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Global Interactions1. Measuring Global InteractionsDefine globalization the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology. Describe a globalization indexAT KearneyKOF IndexWhat is it?Global management consulting firm founded in 1926, Chicago. Analyses 62 countries, 96% of world’s GDP, 85% of world population.Swiss Institute for Business Cycle Research, 2008. Definition of globalisation: the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods. A process that erodes national boundaries, integrates national economies, cultures, technologies and governance and produces complex relation of mutual independence. Examines 122 countries.Aspects of globalisationEconomic IntegrationInternational tradeForeign direct investment.Economic globalisationActual flows (Trade, FDI, portfolio, income payments)Restrictions (import barriers, tariff rate, taxes on trade, capital account restrictions)Political engagementParticipation in:TreatiesOrganisationsPeacekeepingPolitical globalisationEmbassies in the countryMembership in international organisationsParticipation in UN Security Council missionsInternational treatiesPersonal ContactTelephoneTravelRemittances.Social globalisationPersonal contact (telephone traffic, transfers, international tourism, foreign population, international letters)Information flows (internet users, televisions, trade in newspapers)Cultural proximity (McDonald restaurants, IKEA stores, trade in books)Technological connectivityNumber of:Internet usersHostsSecure servers.AT Kearney is a global management consulting firm.The AT Kearney Foreign Policy index measures twelve variables, which are subdivided into four “baskets”: economic integration, personal contact, technological connectivity and political engagement. Nations are ranked according to a calculated globalization index. Value of 1 given to highest data values for a variable, and others ranked as fractions of 1 so score is directly dependent on other countries E.g. Singapore ranked number 1 (describe it), Iran number 62 (describe it). Evaluate the AT Kearney indexOver 70 countries are ranked, covering nearly 100% of world’s GDP and 90% of world’s population, including developed and developing countries to provide a comprehensive and comparative representation. Takes into account the different aspects of globalization for holistic measure. Scaled according to rise/decline in GDP since a base year, so factors in changing economic context.Can compare according to various factors e.g. Malaysia had low level of technological connectivity but ranked highly for economic integration, second only to Singapore (world’s most globalized nation).But does not include all countries.Looks at country as a whole using average, not accounting for internal disparities.Not all variables in different aspects included.Remittances from illegal or legal migrantsLocal or global media on TV.Describe how the index may be represented spatially: a choropleth world map with one colour for every range of ranks. IB definition of core and periphery: the concept of a developed core surrounded by an undeveloped periphery. The concept can be applied at various scales.Describe the core-periphery model The Core and Periphery model shows the unequal distribution of activity/power in politics, societies and economies by mapping core areas at the focus of global interactions, and peripheral areas as unaffected by these interactions. The global triad describes the structure of world economy – tripolar core of North America, Europe, and East Asia. These macro-regions contain about 85% of world GDP and world merchandise exports, as well as focus of FDI. Pattern within core-periphery model shifting production and industrial relocation to semi-periphery where labour costs lower but profits tend to remain in core. Examples of countries in core-periphery model USA is a core country, Malaysia is a semi-periphery and Cambodia is a peripheral country.2. Changing Space: the shrinking worldExplain how a reduction in the frictional effect of distance results in time–space convergence.Frictional effect of distance suggests that areas closer together are more likely to interact, and this frictional effect is decreasing. These improvements have increased speed, efficiency and capacity, and lowered costs of overcoming the frictional effect of distance.Time-Space convergence rate: Reduction in the time taken to travel between two places due to improvements in transportation or communication technology. Expressed in mins/year.Time-space distance: maps show this based on relative time accessibility by schedules airline. Major cities are closer together, whereas isolated areas e.g. Papua New Guinea, are further away.Examine the relative changes in the speed and capacity of shipping responsible for the flow of goods, materials and people.Introduction of containerizationStandardized, stacked containers have increased load of goods and materials, which have lowered costs of economic trade through economies of scale where costs of shipping are spread over all the goods. Container ships now equipped with specialized handling devices for carrying machine parts and high-valued manufacturing components or perishables: increased capacity for range of goods and materials.Introduction of steam engineJourney by sailing ship across Atlantic Ocean from Europe to North America took 55 days Reduced to one week with further technical development of steam-shipsIncreased migration and facilitated trade, including of perishable items Increasing capacity furtherSize of container boxes and vessels are both increasing, average of 10% annually this centuryExamine the relative changes in the speed and capacity of airplanes responsible for the flow of goods, materials and people.Introduction of jet engine More fuel efficient and better suited for long distances: faster Costs decreasing in relative terms, and frequency and scale of flights increasing, so have allowed LDCs like Kenya to sell perishable agricultural/horticultural goods to Europe, Middle East and North America: Kenya has 1/3 of global market for cut flowers Introduction of commercial jet aircraft Expanded capacity to civilians: tourism expandedExpanded capacity to professionals: growth of TNCs and take off of commercial jets both occurred 1950s Expanded capacity to cargo: growth of trade of goods and materialsCase Study: Changing nature of air transport in ChinaContext and history of China’s air transport networkThough aviation was introduced in China during the early 1900s, low economic development and civil unrest leading up to WWII inhibited progress aviation. Focus was on military transportation. Only during Liberation (1950s) were matters suitably stabilized.Examine the changes in China’s air transport network China’s timeline1949: first civil aviation administration established by Communist Party of China in partnership with USSR gov’t: first post-Liberation airline, SKOGA was founded. China has 12 international and domestic routes, but Shanghai, largest city, only 10 flights a week. Late 1970s: under economic reforms of Deng Xiaoping, aviation identified as key to development and orders placed for airliners in Western Countries like UK and US.1988: Civil aviation had expanded so much broken into three large government-owned companies: Air China, China Eastern and China Southern.Now: well over 1000 routes, most of which domestic. Shenzhen is a city with in-migrants from all over China: own airline helping city’s development. As emerging economy, has opened markets to foreign investors as well.ICT include technological tools and resources used to communicate and to create, disseminate, store, and manage informationDescribe the role of ICT in transmission and flow of images, ideas, information and finance.The media Introduces ideas and images quickly, cheaply and widely across national bordersSocial media: chat sites, Facebook, micro-blogging, online shoppingMass media: message may be sent from one to millions of users – interconnectivity increases breadth of information e.g. cultural impact of Titanic, including televised in Indian slums Role in civil society like NGOs: raising public awareness by helping people worldwide gain information about campaign issues, mobilizing widespread support for their activities.Political implications: public opinion and political pressure e.g. Vietnam WarFacilitates migration Skype: large skilled labour force in Dubai, telecommunications connects people (business) Cheaper and clearer international calls and migrant workers in Singapore TourismSee international outsourcing notes Civil society: any organization or movement that works in the area between the household, the private sector and the state to negotiate matters of public concern. Civil societies include non-governmental organizations (NGOs), community groups, trade unions, academic institutions and faith-based organizations.Describe the role of ICT in civil societyThe mediaIntroduces ideas and images quickly, cheaply and widely across international bordersSocial media: Facebook, micro-bloggingKeeps audience engaged because social media is interactive Mass media: message may be sent from one to millions of users – interconnectivity increases breadth of information.Can raise profile through profound campaigns/advertising/persuasion.Sense of solidarity in unity of issues and beliefs with global platform.Case study: non-profit Wildlife Direct based in peripheral Nairobi, Kenya. Aimed to fundraise by building worldwide online conservancy community: anyone who has interest in future of wildlife and natural habitats In two years have formed 70 blogs and donations have increased 4 foldFacilitates movement of people and therefore ideasSkype, cheaper and clearer international calls: spokespeople more readily travel to spread the word. Also connects people worldwide through telecommunications. Development of transport and time-space convergence: similarly increases accessibility.Overall effect Raising public awareness about matters of public concern by helping people worldwide gain information. Foster dialogue between individuals and civil society.Mobilizing widespread support for their activities.Examine the contrasting rates, levels and patterns of adoption of an element of ICT in two countries. Skip this question on the exams – didn’t study in class and way too many statistics. 