Globalisation for slideshare 2013

Globalisation

Global Brands

Chevrolet NovaIn Spanish – Does not go

Mistranslated by Pepsi into Chinese – Pepsi brings your ancestors back from the grave

UK’s Global Brands

• Britain’s Got Talent

The trend for people, firms and governments around the world to become increasingly dependent on and integrated

with each other.

The process by which different parts of the world

interact economically, politically, and culturally.

Banksy Video

• What are the advantages of globalisation highlighted in this video

• What are the drawbacks of globalisation highlighted in this video

Integration of Economies• 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

Integration of Economies

• Made possible by:– Technology– Communication networks– Internet access– Growth of economic cooperation –

trading blocs (EU, NAFTA, etc.)– Collapse of ‘communism’– Movement to free trade

Explain Why and Why Not

• Specialisation (comparative advantage)

• Higher living standards

• Increased world output

• Lower prices

• More choice

• Larger markets for firms (economies of scale)

• Technology transfer

• Increased taxes

End of first lesson vid or blog

1. Draw a diagram / chart / cartoon to define globalisation

2. Using Stiglitz quote:a. Decide which has been more important –

transportation or communication. Justify your answer

3. Section on transport costs :a. Decide whether developments in shipping or air

transport have been more significantb. Explain why UK supermarkets are more likely to

source flowers from Kenya and not Amsterdam.

4. Using examples, explain how Amazon and Ebay have led to closer integration of different economies.

3. Section on transport costs :a. Decide whether developments in shipping or air

transport have been more significant

b. Explain why UK supermarkets are more likely to source flowers from Kenya and not Amsterdam.

4. Using examples, explain how Amazon and Ebay have led to closer integration of different economies.

5. Using your knowledge of the EU, explain why the increase in the number of trading blocs has led to more globalisation.

6. What is the link between fewer capital controls and increased globalisation

Going Global

Gap Kids – for kids by kids

Alternative ways of “going global”

• Establish production sites overseas– E.g: Toyota

• Licence technology• Joint ventures• Franchising• E.g : Coke• Offshoring / outsourcing (onion clip)

What drives multinationals to expand?

• market access• technology• costs• Vertical integration• tariffs

Expand each of these points to explain why MNCs are increasingly going global

Tata

What drives multinationals to expand?

• Higher profits and a stronger position and market access in global markets

• Reduced technological barriers to movement of goods, services and factors of production

• Cost considerations – a desire to shift production to countries with lower unit labour costs

• Forward vertical integration (e.g. establishing production platforms in low cost countries where intermediate products can be made into finished products at lower cost)

• Avoidance of transportation costs and avoidance of tariff and non-tariff barriers

• Extending product life-cycles by producing and marketing products in new countries

June 2012 3(a) – Assess the view that the main cause of globalisation is the increased significance of transnational companies (20)

With your EconBro, plan an answer to this question – 3KAA plus 2 EVAL

HO: June 2012 3(a) MS + SA incl Tomasso

Benefits of Globalisation

CD – mindmap on whiteboard

2009 – De-globalisation?

• A steep slowdown in world economic growth followed by a recession

• Unemployment worldwide forecast to rise by around 30m above 2007’s level

• Sharp fall in global trade in goods and services• Worldwide FDI inflows shrank 21% in 2008 to $1.4

trillion• A partial reversal of migrant flows and also

remittances from migrant workers• Evidence of a return towards economic nationalism

and other forms of protectionism

In tomorrow's lesson we will be debating, so you need to come armed with plenty of facts, figures and research on the effect globalisation has had on the developing country you were given during the lesson.

Research tips :

•CIA Factbook ; Observatory of Economic Complexity ; Economist, Guardian, BBC and Wall Street Journal articles ; UNDP website ; OXFAM website•Search leading Economics education websites such as Ignatian Economics and tutor2u.net•Search my "Evernote notebook" by clicking on it in the menu.

Bring in detailed notes and spend a decent amount of time on this.

