Source: Heng Kim Song, 2012.

  1. Try to find out the messagethat the cartoonist is trying to conveybased on the hints indicated by labels (A) to (E).

Expressions and actions of characters or characteristics of objects / Meaning conveyed by characters or objects
(A) / An elevator with no door, like a confined space. / Countries are closely connected.
(B) / A fat person with the word "Eurozone” on him. / Eurozone holds an important place
in the world.
(C) / The fat person has pimples all over his face and / The European debt crisis affects
left hand. He spits out droplets in the shape of / other countries (including the USA,
theEuro sign, which fly in the direction of the / Africa, Asia and some newly
other four people. / emerging countries).
Expressions and actions of characters or characteristics of objects / Meaning conveyed by characters or objects
(D) / The four/4 persons(from top to bottom) / Other countries are very concerned
/ look like former Prime Ministerof India, / that the Eurozone's problems will
ManmohanSingh, who is staring in / affect them and spread to their
disbelief;President of South Africa, Jacob / countries.
Zuma, who is trying to find shelterat the
back; former President of the People’s
Republicof China, Hu Jintao, who is
covering his nose withhis hand; and Uncle
Sam, whorepresents the USA and
stretches out both hands, with his mouth
wide open, showing resistance and fear.
(E) / The fat person is sneezing.He is holding a / The Eurozone’s behaviour is
handkerchief in his right hand but he is not / irresponsible.
coveringup his mouth and nose.

2.What characteristics of economic globalization is reflected in this cartoon?Explain your answer.

In a globalized economy, the economies ofvarious countries are even more
closelyrelated. The economic performance of countries affects one another
as they become internationallyinterdependent.

3.According to the above cartoon, what are the negative effects of economic globalization?Explain your answer.

Financial integration increases the risks of financial crisis. When financial
crisis breaks out in a region/country, other regions or countries will soon be
affected. With economic globalization, countries cannot simply take care of their
own problems, as issues originating in some major economic powers or
economic regions will tend to spread to other countries.

4.Try to elaborate on the positive and negative effects of economic globalization on the following stakeholders.

Stakeholders / Positive Effects / Negative Effects
Multi-national Corporations / Economic globalization will allow manufacturers to reduce production costs and expand their markets globally so as to increase their profits.
/ Face global competition.

Consumers in developed countries / They may have more choices;prices fall as competition increases. / Products/services with local characteristics gradually disappear.
OEM* workers in developing countries / More income than before with more job opportunities. / If the social system (e.g. labour law) of the developing countries fails to catch up with the rapid economic development; or if OEMs only focus on maximising profits by curbing costs; or if the governments of the developing countriesfail to enforce the law, OEM’s workers may not be protected by basic labour welfare, or they may have to face bad working conditions, such as long working hours or lack of occupational safety protection.

*OEM: Original Equipment Manufacturer

From the financial situation in European countries to the waythe Hong Kong Government manages its finances

Group Discussion

Please put down the key pointsfrom your group discussion in the space below.

Source: Compiled from various sources.

Comment on the principle of “keeping the expenditure within the limits of revenues” and its importance in maintaining the stability of Hong Kong’s economy.

Since the end of 2009, investors have become concerned about some European countries and their sovereign debt crises.A sovereign debt crisis generally refers to asituation in which a government may not be able to repay the loans it guaranteed from external parties (debtors).In early 2010, in the midst of a series of economic crises and turbulences, it was pointed out that someEurozone countries like Greece, Spain and Portugal were having problems, and otherEuropean Union member countries thatwere not a part of Eurozone were also affected.The financial and economic conditions of these European countries affected one another, andthe sovereign debt problems continuedto spread.This had a negative impact on the economies of other non-European countries.

Source: Compiled from various sources.

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