Globalization

Week 1 seminars
Seminar activities

1. TRIBE: Whats in the papers?

Get in to your groups for your assignment
a. Take a look at Global economy articles on TRIBE
http://www.scoop.it/t/insights-into-the-global-economy
b. What global economic or business news story has caught
your attention this week? Reflect on its significance to
the global economy.

2. Review of lecture/workshop material

a. Why is real GDP growth more relevant than nominal
growth?
b. Following the instructions given in the lecture materials
calculate Nominal GDP and Real GDP for each year:

Prices and Quantities

Quantity of Quantity of
Year Price of 1 car Price of1 TV
cars TVs
2015 10,000 $ 5 300 $ 10
2016 11,000 $ 10 500 $ 12
2017 12,000 $ 15 600 $ 15
Calculating Nominal GDP
2015
2016
2017
Calculating Real GDP (base year 2015)
2015
2016
2016

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 c. In what way is GDP per capita a flawed measure of
economic well-being?
https://www.cbsnews.com/news/why-gdp-fails-as-a-
measure-of-well-being/
d. Explain one thing that the Economists Big Mac Index
tells us?
e. In what way is the Big Mac index a simple version of the
concept of PPPs (purchasing power parity)?
f. Using the following details, identify which country is
better off in terms of basket of goods.

Uzbekistan United States

GDP per capita $10 $15
Americans are richer in terms of earning.
Big Mac $1 $2
PPP for Uzbekistan in terms the US ______

GDP PPP $______ $______

Uzbeks / Americans are richer in terms of basket of goods (Big Mac).

g. Look at the lecture slides and explain the difference

between GDP PPP and Nominal GDP.
h. Estimate GDP PPP and Nominal GDP for Russia (in US
dollars). Given the following details:

The price of a basket of commodities:

In Russia => 500 rubles.
In the United States => 10 $

Russias GDP => 120,000 rubles

Official exchange rate in Russia => 1$ = 60 rubles

Russias GDP PPP = _____ $

Russias Nominal GDP = _____ $

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3. Activities for writing
a. Define globalization.
b. What are the three main components of globalization?
c. Which component of globalization is the most recent?
d. Do industrialized countries support the liberalization of
all components of globalization? If not, which one and
Why?
e. Explain are how the three components of globalization
interconnected with one another?

Trade

Globalization

Investment Migration

f. Now think of specific examples to illustrate the impact of

globalization on Uzbekistans economy.
g. What are the drivers of globalization?
h. Does globalization lessen or worsen conflicts between
different cultures?
i. Is globalization unfair to poorer nations, while enriching
already wealthy ones?
j. Who are the winners and losers of globalization?