This house believesthat

to develop economically economies

should de-globalise

Each small group to prep one sideHalf class debates with judges scoring and to feedback

June 2012 3(a) – Assess the view that the main cause of globalisation is the increased significance of transnational companies (20)

June 2012 – qn 3(a)

PDF: June 2012 Qn 3(a) Sample plus MSTasks:1.Read through J’Leesha’s answer2.Write down what she does well3.Write down what you would do better4.What makes this a Level 5 answer

June 2012 3(a) – Assess the view that the main cause of globalisation is the increased significance of transnational companies (20)

Next two as HO

• Using the handout, evaluate each bullet point and then rank according to significance

• Write a concluding paragraph to this essay question:

• Do the drawbacks of globalisation outweigh the benefits for the UK economy

• Opportunities for UK businesses to trade and invest overseas

• Access to cheaper goods and services from emerging market countries – leading to higher real incomes

• Opportunities to live, study and travel overseas

• Bigger export markets – chance to exploit economies of scale

• More intense competition – drives innovation and economic efficiency

• Globalisation has lifted hundreds of millions of people out of absolute poverty around the world

• The emergence of an extra one billion ‘middle class’ consumers worldwide is a huge export opportunity for the UK

• Falling cost and rising speed of global communications and transport has helped to bring people closer together

Benefits for UK Economy

• Risks of increase in structural unemployment in industries / regions that lose demand to lower-cost competition from overseas

• Globalisation may lead to rising income and wealth inequality

• Increase in global trade / output has an environment effect – increased use of non-renewable resources and CO2 emissions

• Globalisation of brands – perhaps a loss of cultural diversity

• UK government has less control - economy may become more vulnerable to external shocks

• Surge in inward migration of labour has brought economic and social tensions

• Globalisation contributed to the sharp fall in interest rates and widening trade imbalances that were part of the root cause of the credit crunch

• High food and fuel price inflation has hurt lower income families most

Drawbacks for UK Economy

Benefits and Costs

• Read through HO – highlighting terms and concepts you find intriguing, beguiling or utterly confusing

• Draw up a table with two headings : pros & cons. Fill out table with points and examples

Please research these different topic areas relating to the effect globalisation has had in terms of damaging the environment. Your research should take the form of a side of notes with lots of examples, facts, figures, arguments and counter-arguments.

We will have a class plenary to swap ideas

Tommy - Brazilian rainforestJake - extraction of mineralsAndrew B - Floods around the globePierce - Congestion in megacitiesNadeesha - Mangroves in SE AsiaCarlos - HaitiChris F - Clean Water AccessMatthew - Japanese smogPadraig - UN Climate Talks in QatarAndrew C - Chinese megacities & air pollutionBala - FrackingRoberto - DesertificationLuke - Fossil Fuel Depletion

HW on blog

Environmental degradation

Mangroves vs. Prawn Farms

By M.Atiba, J.O’Driscoll, K.Mendes, & E.Igbodo

Introduction

• The recent influx of shrimp farming has led to a depletion and destruction of mangroves.

• Mangroves are amongst the world’s most important ecosystems and responsible for two-thirds of all fish caught.

• This increase in shrimp farming comes as a result of the evolution of prawns into “TIGERRRR!!!!” prawns.

• The evolution as led to an increased demand worldwide which requires an increase in shrimp farming.

• It has forced Mangroves into a battle for survival against Shrimp Farming which it cannot win.

Positives Of Shrimp Farming

• Are limited.• Benefit to only the

producers and consumers.

• Increased produce satisfies demand, increases choice and in turn will lead to reduced prices for consumers.

• Increased profits, sales and revenue for producers.

Negatives Of Shrimp Farming

• Outweigh the positives by far.• Destruction of Mangroves.• Fish stocks collapse for fishermen as a result of

closed off areas e.g. Bangladesh fishermen have reported an 80% decline since the creation of dykes for shrimp farming.

