Standards
Addressed by Lesson: CIVICS Standard
3.3 Students understand the domestic and foreign
policy influence the United States has on other nations
and how the actions of other nations influence politics
and society of the United States . (b,c,d) ECONOMICS
Standard 2.3 Students understand that
government actions and policies, including taxes, spending,
and regulations influence the operation of economies.
(d) Standard 3.1 Students understand that the
exchange of goods and services creates economic interdependence
and change (a – d). (a,e) HISTORY Standard
4.2 Students understand how economic factors have
influenced historical events. (d,e) Standard 4.3
Students understand the historical development
and know the characteristics of various economic systems.
Objectives
of Lesson: |
To
allow students to see the origin of the products
they buy and how their consumption habits affect
those who produce the products and also themselves
as consumers.
|
Vocabulary:
|
Globalization,
neoliberalism, imports/exports
|
Suggested
Resources to Obtain: |
-
Rethinking Globalization: Teaching
for Justice in an Unjust World ( Bill Bigelow
and Bill Peterson, Rethinking Schools
Ltd., 2002)
-
No Logo video by Naomi Klein (Available
at http://video.google.com/videoplay?docid=-8729144859101613213
)
|
Suggested
Time: |
60-90
minutes
|
Materials
Needed: |
-
Map of the world
-
Actual products such as coffee, sugar, bananas,
cell phone, walkman, stereo and corresponding
props for each product
-
Prop for oil and props for #1 energy consumer,
food consumer, and trash producer
-
Small post-it-notes
-
Handouts of boy sleeping while sewing baseballs
(from Rethinking Globalization, p. 1)
-
Copies of Rosa Martinez clothing manufacturer
advertisement (from Rethinking Globalization
p. 110)
-
Copies of ‘Two Young Women' dialogue by Deidre
Barry (from Rethinking Globalization,
p.152)
|
Attachments:
|
A.
Apparel Wages around the World
B.
Export Commodities by Country
C.
Top Five Exporters of Goods
D.
Summary of U.S. Imports
E.
Activity to Review Globalization Lesson
F.
Ten Chairs of Inequality Activity
G.
“What is Globalization?” Article
|
Lesson
Outline
Introduction
to Lesson:
Through
a map activity and other exercises, this first lesson
is intended to introduce students to the concept of
globalization and the global economy. It is intended
to have students understand that most of the clothes
that we wear, the food we eat and the products we consume
are not produced in the United States .
Icebreaker
/ Quick Activity to Assess Prior Learning: Go
around and ask each student to share one thing that
comes to mind when you say “globalization.” If this
is taught as an individual class, this is a good opportunity
to have students say their name as well. Share the definition
of economic globalization with them: When all the
economies are integrated and governed by a uniform set
of rules that is usually set by a body outside of the
country.
Activities
Activity
1:
Globalization Map Exercise
- Distribute
2 post-its to each student
- Put different
products on students' desks along with corresponding
prop.
- Ask students
to pair up and check each other's clothing tags and
to write down on a post-it the country where each
item was made. Have them put the post-its on the map.
Question: How much do you think a worker in
a garment factory gets paid? (23 cents/hr in China ,
37-50 cents/hr in Guatemala , 50-54 cents/hr in Mexico
)
- Ask students
to check where the electronic items were made and
have them post the corresponding prop on the map.
- Ask students
where they think the following items come from and
have them post the corresponding prop for each one
on the map:
Bananas (Top 5: Ecuador , Costa Rica , Colombia , Philippines
, Guatemala ; Others: Panama , Belize , Honduras )
Question: How much do you
think a banana worker earns per day? ($4.50/day in Guatemala
)
Coffee (Top 5: Brazil, Colombia, Vietnam, Côte
d'Ivoire, Mexico; Others: Guatemala, Costa Rica, Honduras,
El Salvador, Uganda, Nicaragua)
Question: How much do you
think a coffee picker earns per day? ($2.84/day in Guatemala
)
Sugar (Top 5: Brazil , European Union , Australia ,
Thailand , Cuba ; Others: Guatemala, Belize , Costa
Rica , El Salvador , Panama )
Question: How much do you think a sugarcane
worker earns per day? ($2.84/day in Guatemala )
Oil (Top 5: Canada , Venezuela , Saudi Arabia , Mexico
, Nigeria ; Others: Iran , Iraq , Saudi Arabia , Colombia
)
- Ask students
who they think are the #1 Waste Producer, Energy Consumer,
and Food Consumer (U.S.). Have them post the corresponding
props on the map.
