Here is a potential essay plan to address this question: Introduction: - Note the trend of world trade growing faster than world GDP - Purpose is to assess factors explaining this trend Paragraph 1: - Explain how reductions in transport costs have facilitated trade e.g. container shipping, low cost airlines - Evaluate that this has significantly reduced barriers to trade Paragraph 2: - Discuss how reductions in trade barriers such as tariffs have encouraged more trade between nations - Evaluate the impact of formation of trading blocs like EU and trade agreements Paragraph 3: - Explain how developments in technology and communication have enabled offshoring/outsourcing of production - Evaluate

2. Globalisation

3. Global Brands
Chevrolet Nova
In Spanish – Does not go
Mistranslated by Pepsi into
Chinese – Pepsi brings your
ancestors back from the grave

5. UK’s Global Brands
• Britain’s Got Talent

6. The trend for people, firms
and governments around
the world to become
increasingly dependent on
and integrated with each
other.

7. The process by which different parts
of the world interact economically,
politically, and culturally.

8. Banksy Video
• What are the advantages of globalisation
highlighted in this video
• What are the drawbacks of globalisation
highlighted in this video

9. Integration of Economies
•
•
•
•
Stock Markets are now accessible
from anywhere in the world!
Copyright: edrod, stock.xchng
The increasing reliance of
economies on each other
The opportunities to be
able to buy and sell in
any country in the world
The opportunities for
labour and capital to
locate anywhere in the
world
The growth of global
markets in finance

10. Integration of Economies
• Made possible by:
– Technology
– Communication networks
– Internet access
– Growth of economic cooperation –
trading blocs (EU, NAFTA, etc.)
– Collapse of ‘communism’
– Movement to free trade

11. Explain Why and Why Not
•
•
•
•
•
•
•
•
Specialisation (comparative advantage)
Higher living standards
Increased world output
Lower prices
More choice
Larger markets for firms (economies of scale)
Technology transfer
Increased taxes

12. End of first lesson vid or blo

13. 1. Draw a diagram / chart / cartoon to define
globalisation
2. Using Stiglitz quote:
a. Decide which has been more important –
transportation or communication. Justify your
answer
3. Section on transport costs :
a. Decide whether developments in shipping or air
transport have been more significant
b. Explain why UK supermarkets are more likely to
source flowers from Kenya and not Amsterdam.
4. Using examples, explain how Amazon and
Ebay have led to closer integration of
different economies.

14. 3. Section on transport costs :
a. Decide whether developments in shipping or air
transport have been more significant
b. Explain why UK supermarkets are more likely to
source flowers from Kenya and not Amsterdam.
3. Using examples, explain how Amazon and
Ebay have led to closer integration of
different economies.
4. Using your knowledge of the EU, explain
why the increase in the number of trading
blocs has led to more globalisation.
5. What is the link between fewer capital
controls and increased globalisation

15. Going Global
Gap Kids – for kids by kids

17. Alternative ways of “going global”
• Establish production sites overseas
– E.g: Toyota
•
•
•
•
•
Licence technology
Joint ventures
Franchising
E.g : Coke
Offshoring / outsourcing (onion
clip)

21. What drives multinationals to expand?
•
•
•
•
•
market access
technology
costs
Vertical integration
tariffs
Tata
Expand each of these points to
explain why MNCs are increasingly
going global

22. What drives multinationals to expand?
• Higher profits and a stronger position and market access in
global markets
• Reduced technological barriers to movement of goods,
services and factors of production
• Cost considerations – a desire to shift production to countries
with lower unit labour costs
• Forward vertical integration (e.g. establishing production
platforms in low cost countries where intermediate products
can be made into finished products at lower cost)
• Avoidance of transportation costs and avoidance of tariff and
non-tariff barriers
• Extending product life-cycles by producing and marketing
products in new countries

23. June 2012 3(a) – Assess the view that the main
cause of globalisation is the increased
significance of transnational companies (20)
With your EconBro,
plan an answer to
this question –
3KAA plus 2 EVAL
HO: June 2012 3(a) MS + SA incl Tomasso

24. Benefits of Globalisation
CD – mindmap on whiteboard

25. 2009 – De-globalisation?
• A steep slowdown in world economic growth followed
by a recession
• Unemployment worldwide forecast to rise by around
30m above 2007’s level
• Sharp fall in global trade in goods and services
• Worldwide FDI inflows shrank 21% in 2008 to $1.4
trillion
• A partial reversal of migrant flows and also
remittances from migrant workers
• Evidence of a return towards economic nationalism
and other forms of protectionism

28. In tomorrow's lesson we will be debating,
so you need to come armed with plenty of
facts, figures and research on the effect
globalisation has had on the developing
country you were given during the lesson.
Research tips :
•CIA Factbook ; Observatory of Economic Complexity ; Economist,
Guardian, BBC and Wall Street Journal articles ; UNDP website ;
OXFAM website
•Search leading Economics education websites such as Ignatian
Economics and tutor2u.net
•Search my "Evernote notebook" by clicking on it in the menu.
Bring in detailed notes and spend a
decent amount of time on this.

