Lesson Eight Globalization

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Lesson EightGlobalizations Dual Power By
Robert. J. Samuelson
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Contents

• Part One Warm-up
• Part Two Background InformationPart Three
  Text Appreciation Part Four Detailed
  StudyPart Five Assignment

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Warm up

• Is globalization a good thing or a bad thing?
• Will globalization simply mean Americanization?

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Background information1. About the author

• Robert J. Samuelson
• Samuelson is a 1967 graduate of Harvard
  University with a B.A. in government. Based in
  Washington, D.C., Samuelson began his journalism
  career as a reporter on The Washington Post's
  Business Desk in 1969. After four years he left
  the paper to freelance. He has been published by
  The Sunday

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• Times (London), The Los Angeles Times, The
  New Republic and The Columbia Journalism Review.
  Samuelson joined The National Journal as an
  economics correspondent in 1976 and began writing
  the "Economic Focus" column. He became a
  contributing editor in 1981 and left the magazine

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in 1984. Robert Samuelson joined Newsweek as a
contributing editor in 1984, and has become one
of the magazine's most recognized writers for his
biweekly columns analyzing and reporting
socioeconomic issues. In addition to his
Newsweek column, Samuelson writes a
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• biweekly column which appears in The
  Washington Post, The Los Angeles Times, The
  Boston Globe and other papers.
• The Awards
• Samuelson has earned many journalism awards,
  including the 1993 John Hancock Award for Best
  Business and Financial Columnist and the 1993
  Gerald

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Background information2. The Asias Financial
Crisis
The Asian financial crisis was initiated
by two rounds of currency depreciation that have
been occurring since early summer 1997. The first
round was a precipitous drop in the value of the
Thai baht, Malaysian ringgit, Philippine peso,
and Indonesian rupiah. As these currencies
stabilized, the second round began with downward
pressures hitting the Taiwan dollar, South Korean
won, Brazilian real, Singaporean
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dollar, and Hong Kong dollar. Governments have
countered the weakness in their currencies by
selling foreign exchange reserves and raising
interest rates, which, in turn, have slowed
economic growth and have made interest-bearing
securities more attractive than equities.
The currency crises also have revealed severe
problems in the banking and financial sectors of
the troubled Asian economies.
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Background information3. The European Union

• It was founded in November, 1993
  in order to enhance political, economic, and
  social cooperation among members. It was formerly
  known as the European Community or the European
  Economic Community. It is headquartered in
  Brussels, Belgium. The EU has grown in size with
  successive waves of accessions. Denmark, Ireland
  and the United Kingdom joined in 1973 followed by
  Greece in 1981, Spain

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• and Portugal in 1986 and Austria, Finland and
  Sweden in 1995. The European Union welcomed ten
  new countries in 2004 Cyprus, the Czech
  Republic, Estonia, Hungary, Latvia, Lithuania,
  Malta, Poland, Slovakia and Slovenia. Bulgaria
  and Romania expect to follow in 2007 Croatia and
  Turkey are beginning membership negotiations in
  2005.

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• To ensure that the enlarged EU can continue
  functioning efficiently, it needs a more
  streamlined system for taking decisions. That is
  why the Treaty of Nice lays down new rules
  governing the size of the EU institutions and the
  way they work. It came into force on 1 February
  2003. It will be replaced, in 2006, by the new EU
  Constitutionif all EU countries approve of it.

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• The single currencythe eurobecame a
  reality on 1 January 2002, when euro notes and
  coins replaced national currencies in twelve of
  the 15 countries of the EU (Belgium, Germany,
  Greece, Spain, France, Ireland, Italy, Luxemburg,
  the Netherlands, Austria, Portugal and Finland).

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Background information4. The World Bank

• The World Bank is a vital source of
  financial and technical assistance to developing
  countries around the world. One of the worlds
  largest sources of development assistance, the
  World Bank supports the efforts of developing
  country governments to build schools and health
  centers, provide water and electricity, fight
  disease, and protect the environment. The World
  Bank is not a

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• bank in the common sense. It is one of the
  United Nations specialized agencies, and is made
  up of 184 member countries. These countries are
  jointly responsible for how the institution is
  financed and how its money is spent. Along with
  the rest of the development community, the World
  Bank centers its efforts on reaching the
  Millennium Development Goals, agreed to by UN
  members in 2000 and aimed at sustainable poverty
  reduction.

