ICE – Globalisation .October 2014 – Session 3 The

Transcript:ICE – Globalisation .October 2014 – Session 3 The:
ICE – Globalisation .October 2014 – Session 3 The winners and losers of globalisation Main Drivers The drive for a global presence Economic integration and trade liberalisation have produced an unstoppable movement toward economic globalisation. Most economists applaud the trend, pointing to the modernisation and growing wealth that have resulted. But some countries have been left on the sidelines or have even been harmed by globalisation. What have been the positive and negative effects of the trend? And more importantly, since globalisation seems certain to continue, what can be done to make its benefits as widespread as possible? One other issue to consider Has soft power become as important as its hard power brother? Other drivers New markets partly driven by privatisation ( FDI’s, why and where?), deregulation, New Actors – MNC’s – some larger than small EU states New Communications and Global Networks - BBC World, CNC and - Al Jazeera English New and faster/wider access to knowledge New rules – human rights, the environment and growing public awareness The drivers - efficiency Developed countries have been especially affected by new information and communication technologies that boost efficiency but make some white-collar workers redundant Some food for thought? - 2/3 of international trade is accounted for by just 500 corporations. 40% of the trade they control is between different parts of the same MNC. Of the world's 100 largest economies, 50 are MNCs. Brief look at good v bad For Capital flows will be determined by comparative advantage of nations There will be a wide distribution of technology and 'technology' and 'skills' transfer Wider choice for consumers Dismantling of any trade barriers An increase in the level of world trade Increased access to economies of scale making products cheaper and more efficient to produce Trade determined fully by comparative advantage Increased worldwide economic growth More efficient global markets The bad? Against Investment flows will often ignore the less developed countries (LDC's) Labour costs are driven down and living standards may also be driven down Increased monopoly power for multinational corporations Increased urbanisation in many countries International capital is mobile, but labour is not Conditions of employment deteriorate and governments put under pressure by multinational corporations Less democratic control of economic forces as power moves to multinational corporations Financial instability Unsustainable development around the world Growth of consumerism which may not be appropriate to every country Winners Productive Capacity -