29. Each small group to prep one side
Half class debates with judges scoring and to feedback
This house believes
that
to develop economically
economies
should de-globalise

30. June 2012 3(a) – Assess the view that the main
cause of globalisation is the increased
significance of transnational companies (20)

31. June 2012 – qn 3(a)
PDF: June 2012 Qn 3(a) Sample plus
MS
Tasks:
1.Read through J’Leesha’s answer
2.Write down what she does well
3.Write down what you would do better
4.What makes this a Level 5 answer
June 2012 3(a) – Assess the view that the main
cause of globalisation is the increased
significance of transnational companies (20)

33. Next two as HO
• Using the handout, evaluate each bullet
point and then rank according to
significance
• Write a concluding paragraph to this essay
question:
• Do the drawbacks of globalisation
outweigh the benefits for the UK economy

34. Benefits for UK Economy
• Opportunities for UK
businesses to trade and invest
overseas
• Access to cheaper goods and
services from emerging
market countries – leading to
higher real incomes
• Opportunities to live, study
and travel overseas
• Bigger export markets –
chance to exploit economies
of scale
• More intense competition –
drives innovation and
economic efficiency
• Globalisation has lifted
hundreds of millions of people
out of absolute poverty
around the world
• The emergence of an extra
one billion ‘middle class’
consumers worldwide is a
huge export opportunity for
the UK
• Falling cost and rising speed of
global communications and
transport has helped to bring
people closer together

35. Drawbacks for UK Economy
•
•
•
•
Risks of increase in structural
unemployment in industries /
regions that lose demand to lowercost competition from overseas
Globalisation may lead to rising
income and wealth inequality
Increase in global trade / output
has an environment effect –
increased use of non-renewable
resources and CO2 emissions
Globalisation of brands – perhaps a
loss of cultural diversity
•
•
•
•
UK government has less control
- economy may become more
vulnerable to external shocks
Surge in inward migration of
labour has brought economic
and social tensions
Globalisation contributed to the
sharp fall in interest rates and
widening trade imbalances that
were part of the root cause of
the credit crunch
High food and fuel price inflation
has hurt lower income families
most

37. Benefits and Costs
• Read through HO – highlighting terms and
concepts you find intriguing, beguiling or
utterly confusing
• Draw up a table with two headings : pros
& cons. Fill out table with points and
examples

38. Please research these different topic areas
relating to the effect globalisation has had
in terms of damaging the environment.
Your research should take the form of a
side of notes with lots of examples, facts,
figures, arguments and counter-arguments.
We will have a class plenary to swap ideas
Tommy - Brazilian rainforest
Jake - extraction of minerals
Andrew B - Floods around the globe
Pierce - Congestion in megacities
Nadeesha - Mangroves in SE Asia
Carlos - Haiti
Chris F - Clean Water Access
Matthew - Japanese smog
Padraig - UN Climate Talks in Qatar
Andrew C - Chinese megacities & air
pollution
Bala - Fracking
Roberto - Desertification
Luke - Fossil Fuel Depletion
HW on blog

39. Environmental
degradation

40. Mangroves vs. Prawn
Farms
By M.Atiba, J.O’Driscoll,
K.Mendes, & E.Igbodo

41. Introduction
• The recent influx of shrimp farming has led to a depletion
and destruction of mangroves.
• Mangroves are amongst the world’s most important
ecosystems and responsible for two-thirds of all fish
caught.
• This increase in shrimp farming comes as a result of the
evolution of prawns into “TIGERRRR!!!!” prawns.
• The evolution as led to an increased demand worldwide
which requires an increase in shrimp farming.
• It has forced Mangroves into a battle for survival against
Shrimp Farming which it cannot win.

42. Positives Of Shrimp
Farming
• Are limited.
• Benefit to only the
producers and
consumers.
• Increased produce
satisfies demand,
increases choice and
in turn will lead to
reduced prices for
consumers.
• Increased profits,
sales and revenue for
producers.

