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Contemporary globalization Chapter 2

+Contemporary Globalization

Definition: #1: Force or process that

involves the entire world and results in making something world-wide in scope

#2: Increasing interconnectedness of different parts of the world through common processes of economic, environmental, political, and cultural change. Has been underway since

inception of modern world-system in 1500s

1800s modern framework for globalization developed

Global connections today differ in four ways from past Function at much greater

speed Operates on a much larger

scale The scope of global

connections is much broader and has multiple dimensions

Interactions and interdependencies among numerous global actors have created a new level of complexity for the relationships between places and regions

+Contemporary Globalization

Modern Technology has created quick movement of money, materials, products, technology and other economic assets

Globalization has had both positive and negative repercussions:

localization: places might be attractive because of resources, or it might be suitable for new factories, extract materials, sell them, etc.

heightened economic differences: example, factories closing in the United States and open in Mexico due to cheaper labor.

Specialization on local level

Each place plays a distinctive role based on its local assets

+Economic Globalization

People are plugged in to a global economy and culture. This produces a world that is more uniform, integrated, and independent. Only a few areas are still isolated/

sheltered Subsistent areas

Most areas interdependent Choice of crop in one country based

on demand in another

Commodity Chains Networks of labor and production

processes that originate in the extraction or production of raw materials and who end result is delivery and consumption of the finished commodity Network span countries and

continents

JEANS EXAMPLE!!! Pg. 53 in textbook (Knox)

+ Economic Globalization MCDONALD’s Historically people had difficulty

moving $ and goods from one country to another, modern technology has changed that

Led to creation of transnational corporations Definition:

Transnational corporations conduct research, operates factories, and sells products in many countries, not just where it’s headquarters are located.

TCs assess particular asset of a place and correctly identify the optimal location for each activity ex: extract raw materials Produce parts Manage operations Develop engineering systems

+ Transnational Corporations

Other examples: Airbus, BP, Virgin Groups 2007 = 79,000 operating

Account for 11% of world’s GDP

1/3rd of exports

Globalization of economy has heightened economic differences among places i.e.

factories closed in U.S. and moved to Mexico

Using India for call-centers

Global recession 2008 1st world-wide economic

recession Usually contained to nations

or regions Effects of recession varied 1st time global recession

affected everyone Example

U.S. homebuyer, banker in U.K., sales clerk in Japan, clothing maker in China, construction work in Nigeria

All subject to falling demand and lack of credit

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+Cultural Globalization

Globalization has important cultural dimensions Previously cultural diffusion

limited to specific places and regions, no longer the case

Consumer culture “global” or uniform landscapes

Lack of uniqueness

All adds to an intensified global connectedness and the beginnings of the world an interdependent system

For some places globalization is a central reality, others it is still a marginal influence There is no one experience

Communication TV promotes globalization but

also can promote diversity Example: Sesame Street

Shown in Japan with similar characters, similar goals, but stresses filial piety and other Japanese characteristics

Not all peoples want to be “globalized” Resistance

Shut off from “globalizing” Conflict

Political (Iran, Taliban, Afghanistan)

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+Westernization

Heart of tensions is a marked disillusionment with the West, especially within traditional Islamic societies

In much of the world modernization now means “westernization” or “americanization” In peripheral countries only

select few enjoy western-style consumerism

Gap between rich and poor countries widening

U.S. aid budget declining = bad reputation for United States

Conflict 9/11 , Taliban

“ New Imperialism” Imperialism of the United

States, the world’s only superpower

The world regards U.S. as imperialistic “War on Terror” Reinforced by:

military threats against North Korea and Iran

Deployment on special forces for rendition

+Key Issues in a Globalizing World

The integrated global system has increased awareness of a set of common problems

Environmental Issues Human- environment interaction Climate change Environment degradation Sustainability

Health issues Increased travel = increased

spread of disease Pandemics HIV/AIDS

Security issues Spread of weapons of mass

destruction Risk of accidents involving

radiation Instability of financial markets International terrorism

Disparity issues Core has consolidated

Three major centers North America, European

Union, Japan Gap between wealthiest 5th of

population and poorest 5th has increased threefold since 1965 Resentment brewing

+Future Geographies

Globalization of capitalist world system has been developing for at least 500 years

Since WWII it has been accelerated and dramatic

Future? Optimistic:

Potential for technological innovations

Faster more effective transportation and communication

World governments? Pessimistic:

Finite nature of resources Fragility of environment Pop growth too large

Middle road? Period of transition

Soviet Union collapse 9/11 2008 Global financial crisis

Increasing power/ influence of China and India

Shift in power in wealth from West to East

Increased conflict in Middle East

Resource pressure Lots of uncertainties

Climate Arab- Israeli conflict energy