Contemporary globalization

1. Contemporary globalization Chapter 2

2. Contemporary Globalization • Definition: • #1: Force or process that involves the entire world and results in making something world-wide in scope • #2: Increasing interconnectedness of different parts of the world through common processes of economic, environmental, political, and cultural change. • Has been underway since inception of modern world-system in 1500s • 1800s modern framework for globalization developed • Global connections today differ in four ways from past • Function at much greater speed • Operates on a much larger scale • The scope of global connections is much broader and has multiple dimensions • Interactions and interdependencies among numerous global actors have created a new level of complexity for the relationships between places and regions

3. Contemporary Globalization • Modern Technology has created quick movement of money, materials, products, technology and other economic assets • Globalization has had both positive and negative repercussions: • localization: places might be attractive because of resources, or it might be suitable for new factories, extract materials, sell them, etc. • heightened economic differences: example, factories closing in the United States and open in Mexico due to cheaper labor. • Specialization on local level • Each place plays a distinctive role based on its local assets

4. Economic Globalization • People are plugged in to a global economy and culture. This produces a world that is more uniform, integrated, and independent. • Only a few areas are still isolated/ sheltered • Subsistent areas • Most areas interdependent • Choice of crop in one country based on demand in another • Commodity Chains • Networks of labor and production processes that originate in the extraction or production of raw materials and who end result is delivery and consumption of the finished commodity • Network span countries and continents • JEANS EXAMPLE!!! • Pg. 53 in textbook (Knox)

5. Economic Globalization • MCDONALD’s • Historically people had difficulty moving $ and goods from one country to another, modern technology has changed that • Led to creation of transnational corporations • Definition: • Transnational corporations conduct research, operates factories, and sells products in many countries, not just where it’s headquarters are located. • TCs assess particular asset of a place and correctly identify the optimal location for each activity • ex: extract raw materials • Produce parts • Manage operations • Develop engineering systems

6. Transnational Corporations • Other examples: • Airbus, BP, Virgin Groups • 2007 = 79,000 operating • Account for 11% of world’s GDP • 1/3rd of exports • Globalization of economy has heightened economic differences among places • i.e. • factories closed in U.S. and moved to Mexico • Using India for call-centers • Global recession 2008 • 1st world-wide economic recession • Usually contained to nations or regions • Effects of recession varied • 1st time global recession affected everyone • Example • U.S. homebuyer, banker in U.K., sales clerk in Japan, clothing maker in China, construction work in Nigeria • All subject to falling demand and lack of credit

8. Cultural Globalization • Globalization has important cultural dimensions • Previously cultural diffusion limited to specific places and regions, no longer the case • Consumer culture • “global” or uniform landscapes • Lack of uniqueness • All adds to an intensified global connectedness and the beginnings of the world an interdependent system • For some places globalization is a central reality, others it is still a marginal influence • There is no one experience • Communication • TV promotes globalization but also can promote diversity • Example: Sesame Street • Shown in Japan with similar characters, similar goals, but stresses filial piety and other Japanese characteristics • Not all peoples want to be “globalized” • Resistance • Shut off from “globalizing” • Conflict • Political (Iran, Taliban, Afganistan)

10. Westernization • Heart of tensions is a marked disillusionment with the West, especially within traditional Islamic societies • In much of the world modernization now means “westernization” or “americanization” • In peripheral countries only select few enjoy western-style consumerism • Gap between rich and poor countries widening • U.S. aid budget declining = bad reputation for United States • Conflict • 9/11 , Taliban • “ New Imperialism” • Imperialism of the United States, the world’s only superpower • The world regards U.S. as imperialistic • “War on Terror” • Reinforced by: • military threats against North Korea and Iran • Deployment on special forces for rendition

11. Key Issues in a Globalizing World • The integrated global system has increased awareness of a set of common problems • Environmental Issues • Human- environment interaction • Climate change • Environment degradation • Sustainability • Health issues • Increased travel = increased spread of disease • Pandemics • HIV/AIDS • Security issues • Spread of weapons of mass destruction • Risk of accidents involving radiation • Instability of financial markets • International terrorism • Disparity issues • Core has consolidated • Three major centers • North America, European Union, Japan • Gap between wealthiest 5th of population and poorest 5th has increased threefold since 1965 • Resentment brewing

12. Future Geographies • Globalization of capitalist world system has been developing for at least 500 years • Since WWII it has been accelerated and dramatic • Future? • Optimistic: • Potential for technological innovations • Faster more effective transportation and communication • World governments? • Pessimistic: • Finite nature of resources • Fragility of environment • Pop growth too large • Middle road? • Period of transition • Soviet Union collapse • 9/11 • 2008 Global financial crisis • Increasing power/ influence of China and India • Shift in power in wealth from West to East • Increased conflict in Middle East • Resource pressure • Lots of uncertainties • Climate • Arab- Israeli conflict • energy