Globalization

1. Globalization Year Nine Commerce

2. Globalization • What is globalization? Growth to a global or worldwide scale • Why is globalization occurring? As the world advances it’s technological knowledge and increase in world population • What perspectives do people have about globalization? Hyperglobalistperspective, Skeptical perspective, Transformationalist perspective • What are the impacts of globalization? Specialisation & more wealth equality throughout the world • How global are you? No, I am not global at all • Discuss and share your thoughts.

3. Globalization • Trade and the movement of people and ideas around the world have occurred for centuries. However, during the last 50 years, vast improvements in transport and in information and communication technologies have encouraged a greater interconnectedness between countries and people everywhere. • Globalization is the breakdown of traditional barriers between nations. Faster and cheaper flows of goods, money and information around the world have raised standards of living in many countries. But the gains of globalisation are not evenly spread. Many developing countries remain in poverty.

4. Globalization what does it really mean? • http://www.youtube.com/watch?v=LtmvksvSvtc • <iframe width="420" height="315" src="http://www.youtube.com/embed/LtmvksvSvtc?rel=0" frameborder="0" allowfullscreen></iframe> • Globalization – crash course • http://www.youtube.com/watch?v=5SnR-e0S6Ic • <iframe width="560" height="315" src="http://www.youtube.com/embed/5SnR-e0S6Ic?rel=0" frameborder="0" allowfullscreen></iframe> • Globalization – crash course two • http://www.youtube.com/watch?v=s_iwrt7D5OA • <iframe width="560" height="315" src="http://www.youtube.com/embed/s_iwrt7D5OA?rel=0" frameborder="0" allowfullscreen></iframe>

5. The haves and have nots! Who is rich? In my opinion I consider single people making over $200,000 to be rich Who is poor? Hold your thoughts. View additional powerpoint and discuss.

6. The Haves and Have Nots • http://www.youtube.com/watch?v=K7eRb8aLpNI • <iframe width="420" height="315" src="http://www.youtube.com/embed/K7eRb8aLpNI" frameborder="0" allowfullscreen></iframe>

7. About you • As an Australian student living in the 21st century, you are part of the global village. • Many of your clothes are probably made in China, Vietnam, your tea would come from India, your coffee from Brazil, your phone and possibly car have been assembled in Korea. • Using your laptop you can move your money around the world as you buy and sell things online. • In most countries you can buy jeans, watch a satellite TV, drink Coca-Cola and eat at McDonalds.

8. About you – self audit • Take a moment to list twenty items in your life and identify the country of origin. • How far and wide across the world are you spread? • Create a mind map to support the notion that you are a member of a global village. • If the world was a village of 100 people • http://www.youtube.com/watch?v=NvFsb5WHQ1U • <iframe width="420" height="315" src="http://www.youtube.com/embed/NvFsb5WHQ1U" frameborder="0" allowfullscreen></iframe>

9. The globalization process • The process commenced with the breakdown of traditional barriers between nations. • Plus the movement of people, goods, money and ideas. • The acceleration of these things have been due to improvements in transport, information and communication technologies. • This has encouraged a greater interconnectedness between countries and people everywhere. • Think about it! • Create a poster that highlights change overtime. • For example: Horse drawn coach -Steam train – propeller aircraft – jet aircraft – internet message transfer

10. Factors contributing to globalization • Transport • ICT • Growth of world trade. Increased trade agreements between countries, lower tariffs. • Identify trade agreements that Australia has. Take a world map and either highlight the countries or draw a line linking the country with Australia. • Growth of transnational corporations (TNCs). These large companies buy their inputs from around the world and manufacture goods in low cost locations and sell them in many different countries. • Create a collage of TNCs that you are linked with in Australia. • Cultural factors – increase in tourism, people living in different countries, influence of global media. • Draw up a chart with three columns listing the Americas, Europe and Asia. Try to identify cultural factors from these areas and the impact on the way people live and experience life. For example: Australians eating sushi – Asia.

