Friday, April 1, 2011

Introduction to Globalization: Case Studies in Enron and Otherwise



In the interest of bridging our current unit on stocks and scandals with our upcoming unit on globalization, this week's blog asks you to explore the concept of globalization through the lens of the global impact and underpinnings of the Enron scandal.

Directions:

1. Read “What is Globalization” at http://www.globalization101.org/What_is_Globalization.html

Summarize what globalization means to you (based on the articles) and identify several potentially positive and negative effects of the growing trend of global interdependence.
* you may also want to read the hyperlink for “investment” and “international trade” for additional information

2. Next read the Nation article entitled “Enron’s Global Crusade”
http://www.thenation.com/article/enrons-global-crusade
Explain how globalization is related to the Enron scandal – even though it was a US based and traded company. Do you think the Enron case represents the positive or negative aspects of globalization? Explain.

For extra credit (10 points on a blog or test) summarize a RECENT article describing the impact of globalization on a modern company or industry. Be sure tp cite your article (author's last, first name, "Title of Article", Title of Page. Date Posted. )

Your blog should be no fewer than 250 TYPED words. The extra credit should be a minimum of 150 words. Handwritten blogs will lose 10% of their grade. This assignment is due Tuesday, April 5 before class.

Reminder: Progress reports are due Thursday, so catch up with any missing work.

39 comments:

  1. Globalization is the relationship caused by trade between nations around the globe. Globalization also affects the countries involved, usually causing them to grow and expand economically. Technology also helps globalization, since it is what help causes there to be so much trade. There are positive and negative aspects of globalization. People who agree with globalization say that it allows poor countries to develop and raise their standards of living. However, people who oppose globalization say that it really only benefits the wealthier businesses in the west, at the expense of local enterprises, cultures and common people. Globalization is also closely related to the Enron scandal, even though it was a US based and traded company. Enron was not only the seventh largest corporation in the United States, but it was also the sixteenth largest corporation in the world. Enron was also the world’s largest energy trader and was involved in every economic center in many countries. Because it had so many relations with other countries, Enron would get deeply involved in those countries, causing change that usually seemed to be negative. An example was when Enron was stationed in India and wanted to create a power plant that cost2.9 billion dollars in India, causing a nationwide protest as well as chaos in the region around the facility. Enron also ended up taking the money of not just people in America, but other countries as well. This case represents the negative aspects of globalization, because, a large western corporation was taking control and using its power to have influence over countries around the world, at those countries’ expenses.

    Justin Roa
    C-Block

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  2. Globalization is another term for trading and interacting with other countries around the world usually for trading purposes, investments, and gain information for new technology. Though globalization can have positive effects it can also affect the world in a negative manner. Countries may become hostile towards each other if one goes to close to ones borders. Wars become the result of years of hostilities between nations, affecting the prosperity of nations. In a more positive note, globalization can cause many positive innovations in the field of technology. Poorer nations might be able to get technology by trading goods, by doing this having a chance to increase their status in society from a poor country to a developing. Many can argue that globalization only benefit the wealthier countries with little regard of poorer nations. Not everyone likes globalization because it benefits the western world at the cost of local enterprises and common people.
    The Enron scandal was by far one of the biggest corporations to fall due to greed, corruption and dishonesty. Even though Enron was a company based only in the United States its relationship with companies around the world made it one of the most well known companies in the entire world. Enron was listed at the number 16th largest companies in the world. Enron had 874 offshore partnerships making Enron’s enormous debt seem to vanish. One of Enron’s biggest investments took place in Bombay, India. The state of Maharashtra did a joint venture led by Enron to build a power plant south of Bombay. When the people heard an outrage and protest against the plant began to arise. Enron paid police beat the protestors causing international outrage. In a sense Enron is trying their take at globalization in the world but they have not succeeded but they in fact cause more problems. By spending $2.9 billion on a power plant in a country that cannot afford the cost made little sense including the violent acts against protestors made Enron look like the bad guy. Globalization is at times a good thing but depending on the country’s economy you have to decide if its right to build there or trade there.
    Derrick Tam, D-Block

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  4. Globalization is a way of making international relationships with other nations using trade, investments, technology, and war. The process of globalization affects a nations economy, culture, environment, and society. With new technology that country can dilate and become more modernized. Though there are positive and negative aspects of globalization. Citizens who approve with globalization say that it enables poor countries to reinforce and advance themselves economically. People who are hostile towards globalization say that it only benefits the wealthier business people in the western areas, with the cost of local manufactures, and the way of life of common people. Globalization is also alongside to the ENRON scandal, the only difference was that it was a U.S based company. ENRON was the seventh largest corporation in the United States. In addition, ENRON was the sixteenth largest corporation in the entire globe. ENRON was also the globes most prodigious energy trader and was engaged in economic centers in numerous countries. Because ENRON had so many relations with other countries, as a result they would become greatly involved in those countries. That would promote change that had turned out to be negative. A specific example was when ENRON had gone to India and wanted to create an energy saving power plant that had cost $2.9 billion dollar. That is still unfinished and undeveloped. It was basically a waste, and a way of stealing peoples money. It had caused a nation wide protest and disorder around the working facility. Unfortunately ENRON ended up stealing money of not just citizens in America, but on top of that, in other countries too. This scandal designates the negative outcomes of Globalization, because a massive western corporation was taking advantage and using its power to have control over countries around the globe. But out of those countries financial funds.

