Page 4 - PowerE-L05-F

Lesson 1

Globalization

Globalization is a process involving the interaction
and integration among the people, companies and gov-
ernments of different countries driven by international
trade and investment and aided by information technol-

ogy. It increases the connectivity and interdependence
of the world’s markets and businesses. It is not a new
system since people and corporations have been invest-
ing businesses in other countries for centuries. The fea-

tures of the current wave of globalization are similar to its
earlier waves.

Two major driving forces are responsible for such advancement. First is the telecom-
munications infrastructure and second is the rise of the Internet. As economies become
more connected to other economies, opportunity and competition increase. Globalization

also led to the formation of the pro-globalization group and the anti-globalization group.

The pro group insists that globalization, which brings more opportunities for work and
increase in competition, is healthy since efficiency of workers will be strengthened. Among
them, the World Trade Organization, an alliance of 144 countries sees to it the member
countries follow rules concerning global trades. World Economic Forum is a powerful net-

working forum for world’s business, government and non-profit leaders.

The anti-globalization on the other hand argues that most nations deprived of re-
sources, such as advance technology, are not capable of competing well in the market.
Underdeveloped countries will suffer because of the competitive pressure globalization will
bring to their economies. Prominent anti-globalization groups are the millions of labor unions,

Friends of Earth and Greenpeace.

Comprehension

1. Is globalization a new system? Vocabulary & Expressions

2. How many member countries are in the Globalization - to operate on an inter-
World Trade Organization? national scale
competitive - to be as good or better
Questions than others
deprive - to prevent somebody from
possessing something
1. What is the disadvantage of underdeveloped prominent - being well known or distin-
countries in the global competition? guished
2. What do these underdeveloped countries lack?

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