Anti Globalization Presentations

8/12/2019 Anti Globalization Presentations

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GLOBALI$ATION,G$T &

ANTI-GLOBALI$ATIONPresentation By:

Mohd Nor Syafiq bin Abdul Majid 2012822138Nur Sakinah binti Mat Zaki 2011989339Naim Yusree bin Mohamed Idris 2011598475

Presented For:

Global Business Issues (GBI 795)


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INTRODUCTION & OVERVIEW

Globalization


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Definitions of Globalization

The worldwide movement toward economic, financial, trade,and communications integration

Globalization implies the opening of local andnationalistic perspectives to a broader outlook of an interconnectedand interdependent world with free transfer of capital, goods,and services across national frontiers

However, it does not include unhinderedmovement of labour and, as suggested bysome economists, may hurt smaller or

fragile economies if applied indiscriminately

Source: businessdictionary.com


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Definitions of Globalization

Joseph Nye and John Donahue:Globalism is a state of the world

involving networks of

interdependence at multicontinentaldistances.

World Bank: Globalization is thegrowing integration of economiesand societies around the world.


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Views from Economists

Rodrik: Globalization may come at the expenseof developing more responsible educational,

health, and social security networks

Amartya Sen: Third world development must beunderstood. Policies should focus on health

and education, not simply GDP


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Views from Economists

Immanuel Wallerstein: Criticizesglobal capitalism and his analysis isrenowned by the anti-globalizationmovement

James TobinGovernments

should intervene in the economyin order to stabilize output and

avoid recessions


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People Say About Globalizations

Economic Globalization caused several social ills today such as deterioration ofenvironment worldwide (global warming), third world debts, animal rights, childlabour and anarchism

Target anti-globalization WTO (free trade), IMF (bank loans while the countrieswere in crisis), and World Bank (long term loans)

Exploitation of world poor, workers and environment

It make easier for the rich companies act withless accountability

Countries individuals culture are becomingoverpowered by Americanization. (MacDonald and Star buck, Wal-Mart)

Globalization target profit

Anti-Globalization saw what were and will happening in the world and fights forglobaljustice


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Globalization Pros

Worldwide Market For Companies And The People Productivity growth among countries that produces

goods and services in which they have a comparative advantage

More access to products of different countries

Open Economy Spurs Fresh Innovative Ideas From Abroad

More influx information between two different countries

Cross cultural mix of ideas, in time adopt favourable idea

World Power

Politics merging that is beneficial for everyone

Minimizing compartmentalized powers


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Globalization Pros

Supporters of globalization points out the economic theory ofcomparative advantage

Mainstream economists argue that standard of living can increase

through free trade

The outcomes is not always successful. Constant debate aboutpolicies and tradeoffs


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Globalization Cons

Job Lost Due to imports or productions shift abroad

Service and white-collar jobs Vulnerable to operations relocatingoffshore

Western Employees Lose their competitive advantages companies build advanced

factories in low wage countries, making them just as productive andthus shifting quality to other countries

Fear of losing job, companies operating under pressure

Face pay-cut demands from employers, which often threaten toexport jobs

Corporations

Threat of corporate take-over, a lot of power through globalization


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GST

Goods and Service Tax


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Introduction on GST/VAT

GST which is also known as VAT (Value Added Tax) in manycountries is a multi-stage consumption tax on goods and services

GST is proposed to replace the current consumption tax i.e. the sales

tax and service tax (SST)

GST is levied on supplies of goods or services purchased andincludes most products, except certain politically sensitive essentialssuch as groceries, residential rent, and medical services, and

services such as financial services

End-users pay this tax on all liable goods and services directly, in thatthe purchase price of goods and services includes GST


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Countries ImplementingGST or VAT

No. Region No. of Country

1 ASEAN 7

2 Asia 19

3 Europe 534 Oceania 7

5 Africa 44

6 South America 11

7 Caribbean, Central & North America 19


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ASEAN (7 Countries)

No. CountryGDP Per Capita

(World Bank, 2011,USD)

Year ofImplementation

Initial Rate(%)

CurrentRate (%)

1 Indonesia 3,495 1984 10 10

2 Thailand 4,972 1992 7 7

3 Singapore 46,241 1993 3 7

4 Philippines 2,370 1998 10 12

5 Cambodia 897 1999 10 10

6 Vietnam 1,407 1999 10 10

7 Laos 1,320 2009 10 10

Source: Official Web Malaysia GSTLast Updated : 24/1/2014 16:41


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How does GST work

After registration, businesses must charge GST at the prevailing rate

This GST that they charge and collect is known as output tax,which has to be paid to Inland Revenue Board (IRB)

GST incurred on business purchases and expenses (includingimport of goods) are known as input tax

Businesses can claim input tax if conditions for claiming are satisfied

This credit mechanism ensures that only the value added is taxed ateach stage of a supply chain.


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1. Manufacturer Pays GST to Customs for imports

Import value = $100Import GST paid = 7% X $100=$7 (input tax to claim from IRB)

Charges and collects GST for sale of toys to retailer

Selling price to retailer = $200GST charged to retailer = 7% X $200 = $14 (output tax to pay IRB)

2. Retailer Pays GST to Manufacturer

Purchase value = $200GST paid = 7% X $200=$14 (input tax to claim from IRB)

Charges and collects GST for sale of toys to end consumer

Selling price to end consumer = $300GST charged to end consumer = 7% X $300 = $21 (output tax to pay IRB)

3. End-consumer Pays GST to Retailer

Purchase value = $300GST paid = 7% X $300=$21

End consumer is not GST-registered. Therefore, he cannot claim GST paid on his purchase from

IRB.


