Globalisation
Shift happens:
Globalisation video
Karl Fisch: “Shift Happens” (link)
Karl Fisch high school administrator at school in This
was later generalised and improved by Scott Mcleod a
professor at Univ. of Minnesota.
How did It makes you feel?
Would it have affected you differently if there
was no music?
Which fact affected you most and why?
What is Globalisation?
Many definitions
the interdependence and interconnection of the
modern world” White paper on international development 1995
“ a process in which geographic distance
becomes a factor of diminishing importance in
the establishment and maintenance of cross
border economic, political and socio-cultural
relations” (Lubbers, R)
The coming together of the world thanks to
technology and trade. The Circulation not only of
goods and services but also of idea ,information
and people
Quotes from business and
government
"Globalisation is irreversible and irresistible."
Tony Blair (1999)
"Globalisation is not a policy choice, it is a fact."
Bill Clinton (1999)
"Globalisation, which centralises power, destroys
livelihoods and creates displacement and environmental
destruction, also sows the seeds of communal politics and
religious fundamentalism."
Vandana Shiva, Indian Environmentalist (1999) 2
Globalisation
economic social cultural technological
What drives
globalisation?
Increase of information.
Better communications
Ease of travel
Increase of knowledge sharing: Internet.
Opening of the markets: Free trade
agreements, World trade organisation.
Reduction of tariffs on imports
Attraction of foreign investment
Technology and
globalisation
The Internet and
globalisation
research
social
networks
issues with
availability
to all e.g.
poor
Internet generate
business
raise
awareness
of issues
raise
cultural
awareness
Internet use worldwide
Internet penetration (Where over 50% of pop use internet)
Facebook
Reduces global boundaries
Speak to people around the world
Globalisation of social communication
Facts about Facebook usage
More than 250 million active users
More than 120 million users log on to Facebook at
least once each day
The fastest growing demographic is those 35
years old and older
More than 50 translations available on the site,
with more than 40 in development
About 70% of Facebook users are outside the
United States
History of globalisation
Ancient trade
2000Bc Ancient Greek traded around
Mediterranean
The silk route trade though out Asia.
First multinational
company
1600. Dutch East
Indian company
Had own private
army
Owned substantial
territory
Monopoly on spice
trade in Europe
First company to
issue stock
Industrial revolution
Rise in use of coal power
Increase in technology e.g. electric motor
Expansion of railways
Expansion in world trade and investment, halted
by WW1.
End of WW2. Next big expansion in trade
Development of trans national companies
Growth of the USA
Early 20th century world richest economy
Birth of consumerism
1891 Roeburk Sears pioneered mail order
1913 Henry ford uses production line
manufacturing in US; safer and better results.
Rise as a superpower after 2nd world war
Provide economic aid to Europe
Technological
development
Development of air travel
Development of communications.
Ease of communicating
internationally
Bretton woods 1944
1944 UN conference
45 governments Bretton woods USA
International Monetary Fund
Created to ensure the stability of the
international monetary and financial system
185 countries pay into the fund.
Money used to;
Prevent crisis
Foster growth
Alleviate poverty
World bank
Conceived at Bretton woods
Made of 3 bodies
Post war loans help re build Europe
Set up to fund projects which further economic
development of member nations
2000 Aim to free the world of poverty
Funded by member nations
World Trade
Organisation
1955 WTO created
Goal to ensure the free flow of trade
Guard against the negative social
and economic side effects
G8
1975 leaders of 6 nations:
USA
UK
Japan
France
Italy
Germany
Meet in Paris to discuss economic issues
1977 Canada and Russia join
Rolling presidency country who holds presidency set issues
EU
Created to promote economic and
social progression of member states.
Establishment of single market
Allows freedom of movement of people,
goods, services and capital within
boundaries.
Allows the countries to exert more
influence globally then they would on
own
Trade
Global trade
Countries have trade controlled by rules
Rules made by WTO
All members have equal say
However not all countries can afford to send
representatives
UN states poor countries lose 500 billon a year
to unfair trade rules (Christian aid)
Rules enforced by trade embargos on countries
who don’t comply.
Doesn’t apply to trans nationals
Free trade agreements
North American Free Trade Agreement
1994
No tariff on imported good between
Mexico and USA and Canada
Not always good for poor e.g. US maize
cheaper to produce and sold in Mexico
with out imports at lower price then
Mexican maize.
www.cafod.org.uk.
