1. Driving Forces Behind Globalization and International Trade
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2. Georgia Council on Economic Education
Globalization
The term was popularized by Theodore Levitt in his article, “Globalization of Markets”, published in the Harvard Business Review, 1983, May-June issue.
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3. Georgia Council on Economic Education
Globalization
Five Factors –
Increase in the Volume of Trade
Mobility of Labor
Changes in What is Traded
Changes in Technology
Changes in Trade Policies
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4. Globalization: driving forces
Dramatic growth in international trade.
Between , US imports grew from 4.2% to 13.8% of GDP. Exports grew from 4.9% to 9.3% GDP.
Since 1950, world trade has increased 20 fold.
Between , world trade doubled from $468b. to $827b.
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5. Globalization: driving forces
Mobility of Labor
In 2001, the US had 20 million immigrants, comprising 13.9% of the labor force—approximately twice as high as in the l970s
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6. Net Migration Flow by Region, 1995-2000
Globalization: driving forces
Net Migration Flow by Region,
Region
North America
Europe
Oceania
Africa
Latin America/Caribbean
Asia
Source: UN Population Division
Average Annual Net
flow of migrants
1,394,000
769,000
90,000
-447,000
-494,000
-1,311,000
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7. Globalization: driving forces
3. Evolution of Trade
Changes in what is traded
Changes in how trade is conducted
Growth of Multi-National Corporations
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8. Fortune Global 500, 2006 Top 10, ranked by revenues
Exxon Mobil
Wal-Mart Stores
Royal Dutch Shell BP
General Motors
Chevron
DaimlerChrysler
Toyota Motor
Ford Motor
ConocoPhillips
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9. Globalization: driving forces
4. Changes in Technology
Use of Internet and www
Increased sales of PCs—almost 200% between 2000 and 2006
eCommerce—from $130.2 billion in 1999 to $1.640 trillion in 2003
Impacts worker productivity
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10. Driving Forces of Trade
Communication Technology

12. Globalization: driving forces
5. Changes in Trade Policies
Freer trade—over 40 years, GATT lowered world-wide tariff rates from about 40% to 5%
Open economies
Trade agreements
NAFTA
ASEAN
European Union
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13. The Global Top 20— 2006 Rankings
1. Singapore
2. Switzerland
3. United States
4. Ireland
5. Denmark
6. Canada
7. Netherlands
8. Australia
9. Austria
Sweden
11. New Zealand
12. United Kingdom
13. Finland
14. Norway
15. Israel
16. Czech Republic
17. Slovenia
18. Germany
19. Malaysia
Hungary
Source:
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14. Blessing?
…or Curse?

15. Some controversial issues
Health Pandemics
Migration
Outsourcing/Off-shoring
Cultural Differences
Environmental Degradation
Trade Deficit
Global inequality: growth and poverty
Protectionism
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16. What does trade/globalization mean to me?

17. What it means to me…

19. Lilburn, Georgia Population 11,307…

20. International Businesses in Lilburn, Georgia
Company
Nation
Products
Binswanger Glass Company
Mexico
glass and glazing work
Bull HN Information Systems, Inc.
France
computer hardware/software
Ecotech Machinery, Inc.
China
grinding machines
Ferguson Enterprises, Inc.
United Kingdom
plumbing & heating equipment
Hailun Distribution
pianos
Shaw-Almex USA, Inc.
Canada
rubber vulcanizing
T & R Enterprise USA, Inc.
Taiwan
vinyl and rigid film
Thomas Concrete of Georgia, Inc.
Sweden
ready-mixed concrete

21. What it means to me…

23. A Global Transition
In the last 20 years we have seen a major transformation of global economies and wealth.
Numerous countries around the world have embraced free market principles.

24. Moscow, Soviet Union 1988

25. Moscow, Russia 2008

26. Old China

27. New China

28. Beijing, Los Angeles, Moscow 2009

29. Georgia Council on Economic Education
What is Globalization?
no commonly accepted definition
means different things to different people
a complex phenomenon which includes a variety of topics and issues
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30. Globalization defined
“a process of interaction and integration among people, companies and governments of different nations, a process driven by international trade and investments and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic developments and prosperity and on human physical well-being in societies around the world.”
Globalization101.org
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31. Globalization defined
“…the worldwide phenomenon of technological, economic, and cultural change as brought about by expanding facilities for intercommunication and interdependency between traditionally isolated cultures. The term refers to the overall integration, and resulting increase in interdependence, among global actors, be they political, economic, or otherwise.”
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32. Globalization defined
“Globalization refers to increases in the degree of integration between national economies. Integration encompasses all of the ways national economies are connected in international markets, including trade in goods, services and ideas; international movements of the factors of production; and coordination of public policies.”
Focus: Globalization, NCEE, 2006.
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33. Georgia Council on Economic Education
What is Globalization?
THEN
World trade has existed for centuries.
NOW
“Globalization is farther, faster, cheaper, and deeper.”
- Thomas Friedman
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