Globalization Globalization and the Geography of Networks

Definition A set of processes that: – increase interactions – deepen relationships –heighten interdependence without regard to country borders. Does NOT include the free movement of people. A set of outcomes that are felt from these global processes. –Unevenly distributed and manifested throughout.

Background Info. “It’s neither an inevitable nor an irreversible set of processes.” De Blij and Murphy Understanding the origin and continued growth is very hard to do. –There is no set pattern to its spread/effects.

Background Info. Cont… The backbone of globalization is TRADE. –Opened the doors for the dispersion of the following, though it does not dictate it or govern the dispersion exclusively: Cultural traits Ideas Pop culture elements Capital

FREE TRADE Definition –Goods and services trade without interference of government imposed costs.

Free Trade Encompasses: International trade of goods without tariffs (taxes on imports) or other trade barriers (e.g., quotas on imports)goodstariffstrade barriers International trade in services without tariffs or other trade barriers The free movement of labor between countrieslabor The free movement of capital between countriescapital The absence of trade- distorting policies (such as taxes, subsidies, regulations or laws) that give domestic firms, households or factors of production an advantage over foreign onesfactors of production Trade-distorting policies to enforce property rights so as to ensure the above conditionsproperty rights

Free Trade cont… –“Free trade raises the well-being of all countries by inducing them to specialize their resources in those goods they produce relatively most efficiently in order to lower costs.” -De Blij and Murphy As a result, a nation’s growth rate and access to technology is increased. –This is known as the Washington Consensus

Timeline of Growth Stage One (G.1): ( )- The Age of Exploration –Retrogression Period: ( ) due to the Atlantic Wars Stage Two (G.2): ( )- The Age of Industrialization –Retrogression Period: WWI, Great Depression, and WWII Stage Three (G.3): (1947- Present)- Post WWII: From Containment to the Free Market Competition

Anti-Globalization (Global Justice Movement) A social movement established to combat the effects of globalization. Believes that Core Periphery nations are destroying semi-periphery and periphery national economies to gain greater wealth. –Forcing them into foreign direct investment and removing protections on domestic production. –Target: WTO, W.Bank, and Int’l Monetary Fund.

Anti-Globalization cont… Rely heavily on protests and demonstrations to spread messages. “Free trade is not ‘free’ rather, it builds up a global economic network that sends most benefits to the core.” -De Blij and Murphy

Role of Networks A set of interconnected nodes without a center. –Types: Financial Transportation Trade Government/Non-Government Education Media ETC…

How Do Networks Work? They link everything that the dominant interests view as valuable and discard what is not valuable. –Networks have really flourished the in recent years due to technology. Some places more connected than others, thus there is a spatial unevenness of globalization and its outcomes.

Networks cont… Ideally, networks should be horizontally structured, have no center, and encourage interaction amongst nodes.

Specific Types of Networks Development –Networks set up by various organizations to counter top down decision making by higher up powers –Examples of Efforts Promote Participatory Development –Locals participate in development decisions. Local Exchange Trading System –People barter and trade services/goods for things needed. (I.E., Vancouver Island and Berkeley)

Specific Types of Networks Media Networks –Main way popular culture elements are diffused. (I.E., Music, McDonald’s, Apple vs. IBM) Corporate Networks –Vertical Integration vs. Horizontal Integration VI: Corp that has ownership in a variety of points along the production and consumption of a commodity chain. (Time Warner) HI: When the consumer spends, the money is going towards the same parent co. (Macy’s) –Global retail can be very damaging to small, locally owned businesses.

Networks: The Effects of Time- Space Compression Definition –Establishes that certain places are more interconnected than ever through communication and transportation networks. (I.E., Global cities in core periphery) –Periphery nations are farther removed than ever. TSC is hugely impacted by Technology. –How does technology create such a great divide between the periphery and the core?

Effects of TSC on Global Cities Allows an individual to see the network of interactions that these cities maintain in terms of globalized processes. –Finances –Media –Air Travel –Technology

TSC on Global Cities cont… Most globalized cities 1.London 2.New York 3.Tokyo

The Globalization of McDonald’s