GLOBALIZATION

Does globalization hurt or help poor people ?

The term "globalization" is mentioned in 1959 in the English newspaper The

Economist.

"Globalization" increased peak flows, including:

• the volume of trade in goods• services• labor• technology •international capital.

DEFINITION OF GLOBALIZATION

• Opening all national economies on a global market.

• Globalization is driven by the interdependence between humans, deregulation, trade liberalization, the outsourcing of the financial fluidity of movement, development of transport, telecommunications ...

• Multinational companies determine their strategic choices (location, supply, financing, marketing channels, hires, opportunities, investments ...) worldwide, comparing the advantages and disadvantages that give them the different national solutions possible.

• The term "globalization" is mostly used in the economic field, but it affects all human activities: industry, services, trade, political, social ... It's also about communication and exchange between all people of the Earth become "global village" and between different cultures.It becomes very difficult to operate in a national market only.

PROPONENTS OF GLOBALIZATION

It is a necessary step to allow third world countries become industrialized and

developed countries, and not be merely exporters of raw materials. By intercultural

exchange, it allows the man to open his horizons.

PRINCIPLES OF GLOBALIZATION

Free trade. This is an economic system that promotes the free movement of goods and services within the same geographical area by removing tariffs (duties and taxes) and anything that can hinder trade.

Several types of international agreements were signed with the aim of promoting free trade:

• bilateral reciprocal trade between two countries,• creation of free trade areas (example: European Union ...)• multilateral agreements negotiated at the World Trade Organization (WTO).

THEORICAL ADVANTAGES

• Proponents of globalizations strongly support it is a necessary step to allow Third World countries to become industrialized country s and developed, and no longer only export raw materials.

• By intercultural exchanges, the man can broad his horizons and to enjoy a relatively cheaper cost of goods and services from the rest of the world

THE BENEFITS

•Reducing international inequalities.

•Southern countries were the first beneficiaries, especially Asia becomes a major player in globalization.

•Globalisation is the spearhead of multinational firms and allows them to achieve the goal of maximum profit. To do firms invest abroad and participate in the development of the South.

THE BENEFITS

The firms provide three important supports to the development:  •A stable source of funding.

•One way to benefit from technology transfers

•Open markets to exports from the North to the South following the flow of subsidiaries abroad.

ECONOMIC VIEW OF AFRICA

Despite the implementation of various economic policies for about forty years,

economic growth in many African countries remains relatively low in contrast to high population growth. This has the effect of reducing the purchasing power of people.

ABOUT THE PLACE OF AFRICA IN THE GLOBALIZATION SYSTEM

Africa's place in globalization as in its current form is far from rosy. This site is limited mostly to:

• Provider in respecting manpower cheap on the world market.

• Supply of raw materials to industries in developed countries.

• Uncork for products of major industrialized nations.

• Testing areas of different policies , economic theories and development

THE DISADVANTAGES

•Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor.

THE DISADVANTAGES

•Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries. (negative externalities)

THE DISADVANTAGES

•Threat that control of world media by a handful of corporations will limit cultural expression

THE DISADVANTAGES

•Greater risk of diseases being transported unintentionally between nations

The most popular : MacDonald’s

• 62 million customers• 31,000 restaurants

worldwide in 119 countries

• 2 million people employed

• Turnover in 2011 : $ 27 billion

The most controversial : Nike

• 704 factories in the world (China, Indonesia, …)

• 34,000 employees• Turnover in 2010 : $

19 billion

CONCLUSION• “Has inequality among nations increased or decreased? The answer is surely both. Continuing economic progress

in advanced nations, continued stagnation or even decline in the “fourth world”, mean that the gap between the

richest and poorest nations has never been wider.”Paul Krugman

KEYWORDS

•Global market•Liberalization•Labor•Free trade•Subsidiary abroad•Negative externalities