Globalization

What is
globalization?
 Globalization is the word used to describe the
growing interdependence of the world’s
economies, cultures, and populations, brought
about by cross-border trade in goods and
services, technology, and flows of investment,
people, and information.
 The wide-ranging effects of globalization are
complex and politically charged. As with major
technological advances, globalization benefits
society as a whole, while harming certain groups.
Understanding the relative costs and benefits
can pave the way for alleviating problems while
sustaining the wider payoffs.
Source: PIIE (Peterson Institute for International Economics
 What is
 Globalization motives are globalization?
idealistic, as well as
opportunistic, but the development of a global
free market has benefited large corporations
based in the Western world. Its impact remains
mixed for workers, cultures, and small businesses
around the globe, in both developed and
emerging nations.
 Globalization is the spread of products,
technology, information, and jobs across
national borders and cultures. In economic
terms, it describes an interdependence of
nations around the globe fostered through free
trade.
Source: Investopedia/globalization
 Positive effect of

globalizatio
to ECONOMY
n
• Globalization makes business
management easier and efficient
for the company.

• Globalization on business
management is interconnection of
international markets and
managing businesses in a global
industry. This includes foreign
investments whereby a company
expands its business and invest in
foreign countries.
 Globalization in
Philippines
• Globalization is very effective in the
Philippines, it has allowed major
changes in the nation like more
labor, and more Filipino and foreign
companies has emerged in the
nation in order to help the country’s
developing economy.
 POSITVE EFFECTS

TO asia
• Provided better alternatives to local workers
especially the women workers who where
offered alternatives for urban informal
employment or agricultural employment.

• The informal sector indirectly benefited from

the increased incomes of formal sector
workers
 negative effect of

globalizatio
to ECONOMY
n
It has had a few adverse effects on developed
countries. Some adverse consequences of
globalization include:
Terrorism
Job insecurity
Currency fluctuation
and Price instability

Terrorism
It is a significant problem in most
developed countries. Due to worldwide
integration, people travel a lot. Some of
them move abroad for studying,
business, visiting relatives, work and
access hospitals services. However, not
all of them are totally honest. Lots of
terrorists came to a foreign country with
a worker visa having a hidden goal to
perform a terrorist attack. It’s a problem
that has posed fear among citizens who
can’t trust their neighbors. Unfortunately,
terrorists recruit young people, residents
of the country and make them believe
they are doing the right things. That’s
Job Insecurity
Before globalization, skilled people got
employment in government sectors and
companies where they received high
salaries. Job opportunities were waiting
for those who completed colleges and
earned a degree. People would resign a
job and quickly get another. Due to
globalization, there are many people
seeking employment all over the world.
Employers take advantage of cheap
labor. One can get a dismissal because
of a slight mistake as the employer can
find a skilled worker who is ready to be
paid less.
Price Instability
Price instability is a significant effect of
globalization on business. Some people Currency Fluctuation
establish industries overseas where they
get cheap raw materials and labor. They International trade buys and sells
can cut production costs and sell their products using the US dollar. The price
goods at a low price. Due to competition, of dollar fluctuates day-to-day in
some high-quality products differ in developing countries, this results in
prices. No matter how the World Trade imbalanced economy and unnormal
Organization has tried to control price prices for goods and services. National
fluctuation, their efforts are not currencies are affected the most by
successful. These companies reach out to IGOs.
consumers using modern technology.
Successful businesses are for those who
can find a competitive advantage and
especially make high-quality products for
 positve effect of

globalizatio
in labor
n
 Positive effects can occur as a result of the increased capacity
of developing countries to create new opportunities for work
and production following the alleviation of price distortions with
respect to both labor and capital. (ESCWA 1999:24).

 FDI (Foreign Direct Investments) has both direct and indirect

effects on employment creation in the recipient countries. This
depends on the size and type of investment, the type of
technology adopted and the ability of the host country to
master the imported technology and adapt it to its needs.

 Globalization is clearly contributing to increased integration of

labor markets and closing the wage gap between workers in
advanced and developing economies, especially through the
spread of technology
 negative effect of

globalizatio
on labor
n
 An increase in hidden unemployment, a lack of new job
openings, and a deterioration of real wage rates are the
consequences of globalization in most developing economies,
which were unable to adapt the new technologies.

 The traditional nature of “work” might disappear due the rapid

advances in technology, while at the same time creating new
and innovative occupations in favor of the highly specialized
professions.

 Negative effects occur as a result of large-scale technological

developments that accompany this phenomenon, which will
reduce the demand on unskilled labor. Even direct foreign
investment does not care for cheap workers but only for highly
skilled workers.

 An increase in hidden unemployment, a lack of new job

openings, and a deterioration of real wage rates are the
consequences of globalization in most developing economies,
which were unable to adapt the new technologies.
 positIve effect of

globalizatio
on migRATION
n
 International migration has become global, in so far as
globalization means greater circulation of goods,
people and capital and also greater velocity in world
politics. Globalization has transformed the nature of
international migration not only quantitatively, but also
qualitatively. Globalization has triggered greater
mobility, and there are qualitative changes in migration
dynamics brought forward by the diversity of regions
and people

 Migration helps in improving the quality of life of

people. Migration of skilled workers leads to a greater
economic growth of the region. Children get better
opportunities for higher education. The population
density is reduced and the birth rate decreases.
 negative effect of

globalizatio
on migration
n
 Globalization has also increased economic disparities
between countries. Some theorists and scholars have
argued that globalization also reduces migration.
Growth in trade can reduce migration through the
creation of additional employment and higher growth
in labor-sending countries.

 The loss of a person from rural areas, impact on the

level of output and development of rural areas. The
influx of workers in urban areas increases competition
for the job, houses, school facilities etc. Having large
population puts too much pressure on natural
resources, amenities and services.
 SUBMITTED BY:

Alvarez, Mark Paulo

Bernabe, Gerald
Hobayan, Danilo Jr.
Jimenez, Jeric
Alayon, Angel
Gole, Nicky
Lucero, Jan Alysa

12 deuteronomy