Questions:
- What do
you notice about this map? (Most products we consume
come from outside the U.S. )
Put up 20% - 85% prop which reflects that 20% of
the world's population consumes 85% of its resources
Other interesting statistics:
The richest 500 people have the same wealth as the poorest
50% of the population.
The richest 3 people have more wealth than the 48 poorest
countries.
With what Europe spends on ice cream, there could be
drinking water for the developing world.
For everyone in the world to have access to basic services
(i.e. education, housing, food), $44B/year would be
needed – Europe spends $50B/year on cigarettes, and
the world spends $780B/year on militaries.
- Why are
most clothes produced outside of the U.S. ? (cheap
labor, lax environmental and labor standards)
- Who do you
think controls coffee and banana plantation? (large
landowners, foreign corporations)
- 2%
of population in Guatemala own 70% of the land
Explain
to the students that this map has come to function this
way because of globalization and also the economic model
called neoliberalism (if time permits and/or if grade
level is appropriate, explore the Recipe for Neoliberalism
in Lesson 2). Students should be able to see that globalization
has interconnected our lives with the lives of others
due to the products we buy. By the end of the activity,
students should be aware that their consumption habits
have an effect on the living/working conditions of people
across the globe. End the activity by discussing with
them their power as consumers, the fair trade movement
and the Ethical Trade Action Group.
Activity
2: ________________
No Logo Video
Explain
to the students that they will be watching an 8-minute
clip from the video No Logo based on the book
by the same title by Canadian author Naomi Klein. The
clip, No Jobs: the Discarded Factory, talks
about the impact of globalization on jobs both in the
United States and abroad. At the end of the clip, ask
students the following questions:
Do you agree with the point of view? Why or why not?
Did you learn anything new?
Was there information in the clip that surprised you?
Was there anything that you disagreed with? Why?
Activity
3:
Using
Photos as Triggers
Hand
out to the students or show on an overhead the image
of the young boy who has fallen asleep while sewing
baseballs. Students should be allowed to discuss the
photo in either small groups or with the whole class.
To begin the discussion or to help students continue
thinking about their reaction to the photo, specific
questions can be asked. (Handouts for Activities 3-5
are from Rethinking Globalization .)
What do you see? What story does the photo tell?
How does it make you feel?
Does the photo make you think about anything from your
own life and own experiences?
Is this a problem and, if so, why do problems like this
occur?
Are we responsible?
What can we do about it?
Students
may see a progression in their thinking and discussion
from personal reactions to the impact certain actions
have on society. Once again, students should see that
globalization has linked their lives to others such
as the little boy along with other sweatshop workers.
Activity
4:
Race to the Bottom Advertisement
Distribute
the Rosa Martinez clothing manufacturer advertisement
handout to students. Allow them to take some time to
see the differences in the two ads because they are
very similar. Elicit classroom discussion by asking
students the following questions.
What is different in each ad? (hourly wage has dropped
significantly from one year to the next)
Who benefits and who doesn't benefit? How and why?
Who reaped the benefit in the reduction of Rosa 's wages?
Ask
students if they have heard of the concept “race to
the bottom.” If not, explain to them that it is a scenario
where workers within a country or between countries
are competing for progressively lower wages. This allows
the corporation to maximize profit. Continue asking
the following questions:
How does the “race to the bottom” affect Rosa and the
rest of the workers?
Are the ads similar to ones you have seen in your own
life?
How can we help stop the “race to the bottom”?
Students
should see by the end of the activity that Rosa is being
marketed as a commodity and not treated as a human being.
