BMO 2004 Business ethics
BMO 2004 Business ethics
Assessment 4
THE IMPACT OF GLOBALISATION
ON LOW INCOME COUNTRIES
Group Animated Video
[Storyboard]
Group 2
Scene 1: Our Introduction
Narrator: Imagine a world, where the world was working together so that traveling and trading became much easier. A person could start a business in a different country which could be financially successful and has minor to non legal issues that would normally not allow it to operate.
Animation: Victoria University heading with BMO2004 Business Ethics, followed by participating group members names + student number.
Scene 2: What is Globalisation?
Narrator: Globalisation is elimination of barriers to trade, communication, and cultural exchange. The theory behind globalisation is that worldwide trade will promote the inherent wealth of all nations.
[General Information]
There are three types of Globalisation: Economic, Political & Cultural.
Economic globalisation. This type focuses on the unification and integration of international financial markets, as well as multinational corporations that have a significant influence on international markets.
Political globalisation. This type deals mainly with policies designed to facilitate international trade and commerce. It also deals with the institutions that implement these policies, which can include national governments as well as international institutions, such as the International Monetary Fund and the World Trade Organization.
Cultural globalisation. This type focuses on the social factors that cause cultures to converge such as increased ease of communication and transportation, brought about by technology.
Scene 3: Globalisation helps poorer nations grow their economies.
Narrator: In theory, globalisation can be a good thing as this could help underdeveloped nations to grow their economy. As the developed countries take advantage of low wages, therefore, growing the underdeveloped nations capital. For example, Nike, an American shoe company, operates and manufactures in China since the American minimum wage is much higher than the Chinese minimum wage. This would help China grow its economy, eventually growing its minimum wages which would increase the standard of living .
[General Information]
Globalisation is clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology. It also plays a part in increasing domestic income inequality.
Globalisation allows companies to find lower-cost ways to produce their products. It also increases global competition, which drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and already-developed countries live better on less money.
Scene 4: Globalisation creates industries in lesser-developed nations.
Narrator: Another positive effect of globalisation is that it brings manufacturing industries in underdeveloped nations. Let's assume if you wanted to open a bakery in your country and there is a bakery in every corner. However, you know that the lack of bakeries overseas will attract more customers and increase business wealth of a bakery from overseas.
[General Information]
Advantages to businesses relocating overseas derive primarily from that country's ability to provide better economic and commercial value than existing national locations. It is not just the cost of the factors of production that matters, but their quality of these resources.
The main driving forces or push factors for locating overseas include:
Cost reduction
Avoiding excessive government regulation and interference
Avoiding protectionism
Economies of scale
Access to global markets & Competitive strategy
Scene 5: The Neo-Classical Economic Model.
Narrator: The neo-classical economic model presents that convergence of prices and products globally results in improved economic conditions. Economic globalisation can also be utilized to discuss the growing interdependence of economies.
[General Information]
What is Neoclassical economics? A focus on how individuals operate within an economy. With this, it emphasizes how and why the exchange of goods and services takes place.
Neoclassicals Approach? Focused approach by taking into view how individuals behave within an economy.
What is Neoclassical Economics Based upon? Neoclassical economic theory is based on mathematical models and how an individuals reaction to certain events.
Factors Responsible? Neoclassical economic theory is based on the variable value of goods and services, as it believes in the implications of who produces them and the end users perspective.
Example of Neo-Classical Economic Model: One of the important facets of neoclassical economics is consumer perception as goods or services derive economic value from it, free trade and marginal utility. The theory has been significant in instances where consumer perception has proven to play a role for example, the designer wears what you wanted to purchase because of the label attached to it, besides the cost of production of the clothing may be minuscule. Here, the perceived value of the label exceeded its input cost, creating economic surplus.
Scene 6: What are the negative effects of Globalisation?
Narrator: Negative impacts of globalisation include exploitation of underdeveloped nations. As companies set up their manufacturing units, causing pollution in countries with poor regulation towards pollution. This has led to air, water and soil pollution causing poor health among the inhabitants of such countries. The competition provided by globalisation in the job market has also led to Job insecurity, loss of Jobs and a subsequent drop in household income. This is particularly painful for those who are in low socio economic regions.
Scene 7: Conclusion/FinalisationNarrator: The most widely accepted conclusion is that globalisation has contributed to create inequalities in developing nations. Better opportunities in more developed countries, with better travel possibilities, jobs and higher GDP luering educated people away from developing countries in pursuit of a better quality of life.
- FINISH -
