1. What are the following words mean?

Use context clues from the text to determine

the meaning of the words.
a. Enabled- a strategy used
b. Enormously- speeded up standingly
c. Flourished- some areas grow or develop
d. Floundered- some have struggle

2. What does the experience of Starbucks tell the readers about globalization?
The experience of the Starbucks about globalization is very complicated for an
international business, like Starbucks. The reason for this, is that every country has its
demands and the business required to cope with that demand.

3. What are the driving forces of globalization?

Cultural exchange, low barrier to trade and investment and technological exchange,
multi-national companies and the product development cost.

4. What are the benefits of globalization?

Expanding into developing markets include unsaturated demand for new products,
lower labor costs, less expensive natural resources, and other inputs to products.
Technological developments have made doing business internationally much more
convenient than in the past. MNCs seek to benefit from globalism by selling goods in
multiple countries, as well as sourcing production in areas that can produce goods more
profitably. In other words, organizations choose to operate internationally either
because they can achieve higher levels of revenue or because they can achieve a lower
cost structure within their operations.
Free trade is a way for countries to exchange goods and resources. This means
countries can specialise in producing goods where they have a comparative advantage
(this means they can produce goods at a lower opportunity cost).

Greater competition- Domestic monopolies used to be protected by a lack of

competition. However, globalisation means that firms face greater competition from
foreign firms.
Increased investment -Globalisation has also enabled increased levels of investment.
It has made it easier for countries to attract short-term and long-term investment.
Investment by multinational companies can play a big role in improving the economies
of developing countries.

5. What are the negative effects of globalization?

These are the negative effects of Globalization:
Dumping – Dumping has emerged as a big problem in front of developing countries.
By dumping the developed countries exploit the market in the developing countries by
charging low price for its products, on which price local producer can’t sell its product.
In this way, the developed and advanced countries get a large share of market for their
products (Boudreaux, 2008).

Unemployment – Globalization helped many countries to develop technology very

fast. Due to use of advanced technology the use of labour reduce significantly. Because
of that the unskilled employees lost their jobs. Use of capital intensive technology also
helped to reduce production cost, but most of the benefits were retained as increased
profit by the manufacturers. One more reason, behind unemployment was shifting of
job location in search of skilled and cheap manpower (Carbaugh, 2008).

Environment Disaster – Climate change has become a “hot” topic. Global warming is
also a part of global economies. In search of advance and capital intensive technology,
countries have established many industries; those industries are increase pollution
rapidly (Lane, 2006). Traditional labour intensive technologies were based on low
power and machines, so the pollution was not an issue from those industries. Moreover,
the products of factories are also polluting the environment.

Limited Natural Resources – In the race of globalization and development, every

country is exploiting its natural resources extensively, due to that in near future these
resources will be finished. Petroleum is a very important source of energy in present
but it will not last long if the alternative source of energy is not searched (Lane, 2006).

Competition – To globalize their economy countries opened their market for foreign
companies, these companies were large and were using high technologies. Domestic
companies were not able to produce goods on that cost, which put a question mark on
the sustainability of these companies. Competition increased with the entry of new
companies in the market. Many home companies were not able to compete with these
multinational companies, so they have to close their business. Dumping also enhanced
completion in these markets (Lane, 2006).

Spread of Diseases – Globalization helped first mobility, due to that unknowingly

diseases are spreading very fast from one country to another
(www.darkseptemberrain.com). When people enters into a new environment he may
faces several types of health problems, because of change in environment. Recently
H1N1 flue was also a result of fast and increased movement of people. Earlier when
where no such health facilities were available people used to consume homeopathic
medicines but now on one side where the health facilities have improved a lot the fear
of fast spread of transmittable diseases have also increase (Lane, 2006).

Inequality – Economic development is successful in reality, when it is able to generate

equal opportunities without any consideration. But globalization has increased
inequalities, now the gap between the poor and the rich has increased. No, doubts there
are improvement in the overall living styles but the way it was expected to improve that
couldn’t be achieved. Inequality has also increased in terms of skilled jobs. Those who
 are skilled can get better jobs, but those who are not updated with new skills find it
difficult to change their jobs (Sharma, and Starik, 2002).

COMPREHENSIVE QUESTION:

1. In what specific ways does globalization affect communication?

In my own perspective, globalization affect communication by changing the way
people communicate with each other. For example, due to a very busy work
environment, they create words that are easy to type. Like for example, the word “never
mind” becomes “nvm”. That’s just one of the effects of globalization in
communication.
I’ve researched more effects of Globalization to communication that is related to
business. Here is some of the effects: Increased Business Opportunities, Fewer Cultural
Barriers, Creation of a Global Village.

2. What are the things that people can do now which could not be done before
globalization?
Basically, all computer related transactions. Like investments, e-commerce etc. If it is
about the lifestyle of people, many things have changed. Like for example, in
communication, it is very easy for us to communicate with our relatives abroad using
cellphones. The bad side of this is that we lessen personal contact with people even if
they are near us.

3. Are the effect of globalization on communication positive or negative? Support

your answer with concrete example.
I can’t say that globalization in communication is positive or negative. Because it has
both positive and negative effects. The positive effect of globalization in
communication is, it is easier for business men to make transactions internationally.
The negative effect of this is that it lessens the personal contact or personal approach to
the person you are making business with. This will cause the transaction to be less
professional.

TASK 3.1.1 WHAT IS GLOBALIZATION?

1. False, globalization existed before the internet was invented.
2. True
3. True
4. False, Globalization help countries that are experiencing poverty.
5. False, It lessens the cause of information technology because we can access almost
all the information through the internet.
TASK 3.1.2 WHAT IS THE IMPACT OF GLOBALIZATION ON
COMMUNICATION?

That slogan tells that since communication has the greater impact in our globalization,
it’s the key to the development our nation. Hence, there’s a lot of negative effects, that could
be the increasing interconnectedness between people, businesses and region affect the lives of
people locally but in the sense of using communication in the right way, we can achieve what
we all wanted. As we all know communication makes our lives easier, and it is because of
technology advances.