Point out that words and sayings such as “reliability”
and “one of the best buys” are used in the ad just like
an ad for a computer, sewing machine, or other commodities.
Make sure to end the activity with students thinking
of ways that the “race to the bottom” can be reversed.
(This exercise may trigger discussion of how persons
are commodified in other contexts.)
Activity
5:
Two
Young Women
Distribute
the Two Young Women dialogue to each student and then
ask for two female volunteers. Have them come to the
front of the class. One student should read the bold
lines and the other the non-bold lines. After the dialogue
allow the two students to respond to what they felt
while reading their part. Ask them to describe the feelings
of their characters. Then open up the discussion to
the rest of the class so they can respond to the dialogue.
Direct the conversation so the students see how people
who are connected to the same events, processes, or
products experience these connections very differently.
Helpful
Hints/ Comments from Previous Facilitators:
If
this class is conducted at a Catholic school or at a
PeaceJam conference, be sure to bring additional clothing
items. Students wear uniforms at Catholic schools and
often wear PeaceJam t-shirts at the conference so this
ensures that not all of the clothing is from one country.
DJPC
2004
Attachment
A: Apparel
Wages around the World
Approximate
hourly base wages, as reported to the National Labor
Committee by workers in these countries.
UNITED
STATES - $8.42 (Bureau of Labor Statistics, January
1998)
Bangladesh - 9-20 cents
Burma - 4 cents
China - 23 cents (Living wage: 87 cents
an hour)
Colombia - 70-80 cents
Dominican Republic - 69 cents
El
Salvador - 59 cents (Living
wage: $1.18 an hour)
Guatemala - 37-50 cents
Haiti - 30 cents (Living wage: 58 cents
an hour)
Honduras - 43 cents (Living wage: 79 cents
an hour)
India - 20-30 cents
Indonesia - 10 cents
Malaysia - $1.00 cents
Mexico - 50-54 cents
Nicaragua - 23 cents (Living wage: 80
cents an hour)
Pakistan - 20-26 cents
Peru - 90 cents
Philippines - 58-76 cents
Romania - 24 cents
Sri Lanka - 40 cents
Thailand - 78 cents
Source:
UNITE! Stop Sweatshops Campaign www.uniteunion.org/sweatshops/cando/cando.html
Attachment
B: Export Commodities by Country
Belize
: sugar, bananas, citrus, clothing, fish products,
molasses, wood
Brazil
: manufactures, iron ore, soybeans, footwear, coffee,
autos
Burundi
: coffee, tea, sugar, cotton, hides
Chile
: copper, fish, fruits, paper and pulp, chemicals
Colombia
: petroleum, coffee, coal, apparel, bananas, cut
flowers (Two of Colombia's leading exports, oil and
coffee, face an uncertain future; new exploration is
needed to offset declining oil production, while coffee
harvests and prices are depressed.)
Cook
Islands : copra, papayas, fresh and canned citrus
fruit, coffee; fish; pearls and pearl shells; clothing
Costa
Rica : coffee, bananas, sugar; pineapples; textiles,
electronic components, medical equipment
Côte
D'Ivoire : cocoa 33%, coffee, timber, petroleum,
cotton, bananas, pineapples, palm oil, cotton, fish
(1999)
Ecuador
: petroleum, bananas, shrimp, coffee, cocoa, cut
flowers, fish
Egypt
: crude oil and petroleum products, cotton, textiles,
metal products, chemicals
El
Salvador : offshore assembly exports, coffee, sugar,
shrimp, textiles, chemicals, electricity
Guatemala
: coffee, sugar, bananas, fruits and vegetables,
cardamom, meat, apparel, petroleum, electricity
Haiti
: manufactures, coffee, oils, cocoa
Honduras
: coffee, bananas, shrimp, lobster, meat; zinc,
lumber
Hong
Kong : clothing, textiles, footwear, electrical
appliances, watches and clocks, toys, plastics, precious
stones
Iran
: petroleum 85%, carpets, fruits and nuts, iron
and steel, chemicals
Iraq
: crude oil ( Iraq 's economy is dominated by the
oil sector, which has traditionally provided about 95%
of foreign exchange earnings.)
