Choose the best answer for the multiple choice questions.

1. Any private organization involved in activities that have transnational implications

a) Globalization

b) NGO (Non-Governmental Organization)

c) Developing Nations

d) IMF (International Monetary Fund)

2. Movement of people from one country to another, for purposes of permanent or long-term relocation. Nations typically have policies restricting or governing immigration, as a means of population control and national security. Immigration controls can also have cultural goals.

a) Immigration

b) Inflation

c) Deflation

d) Devaluation

3. An adjective referring to relations or actions involving more than one nation state. For instance, the phrase " America's international relations" refers to the foreign policies and engagements of the U.S. with the rest of the world. An international organization or an international agreement involves several countries.

a) G-8 Nations

b) Inflation

c) Multinational

d) International

4. Matters of etiquette and ceremony followed by heads of state, foreign ministers, ambassadors, and the diplomatic corps in interactions with other nations' representatives.

a) Protocol

b) State

c) Customs

d) OPEC

6 Decide if the following definitions are True or False.

1. Diplomatic Corps = The practice of nation states (or multinational groupings) negotiating with each other over matters of interest. The U.S. Secretary of State directs the United States' diplomatic efforts, on behalf of the President.

2. Customs = Fees, tariffs, tolls, or other duties required and collected by a nation state on imports or exports of goods.

3. Foreign Policy = Donations of money, goods, or services from one nation to another. Such donations can be made for a humanitarian, altruistic purpose, or to advance the national interests of the giving nation. While in total dollars the United States gives a large amount of foreign aid, as a percentage of U.S. gross domestic product U.S. foreign aid appears stingy compared with the aid given by other industrialized nations.

4. Brinksmanship = In international affairs, engagement of two nation states. A bilateral treaty, for instance, is a treaty between two nations. [95]

Globalization: Benefits and Perils

LEAD-IN

Generate ideas on the following issues.

Some people say that the globalization processes have a positive impact on the country and its development, while other people say that the impact of globalization is negative. To what extent do you agree or disagree with the opinions provided? Prove your point, using relevant example.

INFORMATION-ACCUMULATION: LISTENING

1 Listen to a radio programme about ‘Globalization ’ (Noam Chomsky ) and be ready to discuss its main idea and detail: audio at www.chomsky.glob.org [96].

Write an overview of the text and express your opinion on the ideas expressed (300-350 words).

INFORMATION-ACCUMULATION: READING

Before you read.

Look at the title of the article. What do you understand by the term ‘globalization’?

Decide which of the following expresses facts or opinion.

The spread of ideas, information and perceptions which leads to cultural and social changes may influence risk behaviours.
Globalization is generally understood to include two interrelated elements.
Globalization relates to the increasing interconnectivity of countries and communities.
Interdependence is often used synonymously with globalization, but they are different.
Globalization may undermine the ability of states to determine their own affairs.

Skim the text quickly and say if the author is mainly positive or negative about globalization?

Globalization

Globalization, or the increased interconnectedness and interdependence of peoples and countries, is generally understood to include two interrelated elements: the opening of borders to increasingly fast flows of goods, services, finance, people and ideas across international borders; and the changes in institutional and policy regimes at the international and national levels that facilitate or promote such flows. It is recognized that globalization has both positive and negative impacts on development.

Globalization, although not a new phenomenon, has increased rapidly in recent years. It has been driven by technological advances and the reduced cost of making transactions (exchanges) across borders and distances, as well as the increased mobility of capital. These forces mean that globalization not only consists of economic activity, but also extends to political, cultural, environmental and security issues, and relates to the increasing interconnectivity of countries and communities.

Economic globalization is generally associated with neo-liberal policies. Such policies include reductions in tariffs, the reduction or elimination of restrictions on foreign investment, and the inclusion of services such as banking and insurance in trade regimes.

While precise definitions of globalization differ, it is generally used to describe a process of growing interdependence that represents a fundamental change from a world of individual and independent states to a world of state interdependence. As a result national boundaries, but also economic and cultural boundaries, are becoming less important. Interdependence refers to the relationship between different actors (states, societies) that are connected in such a way that if something happens to one, all will be affected. This term is also used to describe the interrelationship between economic and non-economic variables, or when one nation's welfare depends on another's or a group of others, or vice versa. Interdependence is often used synonymously with globalization, but they are different.

Globalization has resulted in massive:

Economic change: trade liberalization, deregulation, expansion of the global market place
Political change, redistribution of power from states to interstate bodies and the growth of global civil society
Social and cultural change
Technological change, including improved global telecommunications and transport links.

These changes are sometimes described in terms of:

· Spatial components, such as international trade, global levels of political representation, global communication and impacts of increased cultural exchange.

· Temporal components, such as the increased speed of transactions, travel, political change, resource depletion and social mobilization.

· Cognitive components, such as the spread of neo-liberal economics, democratic principles and support for human rights.

The increases in economic cross-border flows that have resulted in more “open” economies are a result, in part, of World Trade Organization, International Monetary Fund and World Bank policies. All this change is supported by a new international architecture - from the United Nations and international organizations, such as World Health Organization, to economic blocs such as the European Union, the Organization of Petroleum Exporting Countries and the North American Free Trade Agreement. For some critics, this architecture supports and facilitates the benefits of globalization, but fails to limit its worst excesses as it drives forward a neo-liberal agenda that works to benefit the richer, more powerful nations.

A more positive view of globalization is that it has the potential to boost productivity and living standards everywhere because a globally integrated economy can lead to a better division of labour and the right conditions for companies to exploit greater economies of scale. It is also claimed that, with globalization, capital can be shifted to whatever country offers the most productive investment opportunities, creating economic growth.

Others take a gloomier view. They predict that increased competition from low-wage countries will destroy jobs in richer nations and there will be a “race to the bottom” as countries reduce wages, taxes, welfare and environmental controls so as to be more competitive, at enormous social cost. Pressure to compete will erode the ability of governments to set their own economic policies and the move towards deregulation will reduce their power to protect and promote the interests of their people. Other concerns include:

Globalization may undermine national sovereignty and the ability of states to determine their own affairs, particularly in economic terms.
Access to benefits of globalization may be uneven, particularly for low-income countries that may be marginalized. Who gains and who loses from globalization is a pivotal question: some countries have gained from export-led growth but many, particularly in Africa, have not.
The increased risk of financial market instability.

The term globalization also includes change through the spread of ideas, information and perceptions which lead to cultural and social changes. These may influence risk behaviours.

Internationalization is the process of extending national activities across borders. Typically, it is used to describe the expansion of economic activities from one country to another. For example, a company that manufactures cars in one country goes through a process of internationalization (or, becomes an international company) when it opens a factory in another country. Internationalization differs from globalization in that globalization includes non-economic factors.

Social justice advocates argue that globalization has provided an opportunity to focus global attention on previously-neglected issues (such as lack of transparency in certain countries) and on issues arising from globalization itself, such as the accountability of international organizations and the costs and benefits of globalization to the world's poorest people.

[97] Globalization, 2015

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