Welcome to Globalization

1. Welcome to Globalization

2. So what is globalization anyway? • Globalization could be described as a process by which time and distance cease to be major constraints in the organization of human activity (Harvey 1989) • Technology has enabled us to diminish distances • And, to speed up processes • So, how does this affect human organization, interaction, and social sustainability?

3. Defining Globalization • Human societies across the globe have established progressively closer contacts over many centuries, but recently the pace has dramatically increased. • Jet airplanes, • cheap telephone service, • email, • computers, • huge oceangoing vessels, • Finance and banking http://www.globalpolicy.org/globalization.html

4. Defining Globalization • In many ways, the world has become more interdependent than ever. • Multinational corporations manufacture products in many countries and sell to consumers around the world. • Money, technology and raw materials move ever more swiftly across national borders. • ideas and cultures circulate more freely • As a result, laws, economies, and social movements are forming at the international level. But for billions of the world's people, business-driven globalization means uprooting old ways of life and threatening livelihoods and cultures.

5. Dissecting Globalization • Can you think of different aspects or types of Globalization? • Technology • Economy • Culture • Politics • People • Environmental/Ecological Issues http://www.globalpolicy.org/globalization.html

6. Issues to Consider • http://www.pbs.org/frontlineworld/stories/ghana804/

7. Global Markets and Corporate Power • The trend has been toward economic globalization • Economic enterprises that engage in business activity around the globe • The global economy of today was brought on by two social forces • Modern speed of communication • Modern speed of transportation

8. Multinational Corporations • Multinational or transnational corporations are corporations that operate in a number of countries • Multinationals have their headquarters in one country while operating business activity in other countries • There has been a significant growth of multinationals since WWII

9. Multinational Corporations • Multinationals often move to where costs of production are low and shift profits to where tax write-offs are high. This is known as outsourcing • Loss of jobs in developed countries where labor costs are often higher • Contribute to poverty in developing countries by shifting profits out to more developed countries

10. Global Factory, Global Sweatshops • Multinationals have been transforming the world’s economy • One development has been the global factory • Two factors have made possible the globalization of production • 1. High speed transportation • 2. Component production

11. Global Factory, Global Sweatshops • Two issues related to the global factory are • Outsourcing of work and the loss of jobs in America • Sweatshops and the hiring of child or prison labor

12. Effects on American Workers • Decline in the number of employers and the concentration of markets by large corporations • Export of capital and jobs overseas • Biggest job losses have been in manufacturing • In industrial cities of the Northeast and Midwest

13. Effects on American Workers • There have been three major changes of labor force in America due to the global economy • 1. Shift from manufacturing jobs to service jobs • 2. Increase in the number of women in the global labor force • 3. Emergence of new technologies and unprecedented economic growth in the last ten years

14. From Manufacturing to Services • Decline in farm employment • Decline in blue-collar employment • Growth in white-collar employment • There has been a shift away from manufacturing jobs to jobs within the service sector of the economy

15. From Manufacturing to Service • The shift in manufacturing jobs to service jobs has resulted in a decline in union membership • In 1960, 27 percent of employees in the private sector belonged to a trade union; today that figure is 11 percent • Another trend in the shift from manufacturing to service jobs has been the growth of contingent work- work not based on a written contract with regular hours

16. Women in the Global Labor Market • Labor force defined - 16 and over who worked one hour a week or over or are out of work and actively looking for work during the survey week • Major change is the growth of married women and the exclusion of older men in the labor force • Women comprise well over 40 percent of the labor force

17. Women in the Global Market • Approximately 6 percent of both men and women hold multiple jobs • Most multiple job holders hold two or more jobs to pay bills • Many hold two jobs because of part time work and the lack of a full time job • Women work part time because of: • Schooling • Family and the lack of affordable childcare

18. Technology and Specialization • Economic growth in the U.S. was fueled by a number of new technologies • Computers • Telecommunications • Biotechnologies • E-commerce • There has been a rapid growth in the application of computers to work

19. Technology and Specialization • Technology • Computer and telecommunications technology has lead to the creation and growth of • Internet-related businesses • Internet commerce has led to the shift of jobs from a central location to home-based self-employment enterprises • New technology will lead to job losses in traditional industries

20. Job Insecurity and Unemployment • The economic downturn in the financial market along with the events of September 11, 2001 have led to an increase in job insecurity • Loss of blue-collar jobs • Loss of managerial and professional jobs • Long term unemployment • Many have experienced downward mobility

21. Consumers and Credit • U.S. economy is based on consumerism • Effects of a strong emphasis on consumption has been • An overemphasis on materialism and reducing an individual down to the sum of their material toys as a measure of self worth • Dominance of large corporations and franchises and a decline in small businesses

22. Problems of Debt Entanglement • Transformation from a cash to credit society • Increase in consumer debt • Debt and bankruptcy • Many bankruptcies are due to • Divorce • Medical expenses • Loss of financial investments

23. Politics and Social Policy • Two major factors have altered the world economy • Global terrorism • Globalization • Policies and politics will focus on issues of free-trade and the expansion of markets • NAFTA • Most favored trade status of China