Jamaica
: alumina, bauxite; sugar, bananas, rum
Mexico
: manufactured goods, oil and oil products, silver,
fruits, vegetables, coffee, cotton
Nicaragua
: coffee, shrimp and lobster, cotton, tobacco, beef,
sugar, bananas; gold
Panama
: bananas, shrimp, sugar, coffee, clothing
Peru
: fish and fish products, gold, copper, zinc, crude
petroleum and byproducts, lead, coffee, sugar, cotton
Saint
Lucia : bananas 41%, clothing, cocoa, vegetables,
fruits, coconut oil
Saudi
Arabia : petroleum and petroleum products 90% (
Saudi Arabia has the largest reserves of petroleum in
the world (26% of the proved reserves), ranks as the
largest exporter of petroleum, and plays a leading role
in OPEC.)
Sierra
Leone : diamonds, rutile, cocoa, coffee, fish
Uganda
: coffee, fish and fish products, tea; gold, cotton,
flowers, horticultural products
Venezuela
: petroleum, bauxite and aluminum, steel, chemicals,
agricultural products, basic manufactures (The petroleum
sector dominates the economy, accounting for roughly
a third of GDP, around 80% of export earnings, and more
than half of government operating revenues)
Vietnam
: crude oil, marine products, rice, coffee, rubber,
tea, garments, shoes
CIA
World Factbook 2002 , http://www.cia.gov/cia/publications/factbook/
and
http://www.cia.gov/cia/publications/factbook/fields/2049.html
Attachment
C: Top Five Exporters of Goods
Coffee:
1.
Brazil
2.
Colombia
3.
Vietnam
4.
Côte D'Ivoire
5.
Mexico
Bananas:
1.
Ecuador
2.
Costa Rica
3.
Colombia
4.
Philippines
5.
Guatemala
Cocoa
:
1.
Côte D'Ivoire
2.
Ghana
3.
Indonesia
4.
Nigeria
5.
Cameroon
Sugar:
1.
Brazil
2.EU
3.
Australia
4.
Thailand
5.
Cuba
Tea:
1.
Sri Lanka
2.
Kenya
3.
China
4.
India
5.
Indonesia
Petroleum:
1.
Canada
2.
Venezuela
3.
Saudi Arabia
4.
Mexico
5.
Nigeria
CIA
World Factbook 2002, http://www.cia.gov/cia/publications/factbook/
and
http://www.cia.gov/cia/publications/factbook/fields/2049.html
Attachment
D: Summary of U.S. Imports of Selected Goods by Country
of Origin
Bananas,
Cocoa , Coffee, Petroleum, Sugar (April 2004)
Green
Coffee Import: http://www.fas.usda.gov/../htp2/tropical/2000/03-00/cofgnimp.pdfs
The
U.S. imported 20,558,998 - 60kg bags of green coffee
beans in 2000.
Brazil
: 4,658,881 22.2%
Colombia
: 3,358,855 16.3%
Mexico
: 3,182,401 15.5%
Guatemala
: 2,147,500 10.4%
Vietnam
: 1,247,079 6.1%
Soluble
Coffee Imports : http://www.fas.usda.gov/htp/tropical/2001/03-01/cofslimp.pdf
The
U.S. imported 1,323,843 - 60kg bags of soluble coffee
in 2000.
