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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 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.BIG QUESTION:

Is Globalization:

A. Good?

B. Bad?

C. All of the above?

D. None of the above?

Stay Tuned…


Current world divisions
Current World Divisions countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.


For example by economics
…for example, by economics. countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • CORE

  • PERIPHERY

  • SEMI-PERIPHERY


USA $14,660,000,000,000 $47,200 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

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 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • 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” countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

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 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • 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 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • 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 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • 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…?


China
…CHINA? countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.


China1
CHINA countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • 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) countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.(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? countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

  • 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 countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.

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


Brief history of globalization
Brief History of “Globalization” countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour.


In my 1995 Human Geography textbook, the word “globalization” was not in the glossary, index, or text.


The silk road evidence dates back to 1600 bc lasted through mongol empire 1400

The Early Days of Globalization “globalization” was not in the glossary, index, or text.

The Silk Road(evidence dates back to 1600 BC, lasted through Mongol Empire ~1400)


Western world system globalization history
“Western” World-System (Globalization) History “globalization” was not in the glossary, index, or text.

  • 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… “globalization” was not in the glossary, index, or text.

  • 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 “globalization” was not in the glossary, index, or text.

  • Christopher Columbus: Where was he going? Why?

  • $$$

  • Church

  • Food and Labor =

  • Spices and Slavery


Hegemony
Hegemony “globalization” was not in the glossary, index, or text.

  • Domination over a region or the world

  • Colonialism

  • Not just political or military control

  • Most pervasive is economic and cultural control

  • The“Golden Rule”


Colonialism
Colonialism “globalization” was not in the glossary, index, or text.


Geographic implications
Geographic Implications “globalization” was not in the glossary, index, or text.

  • Imperialism and Colonialism

  • Ethnocentrism and Racism

  • Environmental Determinism


1800 1900
1800-1900 “globalization” was not in the glossary, index, or text.


Imperialism formal colonialism
Imperialism: “globalization” was not in the glossary, index, or text.Formal Colonialism

  • Colonies under direct governance and control

  • Core controls labor, resources, land

  • Often indirect political rule through local leaders


Industrial revolution
Industrial “globalization” was not in the glossary, index, or text.Revolution

  • 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 “globalization” was not in the glossary, index, or text.

  • “Our way is best”

  • “Civilizing”

    • Natives

    • Non-whites


Environmental determinism
Environmental Determinism “globalization” was not in the glossary, index, or text.

  • 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: “globalization” was not in the glossary, index, or text.Example

Q: Is it true that tropical climates cause

laziness and promiscuity?


Birth rate income pc
Birth Rate Income PC “globalization” was not in the glossary, index, or text.

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? “globalization” was not in the glossary, index, or text.

  • 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: “globalization” was not in the glossary, index, or text.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



Examples of mnc s
Examples of MNC’s “globalization” was not in the glossary, index, or text.

  • Standard Oil

  • Nokia

  • Starbucks

  • Coca-Cola

  • Ford Motor Company

  • McDonalds

  • Microsoft

  • Chiquita


Oldest mnc dutch east india trading co

(1602) “globalization” was not in the glossary, index, or text.

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” “globalization” was not in the glossary, index, or text.Imperialism

(Frequently viewed as Post-WWII)


1945 world war ii begins contemporary globalization
1945: World War II “globalization” was not in the glossary, index, or text. “Begins” contemporaryglobalization

  • Sudden shifts in economic hegemony, political power

  • Sudden technological innovations

  • Sudden growth of transportation, communications networks


Late 1940s u s dominant

Nagasaki “globalization” was not in the glossary, index, or text.

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 “globalization” was not in the glossary, index, or text.(Informal Colonialism):Spheres of Influence

  • Post-WWII (today!)

  • Core-dominated

  • NOT militarily controlled

  • “Controlled” through trade and resources ($)

  • Dependency Theory


Dependency theory
Dependency Theory “globalization” was not in the glossary, index, or text.

  • 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 “globalization” was not in the glossary, index, or text.

  • 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: “globalization” was not in the glossary, index, or text.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


North / South Divide “globalization” was not in the glossary, index, or text.

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 “globalization” was not in the glossary, index, or text.“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 “globalization” was not in the glossary, index, or text.

  • Average annual income $4,890

  • 600 poor

  • 300 marginal

  • 100 well-off


Ownership consumption
Ownership / Consumption “globalization” was not in the glossary, index, or text.

  • 200 richest villagers own and consume

    80% of goods

  • Other villagers own and consume remaining 20%

“80 / 20 Rule”


“The Digital Divide” “globalization” was not in the glossary, index, or text.“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


So what will continue to drive globalization
So what will continue to drive globalization? “globalization” was not in the glossary, index, or text.


Globalization of the future
Globalization of the Future? “globalization” was not in the glossary, index, or text.

  • 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… “globalization” was not in the glossary, index, or text.

It’s here to stay.


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