1. © EMC Publishing, LLC

2. 2
Section 2
Globalization
© EMC Publishing, LLC

3. What Is Globalization?
Globalization is a process by which individuals and businesses in any part of the world are much more affected by events elsewhere in the world than they used to be.
Growing integration of economies
© EMC Publishing, LLC

4. Movement Toward Globalization
took many years.
end of the Cold War
Advances in technology
© EMC Publishing, LLC

5. Exhibit 2-3 from the Student Text
© EMC Publishing, LLC

6. The Costs and Benefits of Globalization: Benefits
new people and products.
Income per person increased
developing countries
reduced hunger and child labor
increased life expectancy.
© EMC Publishing, LLC

7. The Costs and Benefits of Globalization: Costs
greater discrepancy between wealthy nations and poorer ones.
Loss of jobs through offshoring
© EMC Publishing, LLC

8. The Continuing Globalization Debate
Is offshoring bad for the United States?
Globalization does not affect everyone in the same way.
© EMC Publishing, LLC

9. Globalization and the Financial Crisis
Some argue that the financial crisis has placed a damper on globalization forces.
Spread the Great Recession around the world
© EMC Publishing, LLC

10. Three Fallacies About Globalization
One fallacy is that a country is always better off if it exports many goods and imports very few goods;
How much does it produce
Another is that some countries will be made better off economically,
but this is not the case.
All countries can be made better off through globalization. .
© EMC Publishing, LLC

11. Three Fallacies About Globalization (cont.)
business will gravitate toward the countries where wages are low.
This belief overlooks the fact that workers in some countries receive higher wages than those in other countries because their productivity is higher.
Wages in poor countries increase over time
© EMC Publishing, LLC