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Transcript of Globalization
Globalization Globalization is the process of international integration arising from the exchange of world views, products, ideas, and other aspects of culture. Globalization describes the interplay across cultures, advances in transportation and telecommunications infrastructure, including the rise of the Internet. All which are major factors in globalization, generating further interdependence of economic and cultural activities. Were the trade links between the major nations of the archaic era: the Roman Empire, the Parthian Empire, and the Han Dynasty. The increasing commercial links between these powers took form in the Silk Road, which instigated in western China, reached the borders of the Parthian empire, and continued to Rome. The Chinese of the Han Dynasty learned of powerful kingdoms in Central Asia, Persia, India, and the Middle East Roman Empire. After these initial discoveries the focus of Chinese exploration shifted to the maritime sphere, although the Silk Road leading all the way to Europe continued to be China's most lucrative source of trade, marking the first signs of globalization within the archaic era. From about the 1st century, India started to strongly influence Southeast Asian countries. Trade routes linked to the Roman Empire, the Parthian Empire, and the Han Dynasty became trade routes for other nation; which resulted in trade settlements to be established there. Merchant and explorers established them self on trade settlements resulting in a globalization of agriculture, trade, knowledge and technology. Crops such as sugar and cotton became widely cultivated across the trade settlements in this period, while widespread knowledge created a multi-ethnical culture Italian city states embraced free trade and merchants established trade links with faraway places, giving birth to the Renaissance; the most gigantic accumulation of shared Knowledge of the day. Characterized by the rise of oceanic European empires, in the 16th and 17th centuries, first the Portuguese and Spanish Empires, and later the Dutch and British Empires. In the 17th century, world trade developed further when chartered companies like the British East India Company founded in 1600 and the Dutch East India Company founded in 1602, the first multinational corporation in which stock was offered. Beginning in the late 15th century, Portugal and Castile sent the first exploratory voyages around the Horn of Africa and to the Americas, reached in 1492 by the Italian explorer Christopher Columbus. with the European colonization of the Americas, global trade growth increased with the exchange of plants, animals, foods, human populations (slaves), and culture between the Eastern and Western hemispheres. New crops that had come from the Americas via the European seafarers in the 16th century significantly contributed the increase of wealth with the nations. The wealth amplified migration to the new world, that would influence the Western European world, is used as an example of globalization. In the 19th century, steamships reduced the cost of international transport significantly and railroads made inland transport cheaper. More nations embraced international trade. Globalization in this period was once and for all shaped money and the gain of wealth
After the Second World War, work by politicians led to the Bretton Woods conference, an agreement by major governments to lay down the framework for international monetary policy, trade and finance, and the founding of several international institutions intended to facilitate economic growth multiple rounds of trade opening simplified and lowered trade barriers and to remove trade restrictions. Today that frame work led to the World Trade Organization, free trade agreements, and the exchange of world views, products, ideas, and other aspects of culture. Aspects Global business organization With improvements in transportation and communication, international business grew rapidly after the beginning of the 20th century. International business comprises of all transactions that take place between two or more nations beyond their polities. Usually, private companies do this for profit. Such business transactions involve economic resources such as capital, natural and human resources.
International business arrangements have led to the formation of multinational enterprises, companies that have a worldwide productions or one with operations in more than one country. Examples of multinational corporation include fast food companies such as McDonald's, vehicle manufacturers such as General Motors, Ford Motor Company , consumer electronics companies like Samsung, LG and Sony This ideal deal with the need for product on a world wide scale, were two or more nations deal with idea of absolute trade advantage. Absolute trade advantage exists when countries can produce a product with less cost per unit produced than could its trading partner. This ideal leads to profit for companies used other nation that can make the products for less, to increase profits. While there are possible gains from trade for the nations will enlarge the ability to offer goods and services at a lower marginal and opportunity cost—extends the range of possible mutually beneficial exchanges. This ideal made international trade become essential battle field to cost per unit produced and the market remaining competitive. International Trade A trade pact also known as trade agreement is tax, tariff and trade. The most common trade pacts are of the preferential and free trade types are concluded in order to reduce tariffs, quotas and other trade restrictions on items traded between the parties. The pacts go within zones: A Special Economic Zone is a region that has economic and other laws that are more free-market-oriented , Free Trade Zones, Export Processing Zones, Industrial parks or Industrial Estates, Free Ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically by a multinational corporation . These are designated areas in which companies are taxed very lightly or not at all in order to encourage economic activity. A Free Trade Zones is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities.
