“Globalization”

Presented By: Tahreem Mehmood (M02)

Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an

interconnected and interdependent world with free transfer of capital, goods,

and services across national frontiers.

"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed,

it's the only thing that ever has"

Margaret Mead

Global citizenship is the idea that we are all citizens of the globe.

The idea of globalization may be simplified by identifying several key characteristics:

Improved Technology in Transportation and Telecommunications

Movement of People and Capital

Diffusion of Knowledge

The ever-increasing capacity and efficiency of how people and things move and communicate.

A general increase in awareness, opportunity, and transportation technology has allowed for people to move about the world.

When a new invention or way of doing something pops up, it does not stay secret for long.

Stroll into your local Starbucks and you will find yourself part of a cultural

experiment on a scale never seen before on this planet. In less than half a century, the coffee chain has grown from a single

outlet in Seattle to nearly 20,000 shops in around 60 countries. Each year, its near

identical stores serve cups of near identical coffee in near identical cups to hundreds of

thousands of people.

Our world has become so quickly global and is not slowing down. The impact of international business is invading each part of our daily lives.

We can text someone instantly and get a response back from Russia immediately. We can call someone over Skype in India and talk for free on our computer for as long as we want.

Once you start up a new business, you plunge into an ocean populated by a few smaller fish, which compete with you for food, and lots of bigger ones, eager to eat you alive.

Factors affecting the impact of Globalization on small business:

Globalized Brands

The destruction of local businesses leads to the loss of local culture, and the rise of a singular anonymous corporate culture which only varies slightly from country to country.

For Example:

Visiting China today, the urban landscape is littered with KFCs, Pizza Huts, McDonald’s and Starbucks. A trip to a Chinese department store is virtually identical to one in America.

There was a time, decades ago, that “Made in the U.S.A” meant well-made products that you could be patriotically proud of. Today, “Made in the U.S.A” usually means paying high labor costs.

In an all-out war against the big guys, the enemy of your enemy is your best friend.

“Impacts Of Globalization”

Positive Aspects Negative Aspects

Economic interdependence.

Greater access to foreign culture.

Wider choice of goods & services.

Global awareness of issues.

Encourages creativity & innovation.

Outsourcing.

Increasing unemployment .

Western focus is applied to non western situation.

Concentration of wealth.

There is a sizeable degree of opinions that determine that the economic growth is an essential ingredient of human development.

Ultimately, the goal is to better understand why the economic policies of Pakistan did not bring it all the promises of a globalized economy.

Pakistan in the decades following its independence was a country that spent more than it can afford…

1980

1988

“IMF & World Bank”

As part of Structural Adjustment Programs of the economy in the 1990’s the successive governments of Pakistan liberalized trade.

As a result the tariff rate dropped from 225 percent in 1990-1 to 25 percent in 2005-6.

The government replaced non-tariff barriers on imports.

Negative impact on domestic products:Reducing the tariffs brought the prices down of the

consumer goods and this had a negative impact on the domestic producers in rural areas.

During the mid 1990’s unemployment in the urban areas remained higher than rural area. Not surprisingly higher unemployment led to higher rates of poverty.

Poverty:Poverty is defined as an individual’s ability to obtain

2250 calories daily.

1987-8 (17.32 percent).

1990-91 (22.11 percent).

1998-99 (32.60 percent).

The high rates of poverty led to lack of nutrition, which leads to vulnerability to infectious diseases.

1 out of 3 children in Pakistan is suffering from stunned growth, while the same amount of adults were suffering from hypertension.

Pakistan has had the following problems haunt its education system:

High illiteracy rate, especially among women.

Poor quality of learning and instruction.

High level of teacher absenteeism and “Ghost” schools.

Not only is the education system very poor, but there is also gender inequality.

There is a vicious cycle that needs to be changed and main part of that is a better economic policy.

The lowering of the trade tariffs was led to lower revenue and this was even worst for the economy in which after all the efforts to increase FDI failed, causing even more hardship.

Pakistan’s inability to recognize the vulnerable society which led to an increase in poverty.

In order for a government to have sustainable human development it needs to invest in health.

Finally, the government should place priority on education, because that is one of the key elements of human development.

Ultimately, the economic policies of Pakistan did not bring it all the promises of a globalized economy.

“Thank You”