Globalization's Impact on Society: Challenges and Opportunities

1. Warm Up Countries seek to increase their people’s material well-being through development. This often involves establishing economic relationships with countries both near and far. It is a global process. Write a few sentences in response to the questions that follow. • What do you think of when you see the term globalization? • How do you think globalization affects you?

2. Tuesday, October 3, 2017 • Objective: Students will be able to evaluate the effects of globalization on our society. • Purpose: Globalization has significantly changed our society, which has yet to adequately adapt to these changes.

3. Globalization consists of several elements, often interconnected. Name two of the elements shown here, and explain why they have helped multinational corporations prosper.

4. What is Globalization? • Globalization: the increasingly tight interconnection of producers, consumers, and financial systems around the world • In the Middle Ages, the Asian spice trade connected Europe, Asia, and Africa • The voyages of Columbus led to the colonization of the Americas by European sea powers and to the development of the African slave trade • Imperialism in the late 1800s forged even closer links between the economies of Europe and the United States and those of Africa and Asia

5. This supply chain shows the steps that get a good from a producer in China to a consumer in the U.S. Tell which steps will cost more if the price of fuel rises. Explain why.

6. Challenges of Globalization • Closely-linked financial markets • Multinational corporations • Have the capital to introduce technology to developing countries, offer jobs, train the labor force, and provide the opportunity for related services and industries to develop • Some point out that most of the profits go not to the host LDC, but to the foreign owners of the corporation

7. Migration • International Migration • Each year, millions of workers leave less developed countries in the hopes of finding jobs in developed nations • Most immigrants come legally, with proper visas and proof that they have jobs waiting for them • Overall, immigration tends to cause economic growth in developed nations

8. Rapid urbanization has led to the development of densely populated slums in some cities, including São Paulo, Brazil’s largest city.

9. Migration • International Migration • remittances: cash payments sent by workers who have migrated to a new country to family members in their home country • brain drain: migration of the best educated people of less developed nations to developed nations Look at the remittances to Nigeria and Egypt. Which country’s economy is likely to benefit more, given that Nigeria has more than twice the population of Egypt?

10. In an era of globalization, the number of people migrating into the United States has risen dramatically. In 1970, there were 9.6 million foreign-born Americans. In 2010, there were 40 million. Most of the new immigrants came from Latin American and Asia.

11. Ongoing Issues • The developing world feels the need to have a greater voice in global issues • Environment Versus Development • Do we use resources now to promote development or save our resources for future generations? • This dilemma can be seen in the debate over what to do in places such as the Amazon rainforest

12. Challenges for the United States • A Changing Workplace • A growing percentage of American workers are foreign born, although most are accepting jobs that Americans born here do not want • Some companies provide the retraining that their workers need • When that is not the case, though, workers must take responsibility to learn needed skills. If they fail to do so, they risk being left behind as work moves in a new direction

13. Challenges for the United States • Globalization has made economic competition more intense • Consumers in developing nations are demanding a greater variety of products and services • At the same time, more countries are competing to meet this growing demand • Competition affects business relationships as well • One firm might have a long relationship with a local supplier. Yet, if a different supplier can offer lower prices or better service, the firm will make a deal with that supplier

14. Challenges for the United States • American companies need to stay competitive • Business managers face constant pressure to cut costs and increase profits • They must ensure high productivity to avoid wasting money and work • They need to be constantly on the lookout for better ways to respond to customer needs • Any new good or service can quickly be replaced by a newer one, developed by another entrepreneur hungry to succeed

15. Challenges for the United States • Education • Workers need to gain the technical skills that are necessary to access, understand, and use all sorts of information in the jobs that are available in the American economy today • The United States currently has millions of job openings, yet there are very few people who meet the minimum qualifications for these jobs • More jobs are requiring individuals to have some kind of post-high school education (trade school certificate, associate’s degree, bachelors degree)

16. List of Challenges Presented by Globalization • Competition from multinational corporations • Migration • Climate Change (Environment Versus Development) • Changes to the workforce • Closely-linked financial markets