Brazil
: 418,980 31.6%
Canada
: 270,647 20.5%
Netherlands
: 225,111 17.0%
Mexico
: 224,288 16.9%
Colombia
: 86,892 6.6%
Sugar
Imports: http://www.fas.usda.gov/htp/sugar/2000/May/usimports.pdf
U.S.
imported 1,668,643 metric tons of sugar in FY 1999
Guatemala
: 274,361 16.5%
Dominican
Republic : 190,596 11.4%
Brazil
: 180,203 10.8%
Philippines
: 153,912 9.2%
Colombia
: 99,240 6%
Petroleum
Imports: http://www.eia.doe.gov/neic/rankings/totimportsby_country.htm
U.S.
imported 9,140 thousand barrels of crude every day in
2002
Saudi
Arabia : 1,519 16.6%
Mexico
: 1,500 16.4%
Canada
: 1,445 15.8%
Venezuela
: 1,201 13.1%
Nigeria
: 589 6.4%
Cocoa
Imports: http://web.lexis-nexis.com/scholastic/document?_m=02129dcfc1738d27f3c64a60b05e6391&_ansset=B-WA-A-W-Y-MsSAYVW-UUA-AUYCWCUYAW-AUYWYBAZAW-BDCEUCVAA-Y-U&_docnum=3&wchp=dGLbVlz-zSkVk&_md5=a0f37f790135d134fd4fffdf4c2b4bb1
U.S.
imported 434,105 metric tons of cocoa in 2001
Indonesia
: 140,676 32.2%
Dominican
Republic : 27,974 6.5%
Ecuador
: 20,325 4.6%
Côte
D'Ivoire : 191,720 43.8%
Ghana
: 35,234 8.1%
Data
on Environmental Impact: http://web.lexis-nexis.com/scholastic/document?_m=dafd9afa353a44abf39c40a6bf4f9fb0&_ansset=B-WA-A-W-V-MsSAYVW-UUW-AUYCWCCUBA-AUYWYBCYBA-BDZUYVDVA-V-U&_docnum=1&wchp=dGLbVlz-zSkVk&_md5=36d4c1ec8305199f343a74b03562cb14
Per
Capita Municipal Waste Generation in kilograms per capita
for 1998:
United
States : 720
Australia
: 690
Canada
: 630
Japan
: 400
Spain
: 370
Mexico
: 300
Ecological
Footprint Data: http://www.ecouncil.ac.cr/rio/focus/report/english/footprint/ranking.htm
Hectares
of ecological capacity used per capita:
United
States : 10.3
Canada
: 7.7
Iceland
: 7.4
Germany
: 5.3
United
Kingdom : 5.2
France
: 4.1
Spain
: 3.8
Brazil
: 3.1
Mexico
: 2.6
Costa
Rica : 2.5
Colombia
: 2.0
Peru
: 1.6
Egypt
: 1.2
India
: .8
China
: .8
WORLD
AVERAGE USED 2.8
WORLD
AVERAGE AVAILABLE 2.1
Mexican
Foreign Debt $150 Billion (2000) http://www.cia.gov/cia/publications/factbook/geos/mx.html
U.S.
Foreign Debt $862 Billion (2000)
http://www.cia.gov/cia/publications/factbook/geos/us.html
Attachment
E: Activity for reviewing lesson on Globalization
- Goal
: To create a “Web
of Life” exploring various aspects of life and how
the current model of globalization is affecting that
area.
- Have students brainstorm
(either in large or small groups) aspects of life.
These aspects could be things like: farmers, families,
indigenous people, business, children, health, water,
the environment, rural communities, sports, migration,
education, etc.
- Choose four to five
of the most popular aspects, and break the class
into a corresponding number of small groups. Give
each small group an aspect, such as “children.”
Have them write that word in the middle of a sheet
of paper.
- Next, their goal
is to brainstorm and to make a “spider web” of how
that topic is connected to other parts of life,
in order to see how the areas impacted by globalization
are intimately interconnected.
- Then, once they
have brainstormed impacts, have them share back
with the large group (so the rest of the class can
fill in any holes).

Attachment
F: TEN CHAIRS OF INEQUALITY (developed
by United for a Fair Economy)
Evident from the globalization map exercise that
inequality between and among nations is becoming more
pronounced but so is inequality within nations.
The processes that get labeled as globalization
affect North Americans as well as those in the Third
World .
U.S. has by far the highest poverty rate
in the industrialized world and the most skewed distribution
of wealth.
Ask ten students to volunteer to line up in the front
of the room, seated in their chairs and facing the rest
of the class.
