What is Globalization?
Globalization refers to the global
connectivity, integration, and
interdependence of cultural, economic,
technological, environmental and,
Globalization and the Economy
Globalization is felt first and foremost in
economic life. Globalization refers to the
increasing integration and interdependence
of all realms of economic life, including
trade, production, and consumption.
Arguments against Globalization
• Perpetuates the cycle of poverty
• Promotes inequality
• Outsourcing of jobs
• Transferring of business culture
• Protection of business sectors
• Creates trade imbalances
• Exploits the environment
• Promotes terrorism
Arguments for Globalization
• Increases life expectancy
• Improved standard of living
• Promotes equality
• Increased democratic participation
• Decrease in child labor
• Equalizes trade
• Reduces the threat of terrorism
• Can create economic incentives for peace
What is the WTO?
• Founded in 1995
• 150 member nations
• Overriding purpose is to help trade flow as
freely as possible
• Set of Rules
• Settles Disputes between countries
deficit as of
2006 US trade deficit with China in millions of dollars
Exports = 55,224.2 Imports = 287,772.8
Difference 2006: -201, 544.8; 1985: -6
What US companies outsource?
• Nike (production)
• Delta Airlines (customer service)
• Chase Financial (customer service)
• Sara Lee (production)
• IBM (customer service & production)
• Dell (customer service & production)
• American Express (customer service)
• Hanes (production)
• Western Union (customer service)
Virtually every business sector outsources, mortgage
companies, banks, retailers, airlines, automakers,
internet service providers, computer, etc.
By 2008 Costa Rica
will employ 730,000 in
customer service call
centers for American
will make $400 a
A nacreous cloud seen from Antarctica's Mawson base. Unfortunately, it is a
reminder of environmental damage being inflicted on the ozone layer by decades of
Ecological damage resulting from the explosion and fire at Rukpokwu-Rumuekpe pipeline,
Apple Ipod factory China.
An interconnected world means that diseases
such as SARS, HIV/AIDS, Bird Flu are an even
Changes in labor patterns and job
opportunities have been among the most
visible aspects of globalization.
Security and Terrorism
Society and Culture
What are the cultural
Can the Earth sustain a global
standard of living based
on western society’s
Are there winners in
Who are they?
Is the US losing?
Based on some of the
things you’ve just learned
about globalization, how
secure do you think your
economic future is?