    Adrian Nieves C-Block

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  5. Globalization has something to do with increased integration of the world society, with an emphasis on increased economic integration. Globalization has something to do with technological change. Globalization has the effects of a country’s economy to grow and expand. There are positive and negative aspects of globalization. Globalization eliminated inefficiency and access to opportunities available all over the globe for every citizen of different countries. Globalization is the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communication. Globalization can be compared to the Enron scandal. The company was based only in the United States and its relationships with other companies around the world contributed to its success. Enron was the world’s energy trader or the “Power Merchant”. Being the sixteenth largest corporation in the world, the company was greatly involved with relationships with other countries. This led to one of many risks the company had to face. Enron had its desire of creating a power plant that would cost $2.9 Billion Dollars. India’s economy at the time was still a developing economy therefore; creating this power plant was risky. India could not afford to create the power plant, which resulted in a lot of money being lost. Nationwide protests were held and uncertainties about the company’s actions increased. Many started to think that Enron had too much power and that they took advantage of it by expanding worldwide and taking money .The Enron scandal is an example of a negative aspect of globalization. Enron’s stocks increased as business decreased. With that being said, loss of unemployment was inefficient. Enron took advantage of their power of expanding which led to the company taking money from other countries.

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  7. Globalization is being influenced by other countries or people or religions and so on, and adopting the ideas you find most necessary and helpful. For example, the auto industry started in one county and spread rapidly to others. Or the invention of electricity or internet. The positive effects of the growing trend of global interdependence is the fact that newer technology, inventions, and ideas will be available for other countries to adopt. It gives the countries ways to prosper or better their quality of living. Some negative aspects would be at the same time this could cause countries more debt through competitiveness. Like the space race, we spent thousands of dollars trying to beat the soviet union with advancements in space technology. Also the countries can find themselves in debt when their top leading companies that people are so dependent on, which come from another part of the world, go bankrupt of experience troubles. No one ever really knows if the company is lying about their profits until someone actually investigates it. They could be involved in a lot of fraud without anyone knowing, such as Enron. Enron was a smart and sneaky company. They expanded their energy source all around the world. So many countries believed in them and invested in them only to find that they were sneaky liars and they now were in debt because the company became bankrupt. Enron’s downfall caused a lot of damage to not only stock holders but to the countries who prospered from their company as well. This Enron case represents the negative aspects of globalization. Because these countries depended on Enron, they weren’t financially prepared for one of their leading companies to go bankrupt causing them debt and angry citizens.


    ***EXTRA CREDIT ***
    Ambit energy has been in business for only a year at the time of this article, as an alternate source for energy and is growing rapidly for such a new company. So far they’ve spread out to some states in the U.S. working their way up to having as many investors as possible. I feel like in a way Ambit is selling their energy to people, in a confusing way. I feel like they confuse the people they try to sell to and take advantage of the naïve people.
    It’s the weirdest thing, one day I had a substitute teacher and he’s just sitting there talking to us about Ambit energy the company he works for. After he’s done with his really long story, he hands out these business cards for Ambit and tells us to mention it to our parents, maybe they could go to a meeting to understand how Ambit works. I feel like this company is desperate and maybe a bit manipulative. I mean come on, 17 year olds? Really? Another thing I find off, is that in the NY Times profile of this company, the reporter says Ambit is a private company and “refuses” to give out any information about their finances. That’s a little weird, especially since they are in the stock market.

    (Rachel, “New York Times Profiles Ambit Energy-Discusses Pros and Cons of Alternative Companies,” Op Tree, 9.3.08).

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  8. Globalization is the term used to describe the act of becoming internationally recognized and interacted with. These interactions typically consist of economic transactions such as trading, importing, exporting, etc. It is a term that recognizes countries that go from simple national trade within its boundaries to reaching out to other countries, usually for both countries' benefit. However, globalization is not limited simply to fair trade and economic transactions. This can also mean competition with other countries. One example would be the space race between the United States and the former USSR during the Cold War Era. Russia had launched Sputnik which emplored the United States to pursue the same undertaking. There was a constant surge of competition and will to out do the other. There was also another example in the same era with an arms race. The United States had created the hydrogen bomb, a bomb over 100 times more powerful than the atomic bomb. When the USSR found out, they got around to doing the same thing and eventually it became a competition to simply show who had more. These things highlight the negative impact of the idea, but there are of course overlaying positives. A positive of globalization would be the ability to trade with other countries, which would stimulate both nations economies and form a cyclic trading partnership allowing for an almost guaranteed source of future revenue. These things only encourage the continued spread of globalization, because without undergoing it, countries cannot become truly developed and internationally aware.

    Michael Jagiello
    E Block

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  9. Globalization is when countries around the world interact with each other for trading purposes, and governmental business. It is another way of keeping the economy going internationally and keeping peace to a point. Globalization helps underdeveloped countries develop economically and advance with technology to grow as a country. Although globalization has its major perks, there are also negatives to it. Some people are strongly against globalization because they feel that it only benefits highly developed countries along with feeling that the country can grow just by creating business within the country. Also certain countries may have a history of being unable to be acquaintances or trade due to disagreements. Globalization could also cause debt due to inadequate trades/business. Corruption causes globalization to fail in a sense because of lack of honesty within business and trade. Enron is a huge example of such. Enron was able to successfully hide their debt for a period of time by investing in many companies and shredding the evidence and debt. Once the scandals were out in the public, the investments into the company were pretty much a waste. Everyone who owned stocks for the company never received a dime back because of the lack of money the company had. Since other countries invested into this company, lots of money was lost. This portrays a negative aspect of globalization.

