Challenges &

Opportunities
of Globalization
“
Globalization is the word used to
describe the growing interdepen-
dence of the world's economies,
cultures, and populations, brought
about by cross-border trade in
goods and services, technology,
and flows of investment, people,
and information.

2
Challenges & Opportunities
of Globalization
by G. B. Madison
Globalization has become the overarching fact with
which all the various countries (and cultures) of the
world must contend; it is a challenge which none of
them can avoid.
Like all profound transmutations in history (such as the
earlier, and still on-going, phenomenon of
modernization), globalization is something that is not a
matter of human choosing.
We cannot choose the historical situations with which
we must contend, but we can do our best to make the
best of the opportunities they present us with.
 THE NEW GLOBAL ECONOMIC

Globalization
ORDER
When national economies are
increasingly inter-linked and
when capital is free to move
THE PHENOMENON OF about, a crisis in one country
GLOBALIZATION can rapidly spill over into other
countries, creating a kind of
The phenomenon of
global domino effect of an
globalization is itself global,
extremely disruptive sort.
that is to say, all-
encompassing. It is of course There can be no denying that
in the first instance a that is exactly what happened.
material or economic One thing that the phenomenon
phenomenon, but, like all of globalization can be said to
significant civilizational have brought about in this
developments, it also has regard is an altogether
profound cultural or spiritual appropriate transformation of
significance. our understanding of what
constitutes the nature and
“value” of money.
4
GLOBALIZATION AND CULTURE
Globalization may have as its effect a certain leveling of
cultural differences and, owing to the consumerism it
promotes, may make for increasing similarity in lifestyles
around the world, but it is difficult to see how this
consequence of globalization may not actually have
decidedly beneficial effects.

GLOBALIZATION AND DEMOCRACY

A failure to diagnose the need for democratic and
accountable government will bring only more economic
misery. It is true that the more countries are tied into the
global economy, the more they are vulnerable to financial or
economic upsets when their practices turn out to be market
unfriendly. Global free-trade allows people the world over to
exploit their own comparative advantages and to
concentrate on doing what they do best, helping thereby to
raise the overall level of well-being. Curiously enough, there
are those who view the stability brought about by
globalization as a threat to democracy.
5
Challenges of Economic
Globalization
The economic phenomenon of globalization is not a new
event. Between 1870 and 1914, a similar process
developed which economists of international relations
have called the first globalization.
In accordance with classical theory, global economic
expansion requires prosperity through division and
specialization work according to the comparative
advantage in each country.
Components and Trade Liberalization Foreign Direct
Effects of Economic World Bank, Frankel and Investment and
Globalization Romer, Sala-i-Martin Capital Mobility
The steady economic and Dollar & Kraay, There is a wide
growth of interdepen- confirm that countries literature suggesting
dence between count- with higher degree of
that an inflow of
ries, which has been trade liberalization have
investment from
intensified since the had better results in
MNEs can stimulate
early nineties, has their living standards
than in previous periods local development
brought certain bene-
and have grown faster through increased and
fits and in some cases
barriers to countries than those countries in improved resources
immersed in this pro- autarky. and capabilities.
cess, led to intense
debate about the effe-
cts of globalization on
the economic growth of
these countries.
7
Globalization:
Challenges and
Opportunities
While it has become a dominant force in the last decade
of the twentieth century as it was in the last decade of
the nineteenth, it has new features: new markets (e.g.,
globally linked financial markets working around the
clock with new instruments, global consumer markets
with global brands, e-commerce), new actors (e.g.,
multinational corporations, the World Trade
Organization, proliferation of international NGO’s,
regional blocs, policy coordination groups), new rules
(multilateral agreements in trade, conventions on human
rights, on global environment), and new tools of
communication (e.g., cell phones, faxes, e-mail).
Impact of Globalization:
The Good and the
Disturbing
Globalization has many positive, innovative and dynamic aspects, all
related to the increased market access, increased access to capital, and
increased access to technology and information which have led to
greater income and employment opportunities. There is no dearth of
examples: The world as a whole is definitely more prosperous and more
healthy, with average per capita incomes tripling in the last fifty years,
child mortality rates halving and life expectancy increasing by ten years
since 1965. Trade flows also increased 12-fold in the past fifty years as a
result of the removal of natural and artificial barriers. Movements of
people have also increased. Tourism more than doubled between 1980
and 1996, from 260 million to 590 million travelers a year.
While the world as a whole has benefited from
globalization, there are negative and marginalizing aspects of
globalization. These are what have led to a backlash, as reflected to a
certain extent in the demonstrations by civil society accompanying
recent international conferences, and by increasing expressions of
dissatisfaction at the governmental level.

