Globalisation… Done by: Ong Sean Evan Tan YU YUAN Eugene Toh

Content Globalisation o What is it? Effects o Social o Economic o Political Useful reading links :D QUIZ!!

What is GLOBALISATION? Spreading of ideas and businesses Increasing connectivity Interdependence of markets

EFFECTS Social Economical Political

Social Benefits: - Interconnectedness through trade - People, goods and information can be moved easily - Improvement in communication - Increase in awareness of others culture - surfing internet - watching foreign movies

Social Disadvantages: - Loss of one's culture - thanks to Macs and pop culture -Environmental Degradation

Economical Increase revenue countries earn Improve transportation, health, education etc Leads to a higher standard of living

Economical Wider selection of goods Increased competition among nations (eg.Bangkok airport) - In investments ( eg. China) - In talents

Economical Lead to shrinking population Attracting back talent Widening income gaps between poor and rich(individuals and countries)

Political - Strained ties between countries - competing for investments -China

Case Study: Advantages - China From China experienced an average economic growth of 8.5% per year. All material and non-material indicators show a rise in income, quality of live and standard of living. There has also been an increase in overall education level and overall reduction in poverty

Case Study: Advantages – China Trade During the past 30 years the average export levels have increased by 17% annually It increased opportunities for economic growth through international trade and foreign investments. Beneficial to economy

Case Study: Advantages – China Finance Globalization has improved China’s weak and inefficient banking system by providing competition with the rest of the world Thus the banks must improve their standards to match the standards of the global economy, to attract and protect foreign involvement As a result China’s banks now have improved efficiency and competitiveness

Case Study: Advantages – China Investment China had always had high levels of personal saving due to its lack of adequate social safety net Globalization cause increase in trading thus overall income levels have increased and the amount of saving is also raised. Increase in saving means that there will be more investment from the bank in local businesses, as more capital is available

Case Study: Disadvantages – Contract Farming Contract farming is organizing the commercial agricultural production of both large – scale and small –scale farmers, as there is a danger that small- scale farmers will find difficulty in fully participating in the market economy The buyer/contractor supplies all the material inputs and technical advice required for cultivation to the cultivator

Case Study: Disadvantages – Problems Contract Farming Manipulation of quotas and quality specification Poor management leading to over production. Or sponsors having too high an expectation of their produce and thus are vulnerable to market crashing. Certain managers also temper with the quality of the produce in order to reduce purchase, while still fulfilling the quota. The contracts are usually vague and thus even if the terms are flouted the perpetrator will still get away scot-free.

Case Study: Disadvantages – Problems Contract Farming Corruption Dubious/fly-by-night companies who are scammers. They persuade the government to create a contract farm, then sell it for high profits. Farmers who invested in this contract farm stand to lose everything.

Case Study: Disadvantages – Problems Contract Farming Domination by a monopoly Allowing only one purchaser of a certain produce encourages monopolistic tendencies Very easy to crash So the small scaled farmers, although have a chance for a livelihood, have to be wary of the risks involved with contract farming, which was brought about through globalization

QUIZ!! 1. What is globalization? a) Spreading of ideas b) Spreading of businesses c) Increasing connectivity d) Interdependence of markets e) All of the above f) None of the above

QUIZ!! From the social aspect of globalization, name two benefits that have been mentioned? In the economical aspect of globalization, what is one example which we presented? In terms of the political aspect of globalization, why is there strained ties between countries? Please state one example as well

ANSWERS!!

THANK YOU!!!