Explain that each chair represents 10% of the wealth
of the U.S. and each occupant represents 10% of the
population, thus when each chair is occupied by one
student, the wealth is evenly distributed.
What is wealth? What you own – your stereo, your house,
your car, savings like stocks and bonds, vacation homes,
any companies you own, yachts, villas, private jet airplanes,
etc., etc.
Ask students to estimate how much wealth an average
family of 4 would have if the wealth were equally distributed
in the U.S. - $250,000.
Ask them what it would feel like if every family could
have a $100,000 home, a $10,000 car and $140,000 in
savings.
Of course, we are nowhere near equal distribution: the
poorest 20% are in debt, the next 30% average only $5,000
in income.
Ask students at either end of the lineup which one wants
to represent the richest 10% and experience being rich.
Have students speculate how many chairs belong to the
richest student – (1998, the richest 10% owned 71% of
the wealth, therefore about 7 chairs) – ask six students
sitting nearest the richest student to give up their
chairs and move to the poorer end of the lineup.
Tell the standing students to sit on the laps of the
three students at the end.
Have the richest student relax, stretch out, lie down
along the chairs.
The arm represents the wealthiest 1% of families and
that share of wealth is equal to four chairs.
Ask the other nine students crowded around the three
chairs what life is like at their end (Tired of working
all the time, want a revolution (!), etc.)
Distribute the workers' stories (i.e. #1-5) to students
crowded around the three chairs, go through their stories
adding facts like over 40 million people in the U.S.
don't have health insurance, most of the factory jobs
have gone to other countries because of cheap labor,
10 million people in the U.S. are jobless.
Ask students if, in real life, they or people they know
are crowded into the bottom one or two chairs and what
that's like.
Give the student representing the richest 10% of the
population, worker story #6 (CEO of Wal-Mart, explain
that this scenario is for the richest 1% of the population).
What do those in power tell us to justify this inequality:
They work harder than we do.
It's our fault if we don't make it.
Select one student to represent the poorest 10%, “Wouldn't
there be more money for the rest of you if he/she weren't
ripping off the system for welfare? Who do we blame
for tough economic conditions – welfare moms, immigrants,
gays & lesbians, bad schools?”
Why don't you nine students get organized and force
redistribution of wealth?
Too busy working.
We can't change things.
We don't get along with each other.
Ask students to describe the super rich 1%, how often
do people move up the ladder?
Where does wealth come from? Why does our system concentrate
wealth in the hands of so few? What can we do about
it?
Let's take a look at what is happening outside of the
U.S. Ask for another student volunteer, give them worker
story #7 and have the student stand somewhere near the
ten chairs indicating that we are now in Mexico .
Workers'
Stories
1)
I'm a hotel housekeeper in Chicago . I've had to cut
my work schedule to four days a week following knee
surgery. Things are rough from paycheck to paycheck.
With the minimum wages I make, I can hardly afford medical
bills plus food and the rent.
2)
I'm a Navy veteran. I was a federal civil servant for
29 years, until the work I performed along with 404
federal workers at Fort McCoy , Wisconsin , was privatized
in 2002. The contract went to a British-owned firm.
Some workers were offered their jobs, but with lower
wages and fewer benefits. The people who lose their
jobs are the folks who were buying houses, boats and
snowmobiles, putting money and taxes into the community,
supporting the schools. These are people who have devoted
the best years of their lives to public service. Now
they've got to get a job at Wal-Mart where they are
treated like second-class citizens.
3)
My wife and I are holding off buying a home and having
a child because of concern about the rising cost of
health coverage and the uncertainty of future work.
Everyone says you have to spend money to keep the economy
moving, but we're afraid to create a problem and lose
everything we have.
4)
I grew up in Galesburg , Illinois , and started working
at the local Maytag refrigerator plant
after graduating from high school 19 years ago. Now
that Maytag has announced it's closing the plant in
a few years, my husband, also a Maytag assembler and
machinist, and I have sold our home and are looking
nationwide for manufacturing jobs to support our family
of four teenagers. I've never lived anywhere but Galesburg-
all my family is here. But we have no choice. We have
to go wherever there is work, somewhere we can make
a decent living.