11. Perspectives • It is important to understand different views or perspectives. • Some people argue for globalization and others argue against. • Form small groups and together with some research develop a list of arguments for and against. Make sure you document your ideas so you can revisit this at the end of the unit. • Share your findings with the class and discuss.

12. Perspectives • Some arguments for : it is a positive process as it leads to economic growth. Free trade between countries develops new markets and allows companies to sell more products and hire more workers. Companies and workers become wealthier and standards of living improve. • Some arguments against: free trade only occurs where there is unrestricted movements of exports and imports. Trade barriers have been reduced for manufactured goods but many developed countries use tariffs and subsidies to protect their farmers from agricultural imports. Eliminating these barriers would greatly benefit the poor countries since they rely heavily on agricultural exports. • The rise of global businesses and organizations are also seen as a threat. Some TNCs are wealthier than many countries. International organizations such as the United Nations can set rules and impose penalties on nations. At the same time they can be the driving force behind agreements like the Kyoto Protocol to limit global greenhouse gas emissions.

13. The role of technology • Transport, ICT, telecommunications, computerisation but what about the digital divide? • The gains of globalization are not evenly spread. • What is meant by digital divide? an economic difference between groups, in terms of access to/ use of/ knowledge of information and communication technologies. • How could you use ICT to contribute to global citizenship? • View TED:SugataMitra – Hole in the Wall • http://www.youtube.com/watch?v=xRb7_ffl2D0 • <iframe width="420" height="315" src="http://www.youtube.com/embed/xRb7_ffl2D0?rel=0" frameborder="0" allowfullscreen></iframe>

14. Global citizenship • Advances in ICT mean that people anywhere can be heard and may be able to influence what happens. People can lobby organizations and governments by sending emails or by joining with others in an organized campaign. Non-government organizations (NGOs) often run campaigns to help people in poverty. (World Vision), or to protect human rights (Amnesty International) or the environment (Greenpeace). • As a class decide on taking an action to acknowledge that you are a global citizen. It can be that the class will sign an online petition for a particular cause. Write a reflection on your blog about the decision and action.

15. The economic impacts of globalization • Economic globalisation has broken down the walls that separate national economies from each other. Businesses are no longer confined to national borders, they can design in one country, produce in another and then sell in many countries. This has led to the rise in large global businesses and the establishment of international organizations. • The types of business ventures are as wide and as they are varied. Information tells us that some TNCs have more money than that of many countries. TNCs attract attention and criticism. • How?

16. TNCs • They often gain access to : natural resources, lower labour costs, cheaper land. • Developing countries welcome TNCs for: investment, employment, to gain access to new technologies and expertise, raise the standard of living for the locals. • It is the damage to the environment and the use of sweatshops that draws criticism.

17. SWEATSHOPS • What do you know? Its common in 3rd world countries, a name given to any working environment that is considered harmful/ dangerous • Stained blue for you • http://www.youtube.com/watch?v=MjOynasuhPc • <iframe width="420" height="315" src="http://www.youtube.com/embed/MjOynasuhPc" frameborder="0" allowfullscreen></iframe>

18. Sweatshops • Adults and children work long hours, often in extreme heat and for very low wages. • Working conditions are poor and there are few safety precautions. • Sweatshop workers are usually not employed by TNCs. Instead TNCs purchase goods from companies that do employ the workers. The goods are then marketed through retail outlets, sometimes carrying well known brand names. • NGOs and activists use the internet and public protests to campaign against the use of sweatshop labour.

19. United Nations • The United Nations has responded to public protests regarding sweatshops. They have identified five key responsibilities for large TNCs. Is this enough? • Do not use forced or compulsory labour. • Respect the rights of children to be protected from economic exploitation. • Provide a safe and healthy working environment. • Pay workers enough to ensure an adequate standard of living for them and their families. • Recognize the tights of employees to join unions and other collective bargaining organizations. Form small groups and see if you can add to this list. Share your additions with the class and justify the need for inclusion on the list.

20. TNCs • Many TNCs now publicise their efforts to ensure workers are not exploited and that their operations are environmentally friendly and sustainable. • Provide evidence to support this and write a summary of what the TNC is doing.