• Countries such as Ecuador and Bangladesh have experienced major threats to their main food sources e.g. Muisne, Ecuador, where 80% of the population lost their main source of food.

Negatives Of Shrimp Farming

• Tiger prawns are carnivorous, with intensive farming causing a further depletion in fish stock as a result of the amount of fish oil and fish meal required.

• Salination and chemical pollution of drinking water and agricultural land.

• Farms pump waste water into canals, rivers and nearby seawaters resulting in contamination from antibiotics, pesticides and disinfectants.

Sri Lanka Water

ACCESS TO CLEAN DRINKING WATER FOR FISHERMEN

Vietnam

• One of the countries most affected.• Since 1975 have experienced a deforestation of more

than 80% of original Mangrove cover.• Main cause of deforestation being SHRIMP FARMING.• Eventually, shrimp farming will hold Vietnam to ransom

as it’s only form of agriculture.• The destructive nature of shrimp farming will damage the

environment by polluting the soil, trees and water.• Other disease free methods are ignored in order to

produce higher yields.

VietnamGDP OF AREAS IN VIETNAM

Conclusion

• Shrimp Farming’s current victory over Mangrove are extremely detrimental to environment.

• Short term benefits of having higher yields are not worth it when Long term consequences are taken into consideration.

• Anything capable of holding a country to ransom must be stopped or at least controlled.

HW:

Read through the article and do some research into Burma’s development and then draw up an essay plan to answer this question:

To what extent has globalisation benefitted citizens of Burma? (20 marks)

3KAA points plus 2 EVAL points

Surviving Progresslesson

What is happening to cause these changes?

Surviving Progress Documentary on youtube

You have 30 seconds to memorise these key terms relating to

GlobalisationGlobalisation

After thirty seconds recall as many as you can and write a

definition / explanation

winner has most explanations

Transport costsTransport costs

Growth of MNCs

Tradeblocs

unemployment

inte

rdependence

Envir

onm

enta

ldegra

dia

tion

China’s industrialisation

Hig

her re

al

inco

mes

Trade barriers

Out-sourcing

HOW MANY CAN HOW MANY CAN YOU RECALL?YOU RECALL?

And what is the topic?

DIVIDE INTO DIVIDE INTO CAUSESCAUSES

AND AND CONSEQUENCESCONSEQUENCES

ANDANDRANKRANK

Globalisation Essay

To what extent do the costs of globalisation outweigh the benefits?

30 marks – June 2012 qn 3(b)

Reasons for poor performance

• Not enough examples

• Analysis is not detailed

• Candidates do not focus on economic costs and economic benefits, but discuss general costs and benefits

Make sure that you upload your very best effort

See “Getting answers to me” at top of this page

Feedback – 2012/13• Every paragraph must have evaluation at the

end• Use a logical chain of economics logic to

explain your point• Use examples of countries and MNCs to back

up your point• Start each paragraph closely linking

globalisation to the cost or benefit• Discuss the significance of each cost or benefit

An example of this can be seen in recent years when America faced a recession which led to the demand of American consumers for imports to fall. As a result China’s export market experienced a major decline in sales because America was one of their largest markets; this led to slowed down growth in China. Therefore it can be seen that globalisation creates an unhealthy nature of dependency between economies relying on each other for trade, thus where one economy faces issues like a recession this is likely to negatively impact another economy such as through reduced demand for exports.

Re-draft a paragraph

What would go in a paragraph on improved living standards as a

benefit? BrainBlast

Benefit = improved living standards

• Explained how globalisation leads to global supply chain

• Use example of Foxxconn and China

• Explain how this has led to urbanisation in China

• Explain how this may improve living standards

• Explained that this does not improve everyone’s living standards

• Explained that this is only certain countries

• Explained that this does not suggest a long-term solution or long-term economic development

The value of world trade has been growing at a faster rate than world

GDP. Assess the factors which might explain this trend.

For a high grade:Consideration of three factorsEvaluation in each paragraph

Essay plan & structurePrioritisation of factorsEvidence of research