Comprehension

Ex. 1. Comment on the advantages and disadvantages of globalization, and bring the arguments from the text as well as of your own.

Advantages of Globalization

• Increased free trade between nations.

• Increased liquidity of capital allowing investors in developed nations to invest in developing nations.

• Increased flow of communications allows vital information to be shared between individuals and corporations around the world.

• Greater ease and speed of transportation for goods and people.

• Greater interdependence of nation-states.

• Reduction of likelihood of war between developed nations.

• Increases in environmental protection in developed nations.

Disadvantages of Globalization

• Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor.

• Increased likelihood of economic disruptions in one nation effecting all nations.

• Corporate influence of nation-states far exceeds that of civil society organizations and average individuals.

• Threat that control of world media by a handful of corporations will limit cultural expression.

• Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage.

• Greater risk of diseases being transported unintentionally between nations.

• Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity.

• International bodies like the World Trade Organization infringe on national and individual sovereignty.

• Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries.

Ex. 2. Discuss the following issues.

1. Globalization is a double-edge weapon.

2. Globalization is like Charles Darwin Evolution theory but in the economic sense.

Text 2

Economic Cooperation

In the era of globalization, countries have realized that economic co-operation with other nations is strategically important for the growth of the economy. Only international co-operation can shape globalization in a positive way, and make it equitable for all.

Development of economic cooperation is a long-term process. Three factors are especially important for its successful development: ownership of the process by developing countries; effective dialogue between developing and developed countries; and coherent policies in developed countries in areas such as trade, investment, intellectual property rights, and agriculture, that will have a maximum positive impact on developing countries.

In the era of globalization, countries have realized that economic integration with other nations is strategically important for the growth of the economy. The degree of economic integration can be categorized into six stages:

• Preferential trading area.

• Free trade area.

• Customs union.

• Common market.

• Economic and monetary union.

• Complete economic integration.

Economic integration tends to precede political integration. Economic communities naturally evolve into political unions. Transformations in Europe gave European nations a completely new chance of cooperation and friendship. An example for cooperation is the European Union, which attempts to form infrastructure that crosses state borders. Two of the original core objectives of the European Economic Community were the development of a common market, and a customs union between its member states. The common market involves the free circulation of goods, capital, people and services within the EU, and the customs union involves the application of a common external tariff on all goods entering the market.

Another example of economic and political integration is the Commonwealth of Independent States (CIS), a regional organization whose participating countries are former Soviet Republics, with the exception of the Baltic Republics and Georgia. It was established in December 1991. The administrative center of the CIS is located in Minsk. The CIS possesses coordinating powers in the spheres of trade, finance, lawmaking, and security. Some of the members of the CIS have established the Eurasian Economic Community with the aim of creating a full-fledged common market. The EurAsEC is working on establishing a common energy market and exploring the more efficient use of water in central Asia.

Countries with close mutual interests often join to create economic communities. The best known and most successful is called the Organization for Economic Cooperation and Development (OECD). Head-quartered in Paris, it aims to stimulate economic growth. The stated purpose of the OECD is to achieve economic growth in member countries, to contribute to economic expansion, and to increase the expansion of world trade. Broadly speaking, the objective is to foster the free international flow of payments, services, capital, human resources, and scientific developments. Likewise, the OECD is concerned with developments in industry and agriculture, the use of nuclear energy for peaceful purposes, and environmental problems. The OECD gathers and disseminates information about numerous economic indicators in its member countries, and about the issues that affect those economies. The organization has 29 full members. Among them are Australia, New Zealand, Japan, Korea, the United States, Canada, Mexico, Turkey and most countries of Western Europe.

Another example of international cooperation is the Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC was established in 1989 and unites 21 countries from America and Asia. It enhances economic growth and prosperity for the region and strengthens the Asia-Pacific community.

APEC is the only inter governmental grouping in the world operating on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis.

Ex. 1. Speak on the following issues:

• three factors for successful development;

• the stages of economic integration;

• the core objectives of the European Economic Community;

• the CIS and the EurAsEC;

• the role of the OECD;

• the mission of APEC.

Ex. 2. Search for the information in Internet and explain the difference between APEC and OPEC. Speak about the OPEC’s objectives.