Supplementary readingExercise 1. Read the passage about globalisation to answer the following questions. 1. What are key factors which have influenced the process of globalisation? 2. How many abbreviations can you find in the text? Explain them. 3. What examples of transnational corporations can you find in the passage? Do you know any TNC’s operating in Russia? 4. What are the positive impacts of globalisation? 5. What are the negative impacts of globalisation?
Pros and cons of globalization Reasons for globalisation There are several key factors which have influenced the process of globalisation: 1. Improvements in transportation - larger cargo ships mean that the cost of transporting goods between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly. 2. Freedoms of trade - organisations like the World Trade Organisation (WTO) promote free trade between countries, which help to remove barriers between countries. 3. Improvements of communications - the internet and mobile technology has allowed greater communication between people in different countries. 4. Labour availability and skills - countries such as India have lower labour costs and also high skill levels. Transnational corporations Globalisation has resulted in many businesses setting up or buying operations in other countries. When a foreign company invests in a country, perhaps by building a factory or a shop, this is called inward investment. Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs). The US fast-food chain McDonald's is a large MNC - it has nearly 30,000 restaurants in 119 countries. The majority of TNCs come from the US and UK. The US car company Ford, for example, makes large numbers of cars in the UK. However, TNCs also invest in China - for example, the British DIY store B&Q now has stores in this country. Positive impacts of globalisation Globalisation is having a dramatic effect - for good or ill - on world economies and on people's lives. Some of the positive impacts are: 1. Inward investment by TNCs helps countries by providing new jobs and skills for local people. 2. TNCs bring wealth and foreign currency to local economies when they buy local resources, products and services. 3. The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their countries. 4. Globalisation may help to make people more aware of global issues such as deforestation and global warming - and alert them to the need for sustainable development. Negative impacts of globalisation Critics include groups such as environmentalists, anti-poverty campaigners and trade unionists. Some of the negative impacts include: 1. Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries. 2. There are no guarantees that the wealth from inward investment will benefit the local community. 3. Globalisation is viewed by many as a threat to the world's cultural diversity. It is feared it might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West. An example of this is that a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have thriving film industries. Anti-globalisation campaigners sometimes try to draw people's attention to these points by demonstrating against the World Trade Organisation. The World Trade Organisation is an inter-government organisation that promotes the free flow of trade around the world. BBC News http://www.bbc.co.uk/schools/gcsebitesize/geography/globalisation/globalisation_rev5.shtml Exercise 2. Make a summary of the text in English.
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