Lecture 1 → Fast Fashion - materialism meets social media (a pollution calamity in the making)

Link 1 - https://www.bbc.com/news/science-environment-60382624

Fast Fashion: How clothes are linked to climate change

Fashion Industry - is responsible for 8-10% of global emissions (UN) - more than aviation and shipping
combined

What is Fast Fashion? Quick turnover of fashion trends (cheap, mass-produced) new lines released
constantly

Producing clothes uses many natural resources and greenhouse gas emissions (making it responsible for
climate change)

Global clothes sales can increase by up to 65% by 2030 (World Bank)

Most of fashion's environmental impact comes from the use of raw materials:
-​ Cotton (FI uses about 2.5% of the world's farmland)
-​ Synthetic materials (polyester, 342 mil barrels of oil each year)
-​ Production processes like drying (require 43 million tonnes of chemicals a year)

Worker’s conditions are not good

Water Use:
500ml = bottle of water
200 bottles = 100 litres of water

Tshirt - 2700 litres of water (5400 bottles)

Jeans - 10000 litres of water (20000 bottles)
Cotton socks - 600 litres (1200 bottles)

Working Conditions - “What we don't know can't hurt us”

Fashion companies operate subsidiaries in countries such as Bangladesh, Vietnam, India and China – and
lack of oversight occurs during the actual textile production.

Many brands choose to have minimal control over the supply chain to avoid legal liability – allow
subsidiaries to be unregulated (bad working conditions)
**A supply chain is the network of people, organizations, and processes involved in creating and selling a product or service**.

Fast fashion employs approximately 75 million factory workers worldwide

• Less than 2% of them make a living wage.
• Living below the poverty line – European Parliament calls factory workers in Asia as “slave labor”.
• Many garment workers are working up to 16 hours a day, 7 days a week.
• Child labor particularly because it is often low skilled
• Adverse working conditions – industry uses 8,000 synthetic chemicals – cancer causing.
• Structural dangers – Rana Plaza Factory collapse in Bangladesh in 2013 - 1,100 killed, 2,500+ injured –
supplier to Joe Fresh (Loblaws)

EXAMPLES (articles)

Global fashion brands exploiting Bangladesh workers: Study

https://www.aljazeera.com/news/2023/1/11/fashion-brands-paid-less-than-production-cost-to-bangladesh-firms

A study by Aberdeen University and Transform Trade found that major global fashion brands, including
Zara, H&M, Lidl, and GAP, engaged in unfair practices in Bangladesh's garment industry, such as
underpaying suppliers and canceling orders, particularly during the COVID-19 pandemic. Surveying
1,000 factories, the study revealed that over half faced order cancellations, delayed payments, or price
reductions, leading to job losses and lower wages. Some factories even struggled to meet the legal
minimum wage after reopening post-lockdown. The study recommended a fashion watchdog to prevent
retailers from shifting financial risks onto suppliers. While some companies defended their actions, the
exploitation of Bangladeshi workers remains a critical issue, especially following past tragedies like the
2013 Rana Plaza collapse. Meanwhile, the EU is pushing for sustainable fashion practices to reduce fast
fashion’s environmental impact.

Threads of Injustice: Working conditions of garment workers in Export Processing Zones in Sri Lanka

https://www.youtube.com/watch?v=iUwPkOwTUso&ab_channel=FORUM-ASIA

The video "Threads of Injustice: Working Conditions of Garment Workers in Export Processing Zones in
Sri Lanka" sheds light on the precarious employment conditions faced by workers in the country's apparel
sector, which accounts for 44% of Sri Lanka's total exports. Despite the industry's significant contribution
to the economy, approximately 15% of the labor force employed in this sector endures unfair wages,
unsafe environments, and discriminatory practices. A fact-finding mission conducted between October
and December 2022 in the Katunayake, Biyagama, and Wathupitiwala Export Processing Zones revealed
numerous labor law violations, particularly affecting casual workers, often referred to as "manpower
workers." These individuals, employed on a daily wage basis, lack essential benefits such as health
insurance, social security, and overtime pay. They are frequently assigned high-risk, labor-intensive tasks
without proper safety equipment. The report emphasizes the stark disparities between permanent and
casual workers and calls for immediate reforms to improve working conditions, ensure fair compensation,
and uphold the rights of all employees within the industry.

