Globalization: connections and unequal effects
| English | 中文 | Pinyin |
|---|---|---|
| globalization/ˌɡləʊbəlaɪˈzeɪʃn/ | 全球化 | quán qiú huà |
| interdependence/ˌɪntədɪˈpendəns/ | 相互依存 | xiāng hù yī cún |
A decision you can investigate
- A small maker sells lamps abroad through an online platform, but also competes with imported lamps.
- The same connection can open a market and strengthen competition.
Build the explanation
- Globalization 全球化 is growing integration and interdependence 相互依存 between economies. Lower tariffs and quotas reduce barriers; cheaper transport makes shipments viable; cheaper communication connects suppliers and customers. Multinational firms coordinate activity across countries.
- Consumers may gain lower prices and more choice; producers may gain markets and cheaper inputs. Workers in expanding industries may gain jobs, while traditional industries can close. Cross-border production and transport also affect the environment.
Work through the evidence
- A fictional lamp costs 30 yuan to make. An old shipment cost of 20 gives a delivered cost of 50. A new shipment cost of 5 reduces it to 35 before other charges.
- The lower delivery cost can make exports viable at a price of 40. It also makes foreign competition easier. A worker’s outcome depends on which industry expands and whether skills transfer to new jobs.
What is the new delivered cost before other charges?
Production cost 30 plus shipping 5 equals 35.
Test the limits
- Lower costs do not guarantee all gains reach consumers; competition and market power matter. Aggregate living standards can rise while particular regions lose jobs.
- More production can raise emissions; cleaner technology transfer can work in the other direction. Evaluate named affected groups and mechanisms rather than declaring globalization good or bad for everyone.
Which is a driver of economic integration?
Lower costs make cross-border coordination and trade easier.
Greater international trade guarantees lower pollution in every country.
Production, transport and technology effects can move in different directions.
Apply and explain your answer
- Why can cheaper shipping help an exporter while harming a competing domestic firm?
- It opens access to foreign buyers and also makes competing imports more viable.
Why can a national gain hide a worker’s loss?
Distribution and adjustment matter.
Use the terms precisely
- globalization: Increasing integration and interdependence between economies.
- interdependence: Economic outcomes in one place depend partly on activity elsewhere.
Match the terms to their meanings.
Each term describes a specific mechanism in this lesson.
A fictional lamp costs 30 yuan to make. An old shipment cost of 20 gives a delivered cost of 50. A new shipment cost of 5 reduces it to 35 before other charges. The lower delivery cost can make exports viable at a price of 40. It also makes foreign competition easier. A worker’s outcome depends on which industry expands and whether skills transfer to new jobs.
Lower costs do not guarantee all gains reach consumers; competition and market power matter. Aggregate living standards can rise while particular regions lose jobs. More production can raise emissions; cleaner technology transfer can work in the other direction. Evaluate named affected groups and mechanisms rather than declaring globalization good or bad for everyone.
Globalization is growing integration and interdependence between economies. Lower tariffs and quotas reduce barriers; cheaper transport makes shipments viable; cheaper communication connects suppliers and customers. Multinational firms coordinate activity across countries.