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2 Section 2 Globalization © EMC Publishing, LLC

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

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

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

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

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

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

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

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

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