-​ This was exposed during the pandemic and found workers overworked, underpaid, surviving on
plain tea

If you think fast fashion is bad, check out SHEIN

The video "If you think fast fashion is bad, check out SHEIN" critically examines the business
practices of SHEIN, a prominent fast-fashion retailer. It highlights concerns over the company's
rapid production cycles, environmental impact, and labour practices. The video also discusses
the broader implications of consumerism and the challenges of promoting self-acceptance among
young people amid pervasive marketing strategies.
-​ Shein is a popular cheap online fashion giant that mostly targets a young audience and markets
using influencers
-​ Workers are not in social welfare systems (don't have rights)
-​ The environmental impact of the clothes is bad and lad in the land mines (shein is accelerating
climate change)

Who is buying?
• Young people top that list – a recent survey by environmental charity Hubbub found that more than
two-fifths of 16 to 24-year-olds buy clothes online at least once a week, compared to 13%
on average for other age groups.

• Social media is accelerating the trend (ARTICLE)

https://www.openaccessgovernment.org/social-medias-influence-accelerates-fast-fashion-culture-environment-pollution/134242 /

Fast fashion culture, driven by social media and influencer marketing, continues to grow despite its severe
environmental and social consequences. Fashion hauls and ever-changing trend cycles encourage
excessive consumption, leading to pollution, textile waste, and the exploitation of garment workers in
countries like Bangladesh and the UK. Social media platforms have evolved into targeted marketplaces,
blurring the lines between advertisements and organic content, making it difficult for Gen Z consumers to
distinguish between ethical and unsustainable choices. While some brands claim sustainability, many
engage in greenwashing, as consumer habits remain largely unchanged. The cycle of overproduction,
waste, and labour exploitation persists, fueled by fast fashion’s deep integration with social media
marketing and algorithm-driven consumerism.

What can be done?

• Make clothes more sustainably – eco collections by brands – recycled and organic material – Zara,
H&M Conscious, Adidas
• some fashion lines may not be as sustainable as they first appear - UK's competition watchdog is
investigating Asos, Boohoo and Asda over claims about sustainability of their products and the language
used to describe them.
• Many "slow fashion" companies are emerging - offering fewer new pieces a year, all of which have a
lower environmental impact – they are expensive and people do not want to pay for them - a third of
young people surveyed by the London Fashion
Retail Academy wouldn't pay more than £5 extra for sustainable garments.
• Buy second-hand
• The waste charity Wrap argues that second-hand purchases are unlikely to replace more than 10% of
new sales.
• Recommends other approaches, such as encouraging people to repair and revamp existing pieces.
• Rent your clothes
• Market research company Imarc suggests the rental market could increase by 65% to about £1.6bn
worldwide by 2025.
• Wrap argues that if renting replaced 10% of new purchases every year, it would save 160,000 tones of
carbon dioxide in the UK
alone.
• Buy less – minimalistic
• Buying a maximum of eight new items a year could reduce fashion's emissions by 37% in the world's
major cities, according
to research by Leeds University and Arup.
• Difficult given the consumerism, price points and the FOMO culture brought by social media
• COVID-19 also was a boon for people staying home and buying from fast fashion giants such as
Shien/Romwe

The fast fashion industry has led to significant environmental and social challenges worldwide. In Ghana,
markets are inundated with low-quality, discarded garments from Western countries, resulting in severe
pollution and waste management issues. Designers and organizations are now upcycling these materials to
combat the crisis. Resellers look for clothes that have arrived in Ghana. Some clothes arrive damaged and
can't be sold. 40% of clothes shipped here end up in landfill. Affecting their environment badly (rivers,
oceans, streets)

In Pakistan, untreated wastewater from textile factories in Faisalabad contaminates drinking water,
leading to health crises and high child mortality rates. In Faisalabad not even one drop of water is clean.
This causes issues like hepatitis and skin conditions. Children get sick. The Ravi River gets wasted.
50,000 children die from diarrhea caused by contaminated water.

