Contemporary globalization Chapter 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

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

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)

Economic Globalization 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 MCDONALD’s

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

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, Afghanistan)

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

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

Future Geographies Middle road? Period of transition 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