Globalizzation

Questions:

1. What is Globalization and what are the ramifications of globalization?

Globalization is the process in which companies, people and ideas from different nations spread throughout the world, creating more contact between the world’s cultures, governments and economies. (The Levin Institute, 2015) The consequences of globalization differ from country to country. Globalization can sometimes have a positive outcome and sometimes it can have a negative outcome.

2. What are the main forces behind globalization? In another word, what factors have helped the globalization process?

New technology, decreasing transportation costs, and the liberalization of international trade are the main forces behind globalization. Technology such as radio, TV, phones or internet are a global standard. Futhermore, the cost of transportation has dropped. For example, as stated in the video, “The freight charges for a ton of coffee, delivered from Asia to Europe only accounts for 1% of its price”. Also, industrialized countries removed trade barriers, such as tariffs, import quotas, and bans worldwide. (Edeos, 2011)

3. What are the three main areas of globalization? Name and provide a summary for each area (use the examples mentioned in the video to support your statements).

Economy- The economy area of globalization is the most important area while also being the most affected area. International exports have increased in the last 60 years. As stated in the video, direct investments have increased from 13 billion US$ in 1970 to 1,800 billion US$ today. Companies are in search of new markets and opportunities for cheap production in countries with low wages a soft environmental regulation. (Edeos, 2011)

Politics- This area is more interdependent today. The most important problems, such as the financial crisis,