1. What is globalization?2. What has led to increased globalization?3. What are some positive effects of globalization?4. What are some negative effects of globalization?5. What are some effects of multinational businesses?6. Do we have a strong relationship between international trade and growth? If so, in what way?7. Read the Wall Street Journal, The Economist, or any
other major newspaper or weekly publication and select a single article
or articles that (1) either report on interesting economic news such as
globalization, outsourcing, the IMF, the WTO, NAFTA, the EU, trade,
immigration, etc. that can be analyzed by the concepts or models taught
in this course or (2) discusses one or more economic issues related to
the concepts or models taught in this course. It is OK to use an online
economics news article.Write a THREE TO FOUR page essay analyzing the topic or critique the article from economic perspectives. Essay must be typed and double-spaced, (Times New Roman, font 12). The questions that you may address in this essay may include, but are not limited, to the following:· What is the main economic issue?· How is the economic issue related to the concepts or models that you have learned from this course?· What sorts of arguments/opinions have been discussed?· Do you agree or disagree with the analyses/opinions? Why?· What argument would you, as an economist, make?The following is a suggested list of topics. This list is not exhaustive.INDUSTRY STUDY. For a specific
industry, choose a current issue such as deregulation, foreign
competition, and the impact of new technologies, mergers/takeovers,
changing methods of competition, labor problems, or financial changes.COMPANY STUDY. Study the recent
growth or decline of a particular company or its current position. This
topic might include such points as the market structure within which the
company grew and now operates, the elasticity of demand for its
products, the degree of unionization, the cost structure (degree of
fixed cost, economies of scale), the role of advertising, the degree of
international competition, etc.INTERNATIONAL ISSUES. Possible
topics are: current economic problems of a particular country, OPEC, the
European Union, the U. S. trade deficit, protectionism, U. S. trade
relations with Japan or other countries, economic development of a
particular country, the World Trade Organization, etc.GOVERNMENT REGULATION. Analyze
some particular government regulation or antitrust policy relative to a
specific industry or company or analyze a current regulatory issue
(environmental protection, OSHA, the FDA, etc.).
A useful link: Resources for Economists on the Internet: http://rfe.org/ (Links to an external site.)Links to an external site.
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Globalization and the
Two aspects of globalization that have
affected the environment are
1. The permeability of international borders to
pollution and environmental problems.
2. Growth of free trade and transnational
Red fire ants, known for
their painful sting, are an
example of bioinvasion.
They came from
Paraguay and Brazil on
shiploads of lumber to
Mobile, Alabama, in 1957
and have spread
throughout the southern
Emphasizes the interdependence
between human beings and the natural
Focuses on how changes in one aspect of
the social system affect other aspects of
Raises awareness of unintended negative
consequences of social actions.
840,000 dams worldwide provide water to
irrigate farms and supply 17% of the world’s
• Negative consequences include:
• Emission of methane from rotting
• Altered river flows killing plants and
Focuses on how wealth, power, and the pursuit
of profit underlie many environmental problems.
The wealthiest 20% of the world’s population is
responsible for 86% of private consumption.
The United States is responsible for 25% of the
world’s oil consumption, yet the United States
produces less than 3% of the world’s oil
The manufacturing of products that are
intended to become inoperative or
outdated in a fairly short period of time.
Focuses on how meanings, labels, and
definitions learned through interaction and
through the media affect environmental
Large corporations and industries
commonly use marketing and public
relations strategies to construct favorable
meanings of their corporation or industry.
Refers to the way environmentally and
socially damaging companies portray their
corporate image and products as being
“environmentally friendly” or socially
Damage to Ecosystems
Ecosystems are the complex and
dynamic relationships between forms of
life and the environments they inhabit
Over the past 50 years, humans have
altered ecosystems more rapidly and
extensively than in any other comparable
period of time in history.
World Energy Production by
Depletion of Natural
Freshwater resources are being consumed by
agriculture, by industry, and for domestic use.
More than 1 billion people lack access to clean
The demand for new land, fuel, and raw
materials resulted in deforestation, the
conversion of forest land to nonforest land.
