& GLOBALIZATION

BEER

FRIES

Ashwani AggarwalAsim KumarAsmita DBalchandra KemkarBala Raghvendra Prasad

Team Members:-

Global MarketRefers to unification of world’s economic

order through reduction in barriers to international trade such as tariffs, export fees and import quotas, etc.

What is Globalization…?

Comparative Advantage

Basis of Globalization:-

20

150

50

120

300 130

10030

170 130

30 70

Before Trade

After Trade

Thus a country should stick to producing whatever their economy is most efficient in turning out.

Also if you want to be rich, forge close links with the rest of the world.

Protectionism is an act of protecting domestic producers.

Either by imposing tax on foreign products or through outright ban.

Discourages all imports but allows exports.Learner’s theorem: No imports =No exports Economy will find it difficult to sustain.Trade or no trade, a healthy economy looses

job all the time and creates them as well. “Decent wage s and factory conditions”

protectionism .. moves the production from sweatshops to already “rich textile workers”…

Protectionism Against Globalization:-

Fear due to availability of different product in familiar settings.

Concept extended to biological realm tooTruth however is that world far from being

uniform . New ideas always germinate and fructify.

The world has a long way to go before it is truly globalized.

Globalization or homogenization

Globalisation encourages poor working conditions??

No securit

y

Sweatshops

Long hour

sLow wage

s

Globalisation and PovertyAlternatives are much

much worse! – scavenging, illegal street stalls, prostitution, etc

Promotes world peace – too costly to go to war with trading partner

Intl companies compete for

talent and wage rates rise

Local firms learn latest

technology and become big employers

More profitable to study – Education improves

Migration to cities – better rural earnings

Formal employment

easy to tax>>Improves govt revenues

Spending on infrastructure,

health care, schools, etc

Improved standard of

living!

Political interests and economics of free tradeDesignation – PrimeMinister “– for – life”??If trade improves the common man – why is

political isolation preferred?... For the governments of course!

Isnt it easier to continue to rule countries in international isolation?

Damaging foreign influences are minimized to reduce social, political and economic change among population at large

Iraq – Saddam Hussein, Cuba – Fidel Castro, Japan (before opening up) – Tokugawa, Myanmar, North Korea, etc

Environment --- Globalization of Green

Reasons Race to cheaper

markets Movement of good

result in resources and pollution

Trade results In pollutions..

Author Trade results in

pollution is weaker statement

Global Environmental Aparthied – Vandana Shiva.

RACE TO BOTTOM !Fact of Myth ??Run for Cheap Labour

not Pollution heavenUS gaints spend 2%

on environment pollution

Latest technology less polutant.

CHINA – POLLUTION - FDI

Can we make things better for the poor through

GLOBALIZATION?

The coffee picker analogy

• Why coffee growers are poor?• The Scarcity Power• Why only coffee?• Why coffee prices always collapse?• So is there a way out?