9
Unbalanced Distribution of More human insecurity
Benefits Between Countries Crime, disease, and loss of cultural
The first negative aspect of identity. Unfortunately, the many
globalization is that its gains are not opportunities opened up by the
equally distributed, both between and widening and deepening of information
within countries. flows and contacts among the world’s
people also include increasing
The information and communication
opportunities for crime (trafficking in
technology revolution, which is
drugs, weapons, women, international
regarded as the newest sinew of
syndicates), for the spread of HIV/AIDS
globalization, has created a gap of its
as well as ideas, and for the flow of
own–the so-called digital divide. The
culture and cultural products which may
benefits of globalization are also badly
lead to cultural homogenization, which,
skewed within countries, both
while considered enriching by some, is
developing and developed.
considered as a loss of cultural identity
Income inequality is rising in many by others.
countries, particularly in the OECD
countries. Worse, job and income
insecurity is increasing, particularly for
unskilled labor, although corporate
restructuring has also meant job
insecurity for professionals.
10
Factors Contributing to the
Unbalanced Impact of
Globalization
Trade and investment flows to countries are impeded by poor
macroeconomic policy that leads to chronically large fiscal deficit its,
which creates instability. Additionally, policies that lack transparency or
consistency make for unpredictability and uncertainty, which lead
foreign investors and local businesspersons to adopt a wait-and-see
attitude, a state of suspended animation. It is well to note that these
bad policies, which really indicate poor governance, would hamper a
country’s development in any case, with or without globalization.
Globalization merely exacerbates the effects of bad policy, just as it
would tend to increase the rewards of good policy.
The challenge lies in reforming global governance so that global
competition and free market approaches can be harmonized with
human development and human rights in all countries. Always
acknowledging, of course, that even with good global governance, lack
of good local governance a developing country will still find itself
excluded and marginalized from the benefits of globalization. In brief,
good global and national governance go hand in hand, with both placing
people, not just profits, squarely in the center of policy and action.

11
Globalization and
Education Problems
by Sadegh Bakhtiari
The progress of the times continues to
develop but the education system built in
the current era is not in accordance with
the times, it can be said that the education
system has failed to overcome today's
social challenges even though education is
the basis and strength of a government.
Positive and POSITIVE IMPACT:
Globalization has a positive impact
Negative Impacts on society, namely various
of Globalization needed globally so that various
knowledge, skills and assets that are

developments at different levels can

NEGATIVE IMPACT: be more easily accessed and owned,
synergies can support, complement,
Increasing technological and and provide benefits to produce
digital support between various country developments,
developed and developing communities and individuals, are
countries, creating more better able to create value and
opportunities for developed increase efficiency through global
countries to form new sharing and mutual support to serve
local needs and growth, globalization
colonizations in developing
also participates in facilitating
countries, increasing communication, interaction, and
conflicts between regions encouraging multi-cultural
and cultures, and promoting contributions at various levels
the dominant culture and between countries, and can promote
values ​of developed understanding internationally and
countries. can collaborate harmoniously in
relation to cultural diversity across
countries.
13
 POSITIVE IMPACT:
In the world of Developing countries can take

education:
advantage of global distance learning
(GLDN) which can facilitate students
with communication equipment, but
the physical equipment in the form of
NEGATIVE IMPACT:
facilities tends to decrease, besides
The negative impact of that students can easily have access
globalization in education is to receive knowledge, the skills
needed are the same. As in
that it creates social
developed countries, students can
disparities in education
gain greater knowledge apart from
between developed and the teaching of the teacher.
developing countries, can
In addition, developing countries and
obtain gaps and conflicts
developed countries can synergize,
between regions and support, and complement each other
cultures, developed in the world of education, as well as
countries can more easily create value and increase efficiency
exploit and instill cultural through global divisions in addition to
values ​into developing supporting each other to serve local
growth in each country.
countries.