Desertification is the degradation of semiarid
land, which results in the expansion of desert
land that is unusable for agriculture.
Linked to heart disease, lung cancer, and
respiratory ailments, such as emphysema,
chronic bronchitis, and asthma.
In Europe, the annual loss of life due to air
pollution is greater than that due to car
In the U.S., 60% of the population lives in
counties that have unhealthful levels of smog or
particulate air pollution.
Largely because of lax enforcement of the
1970 Clean Air Act, 95 million Americans
in 224 counties and the District of
Columbia breathe air with levels of toxicity
that exceed federal health standards.
In mid-1990s, breathing the air in Mexico
City was like smoking 2 packs of
cigarettes a day.
Indoor Air Pollution
Indoor air pollution is
a serious problem in
As this woman cooks
food for her family,
she is exposed to
Destruction of the Ozone Layer
The depletion of the ozone layer allows
hazardous levels of ultraviolet rays to
reach the earth’s surface.
It is linked to increases in skin cancer and
cataracts, weakened immune systems,
reduced crop yields, damage to ocean
ecosystems and reduced fishing yields,
and adverse effects on animals.
Destruction of the Ozone Layer
Satellite data revealed that the ozone hole
in 2008 was 9.8 million square miles—just
larger than the size of North America.
The ozone hole was largest in 2006 when
it reached a record-breaking area of 10.3
million square miles.
What are the immediate dangers associated
with global warming?
Melting glaciers and permafrost
resulting in elevated sea levels.
Changing patterns of rainfall, new flood
plains and dry regions.
C. Increases in waterborne diseases and
diseases transmitted by insects.
D. All of these choices.
Immediate dangers associated with global
• Melting glaciers and permafrost
resulting in elevated sea levels.
• Changing patterns of rainfall, new
flood plains and dry regions.
• Increases in waterborne diseases
and diseases transmitted by insects.
Air pollutants, such as sulfur dioxide and
nitrogen oxide, mix with precipitation to
pollute rain, snow, and fog that
contaminate crops, forests, lakes, and
As a result of the effects of acid rain, all
the fish have died in a third of the lakes in
New York’s Adirondack Mountains.
Accumulation of various gases collect in
the atmosphere and act like glass in a
greenhouse, holding heat from the sun.
• Shifts in plant and animal habitats and
extinction of some species.
• Melting of glaciers and permafrost,
resulting in rise in sea level.
Gases (primarily carbon dioxide,
methane, and nitrous oxide) that
accumulate in the atmosphere and act
like the glass in a greenhouse, holding
heat from the sun close to the earth.
CO2 Emissions Per Capita
by Region, 2003
Radioactive waste from nuclear power plants
and weapons production is associated with
cancer and genetic defects.
Radioactive plutonium, used in nuclear power
and weapons production, has a half-life of
Disposal of nuclear waste is risky and costly,
Pounds of Garbage Per
Person: United States
At Camp Lejeune, a Marine Corps base in
Onslow County, North Carolina, as many as 1
million people were exposed to water
contaminated with trichloroethylene (TCE)
tetrachloroethylene (PCE), from 1957 until
The Agency for Toxic Substances and Disease
Registry found levels of PCE in the drinking
water system as high as 200 parts per billion,
compared with 5 parts per billion, the maximum
Exposure to TCE may cause nervous system
effects, kidney, liver and lung damage,
abnormal heartbeat, coma, and possibly death.
Exposure to PCE-contaminated drinking water
has been linked with non-Hodgkin’s lymphoma,
leukemia, bladder cancer, and breast cancer.
Many personal care products contain chemicals with
known or suspected adverse health effects.
See what chemicals are in the personal care products
you use at the Environmental Working Group’s website
Skin Deep: www.cosmeticsdatabase.com.
Multiple Chemical Sensitivity
After one or more acute exposures to a
chemical, some people experience
adverse effects from low levels of
chemical exposure that do not produce
symptoms in the general population.
Tendency for socially and politically
marginalized groups to bear the brunt of
• Environmental refugees
• People who have migrated because
they can no longer secure a
livelihood because of environmental
The great variety of life forms on Earth.