3. Economic Interactions & FlowsFact about capital: flow of finance globally far exceeds total value of international trade in goods and services combined.TNC: a firm that owns or controls productive operations in more than one country through foreign direct investment.Examine the importance of loans, debt repayment, development aid, remittances, foreign direct investment and repatriation of profits in the transfer of capital between the developed core areas and the peripheries.Loans Purpose of economic development and poverty reduction, so usually to peripheries and from core countries who can afford to lend – especially following independence of countries and now with World Bank focusing on MDGs.Mostly through World Bank because of low-interest and no-interest loans, so not directly from core countries, but significant: over US$24 billion a year.Leads onto flow of capital via debt repayment so yet another flow of capitalDebt repaymentIt’s true a lot of debt has accumulated: political corruption, legacy of colonialism (transfer of debt from France to Haiti), excessive interest rates.There’s been debt cancellation under HIPCs (see below), and after Indian Ocean tsunami debt relief to 12 countries affected.Even if debt is not cancelled, the major issue with debt is that it is rarely paid while interest builds: many countries struggle to repay loans so this flow of capital is limited.And this is from periphery to core: what can it do? What’s the impact? Development aidNot all aid is free of conditions and may overlap with loans (see Japan case study)Main donors are core countries USA and Japan to sub-Saharan Africa, Eastern Europe and Russia and SE Asia. Aid has decreased in relative terms, due to debt relief instead.Although donor countries’ wealth has increased since 1990, levels of aid haven’t. RemittancesIn South Asian countries, value of remittances is greater than international aid (in India exceeds software industry revenue from its 20 million diaspora: talk about construction in Singapore, Saudi Arabia; PNG; Mexico – illustrates massive flow of labour since globalization and thus relevance). Provides household income: lessens regional/global disparities in wealth and standard of living.Multiplier effect: increase in money supply from remittances, increased foreign exchange reserves.Marginalized countries like sub-Saharan Africa have not received nearly as much.FDIKey indicator of globalization, and increasing in increasingly globalized world and integrated world market. Today, a whopping $1.5 trillion. Leading to massive development: China. But investors invest in few emerging economies (Asian Tigers case study below) and FDI between the global triad – Africa, so peripheral, isn’t exactly ideal. That said, some countries are good candidates for new generation of NICs: Vietnam. Reduces disparities – but between few countries.Repatriation of profits As the number and scale of TNCs increase, many core countries that own parent firms find it easier to flow capital back to country of originDepends on how liberalized the economy is – China makes it legal to repatriate up to 90% of annual profits – but not all peripheral countries are so reformed Conclusion not every country is part of trend of globalization e.g. Africa is left out of even flow of capital. Flow from core to periphery is more meaningful and impactful. Case study: Japan and loansOffers multilateral aid through international organizations but also bilateral aid as assistance, often to Asian countries e.g. Eastern Indonesia has long dry season, so Japan has loaned to develop irrigation and introduce agricultural technological development.Why Africa is left out of flow of capital as a peripheral countryConflicts are rampant throughout Lack of discovery of natural resources like oil reserves Institutional quality: corruption, poor law and order, civil unrestLack of demographic transition: culture, traditionsHIV/AIDS epidemics greatly inhibit productivity NICsAsian tigers Singapore, Taiwan, South Korea and Hong Kong had: infrastructure, geographic advantages e.g. access to the sea and became port nations, skilled, low-cost workforce, cultural traditions that revere education and achievements, attractive interest rates.Flow of capital also targeted to…Offshore financial centres (OFCs) – islands and microstates that attract money by offering lower taxes and freer regulatory frameworks e.g. Bahamas, Qatar, Luxembourg. Banks, financial institutions, investors and TNCs get flexibility to move money freely and can declare profits strategically Limitation of flow of capitalBoosted economic growth in countries like China, South Korea and Singapore but other economies less integrated into global economy are marginalized: Africa not experiencing increased flow of capitalDifficult for peripheral countries to enter world financial trade – cities that control financial market are also centres of information interpretation.Countries which have established corporate culture and expertise dominate e.g. London, New York and TokyoRole of financial institutions (such as the WTO, IMF and World Bank) in the transfer of capital.WTO: Formed in 1955. Trade in manufactured goods, raw materials, agricultural services and interllectual property rights. Aims to establish rules to govern and regulate international trade such that there is liberalization of trade. Over 150 member countries.World Bank: established to provide aid to poor countries in terms of loans for projects, such as infrastructure developments, but from 1980 onwards, help for debt repayments.IMF: 185 member countries. To promote international monetary cooperation, exchange stability and orderly exchange arrangements, foster economic growth and high levels of employment, provide temporary financial assistance to countries to help ease balance of payments.Case study: China and FDI, China and WTO’s influenceChina joined WTOModerate, reformist policies making it easier for foreign countries to expand into China.Forced to specialize in fields of comparative advantage.World aware of huge market potential (attracted over $90 billion in FDI a year).Economic growth increased by average of 10% a year in past decades.Case study of the influence of financial institutions in flow of capitalHeavily Indebted Poor Countries initiative - IMF and World Bank Countries can qualify for debt relief only if IMF economic policy (including SAPs) for total of 6 years Structural adjustment programmes (SAPs) by the World Bankreduce active role of state: cut government expenditureintroduced school fees as part of cost-recovery programreduced spending on health so health clinic feesprivatization: firms streamline – unemploymentpromote international trade and economic competitiveness.Promoted agricultural exports: primary product dependency.Context of USA/Mexico labour flow: over a million Mexicans migrate to US every year. Mostly concentrated in a few states, but now not just traditional destination such as Texas, but also southern and mid-western states like Georgia and Nebraska. Connect to labour.Explain the causes and effects of major flow of labour between USA and MexicoCauses at source and destination40% unemployment in Mexico vs. many low-skilled jobs for Mexicans which Americans don’t want to do like construction.Range of goods and services in city life vs. rural lifestyle.Perception of America as the land of opportunity and prosperity vs. agricultural society in rural Mexico Better standard of living for children of labourers e.g. 99% vs. 55% literacy, healthcare and schooling Effects at destination Illegal immigration costs US millions of dollars for border patrol and prison Tense political relations: US Border Patrol always tries to control the many illegal immigrants desperate for a better life, militarization Societal tension due to influx of migrants with different culture (xenophobia), competition over jobs, resentful at illegal immigrantsGradual assimilation: cultural enrichment of US Border States with culture, food and music Effects at sourceRural economy is depressed due to shortage of economically active populationRise in dependency ratio: the old and the young left behindRemittances pay back $6 billion a year Outsourcing essay intro: Outsourcing is the concept of taking internal company operations and paying an external firm to handle them – usually to reduce costs. Analysis by A.T. Kearney confirms India as the most attractive outsourcing country in the world. (Remember includes physical goods too though.)Role of ICT in international outsourcing ICT is integral to TNC operations; transfer of capital, dividends, credit through online banking – exchange of finance/business transaction more readily occurs Communications technology in the form of transport:Accessibility, time-space convergence (see China air network case study above that facilitated TNCs coming in)Developments in shippingSupply chain management (seeing progress of inventory as it moves through supply chain using ICT) and logistics (warehousing, scheduling and distribution) because great efficiencies in managing information trading relations establish bilateral relations for outsourcing ICT companies, especially in the area of software development, have been outsourcing ICT work to mostly India from US/European software developers. Audits (communication) gave investors initial confidence: pioneered by ICICI, which underwent one by US and shortly joined US stock marketICT developed to the point where software can be developed independently of location, provided connections are adequate e.g. coding and processing using high-tech information technology outsourcing (ITO)For “communications development” can explain how globalization lends itself to more English-speaking Indians therefore increasingly willingness to invest in outsourcing: after USA, India has highest number of English-speaking scientific manpower.Enabled investors, who were attracted to the skilled, English-speaking and cheap labour force, to invest Bangalore’s software