1. Globalization and the World Today
Mr. Condry’s Social Studies Class

2. What is Globalization?
Refers to the increased flow of trade, people, investment, technology, culture, ideas among countries and creates a more integrated and interdependent world
Globalization has been around since the 15th century when European exploration & colonization created global empires & markets, but most historians and economists agree that today is special by the extent of interdependence and the speed by which it has occurred.

3. Drivers of Globalization
Two factors underlie globalization
“Decline in barriers to the free flow of goods, services, and capital” that has occurred since the end of World War II
Technological change

4. Declining Trade and Investment Barriers
During the 1920s and 1930s, many nations erected formidable barriers to international trade and foreign direct investment
Advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goods, services, and capital between nations.

5. Average Tariff Rates on Manufactured Products
1913
1950
1990
2002
France
21 %
18 %
5.9 %
4.0 %
Germany
20 %
26 %
Italy
25 %
Japan
30 % --
5.3 %
3.8 %
Holland
5 %
1 %
Sweden
9 %
4.4 % UK 4% US
44 %
14 %
4.8 %

6. Effects of Lowering Trade Barriers

7. The Role of Technology
Lowering of trade barriers made globalization possible
Technology has made it a transforming movement
“World Wide Web” has exploded in last 20 years
Computers can move money around world = “finance capital”
Silicon Valley is 9th largest economy in world!

8. Internet Usage Growth

9. Globalization is acceleration of trends of the last 10,000 years
People lived for 250,000 years in hunter-gatherer bands
Rise of agriculture 10,000 years ago led to rise of empires and nation-states
Science and ‘enlightenment’ after 1600 produced global trade and empires
Free trade and tech after 1945 produced present-day globalization

10. ASPECTS OF GLOBALIZATION
ECONOMIC
CULTURAL
POLITICAL

11. Economic Globalization
Economies Are Increasingly Linked Together
EX: NAFTA (MX, CA, US), The EU, WTO (World Trade Organization)
Creation of Global Institutions:
World Trade Organization (WTO)--responsible for policing the world trading system and ensuring that nations adhere to the rules established in WTO treaties
In 2008, 151 nations accounting for 97% of world trade were members of the WTO
International Monetary Fund (IMF)--maintains order in the international monetary system, provides loans

12. Multinational Corporation
any business with productive activities in 2 or more countries.

13. Old: Multi-national Corporation
Dutch East India Company
1602 company of Dutch merchants & independent trading companies
Spice trade monopoly in East Asia
Power to colonize territories & enslave indigenous people
Indonesia & South Africa

14. New: Multi-national Corporation
Nike, Wal-Mart, Royal/Dutch Shell
Top 100 multinationals are all US-owned companies
Royal/Dutch Shell: global group of energy and petrochemical companies, operating in more than 140 countries and territories, employing more than 112,000 people

15. Globalization of Production & . . . Services
Vizio flat panel TV is
designed in a small office in California
assembled in Mexico
From
panels made in South Korea
electronic components made in China
microprocessors made in the U.S.
Increasingly companies are using modern communications to outsource service activities to low-cost nations
Example: Customer Service calls routed to India

16. Globalization of markets
In the past, each country had its own companies in many industries and its own products
Now today everyone has access to most if not all industries/products
Nintendo
Starbucks
Coca-Cola
Ikea
McDonald’s
Samsung

17. Growth of Regional Trading Alliances (shared political and economic interests to promote trade)
ASEAN (Association of Southeast Asian Nations) 1967
EC (European Community) 1967
EU (European Union) 1993
NAFTA (North American Free Trade Agreement) 1994
AEC (African Economic Community) 1991

18. European Union Began in 1957 with six nations; now 27
Intended to integrate the European economy
Common currency – the Euro

19. The Changing Roles of Countries in the Global Economy
In the 1960s:
The U.S. dominated the world economy and the world trade picture
U.S. multinationals dominated the international business scene
About half the world-- the centrally planned economies of the communist world-- was off limits to Western international business

