Types of Globalisation

1. Economic
Countries that trade with many others and have few
trade barriers are economically globalised.
2. Social
A measure of how easily information and ideas pass
between people in their own country and between
different countries (includes access to internet and
social media networks).
3.Political
The amount of political co-operation there is between
countries.
 1. Impact on Nation-State
• Economic impact
– Improvement in standard of living
– Increased competition among nations
– Widening income gap between the rich and poor
• Social impact
– Increased awareness of foreign cultures
– Loss of local culture
• Political impact
– Politics is important in bringing people from far away
together
– Greater political, economic, and cultural integration with
the outside world.
 Increased competition among nations

• “They (economists) predict that increased competition

from low-wage countries will destroy jobs in richer
nations and there will be a “race to the bottom” as
countries reduce wages, taxes, welfare and
environmental controls so as to be more competitive,
at enormous social cost. Pressure to compete will
erode the ability of governments to set their own
economic policies and the move towards deregulation
will reduce their power to protect and promote the
interests of their people.”
World Health Organization
 Conclusion
Capitalists whose ultimate goal is to make profit,
we should definitely be concerned since it affects
us globally. Every nation state should be able to
benefit from the spread of globalization, but at
the moment, the powerful states are only getting
more powerful, sapping resources form the
developing countries by situating MNCs
strategically. Nation states now go out of their
way to create a more suitable business
environment because these MNCs chose the best
possible location involving cheap labor to situate
their business.
2. Relationship between Inequality

“Globalization is widely believed

to have had a generally positive
impact on global economic
growth” .
 Levels of Global Inequality
• The richest 1% of the world’s population earns as much
income as the bottom 57%.
• The top 10% of US income earners earn as much as the
poorest 2 billion people in the world.
• Of the world’s 6.5 billion people, around 1 billion live on
less than $1 a day and 2.6 billion live on less than $2 a
day.
• The citizens of 20 rich, highly industrialized countries
spend more on cosmetics or alcohol or ice cream or pet
food than it would take to provide basic education, or
water and sanitation, or basic health and nutrition for
everyone in the world.
• Just 10% of the world trade in narcotics or 5% of world
military spending could supply these necessities to the
world’s desperately poor.
Income inequality has increased in many advanced economies over
the past two decades. In some continental European countries,
however, inequality rose only modestly, or even declined. The
inequality upswing was much larger in the United Kingdom and
the United States.
Trends in income inequality across advanced economies have
been quite different. In the United States, which started out with
a relatively high degree of income inequality, it has increased
even further.
However, other countries with initially low levels of income
inequality, including Denmark, France and the Netherlands, saw
some further decline.
There is currently no consensus on why inequality
increased in some industrialized countries, but not in
others. Some argue that increased inequality, where it
occurred, was driven by skill-biased technological
change and a changing distribution of job task demands,
spurred directly by advancing information technology
and indirectly by its impact on outsourcing. This has led
some observers to lay the blame squarely on
globalization and to call for protectionist measures.
Globalization is here to stay!
THANKYOU!