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SS3: ECONOMICS - 2ND TERM

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  1. Balance of Payment I | Week 1
    4 Topics
  2. Balance of Payment II | Week 2
    4 Topics
  3. Economic Growth & Development | Week 3
    1 Topic
    |
    1 Quiz
  4. Economic Development Planning | Week 4
    2 Topics
    |
    1 Quiz
  5. International Economic Organisations I | Week 5
    4 Topics
  6. International Economic Organisations II | Week 6
    6 Topics
    |
    1 Quiz
  7. Current Economic Plans | Week 7
    5 Topics
    |
    1 Quiz
  8. Economic Development Challenges | Week 8
    4 Topics
  9. Economic Reform Programs | Week 9
    5 Topics



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Definition of Globalization

Globalization simply means the changing of the world from many different economies, cultures, and societies to a single one. It is used to address the political and social changes around the world. Globalization refers to worldwide trade that links economies together in such a way that they are all interdependent.

Benefits of Globalization

1. Availability of goods, which helps in improving the standard of living of the people.

2. Decrease in poverty level around the globe.

3. Democracy becomes the order of the day, countries are now receptive to human rights.

4. It brings about a common language for the world (the English language has become the language of business in the world through the internet, mail, and mass media).

5. It brings about an understanding of cultural differences through trade.

6. It leads to reduction of worldwide inequality due to economy expansion.

7. It leads to complete improvement in the overall performance of countries, an increase in the growth rate of real per capita GDP.

8. Reduction in internal and external imbalances.

9. Liberalization of agricultural marketing and reduction in administrative price controls.

10. Fiscal reform is gaining ground through rationalization of tax system to reduce exemption and enhance administrative efficiency.

Disadvantages of Globalization

1. Uneven gathering of wealth [The rich getting more richer] some poor countries are unable to produce some goods because it can be produce cheaper by the developed countries.

2. Workers in wealthy countries believe that their jobs are heading to poorer countries while workers in poor countries are oppressed because they work for relatively low wages.

3. Environmental damages as a result of technological development.  

4. Some countries fear that globalization may destroy their valued cultures and traditions as foreign cultural values are introduced.

5. The neglect of race and ethnicity in account of making of new global order.

Features of Globalization

1.  Free access to the market in the world without any physical [Quota] or fiscal [tariff] or any government restriction.

2. Globally standardized products needs to be marketed all over the world.

3. Globalization requires resources such as raw materials, finance, and technology.

4. In globalization there is free mobility of managerial personnel and entrepreneurs.

Evaluation Questions

1. Explain the challenges of globalisation

2. Calculate, based on the data

a. Balance of Trade
b. Invisible Balance
c. Balance on current accounts
d. Balance of payment

ITEMAMOUNT (MILLION)
Visible Exports60.5
Visible Import52.0
Invisible Exports30.00
Invisible Import20.5
View Answer

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Evaluation questions

1. Explain the challenges of globalization

2. Calculate, based on the data

a. Balance of Trade
b. Invisible Balance
c. Balance on current accounts
d. Balance of payment

ITEMAMOUNT (MILLION)
Visible Exports60.5
Visible Import52.0
Invisible Exports30.00
Invisible Import20.5

 

Solution

1. Explain the challenges of globalization

a. Environmental damages as a result of technological development

b. Neglect of race and ethnicity in account of making of new global order

c. Fear of destruction of countries’ valued cultures and traditions as foreign cultural values are introduced

d. Uneven gathering of wealth: The rich getting richer and some poor countries are unable to produce some goods.

2. Calculate, based on the data

a. Balance of trade = Visible Export – Visible Import

= 60.5 – ₦52.0

= 8.5

b. Invisible balance = Invisible Export – Invisible Import

= 30 – ₦20.5

= 9.5

c. Balance of current account

Balance of trade + Invisible trade

= 8.5 + ₦9.5

= ₦18

d. Balance of payment = (Visible export + invisible export)

+ (Visible import + invisible imports)

B.O.P = (60.5 + 30) – (52 + 20.5)

= 90.5 – 72.5 = ₦18

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