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The World-System. The World-System. An interdependent system of countries linked by economic and political competition. “Globalization”. Telecommunications: Billions of Minutes. But what is Globalization?. The increasing interdependence and interconnectedness of places globally.

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an interdependent system of countries linked by economic and political competition

The World-System

An interdependent system of countries linked by economic and political competition

“Globalization”

Telecommunications: Billions of Minutes

but what is globalization
But what is Globalization?

The increasing interdependence and interconnectedness of places globally.

elements of globalization
Elements of Globalization
  • The continual expansionof global connections, relations and networks:
  • Faster and more intense
  • Increasing awareness about the world
  • Driven by advancing technologies
nike an american company
Nike: An “American” Company

Nike HQ:

Beaverton, OR

~5,000 workers

25 000 workers
25,000 workers.
  • For 30 cents an hour.
  • By hand.
  • Is that good or bad?
interconnected interdependent

Shoes are produced mostly by women in China (and many other countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • Materials (mostly from oil) cost about $2 per pair of shoes.
  • Shoes are shipped out of China (using oil from elsewhere) mostly to the USA and Europe.
  • Shoes are delivered to a store near you and sold to you for $75…or more!
  • Without you: They won’t make shoes.
  • Without them: There are no shoes to buy.
Interconnected. Interdependent.

http://business.nmsu.edu/~dboje/nike/nikewithmap.html

the big question
THE BIG QUESTION:

Is Globalization:

A. Good?

B. Bad?

C. All of the above?

D. None of the above?

Stay Tuned…

for example by economics
…for example, by economics.
  • CORE
  • PERIPHERY
  • SEMI-PERIPHERY
slide18

USA $14,660,000,000,000 $47,200

India $ 4,060,000,000,000 $ 3,500

Germany $ 2,940,000,000,000 $35,700

Russia $ 2,223,000,000,000 $15,900

Brazil $ 2,172,000,000,000 $10,800

South Korea $ 1,459,000,000,000 $30,000

Nigeria $ 377,900,000,000 $ 2,500

Singapore $ 291,900,000,000 $62,100

Cameroon $ 44,330,000,000 $ 2,300

Luxemburg $ 41,090,000,000 $82,600

Haiti $ 11,480,000,000 $ 1,200

COUNTRYGDPGDP pc

USA $14,660,000,000,000 $47,200

China $10,090,000,000,000 $ 7,600

India $ 4,060,000,000,000 $ 3,500

Germany $ 2,940,000,000,000 $35,700

Russia $ 2,223,000,000,000 $15,900

Brazil $ 2,172,000,000,000 $10,800

South Korea $ 1,459,000,000,000 $30,000

Nigeria $ 377,900,000,000 $ 2,500

Singapore $ 291,900,000,000 $62,100

Cameroon $ 44,330,000,000 $ 2,300

Luxemburg $ 41,090,000,000 $82,600

Haiti $ 11,480,000,000 $ 1,200

According to the CIA Factbook

measuring income
Measuring Income
  • Gross Domestic Product (GDP)
    • Total value of all materials, goods, and services produced in one year
    • Does not include in/outflows of money: remittances
    • Impacted by:
      • relative buying power: PPP-Purchasing Power Parity

- Based on hours of labor required to purchase a good

      • Exchange Rate vs. Buying Power

- Euro vs. dollar vs. baht

  • “Per capita”
    • Used for equalizing comparisons between dissimilar populations (divide GDP by population)
    • “GDP per capita” vs. “GDP”
big mac index

“PPP”

Four most expensive

Iceland - USD 7.45

Norway - USD 6.63

Finland - USD 6.11

Sweden - USD 5.33

Four most affordable

India - USD 1.40

China - USD 1.41

Hong Kong - USD 1.54

Malaysia - USD 1.57

“Big Mac Index”

Ten fastest earned

Tokyo - 10 minutes

Los Angeles - 11 min

Chicago - 12 min

Miami - 12 min

New York City - 13 min

Auckland, NZ- 14 min

Sydney, OZ - 14 min

Toronto - 14 min

Zürich, Switz - 15 min

Dublin, Ireland - 15 min

Ten slowest earned

Bogotá, Col. - 97 minutes

Nairobi, Kenya - 91 min

Jakarta, Indo. - 86 min

Lima, Peru - 86 min

Caracas, Ven.- 85 min

Mexico City - 82 min

Manila, Phil - 81 min

Mumbai, India - 70 min

Sofia, Bulgaria - 69 min

Bucharest, Rom. - 69 min

the core
The Core
  • Industrialized capitalist countries, led by former colonial powers (MDC’s)
  • So-called “1st World” or “Developed World”
  • Centers of trade, technology, productivity, $$$, high GDP pc
  • Exploit the Periphery and Semi-periphery
  • Examples: Western Europe, North America, Japan, Australia
the periphery
The Periphery
  • Poor, ex-colonial nations
  • So-called “Third World” or “Developing Countries” (LDC’s)
  • Exploited countries and regions
    • ex·ploi·ta·tion (eksploi-tay shun):
      • The act of employing to the greatest possible advantage:

exploitation of copper deposits.

