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The World-System

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

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The World-System

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  1. The World-System

  2. The World-System An interdependent system of countries linked by economic and political competition “Globalization” Telecommunications: Billions of Minutes

  3. But what is Globalization? The increasing interdependence and interconnectedness of places globally.

  4. Elements of Globalization • The continual expansionof global connections, relations and networks: • Faster and more intense • Increasing awareness about the world • Driven by advancing technologies

  5. Nike: An “American” Company Nike HQ: Beaverton, OR ~5,000 workers

  6. But where are Nike’s actually made?

  7. 25,000 workers. • For 30 cents an hour. • By hand. • Is that good or bad?

  8. Then to the port town of Shenzhen to be exported

  9. Shenzhen, China

  10. …to Long Beach, California.

  11. …with Oil from the Middle East.

  12. …to your local shoe outlet.

  13. Shoes are produced mostly by women in China (and many other countries: 1/3 of all Nike’s are made in China) for ~30 cents an hour. • Materials (mostly from oil) cost about $2 per pair of shoes. • Shoes are shipped out of China (using oil from elsewhere) mostly to the USA and Europe. • Shoes are delivered to a store near you and sold to you for $75…or more! • Without you: They won’t make shoes. • Without them: There are no shoes to buy. Interconnected. Interdependent. http://business.nmsu.edu/~dboje/nike/nikewithmap.html

  14. THE BIG QUESTION: Is Globalization: A. Good? B. Bad? C. All of the above? D. None of the above? Stay Tuned…

  15. Current World Divisions

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

  17. USA $14,660,000,000,000 $47,200 India $ 4,060,000,000,000 $ 3,500 Germany $ 2,940,000,000,000 $35,700 Russia $ 2,223,000,000,000 $15,900 Brazil $ 2,172,000,000,000 $10,800 South Korea $ 1,459,000,000,000 $30,000 Nigeria $ 377,900,000,000 $ 2,500 Singapore $ 291,900,000,000 $62,100 Cameroon $ 44,330,000,000 $ 2,300 Luxemburg $ 41,090,000,000 $82,600 Haiti $ 11,480,000,000 $ 1,200 COUNTRYGDPGDP pc USA $14,660,000,000,000 $47,200 China $10,090,000,000,000 $ 7,600 India $ 4,060,000,000,000 $ 3,500 Germany $ 2,940,000,000,000 $35,700 Russia $ 2,223,000,000,000 $15,900 Brazil $ 2,172,000,000,000 $10,800 South Korea $ 1,459,000,000,000 $30,000 Nigeria $ 377,900,000,000 $ 2,500 Singapore $ 291,900,000,000 $62,100 Cameroon $ 44,330,000,000 $ 2,300 Luxemburg $ 41,090,000,000 $82,600 Haiti $ 11,480,000,000 $ 1,200 According to the CIA Factbook

  18. Measuring Income • Gross Domestic Product (GDP) • Total value of all materials, goods, and services produced in one year • Does not include in/outflows of money: remittances • Impacted by: • relative buying power: PPP-Purchasing Power Parity - Based on hours of labor required to purchase a good • Exchange Rate vs. Buying Power - Euro vs. dollar vs. baht • “Per capita” • Used for equalizing comparisons between dissimilar populations (divide GDP by population) • “GDP per capita” vs. “GDP”

  19. “PPP” Four most expensive Iceland - USD 7.45 Norway - USD 6.63 Finland - USD 6.11 Sweden - USD 5.33 Four most affordable India - USD 1.40 China - USD 1.41 Hong Kong - USD 1.54 Malaysia - USD 1.57 “Big Mac Index” Ten fastest earned Tokyo - 10 minutes Los Angeles - 11 min Chicago - 12 min Miami - 12 min New York City - 13 min Auckland, NZ- 14 min Sydney, OZ - 14 min Toronto - 14 min Zürich, Switz - 15 min Dublin, Ireland - 15 min Ten slowest earned Bogotá, Col. - 97 minutes Nairobi, Kenya - 91 min Jakarta, Indo. - 86 min Lima, Peru - 86 min Caracas, Ven.- 85 min Mexico City - 82 min Manila, Phil - 81 min Mumbai, India - 70 min Sofia, Bulgaria - 69 min Bucharest, Rom. - 69 min

  20. The Core • Industrialized capitalist countries, led by former colonial powers (MDC’s) • So-called “1st World” or “Developed World” • Centers of trade, technology, productivity, $$$, high GDP pc • Exploit the Periphery and Semi-periphery • Examples: Western Europe, North America, Japan, Australia

  21. The Periphery • Poor, ex-colonial nations • So-called “Third World” or “Developing Countries” (LDC’s) • Exploited countries and regions • ex·ploi·ta·tion (eksploi-tay shun): • The act of employing to the greatest possible advantage: exploitation of copper deposits. • Utilization of another person or group for selfish purposes: exploitation of unwary consumers. • Exploited by Core and Semi-Periphery • Tend to export resources and provide labor; low GDP pc • Examples: Kenya, Bolivia, Pakistan, etc.

