Lesson 1 - Economic Globalization (2A)

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Economic Globalization

Lesson 1

Task 1 - The globalization of Nike (p.30-32)

Task 1 - The globalization of Nike

Question 2 Nike’s products were first manufactured in Japan. However, now its

products are manufactured in different developing countries around the world. How has Nike benefited from this change?

The production costs can be dramatically reduced by setting up the production line in developing countries which have relatively low wages and rents.

Distributing production line across different countries can reduce investment risk ( 減低投資風險 ). If a problem arises in a factory, other factories can carry on with their production and the overall business of the enterprise ( 企業 ) can be maintained.

Task 1 - The globalization of Nike

Question 1 How does Nike’s experience in the following areas reflect economic

globalization? Explain your answers.

(a) Capital raising ( 籌集資金 ) Nike’s capital comes from different financial markets and investors

around the world.

(b) Production ( 生產 ) Its production lines can be found in more than 50 countries.

(c) Marketing ( 推銷 ) Its products are marketed internationally, and not limited to a certain

region.

Task 1 - The globalization of Nike

Question 3 How does the following groups or people benefited from

economic globalization? Explain your answers.

(a) Businessmen in developing countries (b) Workers in developing countries (c) Consumers

Discussion (4 students in a group) Time: 5 minutes

Question 3

(a) Businessmen in developing countries They can gain business opportunities by helping Nike to set up

its production bases ( 生產基地 ).

(b) Workers in developing countries They can gain job opportunities by working in Nike’s factories.

(c) Consumers Due to the decrease in production costs, consumers can spend

less to buy Nike’s products.

Conclusion

More and more multinational enterprises ( 跨國企業 ) play important roles in economic globalization.

They engage in commercial ( 商業 ) activities throughout the world, contributing to the globalization of the

capital market ( 資本市場 ), labour market ( 勞動市場 ), and commodity market ( 日用品市場 ).

Next Lesson

Please take a look at p.33 before class

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