ភ ម នទ រដ បល THE INTERNATIONAL ECONOMY AND GLOBALIZATION ក ចរយ បណ តម ម អ ណត ក មទ ០៧ នស ស ម ន ជន ខពស ជ នន ទ ៧

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Juliet Porter
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1 ភ ម នទ រដ បល THE INTERNATIONAL ECONOMY AND GLOBALIZATION ក ចរយ បណ តម ម អ ណត ក មទ ០៧ នស ស ម ន ជន ខពស ជ នន ទ ៧ ១. ក មន ស ២. ក ឈ នន ស ន ៣. ក ស ង ស ធន ៤. ក ប វ ភ រក ៥. ក ស ក សង ព ជ ៦. ក ញ រ ន ស វណ ន FEBRUARY-2013

2 LEANING OBJECTIVES I. Explain What Globalization is and Waves of Globalization ( ក មន ស ) II. Explain Advantages and Disadvantages of Globalization ( ក ឈ នន ស ន ន ង ក ស ង ស ធន) III. Explain What Open Economy is ( ក ប វ ភ រក ) IV. Explain Concept of International Trade ( ក ស ក សង ព ជ ) V. Explain the Impact of Terrorism on International Economy and Globalization (ក ញ រ ន ស វណ ន ) 2

3 I. Explain What Globalization is and Waves of Globalization 3

4 WHAT IS GLOBALIZATION? o Globalization is the process of greater interdependence among countries and their citizens o It consists of the increased interaction of product and resource markets across nation via trade, immigration, and foreign investment o Economy=> economic community=>world s market economies 4

5 GLOBALIZATION Trade Goods and Services Labors Politic Globalization Capital Culture Technology Terrorism Environment 5

6 WAVES OF GLOBALIZATION o First wave of Globalization: o Cutting transportation costs by new technologies (railways, steamships) o Decreasing tariff barriers o Increasing exports and per capita income o Ended by World War I Protectionism 6

7 WAVES OF GLOBALIZATION o Second Wave of Globalization o Decreasing transportation costs and previous trade barriers o Discrimination of liberalization (DC, DC) o Increasing productivity by agglomeration economies ( Toyota and Honda) o Benefit for developed countries rather than developing countries o Reclamation for open market in developed countries 7

8 WAVES OF GLOBALIZATION o Latest wave of Globalization: 1980-Present o Distinction of the latest wave o Developing countries broke into the world markets for manufacturers o Increasing poverty and decrease income in developing countries o International capital movements became significant o Major significance in globalization for developing counties o Labor-incentive manufacturing o Barrier liberation to foreign investment o Technical progress in transportation and communication 8

9 II. Explain Advantages and Disadvantages of Globalization 9

10 WHY IS GLOBALIZATION IMPORTANT? o Firms and Nations can specialize in the production of thing they do well and use the earning from these activities to purchase others. 10

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12 Available Resources Stability for Producer Competitive Processes Economic Growth Reasons Weaken Monopolies Productivities Improvement Prices Decreased 12

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15 BACKLASH AGAINST GLOBALIZATION (1) o The effect of globalization is the tie between policy liberalization and worker interests o Many critics and objections to the globalization o Public opinion surveys consider the cost to be more than the benefits 15

16 Political, military and culture Unfair benefit Domestic economy vulnerable Environment exploitation Backlash Unfair competition on labor standard Lost jobs and domestic wage Bail out government officials Lower domestic competiveness Human right issues 16

17 BACKLASH AGAINST GLOBALIZATION (2) => To ease the fear of globalization is: o o o o Help people to move to different jobs from one activity to the next Fosters investment with more flexible labor market and a regulatory system Provide education system with skills make them mobile Strengthen training policies for those who lose jobs to help them find work. 17

18 III. Explain What Open Economy is 18

19 THE UNITED STATES AS AN OPEN ECONOMY Openness rough measure of the importance of international trade Openness = (Exports + Imports) GDP 19

20 LABOR AND CAPITAL (1) o Greater interdependence typically leads to more movement of the factors of production between nations. o Since 1960s: Increasing immigration due to liberalized restriction policies on immigration o By 2009 : 12% foreign born of US population and 14% foreigners of labor force 20

21 LABOR AND CAPITAL (2) o 1960s: Increasing foreign ownership of US financial assets o 1970s: Investment of OPEC in US financial market o 1980s: Increasing flows of investment fund to U.S. ( U.S. T-bills, Note, bond ) o 1986: $ 2 billion in foreign exchange market o Today: $ 2 trillion in foreign exchange market o Increasing commercial banks: Over 250 foreign bank in U.S. 21

22 IV. Explain Concept of International Trade 22

23 COMMON FALLACIES OF INTERNATIONAL TRADE o "Trade is zero-sum" false- trade can bring benefits to both partners. Both countries can gain by specializing. o "Imports bad, exports good" false- if you buy nothing from other countries, they have no income to buy from you. o The imports reduce employment and act as a drag on the economy, while exports promote growth and employment. o "Tariffs and quotas save jobs" false- cutting imports makes it harder to export, so other jobs are lost 23

24 DOES FREE TRADE APPLY TO CIGARETTES? o Free Trade recognizes as a Rule, increasing competition, lowers prices, and make better products available to consumers, leading to consumption. o The benefits of free trade do not apply to cigarettes and that they should be treated as an exception to trade rules. 24

25 IS INTERNATIONAL TRADE AN OPPORTUNITY OR A THREAT TO WORKERS? o Significant threat to unskilled workers in the U.S. o Companies may move production to other countries which exploit labor or environmental resources. o Similar to threat created by technological improvements which increase efficiency. 25

26 V. Explain the Impact of Terrorism on International Economy and Globalization 26

27 TERRORISM SHOCKS THE GLOBAL ECONOMY o Terrorism occurred when globalization ignores the poor people of the world. o The terrorist attack results in the tragic loss of life which threaten to people s safety and livelihoods. Ex. United States on September, 11, o The path of globalization has been rocky. 27

28 TERRORISM SHOCKS THE GLOBAL ECONOMY o Many economists view International Trade is a weapon in the war against terrorism in the longrun. o Trade cannot make Peace, but Trade can help. o To unite the world, a trade-based strategy would require o A far greater investment of money and political capital o Push for massive debt relief for impoverished nations o Reduce tariffs and quotas for the products of poor nations 28

29 CONCLUSION Interdependent of the movement Globalization International Trade Open Trading System Goods & Services Business Enterprises Capital Technology Unfair Labor Standards Challenges Terrorism Environment Concerns Higher levels of Consumption Investment Lower Prices of Commodities Wider range of product choices for consumers 29

30 Thank you for your attention! 30

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