industry: silicon plateau of India, home to high-tech firms like IBM, Motorola and Hewlett Packard.Telecommunications development allows embedded voice orientated technical service. Companies with international call centres include American Express, British Airways and Swissair. (By communicating through phone causes social tension: Americans don’t like accent, resentful their jobs are being outsourced – national joke is centres giving staff American/European names) Extent of outsourcing: software now takes up more than 20% of total exports 4. Environmental ChangeAgro-industrialization: development of agriculture by incorporating corporate and industrial techniques. Includes agro-processing, distribution, organisational change (e.g. increased vertical integration), technology and market structures. Growth of agro-industrialization Farming in MEDCs and increasingly in LEDCs is becoming run by large corporations wanting to mass-produce cheap outputs, mechanized and corporate-owned.Change in production and consumption shift in tastes from bread and cereals to beef, pork and chicken; expectations on quality and appearance; increasing demand for quantity.Effect of agro-industrialization/changing tastes on the physical environment Increasingly international demand for narrow range of crops: monoculture. Environmentally unsustainable because it draws from the same narrow band of nutrients from the soil without compensation from other plant species.Crops used to feed livestock – tiny fraction of energy in grain will be available for human consumption because conversion to animal tissue is inefficient.Disease outbreaks can easily and quickly spread in CAFOs due to high density and close confinement. E.g. swine flu traced to agro-industrial farm in Mexico for pigs.Deforestation and loss of biodiversity e.g. cattle ranches in Amazonia Methane has more than 20 times the global warming potential of CO2. Soil degradation: Sustained with artificial fertilizers and stuff whereas before natural: popularized with Green RevolutionChanging texture: loss of organic matter reduces stability of soil aggregates, which may break up and lead to formation of soil crusts as fine particles block pore spaces – which reduces infiltration capacity.Accumulation of unneeded minerals leads to chemical degradation.Farmers may be forced to cultivate marginal lands e.g. ploughing fallow land before it has recovered fertility (overcultivation) Heavy machines can compact soil: affects fertility (seedling emergence) and porosity to store waterEnergy efficiency: Indirectly, implications on climate change and depletion of fuel Energy-inefficient. E.g. 1 kJ of muscular effort yields 20 kJ of food energy for shifting cultivation. Feedlot beef production: input 10 times greater than output – Mexico agribusinessInternational nature means higher food miles – more energy input. Water degradation Increased use of pesticides, herbicides, insecticides and chemical fertilisers. Water pollution can travel long way from source e.g. nitrogen pollutants from US mid-west flows into coastal waters and affects fish.Also through run-off can cause eutrophication (harms ecosystem) and infiltration (groundwater)Eutrophication Nutrient enrichment causes algal blooms which cut off light supply for plants below, so they die and bacteria feed on them: depletes oxygen levels Organisms migrate or also die: in Dianchi Lake near Kunming City, 90% of native water weed, fish and molluscs dead.Discuss the environmental consequences of increasing international demand for one raw material. 425831041275New South Wales context trees are cut there to provide woodchips – raw material for making paper, for example exported to Japan from New South Wales, Australia. Also construction and furniture industry. Forestry industry & environmental consequences:300 people employed in harvesting the forests for woodchipping around Eden.Logging for woodchips is a clear felling operation: Every suitable tree in the area is cut down, leaving only a scattering of unsuitable trees. Clear felling is more profitable, with large volumes of timber obtained within each time period. (Forests around Eden considered derelict, no commercially useful growth, suitable for clear felling).Forestry operations disturb the soil, exposing to soil erosion: drains built across the slopes to stop long, fast runs of water (minimise erosion); empty into undisturbed areas to be absorbed by ground litter and soil.Unlogged strips of forest 20m wide are left on both sides of all permanent streams to stop siltation.Environmentally destructive: Loss of biodiversity: inter-dependent feeding relationships. e.g. psyllid insect lives on eucalypts by sucking sap, birds eat psyllids.Conservationists concerned mainly about fire in regenerated forests. Eucalyptus fastigata grows very quickly upon being logged to form dense vegetation. Fuel levels (oily leaves) are very high. Young plants have more leaves per hectareLeaves closer to ground, increasing chance of crown fireIn 1980 most destructive forest in district’s history at Timbillica, most in regenerated forest. Fire too strong to be fought, and after burning 44, 000 hectares, only largest trees survived: flora and fauna both eradicated – area described to resemble desert.Siltation and soil erosion. Especially macropores in soil become sealed by fires. This increases overland flow. May not be too badProperly managed, timber is a renewable and recyclable resource, whereas metal ores…Logging is done in small areas of few square km, called compartments. Only 50% of a particular compartment logged at a time, other 50% after 20 years. 15 mature trees per hectare are left uncut. But conservationists say that logging is at the point where forests may be require about 50 years regrowth before a sustainable harvesting cycle can be established.Eucalypts have high demand for light so they rely on occasional severe site disturbance. Suggested that without logging and fires, some species would become endangered over generations, being replaced by shade-tolerant species.Siltation rates may increase after logging but they return to normal upon regeneration. State Fisheries Department claim there has been no decline in quality of fish life in local streams and estuaries since logging began. Regenerated forests may be better becauseOld natural forests in declining state and fewer habitats, whereas regenerated forests are thicker and healthier so habitats improved. Excellent conditions for herbivores created such as wallabies and the populations increase. Examine the concept of food miles and the environmental consequences of increased volume of air freight. Food miles: A measure of the distance food travels from its source to the consumer. This can be given either in units of actual distance or of energy consumed during transport.Consequences A contrail is a long, thin cloud that condense from water vapour emitted from the exhaust of jet engines at high altitudes. If the air is cold and extremely still, a contrail may remain for a longer period. Contrails believed to be half of aviation’s industry impact on climate: trap heat. Aircraft accounts for just under 3% of human contributions to climate change. Talk about general enhanced greenhouse effect. Nitrogen oxide and water vapour participate in ozone chemistry. Increases in nitrogen oxides leads to decrease in the stratospheric ozone layer. Stratospheric ozone filters out UV radiation.Fossil fuel depletion: aviation fuel. Some say that emissions can counter the enhanced greenhouse effect. This is because CO2 in the upper atmosphere may reflect insolation. Aircraft manufactures are experimenting with alternate fuels like biofuels that generate less CO2 and have more energy content, but this is still in early stages. ACARE has also called for a 50% reduction in carbon emissions for all new aircraft designed and built from 2020 onwards. Indeed, today’s engines use 70% less fuel per km. Limitations of food miles: Many considerations, but each aircraft can carry more cargo, so more efficient in terms of energy even if distance is the same.Discuss the reasons for relocation of polluting industries (such as TNCs) and waste disposal (such as ICT, chemical and nuclear waste) to countries with weakened environmental controls and safety regulations.High fees associated with waste processing and pollution emissions make it costly to process waste/manufacture in MDCs where there is strict environmental legislation. Industries want to minimize costs to ensure competitiveness in tightening market. Disposal facilities can be built cheap without cumbersome consideration of externalities to health/environment: in Senegal, waste landfill in Dakar very close to water table These countries have poor experience with waste/pollution. Government officials can be easily bribed to import toxic waste. Exporting companies can disguise hazardous waste as useful commodities. Containers filled with e-waste from Europe labelled as ‘second-hand goods’ end up in Ghana’s scrapyards LEDCs attract industries by providing ‘pollution havens’: cheap land and facilities, attractive tax arrangements and even government-sourced infrastructure such as roads and railway links.Seen as key to transforming rural-based agricultural economy to urban-based industrial economyGuinea Bissau was paid $600 million to store and dispose industrial waste: twice country’s foreign debt at that time.Mutually beneficial because MDC exporters earn from selling waste and developing countries get a source of raw material: more lucrative than alternatives like farm labouring.But there are other reasons that determine relocation.Added incentive of low wages/large/semi-skilled/unskilled untapped workforce e.g. child labour in Ghana Where suppliers and located and cost of transport Asian Tigers and China case study.Discuss the consequences of relocation of polluting industries (such as TNCs) and waste disposal (such as ICT, chemical and nuclear waste) to countries with weakened environmental controls and safety regulations. Waste is processed and burned by workers in Ghana: laden with toxic chemicals like lead and mercury from batteries, copper circuit boards in acid baths. Most workers, many