Welcome Globalisation in perspective The world is getting smaller Tony Bielderman.

Welcome

Globalisation in perspective

The world is getting smaller

Tony Bielderman

O Definition(?)

O Globalisation nothing new!

O Benefits

O Bottle necks

O International policy challenges

Globalisation in perspective

Globalisation in perspective

Globalisation is the increasing liberal internationalization of society.

Globalising economics: enormous growth of international trade, money flows, portfolio and direct investment and labour migration.

Globalisationwaves in historical perspective

World export as percentage of worldproduction (left)

Immigration USA (right)

Foreign investments as percentage of domestic production in developing countries (left)

Percentage Million

Source: Maddisson, VS

O More free trade, less protection

O Better ICT-applications, efficiency transports

O Offshoring and outsourcing

O Increased international labour mobility

O Changed political world

Backgrounds youngest wave

Revolutionary textiles…  

The last trade restrictions for clothing and textiles were discharged on the 1 January 2005. Especially China will take advantage of that: textile exports will probably increase from $ 45 till $ 70 billions a year.

Basic thinking: comparative costs

The world’s prosperity increases if every country produces those goods in which the countries are relatively the best.

Benefits globalisation

Causes comparative differences in costs

-   Differences in labor costs and laws Differences in knowledge and education

Geographic location, surroundings and climate -    Presence of natural commodities Differences in labor and capital productivity

Ricardo

Example comparative cost advantages

If Portugal specializes in wine en England in clothes, both countries are economically better of:

  1 barrel of wine 1 unit clothing (80 hours in Portugal) (100 hours in England) England gets a barrel of wine for 100 laborhours while the country needs 120 laborhours itself. Portugal gets a unit clothing for 80 labour hours while the country needs 90 labour hours itself.

Production costs wine and clothes in laborhours

Wine Clothes

Portugal 80 90 England 120 100

< TRADE >

O More efficient / cheaper production on worldscale

O Lower producer- and consumerprices

O Increase international trade and production

O More employment on worldscale

O Growth purchasing power of worldincome

Benefits free globalisation

O Increase quality and choices

O Encourage mutual understanding en worldpeace

(O Extra economic growth Netherlands 2%, )

O Re-allocation labour and production ORedistribution world and domestic income O

Extra problems natural environment

O New scarcity: energy versus nutrition O Human rights and child labourO Cultural changes and differences

Bottlenecks globalisation

International goal:Obligation to Globalisation! Clearing Bottlenecks!

Challenges politics

Stimulating free trade, restriction protectionism:Most Favoured Nation Principle

National Treatment Principle

#

From regionalisation to globalisation:Restrictions import taxes, export restitutions

and tradequota; LDC-status

Challenges politics

UNOChallenging poverty, education for everyone, equal labour rights, challenging childlabour, innovation, improvement public health,

human rights, ecology programmes, monetary aid.

International goal:Obligation to Globalisation! Clearing Bottlenecks!

Attitude Netherlands:

Challenges politics

Obligation to Globalisation! Endorsement WTO-, UNO- and EU-policy

#

Clearing bottlenecks! Goal durable growth: profit, people, planet

Theses discussion / questions

Globalisation increases poverty?

Child labour good for European consumer?

Energy and nutritioncrisis: stop globalisation!

They are taking our jobs ……

I Evening of Globalisation(students+parents+press+)

Possible programme:

- Walking in: Brazilian coffee, Russian vodka, Indian or Chinese tea. - Introduction - Documentary of one of the BRIC-countries - This powerpoint lecture - Break with music/products from BRIC-countries - - Panel discussion or debating club students - And the winner is… - Starting lessons next day

Didactic suggestions

II Five lessons using Globalisation paper

Possible programme

1: Introduction with (film and) theses discussion & assignments 2: Defining Globalisation & assignments 3: Benefits & assignments 4: Bottle necks & assignments 5: International Economic Policies &

assignments

Didactic suggestions

Improve the world

Starting now!