    Alyssa Ditre
    C-block

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  10. 1. Globalization is defined as relations, between governments, companies, and people, through the use of technology, trades, and investments. The example they give in the article was the Silk Road. The Silk Road stretched from China to Europe during the middle ages. On the Silk Road people were able to trade different items fount in there own countries for other items in different countries. This was the first example of globalization. However, globalization also has positive and negative aspects. The first reason Globalization is a positive method because now companies and people have a bigger variety of access to products from different countries. The second reason is because there is a certain amount of money going into developing countries, which means the currency value can go up. Another reason globalization is positive because now there is an increase in production which means more job opportunities. The most important reason is because there is cultural “intermingling” which means that people are trying to understand more about the other countries preferences and by doing so is like taking a first step to end racial segregation/ racial hatred. Even though globalization sounds like a positive method, there are also negative aspects. First, unemployment is a big problem in many countries because of outsourced labor because of globalization. Second, corporations are building in other countries with the same quality. This is a negative aspect because now people in the new country will have to keep up with the modern technology corporations are bringing in. the last reason is because when countries start building in other countries, it looks as if colonization is happening, which leads to protests and wars.


    2. The Enron scandal in the 20th century as a result of dishonesty, bribery and other shady events. Enron was known as a company that originated in the United States. However, its relationship with companies around the world made it one of the most recognized companies in world. Enron opened 874 partnerships around the world, which made Enron’s debt look smaller. One of Enron’s biggest investments took place in India. In India, they decided to build a power plant near Bombay. The people in India started to protest and became outraged. Through this we can see that Enron was trying to globalize but failed due to dishonest acts. Because Enron invested in a third world country, it was hard for them to pay the cost of the power plant. This gave the Enron a bigger deficit and made there image look bad.

    KENNY CHO
    E BLOCK

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  11. Globalization is the coming together of cultures, with the intent of one united Earth. The positives of having a united culture are that people will be more accepting and understanding of other thoughts and belief systems. Also trade will keep the economy flowing with all nations. With more knowledge will come less fear and it can hopefully be used to attain world peace. The Earth’s nations have been working toward globalization since mankind for thousands of years. With the progression of time and inventions, as well as the internet, globalization has taken many leaps and bounds since humanity decided to expand so many years ago. However, with all of the good that globalization can bring, there is also plenty of bad. If one nation goes to war with another, others will have no choice but to join in because all of the trade that will be disrupted. Also, globalization will bring a type of sameness to the world. With the blending of cultures, there won’t be as much to distinguish all of the different types of culture because they blended together. An example of this is the US and Japan. Due to the rise of the internet, many of the old ways in Japan are dying and being replaced with western ideas and culture. Many of the old cultures exist only with the elderly now. It’s unfortunate, but if globalization keeps happening, we will be one collective world which is good and bad.

    Another one of the ways that proves globalization can be a bad thing is a story about the Enron Corporation. Despite being a corporation founded in America, Enron started so many projects that it didn’t have the funding to pay for all of them. It then started to issue shares in the company to hide the massive debt that was building. Many of these shares were purchased worldwide and hurt everyone who purchased them. Also, due to globalization, Enron built a plant in India. India was unable to pay to keep the plant running so it was abandoned. Enron proves negative aspects of globalization because it takes the greed of one company and spreads its problems to people around the world. Globalization isn’t inherently good or bad. We have the power alter its course to benefit the world.

    John Schiavone
    C-Block

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  12. globalization is world trading. countries can trade with eachother on a free enterpise market. globalization can be good obviously when a product does good and people around the world want it. globlazation does not benefit everyone though. it can go bad when you produce a product and sell it where people cant afford it. a good example of globalization was the internet boom. everyone wanted interenet. it was the easiest way of interacting with people around the world.

    enron was doing it big. they were into globlalization. not only were they cashing all the checks in america but they were making money all over the world. if you were in the stock market you know about enron and wanted to have a piece of it. enron did bad globalization when they built a plant in india. they were producing electricity for the indian natives. after all they were in debt over millions of dollars, his is bad globalization. enron, was enWRONG

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  13. Globalization is what connects international corporations from all over the world through the use of information technologies. Since many governments have adopted fee market economic systems new opportunities for trade and investments has been improved. It is also the integration of economic, political, and cultural systems across the globe. Another positive aspect is that the progression in communicative resources have identified new tools for pursuing economic advances in today’s current global market. A negative aspect of globalization states that millions of people lose jobs due to imports or production shifts abroad, and most find new jobs, that pay less. Many others fear losing their jobs, especially at those companies operating under competitive pressure and fear that their job might be threatened. Enron, one of the world's largest energy traders, became involved in India in order to build an estimated $2.9 billion power plant there. However, it turned out that Enron was going to buy the natural gas for the plant from one of its own subsidiaries. In addition, the Indian government would assume all the risks in their agreement, assuring Enron a 25 percent return on its initial investment. However, when a local politician slowed construction efforts, America aided Enron. Wisner joined Enron as a director of one of its subsidiaries after leaving government service. When the project finally continued, the plant shut down as India’s state electric company could no longer pay Enron’s bills. Those efforts dismantled after the terrorist attacks, contributing to the financial collapse of Enron. This represents a negative aspect of globalization because the Enron corporation put their debt in the hands of a foreign nation, causing their government to take upon a loss of earnings, while causing Enron to dismantle in the midst of turmoil.
    Justin Castro D- Block