Threats to biodiversity:
• Primary cause of species decline is
human-induced habitat destruction
• Estimates suggest that at least 1,000
species of life are lost each year.
Threatened Species in 2008
Social Causes of Environmental
Industrialization and economic
Attitudes such as individualism,
materialism, and militarism.
Involvement in the
% of U.S. adults
Sympathetic but not active
Any crime intended to protect wildlife or
the environment that is violent, puts
human life at risk, or results in damages
of $10,000 or more.
Top Ten Things You Can Do to
Fight Global Warming
Replace five incandescent light bulbs in your
home with compact fluorescent bulbs (CFLs).
Instead of short haul flights of 500 miles or so,
take the train and bypass 310 pounds of CO2.
Get a fan, set your thermostat to 75(F) and
blow away 363 pounds of CO2.
Replace refrigerators more than 10 years old
with Energy Star models and save over500
pounds of CO2.
Top Ten Things You Can Do to
Fight Global Warming
Shave your 8-minute shower to 5 minutes for a
savings of 513 pounds.
Caulk, weatherstrip, and insulate your home. If you
rely on natural gas heating, you’ll stop 639 pounds of
CO2 from entering the atmosphere. In the summer,
you’ll save 226 pounds from air conditioner use.
Whenever possible, dry your clothes on a line outside
or a rack indoors. If you air dry half your loads, you’ll
dispense with 723 pounds of CO2.
Top Ten Things You Can Do to
Fight Global Warming
Because it takes more fossil fuels to produce red meat
than fish, eggs, and poultry, switching to these foods
will slim your CO2 emissions by 950 pounds.
Leave the car at home and take public transportation
Support the creation of wind, solar, and other
renewable energy facilities by choosing green power if
offered by your utility.
The Adam Joseph Lewis
Center for Environmental
Studies, on the Oberlin
College campus, is
among the most
buildings in the world.
The building resulted
from the vision of David
Orr, professor of
environmental studies at
cars like this one are
common in Europe
where, as a result of
high gasoline taxes,
gas costs up to $6 a
Wangari Maathai and the Green
The 2004 Nobel Peace
Prize was awarded to
Wangari Maathai for
leading a grassroots
Green Belt Movement,
which is responsible for
planting 30 million trees
Societal development that meets the
needs of current generations without
threatening the future of subsequent
The first international agreement to place
legally binding limits on greenhouse gas
emissions from developed countries.
1. The relationship between economic
development and environmental pollution is:
A. not a very close one since many
advanced societies differ greatly in their
willingness to apply appropriate pollution
B. probably a curvilinear relationship with
the highest levels of pollution found in
societies that are beginning to
C. clearly linear with least pollution found in
regions with the least economic
development, and the most in more
economically advanced ones.
The relationship between economic
development and environmental
pollution is probably a curvilinear
relationship with the highest levels of
pollution found in societies that are
beginning to industrialize.
2. Bill owns a large chemical corporation that
has received media attention for the illegal
dumping of toxic waste. Bill recently hired a
public relations firm to design an advertising
campaign that would project an
“environmentally friendly” image of his
corporation. What activity is Bill engaging
Bill owns a large chemical corporation
that has received media attention for the
illegal dumping of toxic waste. Bill
recently hired a public relations firm to
design an advertising campaign that
would project an “environmentally
friendly” image of his corporation. Bill is
engaging in greenwashing.
3. What is the primary cause of species
A. global warming
D. human-induced habitat
The primary cause of species decline is
human-induced habitat destruction.
