What is Globalisation? Brainstorm 20 words that you associate with Globalisation

Objectives:

• To understand the concept of globalisation• To assess the impact of globalisation on

differing parties

HW:

The Characteristics of Globalisationhttp://www.youtube.com/watch?v=RgPLn76LTAQ

“Globalisation describes the processes that have resulted in ever closer links

between the world’s economies in terms of trade, investment, production, the transfer of technology and the migration of people”.

Globalisation means that the world has become ‘smaller’ and ‘flatter; it is more interconnected than ever before. Almost any product or service can be produced almost anywhere in the world with resources that originate almost anywhere.

The internet has revolutionised and speeded up globalisation allowing consumers, firms and governments greater opportunities to exchange information and resources .

Globalisation occurs through the presence of global brands and through global sourcing.

Features of a Globalising World

Global Economy

Global Trade Shifts

Capital Flows

Labour Migration

Global Supply Chains

Global Brands

Globalisation is a process of making the world economy more inter-dependent

It is also bringing about a change in the balance of power in the world economy

Features of a Globalising World

Global Economy

Global Trade Shifts

Features of a Globalising World

Global Economy

Global Trade Shifts

Capital Flows

Features of a Globalising World

Global Economy

Global Trade Shifts

Capital Flows

Labour Migration

Features of a Globalising World

Global Econom

y

Global Trade Shifts

Capital Flows

Labour Migration

Global Supply Chains

Airbus global workforce, rough figures, around 2012

Total 57,000 +France 22,500 +Germany 21,000 +UK 9,500 +Spain 2,900 +

India 1,800China 1,150US 850 +Russia ?

Features of a Globalising World

Global Economy

Global Trade Shifts

Capital Flows

Labour Migration

Global Supply Chains

Global Brands

Name the top 10 brands in the world

Top EU brand?

Top UK brand?

Top

10

Glo

bal B

ran

ds

Definition of Globalisation…

Application & research…

Task: Research a firm of your choice and create a poster on the impact that globalisation has had on the company (advantages & disadvantages)

Globalisation & The USA

http://www.youtube.com/watch?v=7owMXrLu2d8&feature=related

Listen to Barack Obama’s speech before becoming President in 2008.

List 5 Globalisation related economic issues that he identifies that the USA needs to face and come to terms with in the twenty first century.

What economic policies does the USA need to adopt to benefit from Globalisation in the future?

Factors promoting Globalisation

• A reduction in protectionist barriers to trade in the World Economy.

• A reduction in international capital movement restrictions; encouraging Foreign Direct Investment (FDI).

• Developments in IT and falling communication costs.

• A fall in real transport costs.

• Liberalisation of domestic markets; the growth of Multinational Companies (MNC’s).

Effects of Globalisation – Winners & Losers

http://www.youtube.com/watch?v=oh03fuIlQNI&feature=related

Have these workers benefited or been disadvantaged by Globalisation?

A Blue Collar Worker in the USA

The bosses of MNC’s

Factory workers in China A University Graduate from India

Advantages of Globalisation Disadvantages of Globalisation

It allows developing countries to create jobs in their domesticeconomies.

Consumers across the world have access to more of thegoods and services that they want.

It can help to relieve poverty through economic growth anddevelopment.

It helps to improve education across the world in terms ofliteracy and skills.

Higher living standards for more people.

Enjoyment of global brands. For consumers

Spreading of best practice and technology transfer.

Improved medical supplies that can increase life expectancy.

Manufacturing jobs that used to be located in Europe and USA

are now located in Asia where costs and wages are lower.

Has globalisation offered people too many choices and are we

capable of making the right decisions?

It has made some jobs more insecure and made stable livesmore difficult to achieve.

It has contributed towards global warming and climate change.

Widening gap between rich and poor; increased inequality.

Exploitation of workers in developing countries.

Resource depletion.

MNC’s can exploit and fail to invest in the host nation.

Rank them in order of importance; 1 = Most Important & 8 = Least Important

Globalisation Review

• Definition.

• Characteristics.

• Factors promoting globalisation.

• Winners & Losers.

• Advantages & Disadvantages.