21. International organizations • What is the role of the World Trade Organization? Trade negotiations, Implementation and monitoring, • What is the purpose of the International Monetary Fund?

22. NIKE • Read the following case study. • The global athletic footwear and sportswear market is worth billions of dollars each year. It is dominated by TNCs such as Nike and Adidas. Most companies in the industry manufacture their products in developing countries because of ready access to materials and low-cost labour. • Nike is a US based company. It is one of the world’s leading suppliers of athletic footwear, apparel, equipment and accessories. It employs more than 30 000 people worldwide. To make its products, it uses more than 800 000 people in almost 700 contract factories and in 52 countries. The company sells its products globally through independent distributors, licensees and subsidiaries. The company records sales revenues of over19 billion dollars.

23. NIKE • One of the main reasons for Nike’s success is its sponsorship of many successful athletes. The Nike logo is worn by top athletes and seen in public. They are constantly developing new products and try to be innovative. Shoes produced in 2006 had a mechanism to link the show to an Apple ipod. This was so that the runner could monitor their performance. • The location of Nike manufacturing sites has changed over time. In the 70’s the products were manufactured in America. Today most of the products are being manufactured in Vietnam, Indonesia and Thailand.

24. NIKE • Manufacturing athletic footwear is labour intensive. For every pair of shoes, workers cut, stitch, shape and pack up a minimum of 200 components. Nike does not directly employ most of the people who make their products. Manufacturing is done by many contract factories mostly in developing countries. • Nike became the target of campaigns against exploitation of workers. Sweatshop conditions were discovered. The workers were discouraged from complaining about their conditions and they were told not to form trade unions or they would lose their jobs. The conditions and the pressure on workers was made public. Abuses of human rights became known worldwide.

25. NIKE • Nike now works with its suppliers to limit overtime and improve working conditions. In 2008, Nike was named one of the world’s most ethical companies for working with its suppliers on ways to treat their workers fairly. • From the perspective of an anti-sweatshop activists, this is not enough. They want TNCs to stop using factories in countries where the rights of workers are not respected. • Read further about this story on the internet. Formulate an opinion and write a reflection on your blog.

26. Nike Sweatshop • http://www.youtube.com/watch?v=M5uYCWVfuPQ • <iframe width="420" height="315" src="http://www.youtube.com/embed/M5uYCWVfuPQ?rel=0" frameborder="0" allowfullscreen></iframe>

27. Cultural impacts of globalisation • While the world is becoming more interconnected it is also becoming more standardised. • Think, pair, share.

28. Cultural impacts of globalisation • Wherever you travel in the world, there are signs of Western culture. • The golden arches are very well known. • Can you think of other examples? • Culture includes languages, beliefs, customs and traditions. The cultures of indigenous and national peoples all over the world have been changed by globalization through trade, migration, tourism, ICT and media. This can be seen in the spread of Western culture and in the growing and widespread use of the English language.

29. McDonaldisation • A McDonald’s fast food outlet looks very much the same wherever it is located. The service and the way the food is prepared is the same. This standardisation results in efficiency and predictability. Costs can be calculated and operations can be tightly controlled. Customers know what eating at McDonald’s will be like whether they are a block from home or visiting another country. • The term “McDonaldisation” was invented in the 1990s and means more than the spread of McDonalds. It includes the idea of standardisation and of making things the same. Unfortunately this happens at the expense of individual cultures. • Should this be allowed? Discuss.