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• It is made up of two unique development
  institutions owned by 184 member countriesthe
  International Bank for Reconstruction and
  Development (IBRD) and the International
  Development Association (IDA). Each institution
  plays a different but supportive role in their
  mission of global poverty reduction and the
  improvement of living standards. The IBRD focuses
  on middle income and creditworthy poor countries,
  while IDA focuses on the poorest countries in the
  world.

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Background information5. The World Trade
Organization

• Established in 1995, the World Trade
  Organization (WTO) is a powerful new global
  commerce agency, which transformed the General
  Agreement on Tariffs and Trade (GATT) into an
  enforceable global commerce code. The WTO is one
  of the main mechanisms of corporate
  globalization. It is based in Geneva.

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Background information6. The Cold War

• Cold War, term used to describe the
  post-World War II struggle between the United
  States and its allies and the Union of Soviet
  Socialist Republics (USSR) and its allies. During
  the Cold War period, which lasted from the
  mid-1940s until the end of the 1980s,
  international politics were heavily shaped by the
  intense rivalry between these two great blocs of
  power and the political ideologies they
  represented democracy and capitalism in the case
  of the United States and its allies, and
  Communism in the case of the Soviet bloc. The
  principal allies of the United States during the
  Cold War included Britain, France, West Germany,
  Japan, and Canada. On the Soviet side were many
  of the countries of Eastern Europeincluding
  Bulgaria), Czechoslovakia, Hungary, Poland, East
  Germany, and Romaniaand, during parts of the
  Cold War, Cuba and China. Countries that had no
  formal commitment to either bloc were known as
  neutrals or, within the Third World, as
  nonaligned nations

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Text Appreciation 1. Theme

• Globalization is a double-edged sword a
  promise to help everyone and a peril to hurt
  everyone.

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Text Appreciation 2. Structure

• Part 1 (Paras. 1 2 ) about The author points
  out the topicglobalization is a double-edged
  sword and what it will bring to the one involved.
  
• Part 2 (Paras.3 34 ) about The author discusses
  the topic in detail by exemplification and finds
  it hard to decide. We can only wait and see.

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Text Appreciation 3. Writing Devices

• Parallelism similarity of structure in a pair or
  series of related words, phrases, or clauses
• e.g. 1. At the edge of a new century,
  globalization is a double-edged sword a powerful
  vehicle that raises economic growth, spreads new
  technology and raises living standards in rich
  and poor countries alike, (Para. 1)
• -------Three verb phrases are coordinatedly
  used as predicate of the attributive clause.

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Text Appreciation 4. Questions for discussion

• 1. What are the positive aspect and the
  negative effect of globalization?
• Please discuss in groups with the examples to
  show the positive and negative effects of
  globalization.
• 2. Do the merits/advantages of current
  globalization outweigh its demerits/disadvantages?
  
• 3. Whats the author Robert J. Samuelsons
  opinion?

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Detailed study of the Text

• 1. At the edge of a new century, globalization is
  a double-edged sword a powerful vehicle that
  raises economic growth, spread new technology and
  increases living standards in rich and poor
  countries alike but also an immensely
  controversial process that assaults national
  sovereignty erodes local culture and tradition
  and threatens economic and social instability.
  (Para.1)
• Paraphrase

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• As the new century approaches, globalization
  means two different things. It can have both
  negative and positive effects. On the one hand,
  it can greatly increase economic production,
  spread new technology and improve the living
  standards in both rich and poor countries on the
  other hand, it is highly controversial because it
  threatens national sovereignty, destroys local
  culture and traditions, and is likely to cause
  economic and social instability.
• doubled-edged sth that is double-edged acts
  in two easy, both positive and negative

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• e.g.
• The increase in petrol prices is double-edged
  because it will make life harder for some, but it
  will reduce congestion and pollution.She paid me
  a double-edged compliment, saying my work was
  excellent for a beginner.vehicle sth you use to
  achieve sth elseeg. The conference was seen as
  an ideal vehicle for increased cooperation
  between the member states.