Fair trade
www.fairtrade.org.uk
www.eti.org.uk
Effects of globalisation
financial
cultural
economic
social
technology
language industrial
effects of
globalisation
law
environmental
travel
Industrial
Emergence of worldwide production markets
Larger product range
Multi country production
Financial
Worldwide financial markets
Growth of over seas investment
Economic
Existence of global market
Fuelled by freedom of exchange of goods and capital.
Countries interdependent on one another so a problem in
one country affect many
Informational
Increase in access to internet even on remote
areas
Legal/Ethical
Cases now cross boarder.
International laws. E.g. human rights
Language
Increasing spread of English as a dominate
language
About 35% of the world's mail, telexes, and
cables are in English.
Approximately 40% of the world's radio programs
are in English.
About 50% of all Internet traffic uses English
Competition
Increased competition form global market lead to
an increase in skills and innovation in order to
compete.
Ecological
Global climate issues. Attempts to solve on global
level e.g. G8 , Kyoto
Increase in pollution due abuse by trans national
Increase in pressure on country to use natural
resources e.g. Brazil clearing Amazon for farming
Cultural
Internet and other media. Cultures mix
Loss of cultural identity
Loss language
Mix of food
World culture emerging.
Travel
Easier access around world
Impact of tourism
Loss of boundaries
WHO estimates that up to 500,000 people are on
planes at any time.
More immigration and migration to easy of transport
Easy of trading and importing goods from aboard
]
Technical
Internet
Social networking
Information sharing. Online forums and debates
Global communication e.g. web can, web conferencing
Global data acquisition and positioning
Negative effect of
globalisation
Rich poor divide growing
1.3 billon survive on les then a dollar a day
(friend of the earth)
Exploitation of resources encouraged in poor
countries who need material to trade
Countries want foreign investment. Will sacrifice
environmental and human policies to get it e.g.
poor wages, less safety
Pro globalisation
Journalist and author Philippe Legrain
talks to the BBC's Allan Little about
global poverty and anti-
globalisation
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defence of globalisation.
Barriers to globalisation
Rich guard traditional industries .e.g. farming
Protect countries farms by imposing high imports
on products from aboard.
France and grape industry.
Japan imposes large tariffs on foreign rice.
Protectionist measures
Import quota restrict total volume or value of goods
imported
Documentation overload: Ensure lots of red tape
Anti globalization
Ref 4 ref
5
Naomi Klein. No logo video on the effect of trans nationals globally
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Video on anti globalisation
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q=naoimi+kelin&hl=en&emb=0&aq=f#hl=en&emb=0&q=naomi+klein+globalizat
ion&start=0
Global democracy
Rich national exercise most power
Not necessarily country with most
people
Is it fair Britain has more say then
India
China has 22 x power of UK
United nations
development program
www.undp.org
Supports poverty reduction in Bangladesh
Imitative in narayanganyi 2007
Development left in hand of local people
Choose which projects money spent on
Web link to video on Bangladesh
The World Bank
World bank
Conceived at Bretton woods
Made of 3 bodies
Post war loans help re build Europe
Set up to fund projects which further
economic development of member nations
2000 Aim to free the world of poverty
Funded by member nations
www.worldbank.org
Vital source of finical and technical
assistance to developing countries
2 development institutions
Owned by 186 members
World bank
International Bank for International
the Reconstruction Development
and Association
Development(IRBD) (IDA)
International bank for
reconstruction and
development
Middle income countries
credit worthy companies poor
companies
International development
association
Loans to the poorest countries
Trans nationals
Trans nationals
Un defines as association that possess the means of
control of production and services outside the
country in which it was established
Uses country of origin as a base
Moves investment quickly if countries economic
circumstances change
40,000 trans national world wide(
www.waronwant.org)
10 biggest TNC have income bugger then the worlds
100 poorest countries.
Ford motors annual turnover bigger then GDP south
Africa
CEO is legally obliged to act in best
interest of share holders
www.coporatewatch.or.uk
Glossary
Free trade
Governments treat local and foreign products the same
Ethical trade
Products sourced from companies which treat local people and environment fairly
World trade organisation
Liberalise world trade through national agreement
Controls global trade. 186 nations
Liberalisation
Reducing the government involvement in a countries economy . Based on the idea that private
business run things more efficiently. Involve deregulation and privatisation.
Structural adjustment
Liberalisation of economy .
Set of policy changes required for loan from world bank
Intended to make countries more economically efficient
IMF international monetary fund
1944
Maintain stable international trading system
World bank
Help for development
Loans for structural adjustment
Reference websites
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