14
EDUCATIONAL PROBLEMS
In the world of education in developed and developing
countries, there are many problems that occur, especially in
developing countries, there are several problems such as the
number of people who need education but access to
education is still difficult to achieve, the existing facilities
and infrastructure in schools in developing countries do not
support students. in obtaining a proper education and
differences in the ability of educators due to the training
obtained to improve skills in learning.

EDUCATION IS PART OF HUMAN RIGHTS

It was argued that education in today's era is an integral part
of human rights: “It must be free and compulsory in terms of
basic, basic teaching. Vocational teaching and technology
must be widely available and access to higher education
available to all on an equal basis, on merit.”

15
Globalization and
The Integration of
Industry In The Region
By Mojmir Mrak
Challenges
Globalization is a highly uneven process and numerous facts can prove this. For example,
growing trade is not leading to more equitable distribution of under-lying comparative
advantages. DFI are very concentrated, with 10 developing countries accounting for over three-
quarters of total FDI inflows to this part of the world. Similar inequalities exist in the generation
of “new knowledge” where a small number of countries continues to dominate innovation
On the other hand, globalization also demand a drastically changed role of national
governments. Private sectors operating in the highly competitive environment need clear rules
of operation, stable macroeconomic environment, unrestricted access to imports, efficient
economic and social infrastructure, and all these are requested from national governments.

17
Opportunities
Technological change and globalization of production
Technological changes we are witnessing today affect the parameters of technology and
product flows across countries. Improvements in transportation net-works and technology are
reducing the costs of transportation while improvements in information technology have made
an increasing volume of information available at close to zero costs. Lower transportation and
communication costs have important implications for the nature of production activities, the
flow of knowledge it relies on and the marketing of products that it makes.
Expansion of trade in goods and services
The intensified globalization of production is closely interlinked with the second dimension of
globalization, i.e., with rapid expansion of international trade of goods and services.
International trade data clearly show the rise in global production networks.
Widening and deepening of international capital flows
Financial flows across national borders have risen far more quickly than trade in recent years.
Since 1990, there has been a huge upsurge in international capital flows and a growing
integration of international capital markets.

18
The Promise of
Globalization
By Thomas H. Lee and Proctor P. Reid
The globalization of industry and technology promises to accelerate transnational integration
and cross-fertilization in engineering, technology, and management
As multilateral flows of trade, investment, and technology increase and more companies are
drawn into global industrial networks of production, research, finance, and distribution, more
firms are able to exploit the special competencies and technologies of an ever larger number of
world-class national technical enterprises. This, in turn, speeds the development and diffusion
of new product and process technologies and new "best practice" engineering and
management techniques worldwide.
Competitive globalization of technical activities promises to enhance the diversity and depth
of the current stock of world engineering and scientific resources and thereby provide
greater stimulus to economic growth and technology development
In the context of competitive, open markets, global sourcing, assembly, production, and
research permit private corporations to increase the efficiency with which they employ
technical resources. In an increasingly integrated global economy, firms are able to access
larger markets, a larger pool of specialized technical competence, and a larger reserve of
complementary assets such as managerial talent, capital, and skilled labor. This, in turn, offers
them the opportunity to increase economies of scale and scope across the spectrum of
technical functions encompassing research, design, development, production, sales, and
service.
20
The Promise of
Globalization
By Zia Qureshi
Challenges
✓ Lagging countries lag further behind due to the global economic
environment.
✓ In economic managementIntegration requires adoption,
maintenance of trade regime and liberal investment.
✓ In trade, competition is getting tougher,and possible trading
change fast support getting agile.
✓ In finance, integration of international capital markets, and
potential volatility of capital flows accompany it, make
management macroeconomics in developing countries become
more complex.
✓ Increased integration of countries growing in the world capital
market bring great benefits but also requires stricter discipline in
economic management because it is not leaving room for error
Policy.

