Make an outline of the text. Write down key phrases.

60. Fill in the “mind map” using key phrases:

Give English equivalents. Work with your partner.

62. Use the following phrases in your own sentences:

Render the text. Make use of the active vocabulary.

UNIT 5

1. Read and translate the text, paying special attention to the terms in bold type:

Globalization

There are many different definitions of globalization, but most acknowledge the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. It is like moving towards living in a borderless world.

There has always been a sharing of goods, services, knowledge and cultures between people and countries, but in recent years improved technologies and a reduction of barriers means the speed of exchange is much faster. Bigger markets mean bigger profits which leads to greater wealth for investing in development and reducing poverty in many countries.

The issues and perceived effects of globalization excite strong feelings, tempting people to regard it in terms of black and white, when in fact globalization is an extremely complex web of many things.

Although the term ‘globalization’ was coined in the latter half of the 20^th century, the first steps towards globalization were taken in Europe in the 16^th and 17^th centuries, when the Portuguese and Spanish Empires reached to all corners of the world. Liberalization in the 19^th century is often called “The First Era of Globalization”, a period characterized by rapid growth in international trade and investment. “The First Era of Globalization” began to break down at the beginning of the first World War and later collapsed due to the gold standard crisis in the early1930s. Advances in technology which have reduced the costs of trade after World War II led to a series of agreements to remove restrictions on free trade.

Money makes the world go round, they say. Perhaps it is even truer that the world makes money go round, especially in the era of globalization when capital can flow freely to and from almost everywhere. Money is always looking for places where it will be most profitable and earn the greatest return on investment. The world increasingly is confronted by problems that can not be solved by individual nation-states acting alone.

The current wave of globalization has been driven by policies that have opened economies domestically and internationally. Many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.

Globalization relies on three forces for development: the role of human migration, international trade and rapid movements of capital and integration of financial markets. It has various aspects which affect the world in several different wayssuch as:

1. Industrial – emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies; particularly movement of material and goods between and within national boundaries.

2. Financial – emergence of worldwide financial markets and better access to external financing for borrowers. As it was evidenced by the financial crises of late 2008, these worldwide structures grew more quickly than any transitional regulatory regime, dramatically causing the instability of the global financial infrastructure.

3. Economic – realization of a global common market, based on the freedom of exchange of goods and capital. The interconnectedness of these markets meant however, that an economic collapse in any one given country could not be contained.

4. Political– some use “globalization” to mean a creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. Politically, the United States has enjoyed the position of power among the world powers. With the influence of globalization the People’s Republic of China, for instance, has experienced some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major relocation of power among the world leaders. China will have enough wealth, technology and industry to rival the United States for the position of leading world power.

5. Informational– increase in information flow between geographically remote locations. Arguably this is a technological change with the advent of fibre optic communications, satellites, and increased availability of telephone and Internet.

6. Language– the most popular language is English. About 35% of the world mail, telexes and cables are in English. Approximately 40% of the world radio programs are in English. About 50% of all Internet traffic uses English.

7. Ecological– the advent of global environmental challenges that might be solved with international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Since many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution. On the other hand, it is argued that developing countries should not, via regulation, be prohibited from increasing their standard of living.

Negative effect: Globalization has been one of the most hotly-debated topics in international economics over the past few years. Globalization has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. In many countries globalization has eaten away at its competitive edge in industry and agriculture, lowering the quality of life in locations that have not adapted to the change.

2. Match the words with their definitions:

3. Match lines in both columns to make word partnerships:

4. Find and translate sentences with these phrases:

to rely on three forces for development; the issues and perceived effects of globalization; an extremely complex web; rapid growth in international trade and investment; to earn the greatest return on investment; to be one of the most hotly-debated topics; to generate significant international opposition over smth; to increase inequality and environmental degradation; competitive edge in industry and agriculture; the current wave of globalization; free-market economic systems; a defining feature; standard of living.

5. Give Russian equivalents:

to adopt free-market economic systems; to take advantage of new opportunities; a defining feature of globalization; integration of financial markets; worldwide financial markets; external financing; transitional regulatory regime; cross-boundary water and air pollution; movement of goods between and within national boundaries; the instability of the global financial infrastructure; to be based on the freedom of exchange of goods and capital; a creation of a world government; to have enough wealth to rival smb.; the position of leading world power; increased availability of telephone and Internet; to be solved with international cooperation.

6. Fill in the gaps with prepositions where necessary:

to be propelled ___ increased trade; to regard smth ___ terms of black and white; growth ___ international trade and investment; to be solved ___ individual acting alone; to take advantage ___ new opportunities; to rely ___ three forces for development; access ___ a range of foreign products; to regulate the relationships ___ governments; to grow ___ the rate projected ___ the trends; to rival smb ___ the position; increase ___ information flow; to generate opposition ___ smth.; to reduce ___ the costs of trade; return ___ investment; restrictions ___ free trade; to confront ___ the world; to be driven ___ policies; to adapt ___ the change; advances ___ technology; sharing ___ cultures.

7. Make up questions based on the text. Use the following phrases:

the gold standard crisis, to be coined, a series of agreements, to be driven by policies, to contain an economic collapse, to remove restrictions, to experience tremendous growth, to regulate the relationships among governments, to rival smb for the position of leading world power, the interconnectedness of markets.

8. Fill in the gaps with one of the adverbs:

to confront the world ___

to be solved by acting ___

to open economies ___ and ___

to increase potential ___

___ remote locations

to reduce ___

9. Fill in the gaps with one of the words from the box:

___ of production markets

___ poverty

___ of global challenges

___ the costs of trade

___ of worldwide markets

___ to foreign products

___ of fiber optic communications

a ___ of barriers

better ___ to external financing

10. Discuss these questions:

1. What does the term globalization mean?

2. Is globalization a recent trend?

3. What spheres of life does globalization penetrate into?

4. Do global companies do more good than harm?