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Globalization

Globalization. Chapter 2, Sec 4 Social Studies. What is Globalization? . The process by which PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS OF THE WORLD become INTERCONNECTED or INTEGRATED Globalization as a term is new but the Process is not …

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Globalization

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  1. Globalization Chapter 2, Sec 4 Social Studies

  2. What is Globalization? • The process by which PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS OF THE WORLD become INTERCONNECTED or INTEGRATED • Globalization as a term is new but the Process is not … • It shows how the world has “shrunk” and how people, goods and information can be moved easily around the world

  3. Important to Note… • So, if you are asked to assess HOW EFFECTIVE globalisation has been… you have to ask yourself HOW MUCH INTERCONNECTION AND INTEGRATION HAS TAKEN PLACE BETWEEN PEOPLE, THEIR IDEAS and THEIR ACTIVITIES in DIFFERENT PARTS OF THE WORLD

  4. Examples of Globalization • The Internet • Selling local products (e.g. OCK Curry Puff) in the global market (e.g. Malaysia, China, Indonesia, etc) • Attending lectures by a British professor teaching in an American University via a web-conference in NUS

  5. Examples of Globalization People in different parts of the world: • Wearing Made in China clothes • Driving Made in Japan cars • Sipping Australian Wine while watching the LIVE telecast of a soccer match in Germany

  6. Pizza 12 • What do you think is the message of this video? • Is there a more serious issue behind the spoof? • How much globalization goes into our pizzas? • http://www.youtube.com/watch?v=yQE4j5Mxr1M

  7. Key Driving Forces of Globalization • Developments in transportation and communications • Enables globalization by encouraging it: • Transport systems are the means by which people, products and materials are transferred from one place to another • Communication systems are the means by which information is transmitted from place to place in the form of ideas, instructions and images

  8. Key Driving Forces of Globalization • Developments in transportation and communications • Transportation • Improvements in transport technology has “shrunk” the world • 19th century steam engine  20th century jet engine, large ocean-going vessels move people • Containerisation moves goods fast and cheap over long distances (ships  trucks)

  9. Key Driving Forces of Globalization • Developments in transportation and communications • Transportation • Increasing mobility of goods and people • Countries have built efficient and integrated transportation infrastructure (e.g. airports, seaports, railways, highways to facilitate movement)

  10. Key Driving Forces of Globalization • Developments in transportation and communications • Communications • Faster and more convenient communication • People all over the globe can communicate via telephone, e-mail, fax, video conferencing, etc • Satellite technology allows for simultaneous communication • Optical fibre systems can transmit large amounts of information and very high speeds

  11. Key Driving Forces of Globalization • Developments in transportation and communications • Communications • Internet has enabled consumers to access information instantly, conveniently and efficiently • Internet has transferred the way people communicate, do business, obtain information and purchase goods and services

  12. Key Driving Forces of Globalization • Developments in transportation and communications • Communications • Transnational Companies can operate as information from the head office can be easily and effectively transmitted to every branch office anywhere in the world

  13. Key Driving Forces of Globalization • Transnational Companies • Large global firms that operate in a number of countries and have production and service facilities outside the country of their origin • Example: Microsoft, Toyota

  14. Key Driving Forces of Globalization • Transnational Companies • TNCs set up operations in different parts of the world because: • Sourcing for new markets • Lowering cost of production • Production of different parts for products and assembly done in a variety of countries

  15. Impact of Globalization • Economic Impact • Improvements in Standards of Living • Increased Competitions among Nations • Investment and Market • Talent • Widening Income Gap between the Rich and Poor

  16. Impact of Globalization • Social Impact • Increased Awareness of Foreign Culture • Loss of Local Culture

  17. Impact of Globalization • Economic Impact • Environmental Degradation • Deforestation and Related Problems • Global Warming • Environmental Management

  18. Impact of Globalization

  19. Impact of Globalization • Economic Impact • Improvements in Standards of Living • As countries trade and open their doors to foreign investment, they earn more revenue • As a result, their citizens benefit from a higher standard of living • Free trade allows for a larger variety of foreign goods for the consumer to choose from • Better quality of life

  20. Impact of Globalization • Economic Impact • Increased Competition Among Nations • Investment and Market • Globalisation means more competition as TNCs source for the cheapest places to lower their cost of production • Governments have to compete with each other to attract these foreign corporations to invest • When China opened its doors to foreign investment in the 1970s, industrial cities like Suzhou, Wuxi and Dalian were formed

  21. Case Studies • Dalian Industrial Park (China) • Tanjung Pelepas Port (Malaysia) • Don Muang Airport (Thailand)

  22. Dalian (Northern China) • Well-developed infrastructure to support industrial growth • Seaport handles high passenger and container cargo volumes • Airport handles more than 88 routes • More than 10 banks and financial institutions • Renowned financial institutions

  23. Dalian (Northern China) • Foreign manufacturing companies enjoy lower taxation rates • Hi-Tech Industrial Park which encourages R&D in IT • Rapid growth stems from all these initiatives

  24. Dalian Industrial Park

  25. Dalian

  26. Dalian

  27. Dalian Port

  28. Dalian Port

  29. Tanjung Pelepas Port (M’sia) • Rival port along the Straits of Malacca • World’s biggest container shipping line, Maersk (Denmark) shifted its business from Pasir Panjang CT in Singapore to Tajung Pelepas • Tanjung Pelepas intends to compete with Singapore and move into the forefront of the transshipment business in SE Asia • The draw of Tanjung Pelapas its is cheaper rates and flexible operations

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