Global Shift: Changing Geographies of the Global Economy

1. Global Shift Chapter Two Global Shift: Changing Geographies of the Global Economy

2. Review • Concepts to Review • Globalization, core-periphery economic geography • Key Words • Geographies of globalization, FDI, volatility of economic growth, transnational corporations, global cities

3. Global Division of Labour • Overr 300 years, a global division of labour developed, with a core-periphery configuration • Manufacturing concentraed in the core, with exports and imports to/from periphery • WWII: destruction of extant manufacturing capacity, and development of new technologies • Postwar division:: • Capitalist ‘West’ dominated by the US • Communist ‘East’ • ‘Third World’ • Post-Cold War developments: the reemergence of Asia as the world’s most dynamic economic region

4. Global Interconnectedness • Two important features of the global economy since 1950: • increased volatility of economic growth • growing interconnectedness • Current trends: • variation between countries in trade integration terms. • Major indicator of growing interconnectedness: the fact that the growth of trade has outpaced the growth of output • most trade is intra-regional, within the three major regions (Europe, North America, Asia), and most exterior trade is between them

5. FDI and TNCs • FDI • Definition • importance of FDI to a country’s economy as a measure of integration • TNCs • Definition • significance of intra-firm trade. • Changing patterns of trade and investment

6. Regional Comparisons • USA • Europe • Eastern Europe • Asia • Latin America • ‘Global Cities’ as nodes in the networks