Environment and Globalization: Understanding the Linkages
Lead Authors: Adil Najam, David Runnalls, Mark Halle
Although the contemporary debate on globalization has been contentious, it has
not always been useful. No one doubts that some very significant global
processes—economic, social, cultural, political and environmental—are
underway and that they affect (nearly) everyone and (nearly) everything. Yet,
there is no agreement on exactly how to define this thing we call “globalization,”
nor on exactly which parts of it are good or bad, and for whom. For the most part,
a polarized view of globalization, its potential and its pitfalls has taken hold of the
public imagination. It has often been projected either as a panacea for all the ills
of the world or as their primary cause. The discussion on the links between
environment and globalization has been similarly stuck in a quagmire of many
unjustified expectations and fears about the connections between these two
Although the debates on the definition and importance of globalization have been
vigorous over time, we believe that the truly relevant policy questions today are
about who benefits and who does not; how the benefits and the costs of these
processes can be shared fairly; how the opportunities can be maximized by all;
and how the risks can be minimized.
In addressing these questions, one can understand globalization to be a complex
set of dynamics offering many opportunities to better the human condition, but
also involving significant potential threats. Contemporary globalization manifests
itself in various ways, three of which are of particular relevance to policy-makers.
They also comprise significant environmental opportunities and risks.
Globalization of the economy. The world economy globalizes as national
economies integrate into the international economy through trade; foreign
direct investment; short-term capital flows; international movement of
workers and people in general; and flows of technology. This has
created new opportunities for many; but not for all. It has also placed
pressures on the global environment and on natural resources, straining
the capacity of the environment to sustain itself and exposing human
dependence on our environment. A globalized economy can also
produce globalized externalities and enhance global inequities. Local
environmental and economic decisions can contribute to global solutions
and prosperity, but the environmental costs, as well as the economic
ramifications of our actions, can be externalized to places and people who
are so far away as to seem invisible.
Globalization of knowledge. As economies open up, more people become
involved in the processes of knowledge integration and the deepening of
non-market connections, including flows of information, culture, ideology
and technology. New technologies can solve old problems, but they can
also create new ones. Technologies of environmental care can move
across boundaries quicker, but so can technologies of environmental
extraction. Information flows can connect workers and citizens across
boundaries and oceans (e.g., the rise of global social movements as well
as of outsourcing), but they can also threaten social and economic
networks at the local level. Environmentalism as a norm has become truly
global, but so has mass consumerism.
Globalization of governance. Globalization places great stress on existing
patterns of global governance with the shrinking of both time and space;
the expanding role of non-state actors; and the increasingly complex interstate interactions. The global nature of the environment demands global
environmental governance, and indeed a worldwide infrastructure of
international agreements and institutions has emerged and continues to
grow. But many of today’s global environmental problems have
outgrown the governance systems designed to solve them. Many of
these institutions, however, struggle as they have to respond to an everincreasing set of global challenges while remaining constrained by
institutional design principles inherited from an earlier, more state-centric
Table 1. Environment and globalization: some examples of interaction.
How does globalization
How does environment affect
affect the environment?
Scale and composition of
Natural resource scarcity
or/and abundance are
drivers of globalization, as
they incite supply and
demand forces in global
for more widely
Techniques change as
able to extract more
from nature but can
The need for environmental
amelioration can extract
costs from economy and
siphon resources away
from development goals.
knowledge and best
emergence of global
networks and civil
the spread of
the emergence of
Signals of environmental stress
travel fast in a
marginalized from trade,
Sensibilities born out of
environmental stress can
push towards localization
development in retaliation
to the thrust of
Environmental stress can
technological paths, e.g.,
alternative energy, etc.,
which may not have
Environmentalism becomes a
also be spurred.
Globalization makes it
influence patterns of trade
for states to rely
and investment nationally
only on national
regulation to ensure
The nature of environmental
the wellbeing of
challenges requires the
their citizens and
There is a growing
into other areas (e.g.,
demand and need
trade, investment, health,
for global regulation,
especially for the
Stakeholder participation in
means to enforce
and build upon their Governance
the participation of NGOs
and civil society—has
become a model for other
areas of global
the involvement of a
growing diversity of
their coalitions in
market and civil
The relationship between the environment and globalization—although often
overlooked—is critical to both domains. The environment itself is inherently
global, with life-sustaining ecosystems and watersheds frequently crossing
national boundaries; air pollution moving across entire continents and oceans;
and a single shared atmosphere providing climate protection and shielding us
from harsh UV rays. Monitoring and responding to environmental issues
frequently provokes a ne …
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