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• 2. The Cold War, from the late 940s through
  the 980s, caused the United States to champion
  trade liberalization and economic growth as a way
  of combating communism. (Para.4)
• Analysis
• The cold War was a state of extreme hostility
  between countries with opposing political system
  existing after the Second World War to the demise
  of the Soviet Union --- the socialist camp
  headed by the Soviet Union and the free world
  headed by the United States, which expressed
  itself not through shooting wars, but through
  fierce economic competition, as well as through
  political and military pressure and threats.
  During the Cold War, the United States
  enthusiastically fought for trade liberalization
  partly in order to prevent communism.

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• to combat to try to stop sth unpleasant or
  harmful from happening or increasing
• e. g. The government is spending millions of
  dollars in its attempt to combat drug abuse.to
  combat crime/ terrorism/ inflation
• 3. Europeans saw economic unifications as an
  antidote to deadly nationalism.
  (Para.5)Analysis
• Europeans regarded economic unification as
  a way to prevent nationalism. They knew that what
  had caused two world wars could cause more if
  they could not curb this nationalism by turning
  Europe into a common market first and then
  organizing it into some kind of political union.
  This was the vision of a Few far-sighted
  politicians in Europe. Today, after nearly half a
  centurys Herculean effort, this dream is
  beginning to come true.

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• 4. Para.7
• Creditan amount of money placed by a bank at the
  disposal of a client, against which he may draw??
• loan a sum of money which is borrowed, often
  form a bank, and has to be paid back, esp.
  together with an additional amount of money that
  you have to pay as a charge of borrowing ---
  called intereste. g. Shes trying to get a
  50,000 loan to start her own business. ??
• The World Bank an international organization
  which was formed in 1945 to help rebuild war-torn
  Europe, but soon afterward began to focus on the
  underdeveloped world to bring them into the
  international economy.

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• 5. A decade later, even after Asias 1997-98
  financial crisis, private capital flows dwarf
  governmental flows. (Para.8)
• Paraphrase
• The years later, even after Asias financial
  crisis of 1997-98, private capital flows are
  still greater in number than governmental capital
  flows.
• flow movement in one direction, esp.
  continuously and easilye. g. The flow of
  traffic/ goods/ supplies/ ideas/ information

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• 6. The recent takeover struggle between
  British and German wireless giants exceptional
  only for its size and bitterness. (Para.10)
• Paraphrase
• The only difference between the recent
  takeover struggle between British and German
  radio giants and other cases is that this
  takeover is much bigger an da lot more bitter.
• exceptional being an exception uncommon
  extraordinarye. g.
• She has exceptional ability as a
  pianist.The company has shown exceptional growth
  over the post two years.

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• 7. In Europe, the relentless pursuit of the
  single market is one indicator. This reflects a
  widespread recognition that European companies
  will be hard-pressed to compete in global markets
  if their local operations are hamstrung by
  fragmented national markets. (Para.13)Paraphrase
  
• In Europe, the persistent and unremitting
  effort to turn all countries on the continent
  into a single market shows that there is a
  general agreement that if the European market
  remains divided into many small parts behind
  national borders, their companies will not be
  able to compete in the international market.

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• 8. Meanwhile, Latin America and sub-Saharan
  Africa --- whose embrace of the world economy has
  been late or limited --- fared much less well.
  (Para.17)Paraphrase
• Meanwhile, Latin America and sub-Saharan
  Africa, whose integration with the world economy
  has been late and limited, were not so lucky.

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• 9. The global economy may be prone to
  harsher boom-bust cycles than national economies
  individually. (Para.19)
• Paraphrase
• Once integrated with the world market,
  nations will naturally be more vulnerable to the
  fluctuations of the world economy. The capital
  flows in and out a country, for example, can
• create a boom or bust very quickly and with
  
• much harsher effects
• boom a period of sudden economic growth or
  prosperity as opposed to bust idiomatic pairs of
  nouns boom and bust

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• She walked out, bag and baggage, and left
  him.I am all for it, body and soul.It was just
  a bread and better job.Modern spies no longer
  fit in with our traditional image of cloak-and
  dagger adventures.A new nation was born through
  the test of fire and sword.We will never go to
  war against our own flesh and blood.
• They were bound hand and foot. friend and
  foe land and sea heart and soul part and
  parcel vice and virtue skin and bone profit
  and loss pin and needles

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• 10. The Asian financial crisis raised questions
  on both counts. (Para.20)
• Paraphrase
• The Asian financial crisis brought these two
  questions to peoples attention investment funds
  were not well used and trade flows became too
  lopsided.
• on both counts on both points under
  discussione.g.
• Im afraid I do not agree with you on all
  counts.