22
Challenges
✓ Mexico’s crisis serves to underscore the critical role of sound
policies in sustaining the confidence of financial markets. It also
shows that, when a crisis of confidence develops, its impact can
be sudden and damaging, with a spillover to other countries that
market participants perceive as being in a similar situation.
✓ The reallocation of resources that this structural change entails is
not easily accomplished and will inevitably generate frictions.
There is a real risk that protectionist pressures could intensify. A
successful transition will depend heavily on the efficacy of the
policies of industrial countries in mitigating the social costs of
adjustment and facilitating the reallocation of resources through
the creation of more flexible labor and product markets.
Successfully managing this process of integration will perhaps be
the most important economic challenge of the future. Protectionist
pressures to slow or reverse integration must be resisted, since
that would make both industrial and developing countries lose—
and lose dearly

23
Opportunities
✓ The growing international role of developing countries also means
they will have a greater economic impact on industrial countries.
For example, about one-fifth of industrial countries’ exports went
to developing countries in the late 1980s.
✓ Increasing integration of developing countries go global to
improve welfare of both developing and industrialized countries
country in the long term.
✓ Prioritize efficiency and productivity and provide a more friendly
environment for exports and foreign investment, reforms that
outward orientation has been key for recent improvements in
economic prospects of countries growing.
✓ Countries that quickly changing its policies and structures to
support the growth outward-oriented—adopting conducive trade,
investment and exchange rate policy for openness and
competitiveness bigger, and sustain these reforms with a
macroeconomic foundation that stable.

24
Opportunities
✓ Contrasts in East Asian and Latin American experiences in
managing the rise in private capital flows in the 1990s are
instructive. While individual countries in these regions have had
different experiences, in general, East Asia has been more
successful in attracting capital while maintaining economic
stability and avoiding volatility in the flows.
✓ Not only is international trade buoyant, it is experiencing
important structural shifts. Rapid advances in telecommunications
and information technology are expanding the boundaries of
tradability in services—the fastest-growing component of both
trade and foreign direct investment. For developing countries,
promising new avenues for exports are opening, especially in
relatively labor-intensive long-distance services—data
processing, software programming, clerical and professional
services—that alone could potentially double these countries’
commercial service exports, now valued at about $180 billion.

25
Each country, will have to design
and implement national and takes
advantage of the opportunities that
globalization. In terms of the
national economy, there are three
distinct advantages:
1. The demand for a country’s product is no
longer constrained by its own markets
2. A country’s investment is no longer
constrained by what it can save itself
3. A country’s producers can have access (at
a price) to the most advanced technology
Corresponding to these opportunities, some of the
challenges are:
✓ Lack of complete access to product markets caused by both trade
barriers and hefty subsidies in developed countries on commodities
of interest to agricultural producers.
✓ Limited access to financial resources, and for some countries high
conditionality attached to concessional resources.
✓ The constraints on acquiring technology in terms of resources, both
human and financial, and inadequate infrastructure.

27
A growing innovation in the world economy is the establishment of international standards and
codes as “rules of the game” for all economies. Now, there are codes of good practice in
monetary policy, fiscal transparency, insurance and payments systems, securities, corporate
governance, accounting, statistics and bank supervision, as well as a growing array of
standards in other fields.
The standard determinants of competitiveness are not only economic and technological but
also include non-economic factors such as the promotion of democratic institutions, good
governance and human rights, also strong political and social frameworks. To achieve this,
there has to be, first, political will and good leadership. Secondly, a national consensus needs
to be forged among stakeholders concerning the necessary reforms and, thirdly, appropriate
institutions and policies must be put in place to meet the challenges.
Globalization is an unstoppable phenomenon, presenting opportunities to those who are
prepared and threats to those who are not. Regional cooperation through which the countries
look beyond their borders to tap and leverage other’s strengths could be an effective
approach in this endeavour.

28
 Nurul Aini Putri Arifah Khairunisa Annisa Luthfiyanti A.
109712797 109712761 109712760
Education of Elementary Education of Elementary Education of Elementary
School Teacher School Teacher School Teacher
State University of Jakarta State University of Jakarta State University of Jakarta

Afna Maulan Cahyani Angelica Puspasari M. Sahilfah

109712753 109712756 109712814
Education of Elementary Education of Elementary Education of Elementary
School Teacher School Teacher School Teacher
State University of Jakarta State University of Jakarta State University of Jakarta

Royana Yuksafa Debi Audina Dahlia

109712813 109712771 109712767
Education of Elementary Education of Elementary Education of Elementary
School Teacher School Teacher School Teacher
State University of Jakarta State University of Jakarta State University of Jakarta

Team Presentation
29