30. mcdonaldization globalization • http://www.youtube.com/watch?v=R9PzVabquSk • <iframe width="420" height="315" src="http://www.youtube.com/embed/R9PzVabquSk?rel=0" frameborder="0" allowfullscreen></iframe>

31. Language • There are about 7000 languages spoken worldwide. Each year about 25 languages die because there are not enough speakers to keep them alive. In a few generations, over half the languages may disappear. • Language preserves cultural heritage. When a language dies, the world loses a source of knowledge. Where knowledge is passed on through word of mouth, the loss can be total. Information about history, culture and the natural environment such as the medicinal use of plants can be lost forever. • English has replaced many languages. This process is likely to speed up because it is the main language used on the internet. It is estimated that half the world will be able to speak and write in English by 2050. • Share your thoughts:

32. Media and entertainment • With the technology we have available, people are able to watch the same movies, tv shows and news channels. The can listen to the same music and play the same computer games. • Much of this material is made in developed countries. Control of the media and entertainment is concentrated in the hands of a few TNCs. • Their influence extends worldwide into television, newspapers, magazines, movies, music, books, amusement parks and retail stores. • Think about the impact Walt Disney, News Corp and Time Warner have in the world. • Alternatives are rowing. The internet allows people to participate instead of just being a spectator. You can set up a website, blog and create content to broadcast on Youtube. People can now express an opinion that is not necessarily portrayed in newspapers and other genres. These services are not available everywhere. In some countries the governments filter or block sites to avoid material having an impact on their citizens. • Some people are moving towards local and national genres as a sign of feeling connected to their community and country. • Share your thoughts:

33. Changing global relationships: the diamond industry • For almost a century, the diamond industry was controlled by De Beers, a company based in South Africa. The situation began to change in the 1990s partly because other companies challenged De Beers’ hold on the market. However, the biggest change to the industry came from another source – growing concern by people worldwide about the role of diamonds in funding conflict and civil wars.

35. The diamond industry • Diamonds are a natural resource. They are formed in molten rock 120-190 kilometres below the Earth’s surface in volcanic eruptions. Their distribution varies across the globe. About half of the world’s rough diamonds are mined in Africa. • About 14 billion dollars worth of rough diamonds are mined each year. They are sold to diamond merchants who cut and polish the stones, turning them into gems before they are sold to the retail market. The retail market is worth about 80 billion dollars each year.

36. Diamonds and De Beers • Until the 1990s, De Beers supplied more than 80 per cent of the world’s rough diamonds. The company dominated the diamond trade through its central selling organization. The CSO was established to sell diamonds from De Beers’ African mines, but De Beers persuaded almost every other diamond miner to market through the CSO as well. This made it possible fro De Beers to control the worldwide supply of diamonds. By limiting the amount and quality of rough diamonds allowed on to the market, it kept the prices high. • The CSO held diamond sales ten times a year in the city of Antwerp in Belgium. Only selected buyers could attend and the price for each parcel of diamonds was not negotiable.

37. Diamonds and De Beers • De Beers began to lose its hold on the world market during the 1990s. Other sources of diamonds became available. The Argyle mine, located in the east Kimberley region of north-west Australia, began operating in 1983. Today, the mine produces about one fifth of the quantity of the world’s rough diamonds. New deposits were found in Canada. De Beer’s control was further weakened by the break up off the Soviet Union because it became difficult to enforce contracts with Russian suppliers. Russian diamonds flooded the market, driving prices down. • Argyle originally sold most of its rough diamonds through the CSO. But in 1996, it decided to break with the CSO and sell direct to the international market. It was the first major miner to do so. Others then did the same. Most of Argyle’s diamonds are now sold through their own office in Antwerp to cutters and polishers based in India. It sells its famous pink diamonds worldwide to diamond traders, jewellery manufactures and luxury retailers. • De Beers now supplies by value less than half of the rough diamonds sold on the world market. It remains the largest distributor but can no longer control the world supply or the industry.

38. Conflict Diamonds • Conflict diamonds are used by rebel groups to finance conflict and civil war aimed at undermining legitimate governments. They come from territories controlled by rebels and are sold to pay for guns and other equipment. Armed groups fight for control of diamond rich areas, terrorising local populations and seizing diamonds. Several long lasting brutal wars in Africa were funded by conflict diamonds. The worst were in Sierra Leone, Angola, Liberia, Ivory Coast and the Democratic Republic of Congo. • Global Witness, a British non-government organization brought the issue of conflict diamonds to public attention. In 1998, they released a report called “A Rough Trade”. It exposed how the sale of diamonds was funding terrible suffering and bloodshed. The diamond industry and national governments came under intense international pressure from NGOs and the public to stop the trade in conflict diamonds. During the 1990s, it was estimated that conflict diamonds made up at least 4per cent of the diamond supply. Some think it could have been as much as 25 per cent.