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  14. Globalization is the way for international companies along with there people and the government to interact with each other. the force or so called backbone to this idea is international trade and investment using technology. this idea effects many aspects such as the environment on the culture and and on the political systems in the respective countries. there have been many times in the history of the world were this idea of globalization was used to figure out how certain things could be given to those places that needed them most. For example the silk road in Central Asia which connected China to many different various parts of European were due to this central theme of globalization. however just like any theme or idea there are both a negative and positive side to it. Depending on how many of each you find its possible to tell if the idea worked. Some of the negative and positives of globalization are as follows. the more money that is begging given to the countries the more those countries could develop which is extremely good in the sense that countries could begin to flourish. lastly one of the most essential parts and key things that make globalization such a key thing is the fact there is more exposure. What that means is they because many different countries are working together buying and selling products from one another many of the customs and beliefs and followings are past through to the next country.
    The Enron scandal in terms of how it relates to globalization can be seen as more negative than positive. The reason it can be seen in such a way is because it doesn't fully follow all of the steps that a company following globalization should. For starters there company strictly for the most part only in the U.S. so the idea of branching out to other countries especially those who are developing was out of the question. Not being able to interact and do business with other countries is a huge minus for the theme of globalization. The fact that the key term is called globalization you would hope that anyone that choose to use this would branch out into more than just there native countries. Yes Enron did try and build a power plant in India to branch out and gain more profit but that wasn't there one shot because they had plenty of more chances to branch in other places. Not only did they have chances to branch out but trying to build a power plant in India wasn't a swift idea at all. India is one of the poorest countries in the world so while yes Enron the company had enough money to build this plant in India the people of India themselves didn't have enough money to afford it so it was like they just throw there money away with no chance of getting it back. It looked good not just from the company Enron but also the India to invest stocks in Enron however it also looked good for the people of India. It looked as Enron was trying to give back to the world rather than make a huge profit, however that was just what it looked like. But when the power plant feel through and Enron didn't make its projected stock price they were caught between a rock and a hardship and ultimately on there way down to the ground.
    Another reason why the Enron scandal can be seen as negative effected of globalization rather than positive is that they had to delegate and practice certain laws. What made the attempt for those laws so strange and meaningful is that they practice risky business ideas. Due to these things along with a few others its clear the the Enron scandal has had a negative affect on globalization and also because of the scandal and what bad business practices Enron had. With all of this together and mixed up with corrupt people working at Enron practicing these ideas in the end not only were the people of Enron ashamed but the business practices they used were ashamed horrible. Perhaps the one of those being globalization.

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  15. When people hear the word "globalization", they don't really know what to think. In reality, globalization is the relationship caused by trade between countries around the world. When countries trade with one another, their buisness expands and more money comes in because their product is being seen all around the world. Like every situation, there is a positive and negative side. People who disagree with globalization believe only the larger companies are making money and expanding. People who agree with globalization have a totally different out look. They believe it gives buisnesses a chance to make money and expand their business as well as let's poor countries advance themselves through technology. Globalization can closely relate to the Enron scandal. This company had so many other companies around the world handing them money without people even knowing. Enron was the sixteenth largest company in the world which can be obvious that it was doing a lot of trade. Enroll was very sneaky and very smart at what they did. They got billions of dollars for doing nothing. They took peoples money. Enron is a perfect example of a negative way of using globalization.

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  16. Globalization is a term used when countries come together to share ideas and trade new technology or product.it brings peace to countries and helps the economy grow and keep it growing. it improves other countries with whatever they need, we also trade with them and help create a more steady economy for them. the term globalization also means that international corporations can trade with any business around the world.
    the enron scandal was basically surrounded by corporate greed and dishonest. they were into globalization , and did try to merge with different companies. they were the biggest scandal in the 20th century. the executives of the company were hiding there finacial problems and getting money from different places they couldnt explain. they took the word globalization and used it in a negatve perspective.
    ashley miller
    d block

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  17. Globalization, in a nut shell, is the process of trading with foreign nations or countries, influenced by people, companies, and the government. International trade and investment play a key role in this process. Like anything else, globalization has its pros and cons. On the positive side to globalization, it has been growing, on its way up to becoming more popular. Furthermore, this will allow more people to be exposed to cultures around the world. Sharing and trading with foreign locations will also aid underprivileged countries in becoming bore technologically advanced. On the other hand, globalization allows child labor laws to be violated and offer low wages. Additionally if different locations are working together they might end up as rivals because everything in life seems to be a competition. This could lead to war which would result in this being detrimental rather than helpful.
    The Enron scandal can be connected to globalization in one way or another although it was a United States dilemma; in fact, it was said to be the “model” for globalization. In was a United States company yet affected all different places such as Canada, Europe, India, and South America. Enron was ranked as the sixteenth largest business corporation in the world, therefore having a big impact around the world. It also was a major power industry meaning that its work was important to many. Before Enron powered California, they were attempting their power company in India to better that location. Since most of India can’t afford an expensive power system, there weren’t really any takers in that area. The Enron case represents the negative aspect of globalization. Enron was based on lies. Their whole business was about being deceiving and manipulative. Enron took advantage of their power took advantage of the government letting certain wrong doings slip by.

    Jessica Mallozzi
    Block A

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  18. Globalization occurs when a relationship is formed nations because of trade. It affects the countries involved by causing economic growth and prosperity. There are both positive and negative effects of globalization. Those in favor of globalization say it gives poor underdeveloped countries a chance to advance themselves. Critics of globalization explain that it only benefits highly developed nations like America and it sacrifices culture and local enterprises. The Enron scandal was very similar to globalization. Enron was the worlds leading Energy Company. Enron was based and traded in the U.S. but they had their hand in many other countries. It is believed that Enron’s involvement in other nation’s economy had a negative impact on them. Enron was stationed in India and wanted to create a power plant that cost2.9 billion dollars. This caused a nationwide protest as well as chaos in the region around the facility. Enron had police beat the protesters. Enron’s greed caught up to them because the project failed and the company became bankrupt.

