Lesson 5 Evaluation on GlobalizationInternational Trade Organisations

Concept of Globalization

Form groups to respond to the questions and case illustrations Class Activity (9) – Part I Positive Impacts of Globalization & Part II Criticism against Globalization

Today, Giordano has successfully executed its multi-market and multi- brand strategy by operating over 2,400 stores in more than 30 countries. Watsons is Asia’s leading health and beauty retailer, currently operating over 4,500 stores in 12 Asian and European markets, including China (Mainland China, Hong Kong, Taiwan and Macau), Singapore, Thailand, Malaysia, the Philippines, Korea, Indonesia, Turkey and Ukraine. Can you find these two companies, (1) Giordano and (2) Watsons, in other countries? Why are they setting up thousands of stores in different parts of the world? Find their global footprints! Class Activity (9) – Part I Positive Impacts of Globalization

Why do H&M and Zara employ workers in Bangladesh to make clothing for them? Class Activity (9) – Part I Positive Impacts of Globalization

Many of our products are made in some of the world’s poorest countries …. the clothing industry creates millions of jobs, so it’s often the first step to greater prosperity for developing countries. Bangladesh is one of our most important production markets. Find out what we are doing to support the country’s development, and improve the lives of people living there.

What are the impacts of globalization on information and capital flow? The internet and mobile technology has allowed greater communication between people in different countries. International financial institutions also facilitate speedy flow of capital. Class Activity (9) – Part I Positive Impacts of Globalization

More business opportunities to access worldwide markets Allow global sourcing of resources, e.g. Li & Fung Create employment opportunities, e.g. H&M Freer flow of capital and information Class Activity (9) – Part I A Summary of the Positive Impacts of Globalization

How about criticism? Class Activity (9) – Part II Criticisms again Globalization

What are the common products offered by McDonald’s, Disneyland and Coca Cola? Class Activity (9) – Part II Criticisms again Globalization

曾遭達賴反對, 肯德基明年進軍西藏 ….. 早在 2004 年，肯德基 就計劃進駐西藏，但當時 身為嚴格素食者、流亡海 外的西藏精神領袖達賴喇 嘛曾去信美國肯德基炸雞 店總公司，要求他們放棄 在西藏開設炸雞店。達賴 喇嘛指，屠殺雞隻作炸雞， 違背了西藏人的價值觀 … 11 December, 2015 Apple Daily Class Activity (9) – Part II Criticisms again Globalization

Explain the negative impact of globalization from the case below – “ Chinese Imports and Contraband Make Bolivia’s Textile Trade a Casualty of Globalization” Domestic manufacturing in Bolivia has been crushed by the influx of cheap foreign goods, mainly from China. Bolivian products cannot compete in the global market because of the small scale production, the strict labor law which keeps labor cost high, and the frequent political unrest which hurt competitiveness by raising costs. The Bolivian economy is reliant on raw material extraction, and its trade deficit keeps widening. Although the government is making an effort to raise tariffs and create state-owned companies to save jobs, globalization seems to have caused more bad than good in Bolivia. (Source: globalpolicy.org) Class Activity (9) – Part II Criticisms again Globalization

金融海嘯由美國不良按揭貸款引致，使得全球經濟受嚴重打擊。 在全球經濟一體化的大趨勢下，香港成 功由工業經濟發展成商業金融業主導的 經濟，並一躍成為國際金融中心。雖然 全球化帶來了巨大的商機，但我們也不 能忽略它所帶來的負面影響 不良按揭貸款債券 …. 在經濟全球化下銷 售也國際化，因此，不少國際銀行受到 牽連 。 (Source: 31 October, 2012, Apple Daily) Class Activity (9) – Part II Criticisms again Globalization

Why are there fair trade coffee beans in Starbucks? Class Activity (9) – Part II Criticisms again Globalization

Yahoo pictures Why are there protests against capitalism? Class Activity (9) – Part II Criticisms again Globalization

Why do the following situations happen? Class Activity (9) – Part II Criticisms again Globalization

Invasion of local culture Reducing employment opportunities for domestic workforce Greater economic fluctuation and market volatility due to higher interdependence among countries Increased poverty: larger income gap between rich and poor Contamination of environment and depletion of resources Class Activity (9) – Part II A Summary of the Criticisms against Globalization

Key International Trade Organisations With globalization and more frequent international trades, organisations that promote free and fair trade, establish trading rules and resolve disputes play an important role in global business world. Key international trade organisations include: 1.The World Trade Organisation (WTO) 2.Asia-Pacific Economic Cooperation (APEC) 3.International Monetary Fund (IMF) 4.Association of Southeast Asian Nations (ASEAN)

Key International Trade Organisations World Trade Organisation (WTO) provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development. provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for settling disputes arising from their interpretation and application.

Key International Trade Organisations Functions: Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations

Key International Trade Organisations The Sixth Ministerial Conference of the World Trade Organisation was held at the Hong Kong Convention and Exhibition Centre, Wan Chai, Hong Kong from 13 to 18 December (Source: Yahoo pictures)

Key International Trade Organisations Asia-Pacific Economic Cooperation (APEC) is the premier Asia-Pacific economic forum with a primary goal of supporting sustainable economic growth and prosperity in the Asia-Pacific region. united to build a dynamic and harmonious Asia- Pacific community by championing free and open trade and investment

Key International Trade Organisations Asia-Pacific Economic Cooperation (APEC) promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security facilitating a favorable and sustainable business environment.

Key International Trade Organisations Asia-Pacific Economic Cooperation (APEC) Secretary for Commerce and Economic Development, Gregory So Kam-leung, GBS, JP at 2015 APEC Ministerial Meeting, Manila, The Philippines November 2015 (source:

Key International Trade Organisations International Monetary Fund (IMF) Functions: foster global monetary cooperation monitor global financial developments and secure financial stability facilitate international trade, promote high employment and sustainable economic growth

Key International Trade Organisations International Monetary Fund (IMF) Functions: provide technical advice and training provide short-term loans to countries that are unable to meet their financial obligations alleviate poverty in developing economies

Key International Trade Organisations IMF 認為，除環球經濟今年 首季增長較預期弱，希臘債 務危機及中國股市波動，都 是影響全球的因素。 Source: 19 July, 2015 Apple Daily Source: 22 January, 2016, HK Economic Times

Key International Trade Organisations The Association of Southeast Asian Nations (ASEAN) to accelerate the economic growth, social progress and cultural development in the region to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations promote active collaboration and mutual assistance for raising of the living standards of their peoples

Key International Trade Organisations The Association of Southeast Asian Nations (ASEAN) 東盟基建需求盛 港融資機遇大 共有 6.25 億人口的東盟 10 國區域在 2015 年的最後一天正式成立 東盟共同體， …… 東盟經濟共同體謀求在 2025 年時已高度融合， 同時增加行業間的合作，融入環球經濟。 港出口東盟升 逆市增長源頭 要達到以上目標，關鍵之一是完善東盟各國有助於人貨往來的 相關基建.…. 成為亞洲「和平的橋樑」。其實東盟基建的情況， 不止是東盟的事，也與香港息息相關。從貿易出發，香港與東 盟現正談判自由貿易協定，去年 12 月便完成了新一輪會議，而 行政長官梁振英去年預計在今年內可以達成協議。 Source: Extract from HK Economic Times, 23 January, 2016

Extended Learning Activity -- Other Key International Trade Organisations What are the primary functions of other international trade organisations? Find them out! EU, World Bank, OECD ……

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