1. Lesson Objectives All students will understand Most students will
The concept of globalisation
Most students will
be able to describe characteristics of developed, emerging and developing economies
Some students will
Understand the complexities of trade-offs faced by governments when considering benefits of globalisation
Progress Arrow

2. What is Globalisation?
The process by which the world is becoming increasingly interconnected as a result of increased international trade. Countries are becoming more inter-dependent and economies more closely connected.

3. Features of globalisation
increased international trade
businesses operating in more than one country
Foreign Direct Investment
greater dependence upon the global economy
freer movement of goods, services, people and capital
Trade liberalisation – limiting and reducing barriers to trade such as tariffs and quotas
Capital flow liberilasation – making flow of money easier between countries
emergence of global brands such as McDonaldsand Starbucks.

4. Benefits of globalisation
Inward investment by foreign businesses helping to provide new jobs, skills, infrastructure and money for education and healthcare
Increased market size, more potential customers, revenue & profit
increased market size, leading to economies of scale
access to a greater, and potentially cheaper source of raw materials and labour for businesses
a greater range of goods and services for consumers, at potentially cheaper prices.

5. Task
Questions pg 62

6. Disadvantage of globalisation
no guarantee that the wealth from inward investment will benefit the local community, since profits may be sent back to where the business is based
multinational companies, with huge economies of scale, may drive local companies out of business
industry may thrive in developing countries at the expense of developed countries
if it becomes cheaper to operate elsewhere, multinational companies may close their operations in host countries, making people redundant

7. Ethical issues
There are many ethical issues relating to globalisation eg
that while globalisation is helping to create more wealth in developing countries, it is not helping to close the gap between the world’s richest and poorest countries
globalisation may threaten global cultural diversity and damage local economies, traditions and languages
an absence of strictly enforced laws may mean that multinational companies pollute the environment or exploit the workforce in developing countries or avoid paying taxation.

8. China and Russia
Pg 64 – summarise key points

9. Task
Exam style questions pg 65

10. Developed, emerging or developing?
Developed economies have high per capita incomes, literacy levels and life expectancy. Typically have large service sectors and good access to health and welfare provision.
Developing economies have generally low incomes per capita, weak education and welfare systems, abundant cheap labour and little capital investment.
Emerging economies have rising levels of growth and capital investment, increasingly productive secondary and tertiary sector and international trade is growing rapidly.

11. Indicators of growth GDP per capita Literacy Health
Human Development Index
Ranking based on NI per capita (and its purchasing power), life expectancy and years of schooling.
Consider table 14.3 pg 68

12. Mean and Median Incomes
Consider and summarise example pg 69

13. BRIC’s Brazil, Russia, India and China
Consider and summarise since year pg 67
Investigation task – Is this growth pattern set to continue in the BRIC’s?

14. Task
Exam style questions pg 70