Title: Cat for Lesson 2 - Globalization
Course: 383-303-FD-55-01 • International Economics

Test info catégorie

Question

Define globalization.

Entrez votre réponse ci-dessous.
Feedback: Globalization refers to the way large corporations manage their research and development activities, finance their investments, organize their production and distribution, and recruit their staff worldwide.
Feedback: Globalization refers to the way large corporations manage their research and development activities, finance their investments, organize their production and distribution, and recruit their staff worldwide.

Question

State five of the six characteristics of globalization mentioned in the Textbook.

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Feedback: The six characteristics of globalization are: - Rapid growth of trade, even during economic downturns. - Concentration of activities within the triad. - Spreading of North American or European consumption patterns. - Deregulation of capital markets. - Relocation of companies or offshoring. - Increased number of strategic alliances through mergers or acquisitions.
Feedback: The six characteristics of globalization are: - Rapid growth of trade, even during economic downturns. - Concentration of activities within the triad. - Spreading of North American or European consumption patterns. - Deregulation of capital markets. - Relocation of companies or offshoring. - Increased number of strategic alliances through mergers or acquisitions.

Question

Choose and describe two characteristics of globalization.

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Feedback: Globalization leads to major structural changes, characterized by: - Rapid growth of trade, even during economic downturns. - Concentration of activities within the three groups called the triad (United States-Japan-European Union). - Spreading of North American or European consumption patterns. - Deregulation of capital markets. - Relocation of companies or offshoring. - Increased number of strategic alliances that lead to mergers or acquisitions. You can read descriptions of each of these characteristics in the Textbook.
Feedback: Globalization leads to major structural changes, characterized by: - Rapid growth of trade, even during economic downturns. - Concentration of activities within the three groups called the triad (United States-Japan-European Union). - Spreading of North American or European consumption patterns. - Deregulation of capital markets. - Relocation of companies or offshoring. - Increased number of strategic alliances that lead to mergers or acquisitions. You can read descriptions of each of these characteristics in the Textbook.

Question

Is globalization responsible for rising inequality in the world?

Justify your position.

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Feedback: Students may defend either viewpoint. The Textbook does not promote a particular viewpoint, but contains material to support either position. In particular, those who are against globalization will find the following points: 1) Globalization contributes to increased disparities in certain industrialized countries (Canada, United States, European Union) and in certain developing countries (Brazil, Argentina). 2) Globalization has made way for the development of neo-liberal ideas where markets are given greater freedom. This may cause disparities in wealth and reduced budgets for social services. 3) Globalization leads to greater instability in the capital markets due to greater mobility of capital. 4) It leads to increased competition, which may be a detriment to certain categories of people (for example, low-paid workers). Those who are in favour of globalization will find the following points: 1) Globalization allows for better distribution of wealth in the country. Some groups are achieving greater development, particularly in China. 2) Over the past 20 years, the welfare state has often been dismantled in industrialized countries. For some, this is an advantage, as it gives greater play to the market and to those prepared to take management initiatives, and it eliminates competitors who are less capable. 3) Some developing countries have performed very well and increased their standard of living. They are called newly industrialized countries (NICs) (Thailand, Indonesia, Philippines, Brazil, Argentina, Chile, etc.). To succeed, some countries have focused on industrialization to specifically produce the goods that they previously imported. 4) The former Eastern European countries are currently in transition: they decided to change their economic system, opening the way to greater participation in the globalization movement. After a major upheaval, many of them reaped the benefits of globalization. After studying the last two lessons and discussing world trade and capital trade, we will have the opportunity to further examine issues specifically related to developing countries.
Feedback: Students may defend either viewpoint. The Textbook does not promote a particular viewpoint, but contains material to support either position. In particular, those who are against globalization will find the following points: 1) Globalization contributes to increased disparities in certain industrialized countries (Canada, United States, European Union) and in certain developing countries (Brazil, Argentina). 2) Globalization has made way for the development of neo-liberal ideas where markets are given greater freedom. This may cause disparities in wealth and reduced budgets for social services. 3) Globalization leads to greater instability in the capital markets due to greater mobility of capital. 4) It leads to increased competition, which may be a detriment to certain categories of people (for example, low-paid workers). Those who are in favour of globalization will find the following points: 1) Globalization allows for better distribution of wealth in the country. Some groups are achieving greater development, particularly in China. 2) Over the past 20 years, the welfare state has often been dismantled in industrialized countries. For some, this is an advantage, as it gives greater play to the market and to those prepared to take management initiatives, and it eliminates competitors who are less capable. 3) Some developing countries have performed very well and increased their standard of living. They are called newly industrialized countries (NICs) (Thailand, Indonesia, Philippines, Brazil, Argentina, Chile, etc.). To succeed, some countries have focused on industrialization to specifically produce the goods that they previously imported. 4) The former Eastern European countries are currently in transition: they decided to change their economic system, opening the way to greater participation in the globalization movement. After a major upheaval, many of them reaped the benefits of globalization. After studying the last two lessons and discussing world trade and capital trade, we will have the opportunity to further examine issues specifically related to developing countries.