes)
Globalization
While watching, write answers to these
questions:
1. What are the 4 main arguments against
globalization?
2. Do you agree or disagree with each?
 Protectionism
Protectionism (2 min)

While watching, consider this question:

Do you feel that protectionism is good or
bad? Why?