Lesson 16 - Winston-Salem/Forsyth County Schools



Student Resource 12.1

Reading: Globalization of Business

There is a good chance that most of the items you use on a daily basis are not made in the United States. In fact, the shoes you are wearing could have been made in Vietnam and your cell phone was probably made in Korea. Perhaps your soccer ball was created in Pakistan and the computer you use was made in China. How is it possible that so many of the products and services that you use today are created elsewhere? The fact is that goods and services produced in one part of the world are increasingly available in all parts of the world.

What is Globalization?

In order to understand this change, we should start with the idea of globalization. Have you ever heard older people comment that the world is getting smaller? They’re reacting to our ever-increasing ability to maintain contact with people from distant parts of the world. Globalization refers to the integration among people, companies, and governments across geographical boundaries. Globalization creates a more integrated and interdependent economy. It affects economic development, cultures, political systems, the environment, and the basic well-being of individuals around the world.

Globalization of US companies takes many forms, all with the goal of maximizing profit. A company headquartered in the US might have multiple locations set up in other countries to help facilitate sales of its goods in the country. Another company might outsource work to a country with a lower standard of living than ours, where instead of paying each worker $30,000 a year, the company can pay $3,000. By reducing the cost of labor, the company can increase profits for its shareholders while reducing the cost of its products—in other words, you pay less for the shirt or the shoes and can spend the excess money on something else. But the work is no longer available in this country, which can have a long-term negative effect on the economy; as fewer workers are employed, income tax revenue dries up just as the demand for government services such as employment insurance and food stamps increases.

Another reason a business might outsource is to avoid the more stringent environmental laws here in the US. If a company can produce goods without having the additional cost and headache of reducing the environmental impact of its production, it can produce more cheaply, make more money, and charge you less—so it’s good for everybody, right?

Although globalization has some negative effects, it also enables businesses to be more innovative and competitive. Thanks to technological advancements, companies are able to acquire and utilize resources all over the world. Companies can take knowledge and best practices from different countries and re-implement them in their own countries to become more efficient.

As the world gets smaller, companies get bigger. Globalization is reshaping businesses and forcing everyone to compete with the cheapest producers. This can create difficulties for small and medium-sized enterprises to compete in the new economy because they are being forced to sell products and services to their customers at lower and lower prices—if they don’t, some other company will.

Student Resource 12.2

Assignment: Globalization Poster

Directions: Eduardo Cisneros of ECPak Company has been struggling with the effects of globalization. As a business owner, the increasing outsourcing of jobs and products overseas by his competitors troubles him. He feels like the big companies have so many advantages already and he doesn’t know how he is supposed to compete! He is asking for your help regarding specific globalization issues and would like you to create a poster to present to his management team.

Begin by choosing one of the globalization issues presented to you by your teacher. Working in groups, you should create a poster that accurately addresses your topic.

Use the following guidelines to construct your poster:

• Construct a summary describing the specific globalization topic.

• Research both sides of your topic. Include one positive and one negative effect of the globalization issue.

• Create two open-ended questions about the issue (questions should begin with how or why and should require more than a “yes” or “no” response).

• Find a thought-provoking quote from one of your online resources that accurately reflects the globalization issue.

• Include a statement that summarizes your group’s opinion on the issue.

• Choose a graphic to represent your topic.

• Create a title for your poster.

Before handing in your poster, check to make sure it meets or exceeds the following assessment criteria:

• The summary clearly focuses on your particular topic and describes the issue accurately.

• The poster clearly addresses both sides of the issue by including one positive and one negative effect of globalization.

• The poster encourages thoughtful reflection with the inclusion of two open-ended questions.

• The poster includes a statement that accurately reflects your group’s opinion on the issue.

• The poster uses visual imagery effectively to help explain or describe the issue.

• The poster effectively uses source materials to help illustrate the complexity of the issue.

• The poster is legible and attractive and uses correct spelling and grammar.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download