University of Cheikh Laarbi Tbessi, Tebessa

Faculty of economic, commercial and management sciences 2020/2021

Department of Management
Name:……………..…..
English examination 2nd year Master Surname: ………….……
Group: …………………
Globalization

“Globalization” refers to the growing interdependence of countries resulting from their increased economic
integration via trade, foreign investment, foreign aid, and international migration of people and ideas. The
balance of globalization’s costs and benefits for different groups of countries and different groups of people
within these countries is one of the hottest topics in development. It inspires not only academic and public
debates but also violent clashes in the streets of many capital cities.
Most activists of various antiglobalization movements would probably agree that they are not against the
idea of closer international trade ties and cooperation. What really concerns them is the practice of globalization
driven by narrow economic interests of large transnational corporations (TNCs). They argue that the interests of
poorer countries and the interests of the less privileged in developed countries are often not taken into account. In
addition, the economic benefits of globalization are distributed too unfairly. In short, they see the ongoing
globalization process as unsustainable. Is deglobalization the only alternative? Or can a more democratic, more
inclusive management of globalization turn it into the most effective tool for dealing with the pressing problems
of our time?
Globalization is not altogether new. Researchers point out three waves of modern globalization, the first of
which started more than 100 years ago and took place between 1870 and 1914. Over this period, exports nearly
doubled relative to world gross domestic product (GDP) (to about 8 percent) and foreign investment nearly
tripled relative to the GDP of developing countries in Africa, Asia, and Latin America. However, this impressive
wave of globalization was virtually reversed during the First World War, the Great Depression, and the Second
World War. By the end of the 1940s foreign trade as a share of GDP was at about the same level as in 1870.
The second wave of globalization lasted from the 1950s to the 1980s and involved mostly developed
countries. Trade and investment flows were growing among the countries of Europe, North America, and Japan,
aided by a series of multilateral agreements on trade liberalization under the auspices of the General
Agreement on Tariffs and Trade (GATT). At the same time most developing countries were stuck in the role
of primary (goods) exporters and were largely isolated from international capital flows. Researchers also noticed
that while there was a trend toward convergence of per capita incomes between the richer and poorer members of
the Organization for Economic Cooperation and Development (OECD), the gap between the developed and
the developing countries widened.
The third, current wave of globalization started in the 1980s and continues today, driven by two main
factors. One involves technological advances that have radically lowered the costs of transportation,
communication, and computation to the extent that it is often economically feasible for a firm to locate different
phases of production in different and far-away countries. The other factor has to do with the increasing
liberalization of trade and capital markets: more and more governments of developing countries choose to reduce
protection of their economies from foreign competition and influence by lowering import tariffs and minimizing
nontariff barriers such as import quotas, export restraints, and legal prohibitions.
A number of international institutions established in the wake of the Second World War - including the
World Bank (WB), the International Monetary Fund (IMF), and the World Trade Organization (WTO),
preceded by the GATT until 1995- play an important role in promoting global free trade in place of
protectionism. Over the past two decades some 24 developing countries have approximately doubled their ratio
of trade (exports plus imports) to GDP. This group of “new globalizers” includes the countries with the largest
populations: China and India.
On the other hand, about 2 billion people live in developing countries that are trading less today than they did 20
years ago. Statistical data suggest that the most globalized developing economies enjoyed the highest GNP per capita
growth rates and were gradually catching up with the group of developed countries. But much of the rest of the developing
world, including most of Sub-Saharan Africa, failed to participate in globalization processes and faced negative income
growth rates. There are good reasons to believe that international trade and foreign investment do explain much of the
difference in economic growth between the more and the less globalized developing countries. However, some may argue
that the cause-and-effect connection can also work in the opposite direction: those countries that are most successful in
economic development and growth can afford to be more open to foreign trade (and thus to foreign competition) and also
tend to be more attractive for foreign investors. Moreover, for countries that are actively engaged in globalization, the
benefits come with new risks and challenges.

Questions

1)- Read the text then answer with True or False. Correct the wrong ones.
1. The second wave of globalization began in the 1980s. False it began in the
1950s………………………………...
……………………………………………………………………………………………………………...
2. The second wave of globalization involved mostly developed countries. True………………………
……………………………………………………………………………………………………………..
3. Most activists of various antiglobalization movements see the ongoing globalization process as
sustainable.
True………………………………………………………………………………………………...
……………………………………………………………………………………………………………...

4. They argue that the economic benefits of globalization are distributed unjust false They argue that
they are too unfairly…………………………
……………………………………………………………………………………………………………...

2)- What do the underlined words in the text REFER TO?

It them: activists they: activists
One: main factor

III. What do the following acronyms refer to?

TNCs transitional cooperations GDP: gross domestic products WB:

world bank. e.OECD: organization for economic cooperation and development .
GATT: general agreement on tariffs and trade IMF: international monetary fund
g. WTO: world trade organization

3)- Find in the text words that best suit the following definitions:

a. the increase of trade around the world, especially by large companies producing and trading goods in
many different countries : globalization
b. the total value of goods and services produced by a country in a year…benefits
c. an international agreement among more than 100 countries to end rules that limit trade between them...
general agreement on tariffs
d. the control and organization of something………Management………………
e. the transformation of inputs into outputs………Trade………...
 5)- a. Find in the text words, phrases, or expressions that are closest in meaning to the following:
commerce = trade help = aid…. various = different a lot of = many
sort = type. began = started things for sale = goods essential=important
take part = involved. a period of 20 years = ………………..
contains =involves

b. Find in the text words, phrases, or expressions that are opposite in meaning to the following:
net ≠ …………….. native ≠ foreign… disagree ≠ .agree... for ≠
against richer ≠ poorer maximizing ≠ minimizing decreasing ≠
increasing lowest ≠ highest succeeded ≠ failed…….

6)- Translate the following terms into Arabic.

developed country ‫الدول المتقدمة‬ gross……‫…تضخم‬
developing country ‫الدول النامية‬
globalization ‫العولمة‬
goods ‫البضائع و السلع‬
trader ‫…تاجر‬
tariff ‫……التعريفة‬ agreement ‫اتفاق‬
the International Monetary Fund ‫……صندوق النقد الدولي‬ cooperation ‫التعاون‬
the World Bank ‫البنك العالمي‬ trade ‫التجارة‬
the World Trade Organization ‫…منظمة التجارة العالمية‬.. depression……
‫أزمة‬.

7)- Complete the following table.

Singular Plural
a phenomenon Phenomenons
Datum data
Process processes
Goods goods
Country countries
Crise crises

Written Expression:

Even though globalization affects the world’s economies in a very positive way, its negative side should
not be forgotten Discuss. (write a paragraph in about 7 lines)