globalization - types of globalisation such as cultural, political, its issue and solution

GLOBALIZATION

By - Surendra BiShnoi

WhaT iS GLoBaLiZaTion? Refers to the increased flow of trade, people, investment, technology, culture, ideas among countries and creates a more integrated and interdependent worldGlobalization has been around since the 15th century when European exploration & colonization created global empires & markets, but most historians and economists agree that today is special by the extent of interdependence and the speed by which it has occurred.


driVerS oF GLoBaLiZaTion

•Two factors underlie globalization▫ “Decline in barriers to the free flow of

goods, services, and capital” that has occurred since the end of World War II

▫ Technological change


deCLininG Trade and inVeSTMenT BarrierS

• During the 1920s and ‘30s, many nations erected formidable barriers to international trade and foreign direct investment • Advanced industrial nations of the

West committed themselves after World War II to removing barriers to the free flow of goods, services, and capital between nations.


AVERAGE TARIFF RATES ON MANUFACTURED PRODUCTS

1913 1950 1990 2002France 21 % 18 % 5.9 % 4.0 %Germany 20 % 26 % 5.9 % 4.0 %Italy 18 % 25 % 5.9 % 4.0 %Japan 30 % -- 5.3 % 3.8 %Holland 5 % 1 % 5.9 % 4.0 %Sweden 20 % 9 % 4.4 % 4.0 %UK -- 4% 5.9 % 4.0 %US 44 % 14 % 4.8 % 4.0 %


eFFeCTS oF LoWerinG Trade BarrierS

Figure 1.1: Volume of World Trade and World Production, 1950-2004

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Index 1

950

=100

Total Merchandise Exports World Production


THE ROLE OF TECHNOLOGY

Lowering of trade barriers made globalization possible;

Technology has made it a transforming movement

• “World Wide Web” has exploded in last 20 years• Computers can move money around world =

“finance capital”• Silicon Valley is 9th largest economy in world!


INTERNET USAGE GROWTH

Figure 1.3: Internet Users per 1000 People, 1990-2003

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eople

Japan United States European Monetary Union World


GLOBALIZATION IS ACCELERATION OF TRENDS OF THE LAST 10,000 YEARS

People lived for 250,000 years in hunter-gatherer bands

Rise of agriculture 10,000 years ago led to rise of empires and nation-states

Science and ‘enlightenment’ after 1600 produced global trade and empires

Free trade and tech after 1945 produced present-day globalization


ASPECTS OF GLOBALIZATION1. ECONOMIC

2. CULTURAL

3. POLITICAL

THESE ASPECTS ARE ALL INTERCONNECTED!

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ECONOMIC GLOBALIZATIONEconomies Are Increasingly Linked TogetherEX: NAFTA (MX, CA, US), The EU, WTO (World

Trade Organization)

Creation of Global Institutions:World Trade Organization (WTO)--responsible for policing the world trading system and ensuring that nations adhere to the rules established in WTO treaties

In 2008, 151 nations accounting for 97% of world trade were members of the WTO

International Monetary Fund (IMF)--maintains order in the international monetary system, provides loans


http://www.wto.org/english/thewto_e/thewto_e.htm

ECONOMIC GLOBALIZATION

MULTI-NATIONAL CORPORATIONSOLD: Dutch East India Company

1602 company of Dutch merchants & independent trading companies

Spice trade monopoly in East Asia

Power to colonize territories & enslave indigenous people

Indonesia & South Africa


ECONOMIC GLOBALIZATIONMultinational Corporation--any business with productive activities in 2 or more countries.

NEW: Nike, Wal-Mart, Royal/Dutch Shell

Top 100 multinationals are all US-owned companies!

Royal/Dutch Shell: global group of energy and petrochemical companies, operating in more than 140 countries and territories, employing more than 112,000 people


GLOBALIZATION OF PRODUCTION & . . . SERVICESVizio flat panel TV is

designed in a small office in Californiaassembled in MexicoFrom

panels made in South Korea electronic components made in China microprocessors made in the U.S.

Increasingly companies are using modern communications to outsource service activities to low-cost nations

Example: Customer Service calls routed to India


GLOBALIZATION OF MARKETS In the past, each country had its own companies in many industries and its own products

I never saw Japanese media (and I saw little non-US media) in college

Now today everyone knows…

NintendoStarbucksCoca-Cola IkeaMcDonald’s Samsung


ASEAN (Association of Southeast Asian Nations) 1967

EC (European Community) 1967

EU (European Union) 1993

NAFTA (North American Free Trade Agreement) 1994

AEC (African Economic Community) 1991

GROWTH OF REGIONAL TRADING ALLIANCES(SHARED POLITICAL AND ECONOMIC INTERESTS TO PROMOTE TRADE)


Began in 1957 with six nations; now 27

Intended to integrate the European economy

Common currency – the Euro

EUROPEAN UNION


THE CHANGING ROLES OF COUNTRIESIN THE GLOBAL ECONOMYIn the 1960s: The U.S. dominated the world economy and the world trade

picture U.S. multinationals dominated the international business

scene About half the world-- the centrally planned economies of the

communist world-- was off limits to Western international business

Today, much of this has changed.

