intro to globalization

The Economics of GlobalizationIntroduction : 

The Economics of GlobalizationIntroduction

Some interesting facts….Did you know? : 

Some interesting facts….Did you know? If you are one in a million: In China…there are 1300 people just like you In India… there are 1100 people just like you In US… there are 300 people just like you

Did you know? : 

Did you know? The 25% of the population in China with the highest IQs is greater than the total population of North America In India it is the top 28%...

Did you know? : 

Did you know? China will soon become the number one English-speaking country in the world. If you took every single job in the US today and shipped it to China…it would still have a labor surplus

Did you know? : 

Did you know? During this presentation: 600 babies will be born in the US 2440 babies will be born in China 3410 babies will be born in India

Did you know? : 

Did you know? The US Department of Labor estimates that today’s learner will have 10 to 14 jobs …by age 38. Also 1 out of 4 workers today is working for a company for whom they have been employed less than 1 year. More than 1 out of 2 are working for a company for whom they have worked less than 5 years.

Did you know? : 

Did you know? According to the former Secretary of Education Richard Riley…the top 10 jobs that will be in demand in 2010 did not exist in 2004. We are currently preparing students for jobs that do not yet exist…using technologies that have not yet been invented…in order to solve problems we do not even know are problems yet.

Did you know? : 

Did you know? Name this country… Richest in the world Largest military Center of world business and finance Strongest education system World center of innovation and invention Currency the world standard of value Highest standard of living

Did you know? : 

Did you know? England in 1900.

Did you know? : 

Did you know? The US is the 20th in the world in broadband Internet penetration (Luxembourg just passed us) Nintendo invested more than $140 million in research and development in 2002 alone… …The US federal government spent less than half as much on research and innovation in education

Did you know? : 

Did you know? The amount of new technical information is doubling every 2 years. For students starting a four-year technical or college degree, this means that…half of what they learn in their first year of study will be outdated by their third year of study. And it is predicted to double every 72 hours by 2010.

What does it all mean? : 

What does it all mean? The world shifts! Our question: What is the economics behind all these changes?

Slide 13: 

What is globalization?

Globalization : 

Globalization The simultaneous opening up of the world economy Free trade, flows of labor and capital The integration of markets is due to the telecommunications revolution and the development of cyberspace

A Hindu fable by John Godfrey Saxe : 

A Hindu fable by John Godfrey Saxe “Parable of the blind man and the elephant” How will a blind man know what to believe and what not to believe? How do we understand globalization? The morale of this story applies directly to the globalization debate. There is not a complete picture of globalization

Slide 16: 

Nicholas Sarkozy – French president “Globalization is a fact. It would be as pointless to deny it or oppose it as to challenge the law of gravity or to stop the movement of the clouds. The question therefore is not whether globalization is good or bad. It is whether we are prepared for it.”

For some it’s modernized nirvana : 

For some it’s modernized nirvana Free trade creates wealth The spread of ideas and information promotes democracy and awareness of human rights norms. The human experience is enriched by the sharing of cultures, foods and customs

For others it’s a curse : 

For others it’s a curse The McDonaldization of the world The conquest of American-style capitalism The dictatorship run by unelected bureaucrats in the World Trade Organization and the International Monetary Fund.

A little bit of history…… : 

A little bit of history…… In 1492 a German geographer named Martin Behaim created one of the first globes But globalization began long before Behaim: With our ancestors’ search for a better life …(Ancient human migrations took place 100,000 to 50,000 years) The voyages of Christopher Columbus to the Americas in 1492 and Vasco da Gama to India in 1498 – examples of the beginnings of the globalization

So the beginning of globalization goes back in time….. : 

So the beginning of globalization goes back in time….. How did it evolve to what we see today? Very interesting subject! To learn more: “The History of Globalization” Dr. Tyler Priest

Why Globalization? : 

Why Globalization? In some ways, there have been real and tangible benefits to this reconnecting of humanity

Why against globalization? : 

Why against globalization? Growth has come with inequality : Trade is not on a level playing field. Rich nations’ farm subsidies hurt poor farmers in the developing world. 2.8 billion people live on less than $2 a day. They have no electricity, no phone The richest 1% of the world’s people receive as much income each year as the poorest 57%.

Why against globalization? : 

Why against globalization? Huge costs of Globalization The cost of global reconnection has been steep. The risks of HIV/AIDS, terrorism, nuclear war, environmental disaster, and computer viruses have all grown with the rapid movement of people, goods and information. SARS – A virus flying on a jet plane: NOVEMVER 2002 China – Feb 2003 Hong Kong – April 2003 the whole world – spread 32 countries

The globalized world is likea small boat : 

The globalized world is likea small boat We cannot “afford to ignore the condition of our fellow passengers on this little boat. If they are sick, all of us risk infection. And if they are angry, all of us can easily get hurt.” - Kofi Annan Secretary General of the United Nations