    James Guardino

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  19. Globalization is the major process in the developing of the  worlds economy. It is important because international trade, international cooperation and international relationships are part of globalization. Because of the globalization, technoligies are spreading through out the world and it helps in development for some underdeveloped countries. It provides great opportunities for countries and citizens of those countries. Globalization mainly comes from large companies that are opened for international trade. Often as the result of cooperation there are technology changes in the world. Like as the result of the  space race with USSR was invention of number of new technologies. However, globalization is not always good. Enron, being one of the largest companies in the world invested almost 3 Billions of dollars on building power plant in India. This power plant was supposed to bring profit already in ten years, but what Enron did not think about is that, people in India will not be able to afford to buy the energy that power plant produces, so basically it was waste of money for enron. At the same time number of Indian citizens were protesting against building of the powerplant at the first place. In order to keep protesters away Enron paid money to the police in order to keep them away by brutal force. So Enron is an example of bad globalization, because not only what they did was useless but also innocenr people were hurt. 

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  20. VANESSA KREYTAK
    D BLOCK

    Globalization is the act of trade between nations across the globe. This process integrates people, companies, and governments through trade. For thousands of years, human beings have used globalization to spread multiple goods and ideas over far distances. Globalization has both positive and negative effects. Some of the more positive aspects include the easier access to different cultures around the world. Through globalization, nations trade foods, clothing, weapons, technology, and more with ease, increasing a nations’ profits and mere understanding of other nations’ lifestyles. However, globalization also has a darker side. Although the integration of cultures helps unite people all over the world, it unfortunately also helps deteriorate century long practices. New technology is replacing cherished beliefs that is now unavailiable to recent generations. This sense of unity amoung nations also portrays negative effects during times of war. Globalization makes it very hard for two nations to battle amoungst themselves when so many other nations are also connected to them through trade. Now if one nation is unhappy, all nations have to be unhappy or be looked upon as a traitor.
    Enron is a perfect example of the bad side of globalization. Enron was an industry run by greedy, manipulative executives. The only thing that was important to these men was money. Therefore, Enron took on many new projects in order to increase their profit. However, this company didn’t have enough funding to support such projects, which is where globalization comes in. Enron’s next business move was to build an estimated $2.9 billion power plant in India. This way the Indian government would assume all the risks within the agreement; assuring Enron a 25% return on its initial investment. Consequently, India’s government could not pay off the high bills that came along with the power plant Enron threw at them. This awful side of globalization shows how the poor, unmorale decision making of one company, can follow up right behind another, even if it is millions of miles away.

    (im using jessica's account bc mine wont post for some reason)

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  21. Globalization is when nations across the world trade supplies, and goods for their people. This trading makes relationships between the nations or companies that are essential for future business with each other. Though the business, the relationships, and all the money that comes out of it are positives about globalization, there are many negatives as well. For instance, globalization is really good for nations that are wealthy or have big businesses, but poorer countries are being used for all their resources and not getting much out of it. Another problem is where it makes positive relationships, it also makes negative ones. Like the Space race between America and the former USSR, they always know what the other nation was doing because of globalization. Globalization also has a lot to do with the Enron scandal. Because of Globalization, Enron was able to invest a lot of money in many different Businesses and get rid of all records of debt. Which made them rich, because noone knew about the massive debt Enron had. But once the debt was found, Enron fell like a house of cards.

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  23. Globalization is the connection where all nations invest and trade with other nations with the use of technology. Globalization has been around for years dating back to the Middle Ages and the first World War in 1914. World trade has increased by 20 times around the world since 1950 and from 1997 to 1999 foreign investments doubled from $468 billion to $827 billion. Globalization is “farther, faster, cheaper and deeper” because of the uses of technology around the world. Technology has helped globalization by providing the economy Globalization has brought the world closer together for nations to expand their businesses around the world. One positive effect of globalization is that nations can create international agreements that would help create more trade in goods, services, and investments. Globalization has helped the world develop an international industry and an international business structure that helps create more jobs, new opportunities for people, and positive relationships with other nations. A negative effect of globalization is when one nation has benefited from a free-market at the expense of another nations local enterprise, culture and common people.

    Globalization is related to the Enron scandal because Enron wanted to expand their industry in other countries such as India, Australia, and Brazil. Once the U.S. government gave permission to Enron by using pressure to push for access of markets around the world, they went in for the kill. Enron’s plan for foreign countries was to get into the country fast, make huge, successful deals with the top officials and let the profits roll in. Enron was successful in some countries and was a failure in other countries. For example, In Britain, Enron successfully created energy-policy shifts and bought a huge privatized water utility (Wessex Water). Although Enron’s plan for Britain was successful, their plan for India was a failure. Enron built a $2.9 billion power plant in India that was not fully finished due to the lack of support and money people brought to Enron’s power plant. The people of India protested that the power plants would disrupt the balance of political power and region surrounding. This resulted in Enron’s good reputation sinking because Enron hired and paid “police” to take the protestors from their home and beat them which is a total violation of human rights.
    Enron’s case was a positive aspect of globalization because in the end, they did branch out to other countries to expand their industry by driving international trade and investments into the foreign lands. Enron branched out to nations such as, Geneva, India, Britain, Germany, Argentina, and Mozambique by making arrangements with officials to open utilities like natural gas pipelines, oil pipelines, power plants, and water utilities.

    -Michelle Naidoo D Block

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  24. globalization is a term that is used in describing how economic chains can be formed threw nations that make trades they make our world go round very important to our global economic we need globalization to make money threw imports which rises the economy of developing nations.but not everyone is on board with the idea some fell its a way that the big nations can cut into the smaller nations money and profit and take some of there culture bring it back to their countries and mainstream it to make money.but enron made a bad impression on globalization to the rest of the world especially the smaller nations.this shows how bad it can get if you don t look at the companies history and are they a fraud cant trust them.
    we cant allow this to happen again its bad to see people struggle cause they lost money. i think some smaller nations might refuse big companies to come into the nation.they dont want scams to effect them and bring their economy down.