      • Utilization of another person or group for selfish purposes:

exploitation of unwary consumers.

      • Exploited by Core and Semi-Periphery
  • Tend to export resources and provide labor; low GDP pc
  • Examples: Kenya, Bolivia, Pakistan, etc.
the semi periphery
The Semi-Periphery
  • Somewhere in-between core and periphery
  • Industrializingex-colonial countries (NICs)
  • Countries or regions with mixed processes:
    • Both exploited and exploiters.
    • Both exporters and importers of goods.
  • Examples: South Africa, Brazil, Mexico, Taiwan, South Korea.What about…?
china1
CHINA
  • Historically considered as “periphery”
  • But never colonized
  • With trade opening up to China over past 20 years, China has emerged into the “Semi-Periphery”
  • Recent impact on international markets and HUGE demand (i.e. oil, metals, etc.)
  • Huge population will affect globalization

Q: Will China be considered a “Core” player in the not-too-distant future?

gross domestic product gdp 2010 1995 estimates
Gross Domestic Product (GDP)(2010, 1995 estimates)

2010 %

Rank Country GDP Growth

1 E.U. $14,520,000,000,000-4.0%

$ 9,829,449.300,000

2 U.S. $14,250,000,000,000-2.4%

$ 7,338,400,000,000

3 China $ 8,767,000,000,000 8.4%

$ 700,277,800,000

4 Japan $ 4,141,000,000,000 -5.7%

5 India $ 3,548,000,000,000 6.1%

http://www.todayonline.com/World/China/EDC120917-0000021/7,8-growth-forecast-for-China-this-year

which of these statements do you think is true
Which of these statements do you think is true?
  • Because of globalization, the rich have become richer, yet the poor have also become richer.
  • Because of globalization the “gap” between rich and poor has widened.
gap between rich and poor
“Gap” between Rich and Poor

http://www.theonion.com/articles/gap-between-rich-and-poor-named-8th-wonder-of-the,18914/

slide30
In my 1995 Human Geography textbook, the word “globalization” was not in the glossary, index, or text.
western world system globalization history
“Western” World-System (Globalization) History
  • Nile Valley, Mesopotamia
  • Greeks, Romans
  • European Colonialism / Slave Trade:

1400s-1800s

  • Industrial Revolution: Wage Labor

1800s/ early 1900s

  • World War II / Cold War / Decolonization:

mid-1900s

  • Neocolonialism / Multinational Corporations:

Late 1900s

however keep in mind
However! Keep in mind…
  • China
  • Native civilizations: Inca, Maya, Aztecs
  • India
  • Assyrians
  • Persians
  • Mongols
  • Ottomans
  • And others!
  • All engaged in some form of globalization

(a.k.a. trade)

1400s european colonialism
1400s: European Colonialism
  • Christopher Columbus: Where was he going? Why?
  • $$$
  • Church
  • Food and Labor =
  • Spices and Slavery
hegemony
Hegemony
  • Domination over a region or the world
  • Colonialism
  • Not just political or military control
  • Most pervasive is economic and cultural control
  • The“Golden Rule”
geographic implications
Geographic Implications
  • Imperialism and Colonialism
  • Ethnocentrism and Racism
  • Environmental Determinism
imperialism formal colonialism
Imperialism:Formal Colonialism
  • Colonies under direct governance and control
  • Core controls labor, resources, land
  • Often indirect political rule through local leaders
industrial revolution
IndustrialRevolution
  • Early-1800s
    • Britain (Hearth): from slave cotton
    • Textiles, steam power, iron, canals
  • Mid-1800s
    • Diffusion to Germany, France, Belgium, Netherlands
    • Steel used for railroads, steamships, telegraph (means of globalization)
  • Late-1800s/ early-1900s
    • Spread to Europe, US, Japan
    • Electricity, oil, engines, roads, radio
ethnocentrism and racism
Ethnocentrism and Racism
  • “Our way is best”
  • “Civilizing”
    • Natives
    • Non-whites
environmental determinism
Environmental Determinism
  • The belief that certain physical environments (climates) are more inclined to produce advanced civilizations than others
    • Torrid (tropics)
    • Temperate (mid-latitudes)*
      • “Mediterranean”=“Middle of the Earth”
    • Frigid (polar regions)

* Theorized that this region was most likely to produce advanced civilization

environmental determinism example
Environmental Determinism:Example

Q: Is it true that tropical climates cause

laziness and promiscuity?

birth rate income pc
Birth Rate Income PC

Tropics

Liberia 42.25 $ 500

Afghanistan 38.37 $ 800

Haiti 29.10 $ 1,300

Burundi 41.76 $ 300

Mid-Latitudes

Belgium 10.15 $36,600

Japan 7.64 $32,600

Australia 12.47 $38,500

United States 13.83 $46,400

CIA World Factbook: Estimates for 2009

is it true
Is it true?
  • The stats are accurate.
  • Must be true then?
  • If so, then do we, based on the statistics, have a right to conquer (colonize) these lazy, promiscuous people to show them how to live more civilized?
  • Let’s ask the Nazis, the Spanish, the English.
  • Maybe there are some other factors that help explain the statistics…

Or the Yanks?