children, have no protective clothing/equipment. When burn electronic cables to reclaim metal, release toxic chemicals. Can interfere with sexual reproduction, affect brain development. Especially affected because low nutritional status weakens physiological defence and lack of health care facilities. Lack of awareness of effects. Instances of people using empty containers for domestic purposes including storage of water. China is second biggest producer of greenhouse gases. Pearl River delta in China is focal point of massive FDI: high concentration of factories and power stations. Worst in Guangzhou. Air pollution causes skin/nose irritation, breathing problems (asthma), fatigue8/10 rainfalls in Guangzhou classified as acid rain. Highly carcinogenic benzene in tap water: cancer villages where rate is 30x national averageChina is increasingly aware that situation is not “responsible recycling” and countries are exporting pollution. So stricter laws of what types of waste can be imported.In USA and UK, proportion of workers employed in manufacturing as fallen by more than half since beginning of 20th century: legacy of deindustrialization is less demand for unskilled labourEnvironmental Kuznets curve suggests a country’s level of pollution will become worse during early phase of rapid economic development but will improve as development continues: increasing R&D on greening of industry, deindustrialisation, as affluence increases and pollution becomes more of a problem, it is prioritized.Draw diagram on page 109 of Global Interactions textbook.Environmental protests no longer confined to MDCs – spread to LDCs through civil societies Brazil chose to adopt global environmental standards because of fear of litigation, negative public relations and concern about loss of export markets.Describe one major pollution event affecting more than one countryIn Chernobyl, Ukraine in 1986, testing triggered meltdown of reactor’s core, leading to only level 7 event on International Nuclear Event Scale. Release of radioactivity following massive explosion.Power station on Ukraine-Belarus border. Radioactive plume drifted over extensive parts of Europe and eastern North America including through nuclear rain and wind. Radionuclides measurable in all countries in North Hemisphere.60% of radioactive fallout landed in BelarusExamine the consequences of this eventRadioactive particles killed 4km2 of pine forest downwindTwo people died in initial explosion, 56 direct deaths and estimated 4000 cancer deathsEstimated cost of $200 billion makes it most expensive disaster in modern historyIndustry affected, agriculture especially Social and psychological damage/disruption including but not limited to Cancer (especially thyroid because inhaled or ingested) Abortion and birth defects and infertility. Infants especially affected because of contaminated milk and their metabolism. Skin lesions, respiratory ailments Health effects and costs still continue years later e.g. continuing decontamination costs in Ukraine, Russia and Belarus Examine the response to this eventHigh deposition levels: restrictions on distribution and consumption of foodstuffs Abortion requests as far away as Greece: radiophobia Enclosed in concrete. Today 19-mile exclusion zone around reactor remains uninhabitable though 5 million still live in areas of Ukraine, Russia and Belarus classified ‘contaminated’ with radionuclides Plans for this Chernobyl Exclusion Zone to be opened for restricted industrial uses but environmental impact assessment needed first and radioactive waste management program neededOnly in 2003 UN Development Programme launched Chernobyl Recovery and Development Programme specifically for affected area. Helped Government of Ukraine on social, economic and environmental consequences. After Three Mile Island incident in Pennsylvania, USA and this, growth in nuclear industry halted. Only China and India, deeply concerned with demand for energy, have really gone ahead. Examine growth of environmental awareness as consequence of global interactions skip the question or draw on civil society/ICT stuff/below/improvise.Examine role of one international civil society organisation in fostering improved environmental management. Intro Greenpeace International is arguably most well-known ‘An independent global campaigning organisation that acts to change attitudes and behaviour, to protect and conserve the environment and promote peace.”Body In 1900s, a small boat of volunteers and journalists sailed into Amchitka, north of Alaska, where US government was conducting underground nuclear tests. Voyage pioneered Greenpeace’s tradition of ‘bearing witness’ in non-violent manner.Aim to catalyse energy revolution. Campaigns against fossil fuels. Urging governments to invest more in renewable energy.Urging electronics companies to eliminate hazardous substances and to take back and recycle products once obsolete: the two issues interconnected. Challenging wasteful and destructive fishing, and creating global network of marine reserves. Campaigns against industrial fishing, by-catch, trawling. Basically, sustainable fishing. Protecting forests:a) Malaysian Timber Certification Council to develop an internationally recognized certification scheme to ensure timber supplies are derived from sustainable forest management practicesb) moratorium on soya crops in Amazoniac) protection of Canadian Great Bear rainforest after decade-long campaign: not just words, also action Some members left to join more radical organisations as non-violent approach seen as too timid. Explain evolution of uniform urban landscapes: homogenization Intro: decades ago, cities had distinctive characters that reflected national identity. Effects of common commercial activityHouse TNCs sector that make same decisions as in other parts of the world.Growing tertiary sector: world cities are part of global economic system with same leading banking and finance centres in CBD – same functionsGlobal retailing: fast food outlets/global brands like McDonalds and Starbucks with standardized styles and structuresVisual recognition important for brands like H&M, hotel chainsAs affluence increases, traditional forms of entertainment wane and modern leisure common to Western cultures in affluent societiesDubai: from family-orientated dancing, singing, falconry, hunting to mall-orientated dining, cinema, paint-balling, shoppingStructuresHigh cost of land + high population density means vertical development: high-rise skyscrapers, apartments characteristic of cities like Dubai: before tents and nomadic lifestyle Emerging cities like Dubai invest heavily in infrastructure such as roads, airports and buildings to attract great share of world business: before camels/footLarge urban areas cannot function effectively without efficient systems of transportation/land-zoning so they adopt tried-and-tested ones from other parts of worldOne-way systems and multi-lane roads linking CBD to suburban areas popular in USA applied to other parts of worldInner and outer city ring roads keep congestion-freeUK’s New Towns model and London’s Docklands used as model for waterfront development Styles of construction and infrastructure Emergence of world cities with migrants/tourists/affluence increase pressure for uniformity because of generic expectations and spread ideas and cultures so dilution of identity e.g. waterfront developments for expats Improvements in ICT and media so people aware of opportunities and trends in other cities and want the same Large-scale developments by major companies using international standards of designAs Beijing has been exposed to pressures that impact all cities with international links, has replaced traditional urban landscape (small courtyard-fronted homes linked by narrow laneways called hutongs now only in some suburbs) with modern landscape 5. Sociocultural ExchangesDescribe cultural traitsCulture: the total of ideas, beliefs, values and knowledge manifesting as the way of life of a particular society or group. LanguageDetermines human interactionsLanguage may generate separatist movements: e.g. Spain (Catalan, Basque); Quebec from Canada.Transmitted through range of forms including literature and songCountries can be multi-lingual. Canada is officially bilingual: English and French. French Canada pressed for stronger legislation to protect French language and referendums even held in Quebec whether should just be independent country: heavily defines cultural identity. Can marginalize or provoke xenophobic feelings e.g. Mexicans in USLanguage may generate separatist movements: e.g. Spain (Catalan, Basque); Quebec from Canada.CustomsEstablished patterns of behaviour that are commonplace within a country, region or social setting.E.g. Japan: bowing to show respect; tipping is insulting; shoes & thresholds; conformity.BeliefsDictates other cultural traits, with religion being especially significant. Global religions: Christianity and Islam. Hinduism, Buddhism, Judaism, Taoism more regional.Saudi Arabia’s legal system based entirely on Islamic law: prohibits alcohol, pork, fornication. Even economic life Islamic banking as opposed to capitalist commercial banks. Secularism gaining strength, especially in Western world. Islam theocracy (e.g. Iran), radical Islam, fundamentalist Christianity.DressSignificant in daily life. Individuals establish sense of being and place in society. Can mark out job/status. Can be in response to climate or religion. Older generation clings to traditional; Western casual and business has become global norm. Traditional dress worn on special daysMarks social and economic change, political watershedsDress code usually stricter for women than men. Islam Burqa – essential for women to wear in public.ImagesPolitical, economic, social, environmental, historic. Recent or from earlier generations.UK: bowler hats, Buckingham Palace, London red buses, black London taxis; now: Britpop art, EPL, David Bechham, London Eye.MusicTNCs from West: rock & pop have transcended cultures more than any other genre.National anthem.Russia: Tchaikovsky, Shostakovich, Rachmaninoff, Stravinsky, Prokofiev.US: pop & rock stars Elvis Presley, Jimi Hendrix, The