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  25. In my opinion Globalization is the integration of a world wide system through techonology, trade, the economy, culture and industry. Not only do we intermingle with other countries through trade, but many companies have also moved their manufacturing to other parts of the world. They do this to save money on cheap labor, in an effort to make more money. As we all know Globalization is not new, it has been going on for thousands of years. What is interesting is that when you look at the current economic climate of the world, you can see how we are moving into a global economy. Just like the United States, many countries in the past few years of this recession have also gone through their own share of financial troubles. This shows an example of how our economy can effect the rest of the world. In terms of technology, I believe that it has opened doors to things that we never knew were possible. In years to come Globalization is and will continue to bring countries and people of different cultures together. .

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  26. Globalization is related to the Enron scandal in that, this corporation wanted to branch out an make more money and in doing this they began to invest their monies in other countries. From South America, to Canada, India, Japan and countless other countries, they were considered a global giant. In India for example they started construction on a power plant that would cost approximately 2.9 billion dollars. The construction was never finished and this caused a great up roar in the community where the plant was being built. In terms of Globalization, it was not a good thing when it came to Enron. This company abused of their noteriety and they invested millions of dollars from investors on their own ventures. They violated to trust of the U.S. investor as well as those of those investors from other countries.

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  27. ANGELA SALMOS
    D-BLOCK
    Globalization plays a huge role in a society's
    economy,environment,culture, and political systems. Globalization is the interaction of different countries making deals, doing trade, and the influencing one another. This is made among the people, companies, and governments of different nations. This process is driven by international trade and investment. This method has been used for thousands of years this method has been used and have been buying and selling to other places of far distances. Technology plays a huge role in globalization and it has been the reason it has improved since thousands of year ago. Since 1950, world trade has increased 20 times and profits and money made has been doubled. Investments has doubled from $468 billion to $827 billion. This has caused more countries to have opened economies domestically and internationally. " Globalization is farther, faster, cheaper, and deeper" I agree with this quote by author Thomas Friedman because time has changed everything so much. Through technology we are able to keep in contact with certain areas, keep an update on stocks and improve on weaknesses. In order to take risks, investors need to know what the people likes or would invest in so, through technology they can tell what the people wants and other offers that can come up they themselves would invest in and make a huge corporation that could end up very successful.
    A positive about globalization is that this gives more people more options. Globalization can create trades among two nations that could end up in a big business that would offer people jobs and more goods can be produced and consumed. The demand on goods cold be more stable since we have a variety of places we can consume from through technology. A negative effect about globalization is competition no nation has a unlimited supply of any goods so if the demand of goods rise up, and there are a lack or goods, nations will fight and get competitive with one another and even do fraud like make fake goods to cover for the demand and make a profit.
    The Enron scandal is very well known. This business fell apart due to greed and dishonesty. Many investors from all around the world wanted to be a part of Enron because at the time it was so successful or so they thought. It seemed flawless and had all the money in the world. When Enron had its downfall they merged with other companies while no one thought anything of it because they covered up and lied about investments and promises that never came through. Globalization is related to the Enron scandal because Enron became involved with many parts of the world such as India. Enron built a $ 2.9 billion power plant that ended up as a failure with raged people. In the end Enron was not able to finish because of the lack of money and people's suspicions on Enron, how they are getting money, and why the math of everything they do does not not add up. Enron might of turned out to be such a regret but Enron is a positive aspect of globalization because Enron was so successful and could of stayed successful if everything was kept professional and the money was not thrown away on useless needs. Enron became involves with many other countriens and many investors became a part of Enron which is what globalization is about. Society needs globalization because no country has all the goods it needs so it needs the support of other countries to fulfill people's needs. Globalization could be done in peaceful manner if people were just more responsible.
    ANGELA SALMOS
    D-BLOCK

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  28. Globalization, in itself, is merely the interaction of economies across the globe. It can be as small as Canadians migrating to work in America, or as large as millions of dollars in investments into a company overseas. As long as it involves one country's economy having an effect overseas, whether that be investing, trades, imports, outsourcing, etc.
    Globalization has been influential to societies worldwide as early as Marco Polo's journeys and the creation of the "Silk Road". However, the more serious, or profound effects of globalization have been in the past 50 years. The main catalyst being the end of the second World War. This is when Investments and trades and the like really began to take off, thanks to the utilization of the computer and other technological advances.
    There is a very direct relationship between America's biggest economic debacle, Enron, and modern globalization. In a nutshell, there are two sides to the argument for/against globalization. Those in favor choose to be so for the reasons above. Those against however, are basing their fear of globalization on the massive failure of Enron. The fall of Enron is basically, scaring some away from the concept of globalization, coining such phrases as "Capitalism should act within it's boundaries".