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• 11. it became apparent that as a result of
  crony capitalism, inept government policies and
  excess optimism, much of the investment had been
  wasted on unneeded factories, office buildings
  and apartments. (Para.21)
• Paraphrase
• It became clear that because of the corruption
  in those countries where political and financial
  resources are in the hands of a few privileged
  people along with their dishonest friends, their
  foolish government policies and unreasonable
  optimism, much of the investment was wasted on
  unneeded factories and a real estate bubble.
• crony capitalism an economic, political and
  social system controlled by a small gang of
  people bonded by private interests and based on
  favoritism.

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• 11. current account an account of credits,
  debits, receipts, and expenditures between tow
  countries.??????
• Balance of payment the difference between a
  countrys imports and exports????balance of
  payments surplus??????/??balance of payments
  deficit??????/??
• 12. The world economy has been flying on
  one engine. (Para.21)Paraphrase
• The world economy has been driven by only one
  countrys economy, namely the economy of the
  United States. In other words, the world has
  become too dependent on one countrys prosperity.

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• 13. It remains possible the abrupt surges of
  global capital, first moving into Asia and then
  out, will have caused, with some delay, a larger
  instability. (Para.28)
• Paraphrase
• It is still possible that sudden increase or
  withdrawal of the worlds capital, first moving
  into Asia and then out of it, will have made Asia
  more unstable.
• surge a sudden and great increase, or a sudden
  and great movement forwarde. g. There has been a
  surge in house prices recently.A sudden surge of
  imports can threaten a domestic industry.The
  company did not expect the surge in demand for
  their products.

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• 14. The street protesters at the Seattle
  meeting of the World Trade Organization in early
  December may have lacked a common agenda or even
  a coherent case against trade. But they
  accurately reflected the anxiety and anger that
  globalization often inspires. So do European
  fears of genetically modified food or
  nationalistic opposition to cross-border mergers.
  (Para.30)
• Paraphrase
• The street at the Seattle meeting of the World
  Trade Organization in early December may not have
  a common program or even good reasons against
  free trade. But they showed clearly their worries
  and anger about globalization. European fears of
  GM food or opposition to cross-border mergers
  also showed their worries and anger.

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• a case against sth grounds for opposing sth
• nationalistic opposition opposition based on
  your loyalty to your nations interests viewed as
  separate from international common interests
• genetically modified food?????
• 15. Just because globalization is largely
  spontaneous propelled by better communication and
  transportation --- does not mean that it is
  inevitable or completely irreversible. Government
  can shield local industries and workers against
  imports or discriminate against foreign
  investors. (Para.32)Paraphrase
• just because globalization on the whole
  occurred quite naturally as result of better
  communications and transportation, it does not
  mean that it is bound to happen and can not be
  turned back. Government can protect local
  industries and workers against imported products
  or discriminate against foreign investors.

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• 16. But this does not mean that a powerful
  popular backlash, with unpredictable
  consequences, is not possible. (Para.33)Paraphras
  e
• But this does not mean that a powerful
  hostile reaction from ordinary people, which will
  have unpredictable consequences, is not possible.
• 17. A plausible presumption is that practical
  politicians would try to protect their
  constituents form global gluts.
  (Para.33)Paraphrase
• We can presume that practical politicians
  would no doubt try to protect their voters from
  the flood of products from other countries.

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• 18. Its a scary prospect. Economic
  interdependence cuts both ways. (Para.35)
• Paraphrase
• Its a terrifying possibility. Economic
  mutual dependence can have good and bad effects.
• to cut both ways (infml) to have
  disadvantages as well as advantages
• 19. Globalizations promise may exceed its
  peril --- but the peril is still real. But await
  the new century. One of the great dramas will be
  to see which prevails. (Para.35)Paraphrase
• Globalization may bring us more advantages
  than disadvantages --- but the dangers are still
  there. But lets wait and see how things will
  develop in the new century. One of the most
  interesting things will be to see which will be
  greater the advantages or the disadvantages.

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Assignment

• Writing
• Please use 200 words to describe what the
  world/ the country/ the city will be like in 20
  years with the progress of globalization.

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