Eagles, Aerosmith, Madonna, Michael Jackson.Sub-Saharan: singing as an avenue of communication. Global influences caused traditional music and dance to decline.New forms emerged with Western influence: West African highlife (Caribbean), Congolese popular music (Latin American), Southern Africa (American swing & jive music).Food“Halal” for Muslims, “Kosher” for Jews.Fasting for Catholics: lent, Ramadan for Muslims.TechnologyReflects values and way of life e.g. Amish is traditionalist Christian Church, prohibitions or limitations on the use of power-line electricity, telephones, and automobiles Diffusion of cultural traits Mechanisms of diffusionExpansion: spreads outwards, remaining strong in sourceRelocation: carried to new destinationDue to time-distance decay, less likely to be adopted in further away places though there’s time-space convergence International movement of workers Bring own cultural traits from country they move from but also pick up aspects of culture back to country, especially circular migrationCan bring back commodities when they visit In USA, large inflow from Mexico increased Spanish speakers e.g. California, New Mexico, Texas and Florida effectively bilingual. Also other traits e.g. Tex-Mex International movement of tourists According to core-periphery enclave model of tourism, impact is limited geographically: tourists stay in enclaves because limited number of attractions that can be reached and back within a day, on provided infrastructure. Interactions with local people limited. Extreme e.g. is North Korea. Costa del Sol, Spain: drinking beer, fish and chips with plethora of secondary tourists resources which locals also use International movement of commodities Global brands created transcultural items. As TNCs want to move beyond saturated markets of West, exported consumer culture to developing world.Even if people don’t consume or can’t afford to purchase (China’s disparities and market for McDonalds), become aware of lifestyle promoted because of advertising.Changing diet and food e.g. fast food, customs like eating with fingers in JapanCreative industries like music, especially with ICT and media, dominated by rock and pop from West. US: Elvis Presley, Aerosmith, Madonna and Michael Jackson all global phenomena.Describe the role of TNCs and the media in spreading consumer cultureConsumer culture: equating personal happiness with consumption and purchase of material possessions Mass mediaEffectively makes consumers want more than they need through advertising: target consumer groups, positive product images, branding Commercializing childhood to unprecedented degree with sociological research into habits and preferencesViral marketing techniques that turn friendship into word of mouth networks: silly bands Products given symbolic as well as material value to consumption is linked to expression and creation of identity and status e.g. Adidas shoes in USA linked to hip-hop culture.Creation of celebrities and idols: celebrity endorsement, fans.In China, increasing consumerism links endorsed products to status symbol so much that laws passed against endorsement of nutritional supplementsSales of Nike golf apparel and footwear doubled after Tiger Woods was signed up on a sponsorship dealFranchises like Disney create avid following for merchandise with gullible fan baseAs consumer culture grows from media, influence of TNCs grows and vice versaTNCsAll about profit maximization and mass-production Key principle of McDonalds is efficiency: compresses time between a want and consumer satisfactionValue meals and upsizing: consume volume, at cheap prices due to economies of scale Glamorize and promote commodities through mediaChildren susceptible: happy meals.Through large market share and global influence, can create brand With exclusivity equated with branding, easily becomes status symbolWith overwhelming presence, possessing product can easily be perceived as integral to daily lifeDissociating people from cultural root, replacing with media-created needs Usually promoting Western brand and capitalist lifestyle: easily adopted because perceived as ‘exotic’ and cultural imperialism of America Conclusion global consumerism spreads same thin cultural film everywhere: take on consumer identities and obscure profound differences between culturesSelect two different branded commodities and examine the spatial and temporal pattern of adoption on a global scale.Intro to McDonald’s Long been epitome of American transnational franchising success Company logo, the Golden Arches, is one of best known business symbols in worldMcDonald’s timelineInitially prepared in individual restaurants but from late 1990s the products have been mass produced and delivered frozen to each franchiseAs competition within US grew, turned overseas: Europe/Australia, then South America, then South-East Asia, then China and Arab world In 1996 peak year of expansion, company opened 2000 restaurants globally Poorly represented in Africa, rate of expansion particularly high in China: popularizing American-style birthday parties In Asia, pattern of being adopted differently: not just cheap/fast foodIn China, middle-class consumption: special family outingJapan and Hong Kong: hip youth hang out to seek American cultural experienceContinues expanding outside the West because of health-consciousness, increasing attraction of vegetarianism and meat scares; middle-income group in NICs growing in last few decadesTrying to increase local adoption through adapting menus to local tastes; in recent times, trying to spur adoption through McCafes, saladIntro to Coca-Cola: Headquarters and founded in Georgia, USA; rated most-recognized trademark in world Timeline of Coca-ColaIn recent times, sales in North America and Europe have been stagnant, even decrease in North AmericaRecent years recorded record sales growth in India and China…increasingly affordable in NICsSpatial spread of adoption coincides with spatial spread of production: aims to locate production as close to markets as possible so many bottling plants in China creating 300, 000 jobs. Mexican coke uses real sugar, US is corn syrup. When spreading to Asia, adapted product: small bottles so more affordable‘Healthier’ options like Coke Zero too Examine the role of diasporas in preserving culture in one country and the adoption of minority traits by host societies. IntroDiaspora is the scattering or dispersal of a cultural group from its homeland to other parts of the world. London arguably most cosmopolitan city in Europe, boasts advanced racial assimilation. UK society generally more tolerant to minorities, so they can practice culture.BodyWorldwide pattern of immigrants living in high ethnic minority concentration: formation of ethnic villagesGermans in Richmond, Chinese in Soho Consolidate sense of identity: ethnic villages show clear evidence of groups that reside – German school in Richmond adjacent to only German bakery in London.The greater the concentration, the higher the preservation of culture.In these ethnic villages, interactions help preserve language as medium for social contact within community and communal congregations e.g. Diwali celebrationsCultural institutions, especially places of worship, bring people together regularly, encouraging traditional dress, language and other cultural norms: London Central Mosque, Bevis Marks synagogue (Bar and Bat Mitzvah) Chain migration due to existing diaspora: encourages preserving in true form as opposed to hybridized form because family/friends expect continuation of cultural traits. Indians are still steadily migrating so…think Bend It Like Beckham Intermarriage is form of interaction between minority and host society, new generation of mixed raceReligious conversion: expansion of Islam London’s cuisine draws extensively from other cultures – migrants set up small businesses, existing businesses cater to demand of migrants 1920s arrival of Indian professionals/students: first Indian restaurant in Leicester Square Chicken tikka masala unique to Britain and national dishEthnic media and entertainment: youth enjoy hybrid British Indian band Swami – new genre created called Asian Underground to accommodate both culturesAdoption of minority traits by other host societies Mexican immigrants in US e.g. Tex-Mex, Spanish speakersChinese diaspora in Malaysia and US e.g. Chinatowns, general knowledgeExamine the impact of cultural diffusion on one indigenous and remote society through the influence of international interactions (how they responded back). IntroIrian Jaya, province of Indonesia, home to Dani people who live in Highlands, in valleys that cut deep through forest-covered mountains. One of last groups to be ‘discovered’, unknown till Christian missionaries became interested after Nat Geo article: 80% converted.Impact of cultural diffusionMissionaries opened schools, church services, and literary programs. Read Bible and adopt religionCome to learn world is much bigger than themStill believe world is full of ghosts/spirits, but these spirits subject to God: adapted, not just adopted Christian names like Moses, IsaacPig-kill ceremonies continue but more often, to celebrate Christmas, Easter, baptisms, Indonesian Day of Independence.Linked with nutrition: less protein malnutrition, women received only leftover pig meatStrengthened bonds between neighbouring villages, reducing conflictMissionaries never insisted change clothing, just concerned about skin problems cuz hard to wash: now some wear Western clothing, sell Western at markets in WamenaMissionaries eliminated ritual warfare/cannibalism. Women unafraid to travel to markets in Wamena, open channels of communicationsIndonesians offended by traditional clothing (women grass skirt, men penis sheath) and campaign – Operation Koteka (derogatory term meaning tail) – launched. Dani despised Indonesians and too proud. Resented if anything, wore it as sign of defiance against cultural imperialism: autarkism. Cash economy introduced and consumer culture when missionaries bought food from Dani, leading to small agricultural markets. Also handed out seeds to grow vegetables such as cabbages, tomatoes, carrots. Diversified diet and malnutrition further decreasedMoney come to replace pigs as measure of wealth Adventurous trekkers also coming up. Hiring and paying locals as guides and porters increases consumer culture and diverts away from traditional roles like growing food Learn English: further cultural imperialism Cargo cults where expect gifts/charity – differs from traditional way of life of giving rather than receiving Two-way process because tourists also buy Dani artefacts like spears/arrowsCultural imperialism the practice of promoting the culture of one nation in another to the point it becomes dominant or perceived as superior. Exemplify cultural imperialism All these examples above and below of brands: American culture traditionally perceived as road to wealth and affluence so adopted with little resistance.Dani people - Indo/Western/Christianity over indigenous English is taught as additional language worldwide. 