5)
I'm from Denver , Colorado . I lost my manufacturing
job several months ago and have been unable to find
a new one. I ask for money at 14 th and Speer every
day so I can buy something to eat. There were 9,725
other homeless people in Denver in 2003.
6)
I'm the CEO of Wal-Mart. I made $21.7 million this year.
A worker in one of Wal-Mart's garment factories in China
have to work 48 hours a week for 37,869 years to make
my salary.
7)
I make clothing for American companies in a factory
in Tehuacan , Mexico . We all work Monday to Friday
from 8a.m. until 6 or 7 p.m. If they reject any of our
work, we end up leaving after 8 p.m., sometimes not
until 10. I only make $28 dollars a week; the government
says that a sufficient amount of food for my family
costs about $69 per week. My boss sometimes yells at
me and shoves me and if we get to work five minutes
late, they deduct 10 pesos from our pay. I always earn
the same amount of money each week, even if I work until
10 p.m. or later. When people try to organize unions,
they are fired. To make matters worse, we are only supposed
to go to the bathroom once a day because the production
supervisor gets mad if we go more and tells us that
we're there to do work.
www.faireconomy.org
Attachment
G: What is Globalization?
Globalization
is a process of interaction and integration among the
people, companies, and governments of different nations,
a process driven by international trade and investment
and aided by information technology. This process has
effects on the environment, on culture, on political
systems, on economic development and prosperity, and
on human physical well-being in societies around the
world.
Globalization
is not new, though. For thousands of years, people—and,
later, corporations—have been buying from and selling
to each other in lands at great distances, such as through
the famed Silk Road across Central Asia that connected
China and Europe during the Middle Ages. Likewise, for
centuries, people and corporations have invested in
enterprises in other countries. In fact, many of the
features of the current wave of globalization are similar
to those prevailing before the outbreak of the First
World War in 1914. But policy and technological developments
of the past few decades have spurred increases in cross-border
trade, investment, and migration so large that many
observers believe the world has entered a qualitatively
new phase in its economic development. Since 1950, for
example, the volume of world trade has increased by
twenty times, and from just 1997 to 1999 flows of foreign
investment nearly doubled, from $468 billion to $827
billion. Distinguishing this current wave of globalization
from earlier ones, author Thomas Friedman has said that
today globalization is “farther, faster, cheaper, and
deeper.”
This
current wave of globalization has been driven by policies
that have opened economies domestically and internationally.
In the years since the Second World War, and especially
during the past two decades, many governments have adopted
free-market economic systems, vastly increasing their
own productive potential and creating myriad new opportunities
for international trade and investment. Governments
have also negotiated dramatic reductions in barriers
to commerce and have established international agreements
to promote trade in goods, services, and investment.
Taking advantage of new opportunities in foreign markets,
corporations have built foreign factories and established
production and marketing arrangements with foreign partners.
A defining feature of globalization, therefore, is an
international industrial and financial business structure.
Technology
has been the other principal driver of globalization.
Advances in information technology, in particular, have
dramatically transformed economic life. Information
technologies have given all sorts of individual economic
actors—consumers, investors, businesses—valuable new
tools for identifying and pursuing economic opportunities,
including faster and more informed analysis of economic
trends around the world, easy transfers of assets, and
collaboration with far-flung partners.
Globalization
is deeply controversial, however. Proponents of globalization
argue that it allows poor countries and their citizens
to develop economically and raise their standards of
living, while opponents of globalization claim that
the creation of an unfettered international free market
has benefited multinational corporations in the Western
world at the expense of local enterprises, local cultures,
and common people. Resistance to globalization has therefore
taken shape both at a popular and at a governmental
level as people and governments try to manage the flow
of capital, labor, goods, and ideas that constitute
the current wave of globalization.
In
order to find the right balance between benefits and
costs associated with globalization, citizens of all
nations need to understand how globalization works and
the policy choices facing them and their societies.
From
http://www.globalization101.org/globalization/
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