20. The Changing Roles of Countries in the Global Economy
Today, much of this has changed.
In the early 1960s, the U.S. was the world's dominant industrial power accounting for about 40.3% of world manufacturing output
By 2007, the U.S. accounted for only 20.7%
Other developed nations experienced a similar decline

21. CULTURAL GLOBALIZATION
McArabia Kofta

22. CULTURAL GLOBALIZATION
Consumerism – People want more than they need
Cultural lines have become blurred as world becomes more connected - (cultural imperialism)
“Americanization” or “McDonaldization” threatens local cultures
Hollywood movies
Disneyland
Starbucks
Dominance of the English language

23. Americanization or McDonaldization
Pepsi in Russian

24. Western Consumerism spreads
Iran’s Islamic answer to Barbie and Ken: Sara and Dara

25. Global Interactions in Culture
Sports
Baseball in Japan
Football (soccer) and the World Cup
spread around the world via the British
Colonial nationalists emphasized playing
football to generate a national identity
Art
Other cultures represented in Western art, such as African sculpture in Pablo Picasso’s pieces and Japanese woodblock printing influence in Impressionism

27. POLITICAL GLOBALIZATION
GLOBAL INSTITUTIONS
United Nations (UN)—global association of countries that work to facilitate international peace and security, friendly relations among nations, cooperation in solving international problems and respect for human rights.
World Bank—fights poverty by promoting economic development among developing countries

28. The Globalization Debate
Pro
Con
Lower prices for goods and services
Economic growth
Increase in consumer income
Creates jobs (for many)
Countries specialize in production of goods and services that are produced most efficiently
Destroys manufacturing jobs in wealthy nations
Wage rates of unskilled in advanced countries decline
Outsourcing
Companies move to countries with fewer labor and environment regulations
Loss of sovereignty
Homogenized cultures

29. Global Problems: Demographic
20th century had a vast increase in the population because of advances in
Agriculture
Industry
Science
medicine
Reducing birth rates has become a concern in many countries (WHO - World Health Organization assists in family-planning)

30. Global Problems: Environment
Exploitation and competition
Urbanization and agricultural expansion
Increased use of fossil fuels
Kyoto Treaty
Greenpeace and Earth Day
Climate Change
Genetically Modified Organisms and Food

31. Global Problems: economic inequities and labor servitude
Causes of poverty
Resource distribution and access
Income opportunities limited
Education opportunities limited
Forced labor
Slavery still exists
Child labor still common

32. Global problems: diseases
Last major pandemic – Spanish flu of 1918/1919; killed million
Smallpox and diphtheria have been eradicated
Medical innovations: polio vaccine, antibiotics, artificial heart, transplants

33. Global Problems: disease
HIV/AIDS
Identified in 1981 in San Francisco
kills adults; leaves children orphaned; threatens society
Treatment is expensive
In 2000, 36.1 million people living with HIV/AIDS worldwide; of those 21.8 million are in Africa

34. Global Problems: disease
Diseases associated with your lifestyle: diabetes, heart disease, Alzheimer's
Diseases associated with poverty: malaria, TB, cholera
Current concerns: Ebola & Zika

35. Global Problems: terrorism
The use of violence, or threatened use of violence, in order to achieve a political, religious, or ideological aim.
Globalization has contributed to terrorism. How?
Alienates & angers ppl who feel victimized by foreign influences that threaten native culture & practices
Creates economic frustrations as traditional skills become obsolete in the global market.

36. The Karnataka State Farmers' Movement (KRRS) burn genetically modified crops as part of the "Cremate Monsanto" campaign. Karnataka, India, 1998.

37. Zapatista women are vigilant in defending their community
Zapatista women are vigilant in defending their community. Chiapas, Mexico.

38. Palestinian women protest against the Israeli occupation and escalation of military aggression against civilians in the West Bank and Gaza. San Francisco, California, 2002.

39. You can kill the messenger but not the message
You can kill the messenger but not the message! NIGER DELTA WOMEN PROTEST

40. UCSC Lecturers Protest Unfair Labor Practices, 2002