43. Negatives Of Shrimp
Farming
• Outweigh the positives by far.
• Destruction of Mangroves.
• Fish stocks collapse for fishermen as a result of
closed off areas e.g. Bangladesh fishermen
have reported an 80% decline since the creation
of dykes for shrimp farming.
• Countries such as Ecuador and Bangladesh
have experienced major threats to their main
food sources e.g. Muisne, Ecuador, where 80%
of the population lost their main source of food.

44. Negatives Of Shrimp
Farming
• Tiger prawns are carnivorous, with intensive
farming causing a further depletion in fish stock
as a result of the amount of fish oil and fish meal
required.
• Salination and chemical pollution of drinking
water and agricultural land.
• Farms pump waste water into canals, rivers and
nearby seawaters resulting in contamination
from antibiotics, pesticides and disinfectants.

45. Sri Lanka Water
ACCESS TO CLEAN DRINKING
WATER FOR FISHERMEN
Access
No
Access

46. Vietnam
• One of the countries most affected.
• Since 1975 have experienced a deforestation of more
than 80% of original Mangrove cover.
• Main cause of deforestation being SHRIMP FARMING.
• Eventually, shrimp farming will hold Vietnam to ransom
as it’s only form of agriculture.
• The destructive nature of shrimp farming will damage the
environment by polluting the soil, trees and water.
• Other disease free methods are ignored in order to
produce higher yields.

47. Vietnam
GDP OF AREAS IN VIETNAM
Shrimp
Farming
Other
Commod
ities

48. Conclusion
• Shrimp Farming’s current victory over Mangrove
are extremely detrimental to environment.
• Short term benefits of having higher yields are
not worth it when Long term consequences are
taken into consideration.
• Anything capable of holding a country to ransom
must be stopped or at least controlled.

49. HW:
Read through the article and do
some research into Burma’s
development and then draw up
an essay plan to answer this
question:
To what extent has globalisation
benefitted citizens of Burma? (20
marks)
3KAA points plus 2 EVAL points

50. Surviving Progress
lesson

52. What is happening to cause these changes?

53. Surviving Progress Documentary on youtube

54. You have 30 seconds to memorise
these key terms relating to
Globalisation
After thirty seconds recall as
many as you can and write a
definition / explanation
winner has most explanations

55. China’s industrialisation
unemployment
Environmental
degradiation
Higher real
incomes
Growth of MNCs
interdependence
Trade
Transport costs blocs
Trade barriers
Outsourcing

56. HOW MANY CAN
YOU RECALL?
And what is the topic?

57. DIVIDE INTO
CAUSES
AND
CONSEQUENCES
AND
RANK

58. Globalisation Essay
To what extent do the costs of
globalisation outweigh the
benefits?
30 marks – June 2012 qn 3(b)

59. Reasons for poor
performance
• Not enough examples
• Analysis is not detailed
• Candidates do not focus on economic
costs and economic benefits, but discuss
general costs and benefits
Make sure that you upload your very best
effort
See “Getting answers to me” at top of this
page

60. Feedback – 2012/13
• Every paragraph must have evaluation at
the end
• Use a logical chain of economics logic to
explain your point
• Use examples of countries and MNCs to
back up your point
• Start each paragraph closely linking
globalisation to the cost or benefit
• Discuss the significance of each cost or
benefit

61. An example of this can be seen in recent years when
America faced a recession which led to the demand of
American consumers for imports to fall. As a result China’s
export market experienced a major decline in sales because
America was one of their largest markets; this led to slowed
down growth in China. Therefore it can be seen that
globalisation creates an unhealthy nature of dependency
between economies relying on each other for trade, thus
where one economy faces issues like a recession this is
likely to negatively impact another economy such as through
reduced demand for exports.

62. Re-draft a paragraph
What would go in a paragraph on
improved living standards as a
benefit? BrainBlast

63. Benefit = improved living
standards
• Explained how
globalisation leads to
global supply chain
• Use example of
Foxxconn and China
• Explain how this has
led to urbanisation in
China
• Explain how this may
improve living
standards
• Explained that this
does not improve
everyone’s living
standards
• Explained that this is
only certain countries
• Explained that this
does not suggest a
long-term solution or
long-term economic
development

64. The value of world trade has been
growing at a faster rate than world
GDP. Assess the factors which might
explain this trend.
For a high grade:
Consideration of three factors
Evaluation in each paragraph
Essay plan & structure
Prioritisation of factors
Evidence of research