  22. The Semi-Periphery • Somewhere in-between core and periphery • Industrializingex-colonial countries (NICs) • Countries or regions with mixed processes: • Both exploited and exploiters. • Both exporters and importers of goods. • Examples: South Africa, Brazil, Mexico, Taiwan, South Korea.What about…?

  23. …CHINA?

  24. CHINA • Historically considered as “periphery” • But never colonized • With trade opening up to China over past 20 years, China has emerged into the “Semi-Periphery” • Recent impact on international markets and HUGE demand (i.e. oil, metals, etc.) • Huge population will affect globalization Q: Will China be considered a “Core” player in the not-too-distant future?

  25. Gross Domestic Product (GDP)(2010, 1995 estimates) 2010 % Rank Country GDP Growth 1 E.U. $14,520,000,000,000-4.0% $ 9,829,449.300,000 2 U.S. $14,250,000,000,000-2.4% $ 7,338,400,000,000 3 China $ 8,767,000,000,000 8.4% $ 700,277,800,000 4 Japan $ 4,141,000,000,000 -5.7% 5 India $ 3,548,000,000,000 6.1% http://www.todayonline.com/World/China/EDC120917-0000021/7,8-growth-forecast-for-China-this-year

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

  27. “Gap” between Rich and Poor http://www.theonion.com/articles/gap-between-rich-and-poor-named-8th-wonder-of-the,18914/

  28. Brief History of “Globalization”

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

  30. The Early Days of Globalization The Silk Road(evidence dates back to 1600 BC, lasted through Mongol Empire ~1400)

  31. “Western” World-System (Globalization) History • Nile Valley, Mesopotamia • Greeks, Romans • European Colonialism / Slave Trade: 1400s-1800s • Industrial Revolution: Wage Labor 1800s/ early 1900s • World War II / Cold War / Decolonization: mid-1900s • Neocolonialism / Multinational Corporations: Late 1900s

  32. However! Keep in mind… • China • Native civilizations: Inca, Maya, Aztecs • India • Assyrians • Persians • Mongols • Ottomans • And others! • All engaged in some form of globalization (a.k.a. trade)

  33. 1400s: European Colonialism • Christopher Columbus: Where was he going? Why? • $$$ • Church • Food and Labor = • Spices and Slavery

  34. Hegemony • Domination over a region or the world • Colonialism • Not just political or military control • Most pervasive is economic and cultural control • The“Golden Rule”

  35. Colonialism

  36. Geographic Implications • Imperialism and Colonialism • Ethnocentrism and Racism • Environmental Determinism

  37. 1800-1900

  38. Imperialism:Formal Colonialism • Colonies under direct governance and control • Core controls labor, resources, land • Often indirect political rule through local leaders

  39. IndustrialRevolution • Early-1800s • Britain (Hearth): from slave cotton • Textiles, steam power, iron, canals • Mid-1800s • Diffusion to Germany, France, Belgium, Netherlands • Steel used for railroads, steamships, telegraph (means of globalization) • Late-1800s/ early-1900s • Spread to Europe, US, Japan • Electricity, oil, engines, roads, radio

  40. Ethnocentrism and Racism • “Our way is best” • “Civilizing” • Natives • Non-whites

  41. Environmental Determinism • The belief that certain physical environments (climates) are more inclined to produce advanced civilizations than others • Torrid (tropics) • Temperate (mid-latitudes)* • “Mediterranean”=“Middle of the Earth” • Frigid (polar regions) * Theorized that this region was most likely to produce advanced civilization

  42. Environmental Determinism:Example Q: Is it true that tropical climates cause laziness and promiscuity?

  43. Birth Rate Income PC Tropics Liberia 42.25 $ 500 Afghanistan 38.37 $ 800 Haiti 29.10 $ 1,300 Burundi 41.76 $ 300 Mid-Latitudes Belgium 10.15 $36,600 Japan 7.64 $32,600 Australia 12.47 $38,500 United States 13.83 $46,400 CIA World Factbook: Estimates for 2009

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

  45. 1900:Rise of MultinationalCorporations (MNCs)(Transnational-TNCs) • Investments, activities transcend borders • Cheap labor / resources in Periphery / S-P countries supply core • Int’l business and government become increasingly linked Cartoon on Standard Oil, 1904

  46. Industrial revolution helped create the rise of MNCs • “Golden Rule” in full effect • Rules made by core in interest of business

  47. Examples of MNC’s • Standard Oil • Nokia • Starbucks • Coca-Cola • Ford Motor Company • McDonalds • Microsoft • Chiquita

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