Globalization Presented By: Syed Ali Zakir Hashmi – Maham Asif Baig

5 ways to understand the Concept of Globalization 1.Look at the broader picture 2.Note the similarities around the world particularly in the marketing sphere 3.Take a close look at the events around you 4.See how communication bring about globalized approaches to human affairs. 5.Understand that diversity forms part of the concept of globalization

Definition of Globalization Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.

Brief History Since Western “ discovery ” of Americas 1492 – Christopher Columbus “Old World” (Europe, Asia, Africa) meets “New World” Literally “global” relations: - trade, war, migration, etc.

Brief History Thomas L. Friedman divides the history of globalization into three periods: divides the history of globalization into three periods: Globalization 1 (1492–1800), Globalization 2 (1800–2000) and Globalization 3 (2000–present). He states that Globalization 1 involved the globalization of countries, Globalization 2 involved the globalization of companies and Globalization 3 involves the globalization of individuals. Archaic Globalization Proto Globalization Modern Globalization

Types of Globalization Economical Globalization. Cultural Globalization. Political Globalization. Environmental Globalization. Criminal Globalization. Military Globalization. Financial Globalization.

Aim of Globalization Global Business Organizations International Trade Trade agreements, economics blocks and free trade zone Tax heavens International Tourism International Sports

Advantages of Globalization Peaceful relations. Free Trade. Global Connectivity. New Markets. Employment Opportunities. Quality products. Environmental Protection.

Advantages of Globalization Good for Developing Nations. Equality for All. Ease of Transportation. Travel and Tourism. Unity and Diversity. External Borrowing.

Disadvantages of Globalization Health Issues Loss of culture Uneven Wealth Distribution Environment Degradation Disparity Cut-throat Competition Conflicts

Disadvantages of Globalization Monopoly Inflation Macroeconomic Instability Trade Imbalances Unemployment

Impact on Developed & Developing Countries Globalization has deepened the interdependence of nations, and created an imbalance of power politics. Increasing pressures of how to safeguard the national economic security. The International Trade is what we now call “Globalization”. Trade Liberalization and Inequality Privatization Financial Liberalization, Inequality and the Financial Crisis

Impact on Developed & Developing Countries Economic globalization generally means integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization promises prosperity through division of labor and specialization based on comparative advantage. Some countries like the US have faced win-lose situations, China have faced win-win situations, and many countries from Africa and South Asia have faced lose-lose situations.

Impact on Developed & Developing Countries The poorest 40 percent of the world’s population — 2.5 billion people, living on less than $2 a day. The least developed countries' share of the world merchandise exports fell from nearly 3 percent in 1950 to below 1 percent in The least developed countries contributed 0.69 percent of global output in 2005 even though they accounted for almost 12 percent of the world’s population. The number of people living in poverty in the least developed countries will increase from 334 million in 2000 to 470 million in 2010.

Impact on Developed & Developing Countries Agriculture forms the basis of many of these economies, underpinning their food security, export earnings and rural development. The removal of trade barriers, rising demand for higher quality products and higher standards, hamper the competitiveness of producers in developing countries. Most of the developing countries are at an early stage of agricultural technology. Average tariffs applied to developing country products are often considerably higher than those applied to other developed countries. The temporary movement of lower skilled labor can offer positive benefits for developing countries, specifically in relation to skills upgrading, brain circulation, and remittances

The Role of WTO Lifting of the Protectionist Barriers Liberalization of the international trade, by abolishing the tariff and non-tariff obstacles to trading.

Globalization’s Impact on Pakistan Trade Liberalization policy adopted under the Structural Adjustment Program of IMF. Unemployment and Poverty Health Education

Conclusion The current trade regime should not be partial towards developed nations and should embrace the concerns of developing countries. The current global trading rules under the WTO have to be shifted from “liberalization” mindset to “development” mindset.

Thank you!