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Globalization

Globalization. 4.3 Changing Workplace. Globalization. Allows bigger businesses to market their products to the world, while competing with rivals in a fair, rule-based system. Rules written by WTO (World Trade Organization) .

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Globalization

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  1. Globalization 4.3 Changing Workplace

  2. Globalization • Allows bigger businesses to market their products to the world, while competing with rivals in a fair, rule-based system. • Rules written by WTO (World Trade Organization). • Drawn up by skilled trade experts; agreed to by elected officials from each country. • Rulebook is 30 000 pg’s long!

  3. Interesting Quote? “A rising tide lifts all ships”! Move over!

  4. Is Globalization a bad thing? • In the 1970’s, daily foreign exchange transactions averaged between 10-20 billion. • In 2000, the average daily activity reached more than $1.5 trillion U.S. • European Union incomes increased 1.5% more than if they were in single markets. Businesses compete for market share - what does that mean for us?

  5. Transformation of Poor nations • Hong Kong, Singapore, Taiwan, and South Korea • Transformed from poor 3rd world nations in the 50’s, to being on par with some of the richest industrialized countries. • Achieved enormous improvement in their standard of living by opening their borders to business and trade.

  6. North Korea • North Korea is more closed to trade than any other country. • Their per capita income has fallen by half, to around $600/ person. • Increased famine has decreased their avg. life expectancy by 6 years. So is communism a good thing?

  7. Further Support • Countries that trade together are less likely to go to war against each other. • Global competition leads to lower prices, leading to a rise in the standard of living. • Products and services are improved as competitors try to gain an edge over their competition.

  8. Let us Help • Many poor countries lack infrastructure; ports, roads, telecommunications, and power generation. • Openness to trade allows MNC’s to provide these countries with necessary infrastructure which leads to increased production of goods and services. To

  9. Canada and Globalization • Constant pressure to remove trade barriers. • If they are removed, many companies will become a ‘small fish in a big pond’; an attractive meal for the big fish already swimming there. • Facts: Canada is the 33rd largest country by population, but the 8th when it comes to volume of traded goods!

  10. Flip side to that Globalization coin

  11. “Take the Power Back” - RAGE • Who really has the power? Our elected governments or big business?

  12. Who really has the power? • Corporations can sue a foreign government under the NAFTA agreement. • Claim compensation for lost business based on a government decision. • Settlements are decided through a secret tribunal. Who makes up this tribunal? • Ex) Canada banned US based Ethyl Corp gasoline additive MMT, caused nerve damage. • Ethyl Corp received $13million of Canadian taxpayers money, b/c decision was reversed.

  13. Yanks view American Opinion (Business Week Survey): • 47% believe what is good for business is good for America. • 66% believe corporations place profit ahead of social, environmental, and product quality issues. • 72% believe big business has too much power. • 73% believe CEO’s are paid too much. • 74% believe large companies have too much political influence.

  14. Canuck View • According to Statistics Canada: • The richest 20% increased their wealth by 39% b/w 1984-1999. • 1999, richest 10% had a net worth of $703, 500, the poorest 10% had a –net worth with debts at $2, 100. • Half of all families held 94% of all wealth in the country, leaving the other half with only 6% • 1990’s: a decade of high growth, yet funding for social housing, health care, and education were all cut back.

  15. Rich getting Richer, poorer... • The gap between the rich and the poor is constantly growing Nike Example 1997, workers in a Nike shoe factory in Vietnam were paid $1.60 a day. • Cost of a modest meal was 0.70 cents. • Workers couldn’t afford to eat more than once a day! • Founder and Chairman of Nike had a net worth of $5.3 Billion.

  16. Our Environment... “The greatness of a nation and its moral progress can be judged by the way it treats its animals and the environment.” -Gandhi • 2001, World watch institute had counted nearly 240 environmental treaties worldwide. • However, a majority of these treaties are not enforced!

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