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  29. Globalization means to interact internationally for trading, investing, and cultural awareness from far distances. Technology has helped improve globalization throughout the years and author Thomas Friedman has said that today globalization is "farther, faster, cheaper, and deeper" Since 1950 trade has increased 20 times and foreign investments has doubled up in billions of dollars. Globalization has its positives and negatives. Positives are that countries can come closer and talk about certain needs and support each other. We will have more things produced for people. Negatives could be that the trading and investments could result into irresponsible use such as weapons, drugs, fake goods without realizing.
    The Enron scandal is an example of globalization because other countries were involved in the business. India was one of Enrons big investors. Enron built a $2.9 billion power plant that failed in the end. Enron did not have enough money to come through with the project so many investors lost all their money and many people protested. Enron lost its image and the illusions they were making finally fell apart. Enron is a good representation of globalization because it shows that many businesses can become very successful and many investors would like to be a part of it if people were not greedy and the money is going to the right places. Enron took its investors and employes the wrong way which outraged people when they lost their money. Globalization is about reaching out to further places and interact with different people from other places which is what Enron did except their business failed.
    Jose Valentin
    D-Block

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  30. I find that globalization is the basic relationship of man and his community on a larger scale. It’s the connection that forms when people trade, invest, or simply interact with other people around the globe. Global interdependence is beneficial to us in a sense that we are easily updated on the latest products, researching breakthroughs, and so on. It is made more accessible and possible for people to access these things nowadays because of the internet boom in the early 90’s. With an easier access to foreign goods, people have a greater selection of products to choose from, making their lives more comfortable and easy. Another positive aspect of globalization is the strong bonds that can result between some nations. For instance, the U.S. and China have had (and to a certain extent still do have) a rocky relationship in the past, but the fact that they invest in each other’s stocks/goods and that China has loaned the U.S. some money implies that their relationship with one another is pretty stable. This means that wars can be prevented in the interest of preserving a nation’s economy and trading routes. However, globalization can be detrimental to the world because while it has good intentions, not all countries appreciate how interconnected they are with other countries. Many Chinese people are furious because they believe there are too many Western influences in their country (i.e. Starbucks, McDonalds, etc.) that detract them from their own nation’s traditions. It should also be noted that the value of the U.S. Dollar has significantly decreased in recent years mainly because we import more goods than export them, which has a negative impact on our economy. The impact of globalization can be seen in the Enron scandal of 2002. Being the world’s largest energy trader at the time, Enron would inevitably branch out to other companies around the world as well, especially since they were greedy and desperate for a source of money flow. One globalization instance was when Enron built a power plant in India, regardless of the evident fact that India was a developing country and could barely afford some basic needs for its people. As a result, India lost even more money and its economy’s welfare took a dive. This shows a negative side of globalization since Enron was taking advantage of its relationship with other nations to gain a source of income. Globalization is essentially neither good nor bad.

    Christina Tsang D-Block

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  31. Globalization includes worldwide integration. Instead of companies focusing only on one nation, they can trade, invest and influence other nations while learning and benefitting from them as well. By broadening the boundaries, the people, government and businesses are driven forward as they are pushed to advance with and potentially past the other countries. They also are able to obtain the knowledge and products they are deficient in by keeping such close ties internationally. Globalization allows each nation to build international business structures exceeding their previous standards for finances in the industry. The free market economic system that most nations have embraced has become most efficient because of the technological advancements on the twenty first century. It is easier and faster to get or communicate with the majority of the places around the globe allowing ideas to spread like wild fire and allowing development and profits to increase more then ever. On the flip side though, it is believed that the globalization throws the common people under the bus. That local cultures and enterprises are put in extreme jeopardy as the corporations grow so quickly.
    The Enron Scandal was partly powered by globalization. First and foremost, the “partnerships” that it had were mostly international. Although there were some true partnerships, the majority were just accounts that debts were hid in. Keeping up with a company who serves all over the United States is hard enough, keeping up with one that is worldwide is even harder. Enron representatives literally traveled wherever their jet can reach in order to expand and make money. They traded things that were needed and wanted everywhere, from natural gas to metals and plastics. Enron made sure they always had something to sell. With the amount of business and money they seemed to have, along with their connections to people of high authority like the Bush’s, they were often able to support, sponsor and manipulate people of authority. These people then helped them out by allowing them to do whatever it was they asked for. For example, in Britain, Enron was able to take ownership of a huge water utility with the help of Tony Blair’s Labour Government. Then, in Mozambique, a US Ambassador helped Enron take control of an oil pipeline project. Enron clearly targeted areas of weakness where they can come in and take over. Even in Argentina, the amount of political pressure on the government ended in Enron receiving the permission necessary to construct a natural pipeline to Chile. Although the purpose of globalization is to broaden horizons in order to further productivity and profits, broadening is the last thing a company needs when it already has no boundaries. Instead of just manipulating the American economy, Enron manipulated the economy of nations worldwide working hard to deregulate many services and laws that protected the people and created a business in its place that would allow them to make money.
    Caileen Gonzalez C-Block

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  32. This comment has been removed by the author.

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  33. Globalization is the process of integration of people, companies and governments of countries around the world. This process is possible through trade, investment and technology. Globalization has been a form of integrating different aspects of various nations for thousands of years (including the Silk Road, connecting Asia and Europe). Although globalization helps to spread items that are unique to one nation around the world, the effects of globalization can also pay a negative toll on our world. With the help of modern day technology, it has been very easy for globalization to become such a large part of international trading. This leads to the creation of new products in various parts of the world, which may help the economy to rise based on consumer demand. Because of the increasing value of trade, it will serve as a way to help the economy regain the strength it lost during the depression. Although this will help many nations, it can also lead to a lack of independence in within a society. Because so many countries rely on each other for essential items (like oil), nations may find the need to stop producing their own materials. Enron can be closely related to globalization, although they were a U.S. company. Enron was linked to countries around the world and was a leading energy company. When Enron traveled to India to create a power plant, they began to show how this issue became a problem that was widespread throughout the world. Because of their inability to successfully create this power plant, the stock market was negatively effected as a result.

