G LOBALISATION Topic #6
G LOBALISATION Definition: A social phenomenon? An economic phenomenon? A cultural phenomenon? The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.
G LOBALISATION Globalisation could involve all these things!
I NTEGRATIONOF E CONOMIES The increasing reliance of economies on each other The opportunities to be able to buy and sell in any country in the world The opportunities for labour and capital to locate anywhere in the world The growth of global markets in finance Stock Markets are now accessible from anywhere in the world! Copyright: edrod, stock. xchng
I NTEGRATIONOF E CONOMIES Made possible by: Technology Communication networks Internet access Growth of economic cooperation – trading blocs (EU, NAFTA, etc. ) Collapse of ‘communism’ Movement to free trade
T RADE VERSUS A ID? Benefits of Trade: Increased choice Greater potential for growth Increase international economies of scale Greater employment opportunities Trade has led to massive increases in wealth for many countries. Copyright: budgetstock, stock. xchng
T RADE VERSUS A ID? Disadvantages of trade: Increase in gap between the rich and the poor Dominance of global trade by the rich, northern hemisphere countries Lack of opportunities for the poor to be able to have access to markets Exploitation of workers and growers How far does trade help children like these? Copyright: clesio, stock. xchng
C ORPORATE E XPANSION No matter where you go in the world, certain businesses will always have a presence. Copyright: mkeky, stock. xchng Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others.
C ORPORATE D OMINATION Key Issues: Damage to the environment? Exploitation of labour? Monopoly power Economic degradation Non-renewable resources Damage to cultures Shell and Nike’s activities have come under severe criticism in some quarters. Copyright: Homsel, stock. xchng
C ORPORATE E XPANSION Characteristics: Sourcing raw materials Controlling key supplies Copyright: rsvstks, stock. xchng Lowering costs Controlling supplies may be one reason for global expansion. Expanding revenue Control of processing Global economies of scale
We hear a lot about the power of big multinationals and the inexorable spread of globalization, which has made them even more influential. But how much do we really know about the way big business works? How does a company's culture affect its profile and involvement in the community outside the factory door. How does a company balance its global financial interests with the concerns of the community - and the country in which it's working?
M C D ONALD’S Mc. Donald’s has become the best-known fast food brand in the world. It has 30, 000 restaurants in 120 countries, and for many has come to symbolise the hopes and the fears of the Americanization of global culture. Mc. Donald’s revolutionized the food industry, affecting the lives both of the people who produce food and the people who eat it. Explore the past, present and future of Mc. Donald’s and with it the fast food industry.
U NILEVER IS THE WORLD'S BIGGEST FOOD AND SOAP COMPANY. Unilever works its way into the lives of millions of people in 150 countries round the world, with brands like Omo washing powder, Lipton tea, Dove soap, and Magnum ice-cream. Unlike some other corporations such as Coca Cola and Mc. Donalds, it's built its success largely by adapting its products to local conditions, rather than making a virtue of their uniformity.
G AZPROM - T HE WORLD'S LARGEST GAS COMPANY It is the biggest company in Russia, the largest gas company on the planet, and it is exactly ten years old. In the past it has had a reputation as corrupt and secretive, but nowadays Gazprom, the privatized gas giant, is trying to earn the trust of international investors. This forms part of its ambitions to expand its profitable business supplying gas outside of Russia.
O THER I SSUES: There are plenty of people who believe that globalisation is a negative development, protests at the G 8 summits, pollution, poverty and concern over GM crops are just some of the issues. Copyright: stock. xchng Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers
REFERENCES www. bized. co. uk www. bbc. co. uk/worldservice/programmes /globalisation/ http: //www. uno. com/
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IER #6_globalisation.pptx