Chile's Atacama Desert has become a dumping ground for unsold clothing, creating environmental
hazards in the world's driest desert. The city has become a garbage dump. Garments can take 200 years to
disintegrate. Populations living near the dump inhale toxic chemicals and waste. Not enough resources to
control the problem.

Lecture 2 - MARKET ENTRY MODES (PART 1)

Initial Analysis Before Entering Foreign Markets

• Determine what has made the product popular domestically (sources of competitive advantage).
• Are any of these transferable to a foreign market?
• Do the customers have the same preferences?
• Are competitors the same or of comparable quality?
• Is high quality in the domestic market also high quality in the target market?
• What parts of the value chain can be moved or outsourced?
o e.g. design, manufacturing or assembling
• Can the same level of service be achieved overseas, or is this relevant? o e.g. buying a Porsche

Exporting
• Exporting: selling a product from home country production into a foreign market
• Direct exporting: the company sells directly to foreign buyers (end-users, distributors, retailers)
→ Requires people in both countries to carry out the export process, including shipping, arranging
insurance, clearing customs, etc.

Direct Exporting
• Sales Representative: An unofficial person in a foreign country working on a retainer basis; generally
tasked with gathering market info, purchasing bid documents, and helping to clear the goods from
customs
◦ Often represents other firms as well, but not competitors (check this)
◦ Provides all local market knowledge
◦ Generally works for a fixed fee and maybe a percentage of sales
• Distributor: a foreign merchant, usually with exclusive sales rights in a country or territory
◦ Sells to retailers
◦ Advertising should be local
◦ Service must be in place before the first product is sold
• Sales Office (part of your firm) in a large market

Indirect Exporting
• Indirect exporting: selling through home country agencies e.g. trading houses: two types
◦ export merchant buys the product from you in Canada
◦ export agent sells the product overseas for a commission, but does not buy it
• Advantages:
◦ Better knowledge of market culture and language
◦ Trading house already has contacts and distribution
◦ Good way to test the market cheaply and quickly
◦ No in-house marketing team
• Disadvantages:
◦ Loss of profit
◦ Loss of control of product: may hurt reputation
◦ No direct access to customers for feedback

Licensing and Franchising

• Licensing involves offering a foreign company the right to use the firm’s proprietary technology, patents
or brand name, usually for a fee plus a royalty (% of gross) e.g.. Coca-Cola bottlers
• Franchising is an example e.g. McDonald's
• May also include outsourcing manufacturing (outsourcing to a firm to produce a specified product) e.g..
Nike (virtual firm except for marketing)

Why Foreign Direct Investment (FDI)?

• Technology transfer to domestic workforce
• Hub for other local industries (subcontractors or suppliers)
• Employment for citizens
• Corporate taxes
• Import substitution (saves paying for imports)
• Exports (earns foreign exchange)
Types of Foreign Direct Investment
• International joint venture: a legal entity that is distinct from both parents; usually have a local partner,
but may be from a third country
• Partial manufacturing: ship in “knock-down”; local assembly and some form of local value-added
• Full manufacturing facility: consider the advantages of an “export processing zone” (also known as
“free trade zones”)
• Buy an existing business

Types of Foreign Direct Investment

• International joint venture: a legal entity that is distinct from both parents; usually have a local partner,
but may be from a third country
• Partial manufacturing: ship in “knock-down”; local assembly and some form of local value-added
• Full manufacturing facility: consider the advantages of an “export processing zone” (also known as
“free trade zones”)
• Buy an existing business

Advantages/Disadvantages of an Export Processing Zone

• Advantages:
• No import duties on any raw materials or component parts brought into the zone
• No export duties on goods exported out of the zone to a foreign market
• No import duties for sales into the host country on domestic value-added (but duties on remainder)
• Fully serviced site (roads, electricity, water)
• Availability of local labour, often arranged by the EPZ Authority
• Often your suppliers may be in the EPZ or close
• Disadvantages:
• Labour bargaining and collective agreements
• https://www.ilo.org/actrav/areas/WCMS_DOC_ATR_ARE_EPZ_EN/lang--en/index.htm

(ARTICLE) Export Processing Zones (EPZs) have rapidly expanded as part of globalization, with many
governments promoting them to attract foreign investment. These zones allow imported materials to be
processed and then exported, offering special incentives to businesses. However, working conditions in
EPZs often fail to meet international labour standards, especially regarding workers' rights to unionize
and negotiate fair wages. The biggest issue is the lack of freedom for workers to form unions and engage
in collective bargaining. To address these challenges, ACTRAV supports trade unions in improving labour
conditions in EPZs.