A free trade area is a trade bloc whose member countries have signed a free-trade agreement, which eliminates tariffs, import quotas, and preferences on most services traded between them.
If people are also free to move between the countries, in addition to free-trade area, it would also be considered an open border. The European Union, for example, a confederation of 27 member states, provides both a free trade area and an open border. Tax Most companies try to acquire a tax haven is a state, country or territory where certain taxes are levied at a low rate or not at all, which are used by businesses for tax avoidance. Individuals and/or corporate entities can find it attractive to establish themselves into areas with reduced or no taxation levels. This creates a situation of tax competition among governments. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies. States that are sovereign or self-governing under international law have theoretically unlimited powers to enact tax laws affecting their territories, unless limited by previous international treaties. The central feature of a tax haven is that its laws and other measures can be used to evade or avoid the tax laws or regulations of other jurisdictions. Information systems Multinational corporations face the challenge of developing global information systems for global data processing and decision-making. The Internet provides a broad area of services to business and individual users. Because the World Wide Web (WWW) can reach any Internet-connected computer in the world, the Internet is closely related to global information systems. A global information system is a data communication network that crosses national boundaries to access and process data in order to achieve corporate goals and strategic objective
Across companies and continents, information standards ensure desirable characteristics of products and services such as quality, environmental friendliness, safety, reliability, efficiency and interchangeability at an economical cost. For businesses, widespread adoption of international standards means that suppliers can develop and offer products and services meeting specifications that have wide international acceptance in their sectors. According to the ISO, businesses using their International Standards are competitive in more markets around the world International tourism Tourism is travel for recreational, leisure orbusiness purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".
Globalization has made tourism a popular global leisure activity. The World Health Organization (WHO) estimates that up to 500,000 people are in flight at any one time. In 2010, international tourism reached $919B, growing 6.5% over 2009. In 2010, there were over 940 million international tourist arrivals worldwide, representing a growth of 6.6% when compared to 2009. International tourism receipts grew to US$919 billion (€693 billion) in 2010, corresponding to an increase in real terms of 4.7%. Economic globalization Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace
Economic globalization comprises the globalization of production, markets, competition, technology, and corporations and industries. Current globalization trends can be largely accounted for by developed economies integrating with less developed economies, by means of foreign direct investment, the reduction of trade barriers as well as other economic reformsand, in many cases, immigration. Culture Cultural globalization has increased cross-cultural contacts but may be accompanied by a decrease in the uniqueness of once-isolated communities: sushi is available in Germany as well as Japan, but Euro-Disney outdraws the city of Paris, potentially reducing demand for "authentic" French pastry. Globalisation's contribution to the alienation of individuals from their traditions may be modest compared to the impact of modernity itself. Globalization has expanded recreational opportunities by spreading pop culture, particularly via the Internet and satellite television.
Canadian society is often depicted as being "very progressive, diverse, and multicultural". Multiculturalism (a Just Society) was adopted as the official policy of the Canadian government during the premiership of Pierre Elliott Trudeau in the 1970s and 1980s.dgfdgf37] Multiculturalism is reflected in the law through the Canadian Multiculturalism Act andsection 27 of the Canadian Charter of Rights and Freedoms. The Broadcasting Act of 1991 asserts the Canadian broadcasting system should reflect the diversity of cultures in the country.
Religious movements were among the earliest cultural forces to globalize, spread by force, migration,evangelists, imperialists and traders. Christianity,Islam, Buddhism and more recently sects such asMormonism have taken root and influenced endemic cultures in places far from their origins.
