globalization globalization and the geography of networks
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Globalization
Globalization and the Geography of Networks
Definition
• A set of processes that:– increase interactions– deepen relationships– heighten interdependence without regard to country
borders.
• Does NOT include the free movement of people.• A set of outcomes that are felt from these global
processes.– Unevenly distributed and manifested throughout.
Background Info.
• “It’s neither an inevitable nor an irreversible set of processes.” De Blij and Murphy
• Understanding the origin and continued growth is very hard to do.– There is no set pattern to its spread/effects.
Background Info. Cont…
• The backbone of globalization is TRADE.– Opened the doors for the dispersion of the
following, though it does not dictate it or govern the dispersion exclusively:
• Cultural traits• Ideas• Pop culture elements• Capital
FREE TRADE
• Definition– Goods and services trade without interference
of government imposed costs.
Free Trade Encompasses:• International trade of
goods without tariffs (taxes on imports) or other trade barriers (e.g., quotas on imports)
• International trade in services without tariffs or other trade barriers
• The free movement of labor between countries
• The free movement of capital between countries
• The absence of trade-distorting policies (such as taxes, subsidies, regulations or laws) that give domestic firms, households or factors of production an advantage over foreign ones
• Trade-distorting policies to enforce property rights so as to ensure the above conditions
Free Trade cont…
– “Free trade raises the well-being of all countries by inducing them to specialize their resources in those goods they produce relatively most efficiently in order to lower costs.” -De Blij and Murphy
• As a result, a nation’s growth rate and access to technology is increased.
– This is known as the Washington Consensus
Timeline of Growth
• Stage One (G.1): (1492-1776)- The Age of Exploration– Retrogression Period: (1776-1815) due to the Atlantic
Wars
• Stage Two (G.2): (1815-1947)- The Age of Industrialization– Retrogression Period: WWI, Great Depression, and
WWII
• Stage Three (G.3): (1947- Present)- Post WWII: From Containment to the Free Market Competition
Anti-Globalization(Global Justice Movement)
• A social movement established to combat the effects of globalization.
• Believes that Core Periphery nations are destroying semi-periphery and periphery national economies to gain greater wealth.– Forcing them into foreign direct investment
and removing protections on domestic production.
– Target: WTO, W.Bank, and Int’l Monetary Fund.
Anti-Globalization cont…
• Rely heavily on protests and demonstrations to spread messages.
• “Free trade is not ‘free’ rather, it builds up a global economic network that sends most benefits to the core.” -De Blij and Murphy
Role of Networks
• A set of interconnected nodes without a center.– Types:
• Financial• Transportation• Trade• Government/Non-Government• Education• Media• ETC…
How Do Networks Work?
• They link everything that the dominant interests view as valuable and discard what is not valuable.– Networks have really flourished the in recent
years due to technology.
• Some places more connected than others, thus there is a spatial unevenness of globalization and its outcomes.
Networks cont…
• Ideally, networks should be horizontally structured, have no center, and encourage interaction amongst nodes.
Specific Types of Networks
• Development– Networks set up by various organizations to
counter top down decision making by higher up powers
– Examples of Efforts• Promote Participatory Development
– Locals participate in development decisions.
• Local Exchange Trading System– People barter and trade services/goods for things
needed. (I.E., Vancouver Island and Berkeley)
Specific Types of Networks
• Media Networks– Main way popular culture elements are diffused. (I.E.,
Music, McDonald’s, Apple vs. IBM)
• Corporate Networks– Vertical Integration vs. Horizontal Integration
• VI: Corp that has ownership in a variety of points along the production and consumption of a commodity chain. (Time Warner)
• HI: When the consumer spends, the money is going towards the same parent co. (Macy’s)
– Global retail can be very damaging to small, locally owned businesses.
Networks: The Effects of Time-Space Compression
• Definition– Establishes that certain places are more
interconnected than ever through communication and transportation networks. (I.E., Global cities in core periphery)
– Periphery nations are farther removed than ever.
• TSC is hugely impacted by Technology.
– How does technology create such a great divide between the periphery and the core?
Effects of TSC on Global Cities
• Allows an individual to see the network of interactions that these cities maintain in terms of globalized processes.– Finances– Media– Air Travel– Technology
TSC on Global Cities cont…
• Most globalized cities1. London
2. New York
3. Tokyo
The Globalization of McDonald’s
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