2/3 of scientific papers. Medium of communication in air travel, finance, internet. Official language in Africa, the Pacific, south and SE Asia e.g. Singapore due to colonialism.Examine the ways in which international interactions may result in the homogenization and dilution of culture.IntroCan be assimilation (original traits overwhelmed by dominant culture), acculturation (cultural hybridity/glocalization), autarkism (culture reasserts traits in face of threat)BodyMcDonalds case study. Also add:Adaptation also: teriyaki burgers in Japan, McLaks (grilled salmon sandwich) in Norway, burgers made from mutton in India to preserve Hindu culture also spicy vegetarian patty called McAloo Tikki Certain local festivals or customs may be celebrated e.g. during Ramadan in Muslim countries, McDonald's will offer Iftar buffets at the breaking of fast.Japanese rarely ate food with hands, but now commonplaceCoke case study. Also add:Coca Cola also sponsored Beijing’s Olympic Torch Relay and had major advertising presence at Olympic Games. Also Official Beverage and Global Partner of Expo 2010 Shanghai. Social and economic relationships with countries key to acceptability of brand. Dani case study As Westernization takes place, not just adopted their brands but also local brands opening inspired by Western culture e.g. Urban Truth in Bangladesh – crop tops! But not just Westernization. In interaction, dominant western culture also influenced e.g. adoption of Eastern religions by youth in West searching for new meaning, oriental sub-genre of metal music (hybridization), acceptance of Japanese management practices by western companies, ‘pyjamas’ and ‘shampoo’ and drinking tea from British colonization of Indian subcontinent, Black/Hispanic dialects on rap Media and TNCsDominance by West e.g. Disney: values culturally challenging in AsiaLocal culture challenged when foreign culture portrayed as superior6. Political OutcomesSovereignty: the authority of a state to govern itself and be answerable to no other authority.Discuss the links between the diminishing effectiveness of political borders and the flow of goods, capital, labour and ideas.Remember the interaction is a two-way process; when explaining diminishing effectiveness, think about the purpose of a political borderIdeasIdeas spread most readily, through info and communications e.g. civil society creating global voice and uniting people on common interest, people seeing similarities between themselves and others thus eroding sense of being differentLinked to freer world trade: economic policies of WTO, IMF spread e.g. SAPs Cultural imperialism and cultural homogenization LabourImpact of Mexican immigration on American culture – link to socio-cultural chapterChinese diaspora worldwide unifying many SE Asian and even Western nation-states Flow of labour less readily occurs because of restrictions on immigration (no country in world allows free international movement), and natural attachment people feel for home leads to immobility of labour. Then again, have EU.CapitalPrior to global deregulation, financial activities confined within national boundaries, now information and communications stuff has enabled flow of capitalIn opening up borders to capital (China and WTO case study), flow of other stuff like goods and culture; citizens and companies travel abroad to invest when capital can flow freelySynthesize with growth of TNCs through enabling large sums of money to be transferred, and thus shift of power; effectiveness of borders = government governing own people Goods Formation of global market where free trade overrides protectionism e.g. China, economic hubs like Beijing in China have taken great measures to establish trading linksSiberia has become fertile given climate change, so China is inhabiting it by migrants setting up bazaar or exploiting timber or oil/gas. Border now expanded into Siberia. In the border area, 6 million Russians versus 90 million Chinese. Intermarriage, trade and investment, Siberians feel Beijing is closer than MoscowChinese owned factory churning out finished goods, as if economy is part of China’s. Link to EU case study below, which is an economic union (extreme end of trade blocs)Conclusion culmination of grey areas rather than clearly defined; the fluidity of borders in today’s world at least are by peaceful means.Discuss the role of one multi-governmental organization and the diminishing effectiveness of political borders. IntroWhat is understood by effectiveness of political borders: upholding the function of a border which is to uphold nation-state (see definition) Essay will be organized into labour, capital, goods and ideasDiminishes effectiveness of political bordersLoses sovereignty because decision-making handed to a higher authority. Has seven main institutions including European Parliament and Council of the EUDomestic policies, traditionally national government role, done in conjunction with other partiesInfrastructureEU wants to improve cross-border infrastructure through Trans-European Networks e.g. channel tunnel carrying the Eurostar: high-speed railway service between London and Paris.Improves accessibility and facilitates flow of people.Schengen area of 25 nation-states: flow of people unity strengthened further when documents checks loosened creating a single state with no internal borders controls: suggests key function of borders absent form of social integration flow of labour: professional qualifications equally recognized – permeable land borders means less effectiveCreation of single market with common policies rather than decision-making on national levelEurozone: monetary union with euro as common currency and sole legal tenderFree circulation of goods and services: companies can sell freely, consumers buy freely with same prices. Firms take advantage of expanded market access: unregulated flow of goods also affects culture and identity. Flow of capital (property purchases, dividends) favour worker mobility and easier for businesses to span over statesReadjust national economic policies to conform to EU standards: interest rates, common fisheries policy to maintain marine biodiversity, free market economyNo customs, quotas or discriminatory taxes while common external tariff e.g. The tariffs on Chinese shoes 16.5%, Vietnamese shoes 10%: adopt same product regulation.Beyond mere economic integration. Goal is to be “an ever closer union among the peoples of Europe”, and objective includes asserting the European identity of the international scene and introduce a Europe citizenship. EU has own flag, own anthem and celebrates Europe Day. May strengthen some political borders or not necessarily diminishingEurope’s borders are strengthened against others countries through preferential terms among members, strict border controls against outsiders. Regional identity = midway between nation-state and fully globalised world. Before UK entered EU, Commonwealth countries like NZ and Australia enjoyed preferential import taxes in UK. Then sharp fall in imports. Within EU’s borders, although regional identity, some countries have strong nationalistic tendencies, like Spain and UK Despite common features, all still exercise differences through other meansDifferent geography, history and distinctive climates give rise to different culturesAre free to have additional policies and law on top of EU ones, as long as doesn’t contradictUnion can also carry out actions to support, coordinate or supplement only on following areas: tourism, education, culture, sport, public healthTHAT SAID, EVEN IF TALKING ABOUT EU’S BORDERS EU: originated with just six nation-states, and expanded to include 28. Membership is likely to expand more as applications are considered, including Turkey. This sort of fluidity and amorphous border means boundary of EU, and even Europe poorly defined –. Membership of Turkey would affirm it’s acknowledgment as European rather than Asian. The future raises question of where the boundaries settle, because ever-expanding.Discuss the shift of power from nation state to TNCs as a result of their economic size and dominance. Compare the wealth of TNCs with that of nation states.Intro Nation-state: area under control of single government and ideally a homogenous group of people bound by consciousness of being different from other nation Hyperglobalists speak of the death of the nation-state. Shift in power to TNCsDominance and wealth: TNCs control ? of global economic activity$US 3 billion is GDP of Zimbabwe, and Wal-Mart, Exxon-Mobil and Royal Dutch Shell have annual sales well exceeding $US 300 billionResources and assets they possess e.g. in energy crisis, large energy companies have huge power in negotiationWealth enables them to hold best technology and knowledge (R&D), most skilled people, best lawyers for favourable contracts which exploitTNCs instrumental to socio-economic development, therefore LDCs subservient to demands because of TNCs’ bargaining power when threatening to relocate e.g. tax breaks, environmental damage condoned.Role of lobbying in UN controversial – manipulation and influence greater than voting nation-states.WHO accused tobacco TNCs of using third party organizations like trade unions to influence WHO members, funding ‘independent’ experts to conduct research that would challenge WHO