39. Lupe Fiasco -Conflict Diamonds • http://www.youtube.com/watch?v=i3Z4K_WWeBA • <iframe width="420" height="315" src="http://www.youtube.com/embed/i3Z4K_WWeBA" frameborder="0" allowfullscreen></iframe>

40. The Kimberley Process • The united Nations, diamond-trading countries, the diamond industry and several NGOs worked together to solve the problem of conflict diamonds. In 2000, a conference was held in Kimberley, South Africa, to discuss how to prevent the sales of conflict diamonds. Discussions included matters relating to exports and imports. • The result was the Kimberley Process Certification Scheme. It requires governments to certify all rough diamonds traded across their borders. The diamonds must have a certificate that guarantees the diamonds did not come from a conflict area. • This was implemented in 2003 and proved effective. However, some conflict diamonds continued to get through. Diamonds are small and easy to smuggle. Once out the country, their origin is hard to find and once polished they can not be identified. • A report in 2006, identified several countries that were still sources of conflict diamonds. • Form small groups and use a problem solving strategy to arrive at possible solutions to stop the trade of conflict diamonds.

41. Blood Diamond • View: http://www.youtube.com/watch?v=C7lmjjDlzp0

42. Ethical Consumerism • Ethical consumerism can be defined as the practice of purchasing products and services produced in a way that minimises social and/or environmental damage, while avoiding products and services deemed to have a negative impact on society or the environment. • What ethical footprint are you leaving behind? • How much change can you make in one day?

43. What links you to The Democratic Republic of Congo?

44. Assessment Task – Blood Mobiles

46. Blood in the mobile • http://www.youtube.com/watch?feature=player_embedded&v=wQhlLuBwOtE

47. Congo is a country of many natural resources like gold, diamonds, rubber, coltan and cassiterite. But instead of causing Congo wealth, these resources have ended up fuelling the bloodiest war since WWII. • These are the minerals we have been using for our mobile phone – Coltan and cassiterite allow our mobiles to be hand held, and to vibrate. • 5 million people have died, estimated 300.000 women have been assaulted. • http://www.youtube.com/watch?feature=player_embedded&v=3OWj1ZGn4uM

48. So, how does the link work?http://www.youtube.com/watch?feature=player_embedded&v=aF-sJgcoY20 There are 6 steps in the supply chain: http://bloodinthemobile.org/the-film/video-blog/

49. TASK: PART ONE • Access www.scribblemaps.com • Register your account – you must use your SCHOOL EMAIL ADDRESS • Access the menu > New Map. Remember to Add the title ‘Blood Mobile assessment task’’, and SAVE YOUR MAP IMMEDIATELY! • Read through the 6 steps of the Supply Chain http://bloodinthemobile.org/the-film/video-blog/ from the website provided and summarise each step in your own words, labelling this on the correct places on your map. • Use the PLACEMARKS tab to label the words – NOT the ABC tab • Use arrow, text books, place marks to help you – be creative with how you present your map!! • Menu > Save Map • Once you have finished go to Embed/Widget on the main menu > copy Embed code > post on geography blog page. • Answer the following questions, in full sentences, and post on your blog, underneath your map: i) Describe and Explain what a Blood Mobile is. ii) Why do you have a connection to the Blood Mobile? iii) How does it make you feel, knowing that this is how Mobile phones are produced? iv) What can be done to improve the situation?

50. TASK: PART TWO • Using any ICT program on your choice, design a thought-provoking poster/advertisement that will raise awareness of the ‘blood mobile’ issue, and encourage people to think about consumer choices. • Once you have completed this, add this to your blog page • http://www.youtube.com/watch?v=nu3UMPmp-MI&feature=player_embedded