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The differencebetween output tax and input tax is the net GSTpayable to or refundable from Inland Revenue Board

Example 1:

Output tax to be paid = $30Input tax to be claimed = $10 (i.e. input tax less than output tax)Net GST payable to IRB = $20

Example 2:

Output tax to be paid = $10Input tax to be claimed = $30 (i.e. input tax more than output tax)Net GST refundable from IRB = $20


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Various benefits from GSTImproved Standard of Living

Used for development purposes for social infrastructure like health facilities and institutions,educational infrastructures and public facilities to further improve the standard of living

Lower Cost of Doing Business

Under the current system, some businesses pay multiple taxes and higher levels of tax-on-tax(cascading tax). With GST, businesses can benefit from recovering input tax, thus reducing costof doing business

Nation-Building

More funds can be channeled into nation-building projects for progress towards achieving a highincome nation

Fairness and Equality

With the GST, taxes are levied fairly among all the businesses involved, whether they are in themanufacturing, wholesaling, retailing or service sectors

Enhanced Delivery System

GST will be administrated in a fully computerized environment, therefore speeding up thedelivery, especially for refund claims. This makes it faster, more efficient and reliable


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Increase Global Competitiveness

Prices of Malaysian exports will become more competitive on the global stage as no GST isimposed on exported goods and services, while GST incurred on inputs can be recovered along thesupplies chain. This will strengthen our export industry, helping the country progress even further

Enhanced Compliance

The current SST has many inherent weaknesses making administration difficult. GST system hasin-built mechanism to make the tax administration self-policing and therefore will enhancecompliance

Reduces Red Tape

Under the present SST, businesses must apply for approval to get tax-free materials and also forspecial exemption for capital goods. Under GST, this system is abolished as businesses can offsetthe GST on inputs in their returns

Fair Pricing to Consumers

GST eliminates double taxation under SST. Consumers will pay fairer prices for most goods and

services compared to SST

Greater Transparency

Unlike the present sales tax, consumers would benefit under GST as they will know exactly whetherthe goods they consume are subject to tax and the amount they pay for


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INFORMATION IN BRIEF

Anti-Globalization


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What is Anti-Globalization

Term used to describe the political stance of people andgroups who oppose certain aspects of globalization in itscurrent form

Considered by many to be a social movement, while othersconsider it to be an umbrella term that encompasses a numberof separate social movements

Participants are united in opposition to Political power of largecorporations Trade Agreements that undermines theenvironment and labour rights.


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Anti-GlobalizationMovement

Developed in the late 20th century

Seeks to protect the worlds population and ecosystem from whatthey believe to be the damaging effects of globalization

It includes diverse and sometimes opposing understandings of theglobalization process, and incorporates alternative visions,strategies and tactics.


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Anti-GlobalizationMovements

J18 (June 18, 1999) - London, UK Eugene, Oregon


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Seattle/N30(Battle ofSeattle)

Occurred at WTO meeting inSeattle on November 30,1999

5,000 protesters blockeddelegates entrance to WTOmeetings in Seattle

Protesters forced thecancellation of the openingceremony and lasted thelength of the meeting untilDecember 3

Over 600 protesters werearrested


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GenoaJuly 18-20,2001 (The battle ofGenoa)

Occurred at G8 summitin Genoa , Italy, in 2001

Biggest anti-globalization gatheringin history, 300,000protesters against theG8 meeting in Genoa,Italy

Carlo Giuliani waskilled and severalhundreds of protesterswere injured


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Environmental

Global warming issues

Biodiversity lost

Species extinction

Pollution

Why Anti-Globalization

Developing countries depend uponagriculture and this will particularly beeffected by global warming

Developed countries exportinghazardous waste to developingcountries


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Economical

Exploitation of third world country resources

February 26 2007 Starbucks Vs. Ethiopian Coffee

Plead for Starbucks support to trademark 3 of its coffees in U.S.

1lb beans average price $1.45 (-) generator fuel (-) bank interest(-) labour (-) transports = less than $1

2432 Ethiopian farmer $0.55 a day


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Cultural

Local and minority cultures arediminishing

Western influences engulf

developing countries Global expansion McDonalds

100 countries

Serves 50 million people daily


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Women and Children

Majority of sweatshops employ female

3 major issues subjected to workers

Wal-Mart 60,000 plus suppliers in 70 countries

Child labour as Ages 4

Nike factories in Pakistan

1996 12-year-old Tariq

Stitching Soccer Balls $0.60 a day 45+ balls


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Human Rights

Other issues arise correlating with sweatshops

Wal-Mart

Code of Conducts and human rights is promoted to the public, butnot regulated or implemented on workers. Strictly their interest is notthe welfare of others, instead, their generating profits

Nike

In Pakistan it is clearly documented that child labour is against thelaw, but the government carries lack of willingness to do

anything about it The Pouty Bratzdolls factory in Southern China

Working 94 hours a week, $0.17 cents paid to workers for makingeach doll at $19 retail price in US. More than 120 million Bratz dollssold in US since 2001


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Social

The unequal wealth distribution worldwide

The gap between the developed countries and the third worldcounties (i.e. technology)

The gap between the poor and rich


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Can All Countries Benefit fromGlobalization?

Establish international monitoring system

Domestic

each country should build up a system that can integrate into theglobal market

protectionism in the domestic market International

International institutions should reform to fit into the needs of theglobalization, such as IMF, World Bank, UN

Be more responsible for all the countries, rather than some or

few countries Be more transparent and be monitored by member

countries from third world


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Enhance Corporations Between Countries And Regions

Make free trade free and fair for both developing and developedcountries

Eliminate or reduce the trade barriers

Get more countries involved into the global market Equal and balance development in the global market


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Q & A

Documents

Anti Globalization Presentations