###Globalisation PowerPoint Presentation###

Integration of Economies

• The increasing reliance of economies on each other
• The opportunities to be able to buy and sell in any country in the world
• The opportunities for labour and capital to locate anywhere in the world
• The growth of global markets in finance

• Stock Markets are now accessible from anywhere in the world!

Integration of Economies

• Made possible by:
• Technology
• Communication networks
• Internet access
• Growth of economic cooperation – trading blocs (EU, NAFTA, etc.)
• Collapse of ‘communism’
• Movement to free trade

Trade versus Aid?

• Benefits of Trade:
• Increased choice
• Greater potential for growth
• Increase international economies of scale
• Greater employment opportunities

• Trade has led to massive increases in wealth for many countries.

Trade versus Aid?

• Disadvantages of trade:
• Increase in gap between the rich and the poor
• Dominance of global trade by the rich, northern hemisphere countries
• Lack of opportunities for the poor to be able to have access to markets
• Exploitation of workers and growers

• How far does trade help children like these?
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Corporate Expansion

• Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others.

• No matter where you go in the world, certain businesses will always have a presence

Corporate Expansion

• Characteristics:
• Expanding revenue
• Lowering costs
• Sourcing raw materials
• Controlling key supplies
• Control of processing
• Global economies of scale

• Controlling supplies may be one reason for global expansion.

Corporate Domination

• Key Issues:
• Damage to the environment?
• Exploitation of labour?
• Monopoly power
• Economic degradation
• Non-renewable resources
• Damage to cultures

• Shell and Nike’s activities have come under severe criticism in some quarters.

Other Issues:

• Accountability of Global businesses?
• Increased gap between rich and poor fuels potential terrorist reaction
• Ethical responsibility of business?
• Efforts to remove trade barriers

• There are plenty of people who believe that globalisation is a negative development, protests at the G8 summits, pollution, poverty and concern over GM crops are just some of the issues.
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