    Lisa Borzi
    D Block

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  34. Globalization is the international endorsement of products and services based on the countries needs. One obvious example is how the auto-companies change certain models of their cars depending on if they are being sold in Europe, Africa, or the United States. Another example is how the Internet is distributed in certain countries. Like in Africa, there may be only 1 or 2 Internet hot spots available within a 100-mile radius whereas in the United States, every household on every street corner has access to the Internet. It’s the same concept as with electricity too. Some of the positive affects of globalization are that because of the constant interactions between countries, they can work together to further advances in technology and medicine and adapt them to the needs of different countries. Through these advancements, the general quality of life in each respective country will start to increase. Some negative aspects of globalization would be the competition to have “the next big thing”, whether it being technology, medicine, automobiles, or scientific breakthroughs. Also, the countries can find them in a major debt if their new ideas aren’t as affordable to the countries citizens as they originally thought. This is one of the things that happened with the Enron Company. Enron is a company that worked with natural gas and later electricity (through purchasing PGE). They opened up power plants around the world (i.e. India) but the people couldn’t afford the power they were sending out. This resulted in the power plant failing and the economy of India being weakened. Through this failure, it helped to speed up the bankruptcy of the Enron Company. The countries that had become dependent on Enron weren’t prepared for their bankruptcy, which cause a lot of people to get hurt and become angry.

    Adam Levine
    E-Block

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  35. Globalization is when countries all around the world share and trade and interact. They integrate and they all become diverse. Globalization is an international relationship caused by trading, investments and to gain new technology. Globalization has many benefits of it. It helps countries develop and it promotes modernization. The trade between these countries promotes social and cross-border trade. It allows poor countries to develop and modernize. Globalization also causes nations to rely on each other more. Poor nations can’t afford to rely on themselves or even each other. Nations start to stop producing their own materials. Enron is a strong representation of globalization. It shows how a problem in the United States can affect other countries. Other countries were using Enron’s resources. When it affected the people in the United States it affected all the countries who failed to produce their own products and relied on them. It exemplifies the negative aspects of globalization. When one country gets hit , they all get hit. Enrons scandal wasnt just a unites States scandal , it was a global scandal. For example when they tried to put the power plant in India and it failed to work. Not only was India and Enron affected, but it took a toll on the stock market too .

    - stephanieee llorca <3
    e block .

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  36. Globalization is another term for interacting and dealing trading
    investing and gaining information from other countries. With
    information shared between different countries their can be many new
    inventions to be invented to improve society. Their can be many
    positive effects and their can be many negative effects with
    globalization. Some positive effects are that some poorer countries
    can have newer technology, inventions, and ideas that will be
    available to improve technology and improve the countries reputation.
    Some negative effects are that those who disagree with globalization
    argue that it only benefits the western world.
    The enron scandal had a negative effect on globalization. Enron started a power plant in India and failed. Many countries that depended on Enron weren’t prepared for their bankruptcy and it effected them a lot. Just like globalization if one company is currupt it can cause many other companies to become currupt as well.

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  37. Globalization is the connection between all the countries in the world due to trade. It helps and affects all the countries by causing their economies to grow. People have all different opinions on globalization. Some say that it is mostly for the wealthy to help their businesses thrive and succeed and others say that it helps rural parts of some countries grow and make money. Enron has a close relationship to globalization. Even though Enron had been a complete fraud/con, it had been the 16th largest corporation in the world. Enron used this to their fullest advantage. Being that Enron had fooled its own nation, it easily fooled every other nation. One nation in particular being, India. When Enron wanted to create a power plant that cost 2.9 billion dollars, the plant failed and India's economy quickly weakened. Enron did this to many nations around the globe. Enron took advantage. They took advantage of their very own nation and almost every other nation. The opened power plants that countries couldnt afford and brought them down with no shame. Enron portrays a negative case of globalization and is most definitely an embarrassment on the US. There are many positive aspects of Globalization. Enron not being one of them.

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  38. 1. Globalization is the increasing trend of global interdependence expressed through trade, diplomacy and cultural diffusion. Globalization effects the environment, , culture, economic developments, prosperity and wellbeing of society. Globalization is not just the coming together of people, but the coming together and integration of new ideas. Like all things in life, globalization has both positive and negative effects. Positive effects of globalization include increased competition, more opportunities for employment, investment in the capital of nation, increased foreign trade, and the spread of technology, culture and education. Although, globalization has many positive impacts it also has its fair share of negative ones as well. Like all ideas globalization is extremely controversial because of things such as: outsourcing which leads to a decrease in jobs for citizens, exploitation of labor in the form job labor, lack of job security, terrorists now have more access to weapons, as a result of companies such as McDonald’s spreading worldwide, people are consuming more junk food, increase in prices and a increase in human trafficking.
    2. The Enron scandal was due to hugely corporation corruption and executive greed. Although Enron was based primarily in the United States since it was such a large company it became nationally recognized worldwide and had relationships with many companies around the world. While Enron was in power, the company made a huge investment on a power plant in India. The Indians protested the power plant, but their efforts were futile. Because India is a developing country, it was hard for them to pay the cost of the power plant. Globalization is not beneficial with a nation does not have the money to support it.
    Destiny Bangura
    D Block

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  39. Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factor. An aspect of the world which has gone through the process can be said to be globalized. The example they give in the article was the Silk Road. The Silk Road stretched from China to Europe during the middle ages. On the Silk Road people were able to trade different items fount in there own countries for other items in different countries. The Enron scandal can be seen as a negative effect of globalization rather than positive in that they had to delegate and practice certain laws. Enron’s stocks increased as business decreased. With that being said, loss of unemployment was inefficient. Enron took advantage of their power of expanding which led to the company taking money from other countries. Globalization is necessarilly good or bad. Enron just made the wrong decision and caused alot of people to get hurt by it.

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