findings, setting up press conferences to draw attention away from WHO anti-smoking eventsMaybe not all power to TNCsNot only deal with TNCS, but also UN, World Bank, IMF, WTO. Governments still have power over market e.g. Bolivia case study, North Korea, protectionism (tariffs, quotas), Central Bank and currency Power of TNCs is linked to power to state e.g. China’s bargaining powerConclude nature of political governance transformed in terms of clout of TNCs, but death of the state is exaggerated Examine the resurgence of nationalism in one country as it attempts to retain control of its resources and culture: see my essay IntroNationalism: ideology that emphasizes patriotism, loyalty to and the advancement of a particular nation.Bolivia introduced free market reforms to receive aid from World Bank. Poor people promised gaining more from participation in world economy and allowing foreign investors access to half public sector like electricity.Poor progress led to public disquiet. Concern that TNCs and rich benefitted to detriment of poor. Evo Morales of left-wing Movement Towards Socialism (MAS) elected. Bolivia’s resurgence of nationalismMorales nationalised gas and oil industry. Has second largest natural gas reserves but small amount had been for domestic use. Foreign companies told six months to leave or new contractsNew contracts for high revenue for governmentNow all foreign companies must deliver production to state for distribution/processingNew govt. saw regaining control of resources as getting revenue for developmentResentment against some SA neighbours: Bolivia lost half territory since mid-1900s in natural resource disputes, esp. to Brazil. Want to extend nationalism “to land”. Bolivia accused Brazilians of illegal/undocumented occupation of land along border, esp. growing soya beans.Bolivian constitution prohibits foreigners from owning land in that territory. Bolivian government concerned by people moving abroad to find work and children left behind. Aim to create 360,000 jobs by 2010 but fell short due to global financial crisis. Almost half of the world’s lithium in Bolivia’s salt lakesObama administration want to increase fuel efficiency/decrease oil imports; car companies want for electric cars; Korea still pushing for control: nationalism does not make border impermeableConsidered as minor partners because advancement may be limited by lack of knowledge and skills: how state ownership may inhibit outcome of nationalism Resource nationalism strengthens culture. Has increased patriotism and thus sense of identity. Nationalism seen as force to counter homogenization that global interactions bring – provides sense of identity/stability in rapidly changing world. Morales: “it’s a matter of national dignity” Morales re-elected, winning over 60% of vote. MAS holds majority in Senate and Lower House. Supported strongly by large poor indigenous population. Promises further reform.Discuss anti-globalization movements.ContextGlobal recession in 2008 led many in MDCs to question globalization. They mainly oppose unregulated expansion of capitalism and large profits of large TNCs. Also oppose environmental destruction, child labour, third world debt. Promotes animal rights, rights of indigenous people. Often express in language of socialism: ‘ruling elites’, ‘corporate greed’, ‘capitalist colonisation’ and ‘oppression of the masses’.Anti-globalization movementsAttack organizations seen to promote globalization: WTO (argues for reduced tariffs and freer world trade), World Bank (advice and long-term development to LDCs), and IMF (gives countries crisis loans). Conferences to demonstrate and disrupt meetings. Less effective in mobilizing support in LDCs though they claim to support rights of poor. LDCs see them as threat to livelihood and jobs. Increasing media attention. Also support of prominent religious leaders concerned with obsession with consumerism. People’s Global Action is network for spreading info/coordinating action between grassroots movements worldwide. Diverse groups share opposition to capitalism and commitment to direct action/civil disobedience as most effective.Met in Geneva 1998 against WTO. Later, demonstrations and street parties across five continents against G8 and WTO meetings.In 1999, WTO negotiations was disrupted through peaceful protest in Seattle.Ex-British PM Gordon Brown stated he would support ending agreement under which leadership of World Bank and IMF divided between Americans and Europeans. UK also indicated support for enlarging UN Security Council from only five countries. Focus on the Global South also tries to promote demilitarisation and peace-building.Lacks focus. Some within favour of globalization but slower. Others focus on different issues (see above). Consists of environmentalists, small businesses, poverty campaigners…Discuss the attempts to control migration into one country.Context: Historically concern about number and origin of migrants. US attempts to control migrationIn 1924, system of national origins quotas to stem influx of Eastern and Southern Europeans. Restriction already against Chinese contract labourers and whereas largest quotas to British, Irish and German immigrants. Racist overtones led to internal/international opposition and ultimately abolished. As intervening obstacles reduced, composition of migrants changed. Now Latinos account for most and if trends continue, will dominate Texas/California. Illegal immigration carries civil penalty. Fines, imprisonment, deportation. To reduce illegal border crossing, US House of Reps voted to build separation barrier along border not already protected, blockading with vehicle barriers and triple layer fencing. Stricter enforcement of border has failed significant to curb immigration, instead pushing flow to more remote regions and increasing cost to taxpayers of each arrest from by over $1000 since implementation. About half illegal immigrants are visa overstays who remain after legitimate visa expires. US officials tightened data gathered for all foreign visitors, including collection of biographic, travel and biometric info such as fingerprints. Also insisted all foreigners use electronically readable passports.Visa fraud. Especially green card marriage: foreigner marries American to settle in US though not living together as couple. Also human trafficking, payment for personal letter of recommendation. Other than effective security checks, visa fraud very difficult to control until exposed after migrant already arrived to US. Also important for US economic growth. US prosperity linked to ability to get high level of labour, both skilled and unskilled. US population is aging and immigrants accounted for 50% of growth in labour market in 1990s. Increasing globalization and growing diversity of migrants make it harder to restrict. 7. Global Interactions at the local levelDistinguish between globalization and glocalization Glocalization is a term that emphasizes that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture in which it is marketed. Where the global and local interact to produce hybridized outcomes. Local populations no long victims of global homogenization but interpreters of such change which preserve diversity. Whereas globalization is a move towards centralization, glocalization is a move toward decentralization. Through local people delivering goods, services and cultural traits and also consumers in terms of how they respond to what is on offer. Examine the extent to which commercial activities have become globalized; the adoption, adaptation (glocalization) or rejection of globalized goods, services and cultural traits. Mcdonalds case study (see socio-cultural notes)Walmart case study: In 1996 Walmart entered Chinese market but as development progressed realized Chinese tastes were differentLeafy veggies can only be purhcased local which complicated Walmart’s normal strategy of “global centralized” purchasing Veggie section in Chinese Walmarts is double that of American; has chicken feet, stewed pork ribs and pickled lettuceGovernment regulations which state alcohol and tobacco purchased locally only, poor transport: 85% of products are from Chinese supplies.Halal business case study: commercial production has adhered to Muslim standards on local, national and international scale – preserving differences and glocalizationJawhara Hotel chain do not stock alcohol, have conservative dress code and generally quiet environmentsMcDonalds, Subway and KFC testing halal-only outlets in predominantly Muslim areas of UKHalal slaughtering facilities in Brazil because exports large quantities to Saudi Arabia, NZ exports lamb to Muslim countriesExamine the reasons why the level and rate of adoption of globalization varies from place to place; the adoption, adaptation (glocalization) or rejection of globalized goods, services and cultural traitsMost civil societies against globalization have more participation from MEDCs than LEDCs: governments welcome and want TNC involvement because benefits reaped by locals, whereas MEDCs are now becoming overshadowed e.g. unemployment.Most rapid rate in NICs, whereas Africa level of adoption stays low (see previous notes)TNCs examine the marketThreshold populations and profitabilityAs for production and relocation, quantity/quality of labour e.g. China, BangladeshEffective infrastructural, technological and economic links: accessibility opens up upward development spiral Asian tigers case study, esp. China and WTO, air network; Singapore as port city and positive attitude to modernization, export-orientated growth in electronicsConversely some areas have high protectionism less attractive for TNCsUrban vs. RuralGlobal hubs with strong links will attract FDI, foreign interestImmigrants, diplomats and businesspeople have expectations of goods/servicesDigital divide: poor, rural have limited ICT and mediaWomen are among those marginalized from globalization: see migration/gender notesSee North Korea, Bolivia nationalism case study for rejecting and barrier so low adoptionNorth Korea case study IntroNorth Korea, currently under dictatorship of Kim Jong-un Arguably world’s most isolated country e.g. discourages visits by foreigners