1900 rise of multinational corporations mncs transnational tncs
1900:Rise of MultinationalCorporations (MNCs)(Transnational-TNCs)
  • Investments, activities transcend borders
  • Cheap labor / resources in Periphery / S-P countries supply core
  • Int’l business and government become increasingly linked

Cartoon on Standard Oil, 1904

slide49
Industrial revolution helped create the rise of MNCs
  • “Golden Rule” in full effect
  • Rules made by core in interest of business
examples of mnc s
Examples of MNC’s
  • Standard Oil
  • Nokia
  • Starbucks
  • Coca-Cola
  • Ford Motor Company
  • McDonalds
  • Microsoft
  • Chiquita
oldest mnc dutch east india trading co

(1602)

Oldest MNC: Dutch East India Trading Co.:
  • Indonesia, SE Asia
  • Later began the Dutch West India Company:
  • Traded in Caribbean, Americas(1621)
modern imperialism
“Modern”Imperialism

(Frequently viewed as Post-WWII)

1945 world war ii begins contemporary globalization
1945: World War II “Begins” contemporaryglobalization
  • Sudden shifts in economic hegemony, political power
  • Sudden technological innovations
  • Sudden growth of transportation, communications networks
late 1940s u s dominant

Nagasaki

Late 1940s: U.S. dominant
  • Sole possession of atomic bomb to 1949
  • War destroyed industries of Europe, Russia and Japan
  • U.S. finances reconstruction

Frankfurt

neo imperialism informal colonialism spheres of influence
Neo-Imperialism (Informal Colonialism):Spheres of Influence
  • Post-WWII (today!)
  • Core-dominated
  • NOT militarily controlled
  • “Controlled” through trade and resources ($)
  • Dependency Theory
dependency theory
Dependency Theory
  • Low development in the periphery is a cause of their reliance / dependence upon core countries
  • But who decides dependency?
    • Core or Periphery?
  • Is the Core better or worse off because of it?
    • Power Struggles: Food / Military Aid
    • Foreign Investment / Loans by Core
    • Imports / Exports – Price “control”
    • International issues?
anti colonial revolts
Anti-colonial revolts
  • Colonial flags come down
    • Asia, 1940s-1950s, Africa 1960s-1970s
  • “Neocolonialism” begins
    • Periphery countries “free,” but…
    • Ex-colonial powers still dominate economies, resources, cultures, etc.
world divisions late 20th century
World divisions: Late 20th century
  • First World (“Global North”) - Industrialized capitalist countries of Western Europe, North America.
  • Second World - Centrally-planned “socialist” countries such as former Soviet Union.
  • Third World (“Global South”)- Ex-colonies: India, Malaysia, Brazil, Algeria, etc.
  • Fourth World (“Global South”)- Poorest nations including indigenous communities
slide60

North / South Divide

The World Bank estimates more than 1.4 billion people (1/5 world population) live in acute poverty of < $1 (U.S.) per day.

70% women and children

“Global North vs. Global South”

regions of the world village
Regions of the “World Village”

In a world village of 1,000 people:

  • 333 East Asians
  • 274 South Asians
  • 132 Africans
  • 120 Europeans
  • 86 Latin Americans
  • 50 North Americans
  • 5 from Oceania
household income
Household income
  • Average annual income $4,890
  • 600 poor
  • 300 marginal
  • 100 well-off
ownership consumption
Ownership / Consumption
  • 200 richest villagers own and consume

80% of goods

  • Other villagers own and consume remaining 20%

“80 / 20 Rule”

slide64

“The Digital Divide” “Fast” vs “Slow” worlds

  • “Fast” (20%) have access to telecommunications, consumer goods, arts & entertainment.
  • “Slow” (80%) have limited access—resentment toward the 20% with the technology.
  • 20% of population owns 74% of all phone lines in the world.
  • 80% of all websites are in North America.

http://news.bbc.co.uk/2/hi/technology/8552410.stm

globalization of the future
Globalization of the Future?
  • Industrial growth of Asia and Europe
  • Continued low wages in periphery
  • “Cheap” Oil
  • More Economic Internationalization
    • Free trade agreements, international trade
  • New Global Markets
    • New global technologies (Internet, cell phones, etc.)
    • On-line trading / commerce
    • Worldwide marketing (via satellite, Internet)
  • Desire!
globalization
Globalization…

It’s here to stay.

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