Business English Upper Intermediate U1S09 John Silberstein

Agenda Globalization

What is Globalization? Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation. An aspect of the world which has gone through the process can be said to be globalized.

Globalization What are the economic steps towards Globalization Family Economic Groups Tribal Economy Village Based Kingdom Based Feudal National International Global – Pre-technology Based Global - Technology Based

Globalization What are the economic steps towards Globalization Family Economic Groups Nomadic Family Groups Limited specialization Some interaction with other family groups Family Elder leadership

Globalization What are the economic steps towards Globalization Tribal Economy Merged Family Groups Increased specialization of skills Limited trade with other Tribal Groups Group picks or strong man assumes leadership

Globalization What are the economic steps towards Globalization Village Based Tribes merge or grow larger and settle in one place Development of agricultural based economy Increasing trading between villages Leadership picked from Elite class Increasing levels of specialization

Globalization What are the economic steps towards Globalization Kingdom Based Villages are either bonded together by a strong man or come together for mutual protection. The King/Duke/etc. has vassals who are bond for mutual protection. High levels of specialization and increased trade within the Kingdom and other Kingdoms.

Globalization What are the economic steps towards Globalization Feudal Highly developed Kingdoms: Kings, Vassals and Serfs are all highly interdependent. Complex intra-kingdom trade and increasing trade with external trade partners.

Globalization What are the economic steps towards Globalization National Late Feudal Period/Post Feudal – Kingdom is large and Monarch has limited power to control Economy. High Levels of labor specialization Highly developed middle class The inhabitants identify themselves as one people or nation. Increased range of trading partners to an increasingly larger area

Globalization What are the economic steps towards Globalization International Post Feudal Economy Increasing levels of technological development Business classes are driving trade to many different locations. Speed of transport increases speed of communications and opens up new trading possibilities

Globalization What are the economic steps towards Globalization Global – Pre-technology Based Industrial Revolution drives trade to increasingly larger areas of the globe. Huge increases in the speed of transport and of communications increases range of all possibilities Labor becomes highly specialized Knowledge increases and increasing speed

Globalization What are the economic steps towards Globalization Global – Technology Based Trade is now completely global Increases in Technology and transportation make things possible that were not imaginable a short time before

Globalization Driving Factors Population Food Technology (Specialization) Natural Resources

Globalization Characteristics of Today’s Global Marketplace Instantaneous Global Communications Areas of “Cheap” Labor Areas of High Standard of Living Low cost bulk transport Relatively low cost luxury goods transport Fall of Communism

Globalization Characteristics of Today’s Global Marketplace Instantaneous Global Communications Cell phones and the Internet. Consumers can order good from around the world, around the world.

Globalization Characteristics of Today’s Global Marketplace Areas of “Cheap” Labor Places in Africa and Asia, provide cheap labor which facilitates production and export to wealthier nations.

Globalization Characteristics of Today’s Global Marketplace Areas of High Standard of Living Wealthy Nations invest manufacturing products in poorer nations so that product costs are lower.

Globalization Characteristics of Today’s Global Marketplace Low cost bulk transport Low cost, bulk transport makes it possible to move goods across oceans inexpensively.

Globalization Characteristics of Today’s Global Marketplace Relatively low cost luxury goods transport Jets carry produce across the globe, wealthier nations can enjoy produce out of season at higher prices, but not unaffordable prices

Globalization Characteristics of Today’s Global Marketplace Evolution of Transport

Globalization Characteristics of Today’s Global Marketplace Fall of Communism With the fall of Communism, countries such as Russia and the Eastern Bloc countries are now worldwide trading partners, increasing overall market size and product possibilities.

Globalization Threats to the Global Economy Failed and Rogue States Global Warming Natural Disasters?