Westernization. For example, the two most successful global food/beverage outlets are American companies, McDonald's and Starbucks, are often cited as examples of globalization, with over 32,000 and 18,000 locations operating worldwide, respectively as of 2008. Multilingual speakers outnumber monolingual speakers in the world's population. Multilingualism is becoming a social phenomenon governed by the needs of globalization and cultural openness. Thanks to the ease of access to information facilitated by the Internet, individuals' exposure to multiple languages is getting more and more frequent, and triggering therefore the need to acquire more and more languages.
Today, the most popular second language is English. Some 3.5 billion people have some acquaintance of the language. English is the dominant language on the Internet. About 35% of the world's mail, telexes, and cables are in English. Approximately 40% of the world's radio programs are in English. Multilingualism Politics In general, globalization may ultimately reduce the importance of nation states. Sub-state and supra-state institutions such as the European Union, the WTO, the G8or the International Criminal Court, replace national functions with international agreement. Some observers attribute the relative decline in US power to globalization, particularly due to the country's high trade deficit. This led to a global power shift towards Asian states, particularly China, which unleashed market forces and achieved tremendous growth rates. As of 2011, China was on track to overtake the United States by 2025. As a response to globalization, some countries have embraced isolationist policies. For example, the North Korean government makes it very difficult for foreigners to enter the country and strictly monitors their activities when they do. Aid workers are subject to considerable scrutiny and excluded from places and regions the government does not wish them to enter. Citizens cannot freely leave the country. Public Opinion A number of international polls have shown that residents of developing countries tend to view globalization more favorably The BBC found a growing feeling in developing countries that globalization was proceeding too rapidly. Only a few countries, including Mexico, the countries of Central America, Indonesia, Brazil and Kenya, where a majority felt that globalization is growing too slowly.
a clear majority of Europeans believe that globalization can enrich their lives, while believing the European Union can help them take advantage of globalization's benefits while shielding them from its negative effects. The situation may have changed after the 2007 financial crisis. A 2008 BBC World Public Poll as the crisis began suggested that opposition to globalization in developed countries was increasing. The BBC poll asked whether globalization was growing too rapidly. Agreement was strongest in France, Spain, Japan, South Korea, and Germany. The trend in these countries appears to be stronger than in the United States. The poll also correlated the tendency to view globalization as proceeding too rapidly with a perception of growing economic insecurity and social inequality
Many in the Third World see globalization as a positive force that lifts countries out of poverty. The opposition typically combined environmental concerns with nationalism. Opponents consider governments as agents of neo-colonialism that are subservient tomultinational corporations. Much of this criticism comes from the middle class; theBrookings Institute suggested this was because the middle class perceived upwardly mobile low-income groups to threaten their economic security. Internet Both a product of globalization as well as a catalyst, the Internet connects computer users around the world. From 2000 to 2009, the number of Internet users globally rose from 394 million to 1.858 billion. By 2010, 22 percent of the world's population had access to computers with 1 billion Google searches every day, 300 million Internet users reading blogs, and 2 billion videos viewed daily on YouTube. an online community is a virtual community that exists online and whose members enable its existence through taking part in membership ritual. Significant socio-technical change may have resulted from the proliferation of such Internet-based social networks. Global workforce The global workforce is the international labor pool of immigrant workers or those employed by multinational companies and connected through a global system of networking and production. As of 2005, the global labor pool of those employed by multinational companies consisted of approximately 3 billion workers.
The current global workforce is competitive as ever. This competitiveness is due to specialized jobs becoming available worldwide due to communications technology. As workers get more adept at using technology to communicate, they give themselves the options to be employed in an office half way around the world. These newer technologies not only benefit the workers, but companies may now find highly specialized workers that are very skilled with greater ease, as opposed to limiting their search locally. However, production workers and service workers have been unable to compete directly with much lower-cost workers in developing countries. Low-wage countries gained the low-value-added element of work formerly done in rich countries, while higher-value work remained; for instance, the total number of people employed in manufacturing in the US declined, but value added per worker increased.
Migration of educated and skilled workers is called brain drain. For example, the U.S.welcomes many nurses to come work in the country. The brain drain from Europe to the United States means that some 400,000 European science and technology graduates now live in the U.S. and most have no intention to return to Europe. Nearly 14 million immigrants came to the United States from 2000 to 2010. THE END