Globalization By: Caitlin Lopez, Lucas Bernadini, & Alexia Braun

What is Globalization?

  • A process by which individuals and businesses in any part of the world are much more affected by events elsewhere in the world than they used to be.
  • The growing integration of the national economies of the world.
  • With globalization the world is moving from hundreds of economies toward one large world economy.
Movement Towards Globalization

History

  • First Era of Globalization- Mid 1800's-1920's
  • Era ended by WWI & WWII- Berlin Wall created communist vs. capitalist world

Causes

  • End of Cold War= Fall of Berlin Wall
  • Advancement of technologies and policy changes
Costs Vs. Benefits

Costs

  • Increased Income Inequality
  • Loss of American jobs
  • More power to bigger corporations

Benefits

Benefits
  • Trade
  • Standard of living
Real World Scenarios
2016 Marked by Anti-Globalization Sentiment

Columnist Saritha Prabhu on globalization

  • Economic- jobs for poor; backfired; benefits for multinational corporations
  • Cultural- Rampant consumerism; Human/Woman's Rights; Divorce; Drug use; Materialsim
In Era of Trump, China’s President Champions Economic Globalization
  • The Chinese leader made an expansive case for globalization as a source of prosperity
  • Many expressed concerns about the threats of tariffs from the incoming Trump administration
  • Potential trade war between the world’s two largest economies?
  • China relies on access to the United States, the largest consumer market on earth, as the landing place for its exports.
  • The United States depends upon China for a vast range of finished goods

Scenario 1

Your CEO decided to bring the jobs back here in the United States. This means that the price of the iPhone went up $100. A $700 iPhone is now priced at $800. Also this would cost Apple $4.2 billion since outsourcing is cheaper. Since the CEO brought back the manufacturing jobs there will be less people unemployed, less money going to welfare and more people paying taxes. Also because of this decision, Apple would have to pay the 35% corporate income tax.

Scenario 2

Your CEO decided to stay offshoring in China. The price of the iPhone stayed at the normal price for us consumers. There are more unemployed people now here in the United States which means more budget money is going to welfare when it could be going somewhere else. Since the CEO decided to stay in China, they don’t have to pay the 35% corporate tax.

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