and forbids foreign investment, only ally is China Reasons for rejection of globalizationHistory: aftermath of WWII North Korea (DPRK) was a Communist country under USSR whereas South Korea followed a capitalist approach under guidance of US.US and Western culture demonized because a) supported South Koreans in Korean war b) by turning people against major superpower can hoist own country on pedestal Isolation because seen as resisting imperialism (a product of globalization) Conditioning to hate the US and fear the outside world, and South Korea portrayed as puppets of US imperialism: school children learn math by counting numbers of dead US soldiers, learn foreign languages by translating ‘Yankees are wolves in human shape’ Flow of information and communicationIgnorance makes unaware of the benefits that can be reaped: many not yet informed humans on the moon, and instead believe they have reached the sun Censorship further breeds personality cult and subserviently accepting globalization is bad: government controls media, cellphones are banned, internet is unavailableThat said, they defend by saying Western media organizations controlled by a handful of pro-US and pro-capitalists Dictatorship and reverence for Eternal Leader Kim Il Sung, and fear and submissionRadio on all the time with news of Dear Leader, biography propagating god-like qualities, propaganda around country: brainwashingCriticism illegal – high risk of death, concentration camps State ideology Juche is the antithesis of globalization. Translated as ‘self-reliance’ Including economic self-sufficiency, because reliance on others shifts power onto their hands Examining reasons for rejection of globalization Perhaps not fully antagonistic intentions and quite humane: rejection of commercial activity/capitalismDoctrine: life devoted to society and having socio-political integrity as a social beingBy resisting Western values, they pride in these untainted North Korean principles and values: although deriving from Marxist Communism, combined with Confucianism Compassionate care for children, radically improved status of women, genuinely free housing and free health careEconomic self-sufficiency? They trade (mainly weapons, drugs and counterfeit currency) few billion a year and even import petroleum, coal, machinery/equipment, grain from EU, South Korea and ChinaThey receive food and medical aid, from UN and even negotiating disarmament deals with US Tourists bring western gifts like cigarettes and face creamsAnti-globalist groups like World Social Forum note reasons like opposing all domination, upholding respect for Human Rights (reduces disparities), participatory democracy, peaceful relations. Is North Korea following this? Evaluate the relative costs and benefits of local commercial production to the producer, consumer and local economy, compared to globalized production. ProducerOutsourcing: low cost of labour, rent, low taxation, loose environmental legislation = higher profit, growth Global operations allows much higher growth and market share, as well as economies of scaleLocal commercial production means producer has greater knowledge of local market and can react quickly to consumer: personal relationships and strong consumer loyaltyMany TNCs originated as local, but many grow because they want high volume of salesConsumerCheaper goods, possibly – or overpriced compared to the cost of production, especially for branded goods like NikeLocal commercial production means producer has greater knowledge of local market and can react quickly to consumer: personal relationships and strong consumer loyaltyRawfully Organic: fresh foods with nutritional benefits, exposed to new vegetables and new ways of cooking, develop relationship with farmer, visiting farm for awarenessLocal economy Unemployment of low-skilled labour at US, but Nike has positive impact and stimulus to development of high level skills in design, marketing and R&D in Oregon; substantial employment in Vietnam with higher wages than local companies, improves their skillsExports are positive contribution to balance of payments for Vietnam whereas footwear imported to USADirect and indirect taxation back to USA which is leakage for Vietnam, but local tax base in Vietnam helps with improvements to infrastructure, positive multiplier effectSuccess of outsourcing may lead to influx of more TNCsNike sweatshops infamous – including child labour, wages below legal minimum, forced overtimeEvaluate the quality of life of a contemporary non-globalized society.Intro see North Korea case study aboveQuality of life is goodPerhaps not fully antagonistic intentions and quite humane (see above)North Koreans acknowledge juche is not appropriate for others but claim it provides a moral/philsophical basis highly appropriate for Korea’s culture and history. Claim unfair to measure philosophy against Western capitalist standards unrelated to juche. Even if ignorant, many have genuine affection for juche and Kim Il Sung’s percieved defeat of US forces and defeat of JapaneseAs for government control of media, they argue Western media organizations controlled by handful of elite pro-capitalists Quality of life is crapForbids foreign investment: underdeveloped compared to Asian Tigers Freedom of speech and access to knowledge/truth/balanced judgement is a key human rightSevere shortages of power, most forms of technology banned, even absence of street lights in Pyongyang: total energy consumption is less than that of a medium-sized South Korean Town Marginalized from technological advancementFamineEconomic mismanagement and loss of Soviet support, and still relying on foreign aid and not resumed food self-sufficiency Malnourished: children 3 inches shorter than South Korean counterparts, cannibalismCivil society any organization or movement that works in the area between the household, the private sector and the state to negotiate matters of public concern. Civil societies include non-governmental organizations (NGOs), community groups, trade unions, academic institutions and faith-based organizations.Discuss civil society responses to globalization (adopt, adaptation, rejection of goods, services and cultural traits). Discuss the position held by anti-globalization groups.Adaptation: reformists Aim to civilize globalization so economic benefits more widely shared, including pursuit of human rights and social justice Includes NGOs, trade unions and social movements: grassroots approach ILO safeguards worker’s rightsCompanies have signed agreements on basis on core ILO Conventions e.g. between Building and Wood Worker’s International and IKEA raised labour standards in China, Malaysia and PolandRejection: rejectionistsNationalist movements, authoritarian states, anti-capitalist social movementsLeft wing opposes global capitalism, right and left want to preserve national sovereignty Are Hyperglobalists who see victory of capitalism over socialism, and demise of the nation-stateEither way both oppose three organizations WTO, IMF and World Bank. May be questionable since these groups claim to promote development of LEDCs – though critics say free-market policies are divisive and not appropriate for all, and loans = debt. Supporters: adoptionPro-globalization groups advocate capitalism (form of liberalism) and claim they act more peacefully than sometimes anarchic actions of anti-globalization groups. Describe the role of civil societies in raising awareness of local and global environmental, social and cultural issues.Cooperative Rawfully Organic in Houston, TexasVisiting farms for awarenessCan talk with volunteers and develop relationship with farmers on importance of organic farming and implications of health AWARE Opposes cultural homogenization in media which undermines status of women with Western objectification Collaborate with schools through talks, Love Yourself Campaign started by Poly studentResearch on media and publish findings, especially on newspapers Shell in NigeriaShell is focus of many protests, especially since operating in Niger Delta where the Ogonis live. Greenpeace, Body Shop International and Friends of the Earth published on newspaper about following issues:Economic issues: whether public should buy. Shell responded Nigeria’s Liquefied Natural Gas project will hurt thousands working on it and benefit local economy. Social: poor people unable to defend themselves, especially farmers and fishermen who rely on land and water. Shell said spent tens of millions on community programs. Environmental: degradation/pollution of water, land and air. Shell said oil will flow if they withdraw anyway. Examine the role of civil societies in supporting local economic activity and strengthening local cultural values. Community-supported agricultural programs e.g. cooperative Rawfully OrganicLocal, seasonal food delivered directly to doorstep, usually box of veggies and even eggs, homemade bread, meat and cheese Rawfully Organic: develop relationship with farmer who may be otherwise marginalized by agribusinesses with huge market share and technologyGrameen BankMuhammad Yunus believed poor and women underutilized because of lack of access to financeReasserted this human right and lessened marginalization from globalizationMicro-credit and social business: small loans, often so poorer start own businesses e.g. buy a cow then sell milkStrengthening a new cultural value: gender equality because women receive almost all loansThe Fair Trade FoundationSee previous notes They also research and expose – awareness Consists of labelling organizations and used widely by large retailers like Starbucks and Sainsbury’s Nearly multi-billion dollars industry now and fastest growing food sectorTrade UnionCan lead to increase in production costs too. Hence, some may move from China to cheaper locations like Vietnam/Bangladesh. This is the danger with the increase in informal unionization leading to strikes and protests (although been suppressed so far because unions controlled by Communist party). Shell in Nigeria see above. But ultimately failed cuz Shell didn’t do anything, though may have raised awareness regardless. ................
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