In the early 1960s, the U.S. was the world's dominant industrial power accounting for about 40.3% of world manufacturing output

By 2007, the U.S. accounted for only 20.7%

Other developed nations experienced a similar decline


CULTURAL GLOBALIZATION

McArabia Kofta By - Surendra BiShnoi

CULTURAL GLOBALIZATION

Consumerism – People want more than they need

Cultural lines have become blurred as world becomes more connected - (cultural imperialism)

“Americanization” or “McDonaldization” threatens local cultures

•Hollywood movies

•Disneyland

•Starbucks

•Dominance of the English language


AMERICANIZATION OR MCDONALDIZATION

Pepsi in Russian


http://srd.yahoo.com/S=96062883/K=McDonalds/v=2/l=IVI/*-http://www.vmsm.com/graphics/mcdonalds.jpg

WESTERN CONSUMERISM SPREADS

Iran’s Islamic answer to Barbie and Ken: Sara and Dara


Sports

--Baseball in Japan

--Football (soccer) and the World Cup

*spread around the world via the British

*Colonial nationalists emphasized playing

football to generate a national identity

Art

--Other cultures represented in Western art, such as African sculpture in Pablo Picasso’s pieces and Japanese woodblock printing influence in Impressionism

GLOBAL INTERACTIONS IN CULTURE


POLITICAL GLOBALIZATION

GLOBAL INSTITUTIONS

United Nations (UN)—global association of countries that work to facilitate international peace and security, friendly relations among nations, cooperation in solving international problems and respect for human rights.

World Bank—fights poverty by promoting economic development among developing countries

Whose interests do the UN & World Bank represent?By - Surendra BiShnoi

THE GLOBALIZATION DEBATEPro

Lower prices for goods and services

Economic growth Increase in consumer

incomeCreates jobs (for many)Countries specialize in

production of goods and services that are produced most efficiently

ConDestroys manufacturing

jobs in wealthy nationsWage rates of unskilled

in advanced countries decline

OutsourcingCompanies move to

countries with fewer labor and environment regulations

Loss of sovereigntyHomogenized cultures


20th century had a vast increase in the population b/c of advances in ag, industry, science, medicine

Reducing birth rates has become a concern in many countries (WHO - World Health Organization assists in family-planning)

GLOBAL PROBLEMS: DEMOGRAPHIC


Exploitation and competition

Urbanization and agricultural expansion

Increased use of fossil fuels

Kyoto Treaty

Greenpeace and Earth Day

Climate Change

Genetically Modified Organisms and Food

GLOBAL PROBLEMS: ENVIRONMENT


Causes of poverty

• Resource distribution and access• Income opportunities limited• Education opportunities limited

Forced labor

• Slavery still exists• Child labor still common

GLOBAL PROBLEMS: ECONOMIC INEQUITIES AND LABOR SERVITUDE


Last major pandemic – Spanish flu of 1918/1919; killed 20-40 million

Smallpox and diphtheria have been eradicated

Medical innovations: polio vaccine, antibiotics, artificial heart, transplants

GLOBAL PROBLEMS: DISEASES


HIV/AIDS

• Identified in 1981 in San Francisco• kills adults; leaves children orphaned; threatens society• Treatment is expensive• In 2000, 36.1 million people living with HIV/AIDS worldwide;

of those 21.8 million are in Africa

GLOBAL PROBLEMS: DISEASE


Diseases associated with your lifestyle: diabetes, heart disease, Alzheimers

Diseases associated with poverty: malaria, TB, cholera

Current concerns: Ebola & Zika

GLOBAL PROBLEMS: DISEASE


• The use of violence, or threatened use of violence, in order to achieve a political, religious, or ideological aim.

• Globalization has contributed to terrorism. How?

• Alienates & angers ppl who feel victimized by foreign influences that threaten native culture & practices

• Creates economic frustrations as traditional skills become obsolete in the global market.

GLOBAL PROBLEMS: TERRORISM


The Karnataka State Farmers' Movement (KRRS) burn genetically modified crops as part of the "Cremate Monsanto" campaign. Karnataka,

India, 1998.By - Surendra BiShnoi

ZAPATISTA WOMEN ARE VIGILANT IN DEFENDING THEIR COMMUNITY. CHIAPAS,

MEXICO. By - Surendra BiShnoi

PALESTINIAN WOMEN PROTEST AGAINST THE ISRAELI OCCUPATION AND ESCALATION OF MILITARY AGGRESSION AGAINST CIVILIANS IN THE WEST BANK

AND GAZA. SAN FRANCISCO, CALIFORNIA, 2002. By - Surendra BiShnoi

You can kill the messenger but not the message! NIGER DELTA WOMEN PROTEST


UCSC LECTURERS PROTEST UNFAIR LABOR PRACTICES, 2002


globalization - types of globalisation such as cultural, political, its issue and solution

Economy & Finance