Jebel Ali EPZ in Dubai

• Jebel Ali is probably the most successful EPZ in the world. I was established in 1985 and now has 7,000
companies.

• https://www.youtube.com/watch?v=13C4Ig4tnHw

The video titled "Why JAFZA - Start up your business in Dubai's Jebel Ali Freezone" highlights the
advantages of establishing a business in the Jebel Ali Free Zone Authority (JAFZA) in Dubai. As the
world's largest economic free zone, JAFZA offers numerous benefits to entrepreneurs and companies,
including strategic location, tax incentives, and streamlined business setup processes. The video also
mentions the appointment of Logistics Executive Group Global CEO Kim Winter as a representative
agent for JAFZA, emphasizing the zone's commitment to facilitating global business connections.

Lecture 2 - COUNTRY RISK ANALYSIS Performing Due Diligence on a Country Before Entering
the Market - (PART 2)

Country Risk Analysis

• The purpose of country risk analysis is to determine the risk of entering a country’s market
• Basically, you are conducting “due diligence” on a country before you enter it, similar to conducting due
diligence on a company before buying it
• There are three levels of country risk analysis
– Political Risk Analysis: Is the country stable politically?
– Economic Risk Analysis: Can we make a profit and repatriate the funds?
– Operational Risk Analysis: Is there any danger to our employees or our property?

Why Banks/lenders Perform Country Risk Analysis

• They lend to companies for projects and investments all over the world; therefore:
• They need to establish the risk premium for each country (basic commercial rate plus a percentage for
the specific country risk)
• They also need to determine their maximum exposure (lending limit) for each country
– They lend up to their credit limit in a country for various projects
– They have other projects for which companies need financing which have to wait until there is room in
the country’s credit limit from the bank
– When loans are repaid, the bank can then finance other projects, up to their country's limit

Political Risk Analysis

• PURPOSE: to identify, in advance, existing and potential risk situations, primarily political in nature or
origin, to reduce the risk of financial loss to your firm
• Ultimately, you are looking for a level of political stability that is acceptable to your firm’s management,
shareholders, and financiers
• Must review a lot of data and talk with people who are familiar with the country
• Can also check websites that perform country risk analysis

Examples of Political Risk

• Occurrence
– War
– Coup d’État / revolution
– Election of nationalist govt.
– Repression (treating citizens badly) e.g. Apartheid
– Strikes
• Potential Effects
– Economy stops; damage to assets
– May not honour agreements by previous governments
– Nationalization of industries (taken over by the government)
– Embargo / Sanctions
– Ruin investment climate

Domestic Forces To Consider (analyze the degree of influence)

• Type of government
• Political parties/factions
• Business lobbies
• Labour
• Military
• Religious groups

Economic Risk Analysis

• https://data.worldbank.org/
• Gross Domestic Product (GDP) growth (ideal is 2%)
• Purchasing Power Parity
• Balance of payments
• Soft (non-convertible) versus hard currency
• Currency stability (exchange rate fluctuations)
• Inflation rate (not over 2% is the ideal)

Indirect Measures of Economic Development

Measuring “Quality of Life”: UN Human Development Index
https://hdr.undp.org/data-center/human-development-index#/indicies/HDI
– Literacy rates
– Number of people per doctor
– Infant mortality rates
– Life expectancy
– Caloric consumption
– Car ownership/1000 people
– Education spending as a percentage of GDP

Operational Risk
• Definition: risks to employees and/or property as a result of being physically located in the country
• Expropriation (nationalization)
– a declining trend, aside from Venezuela
– legal if country pays “fair market value”
• Natural disasters (earthquakes, hurricanes, malaria)
– Japan, Indonesia
• Being rich in a poor country (income inequality)
– Foreign executives with expatriate packages are targets
• Hostage-taking
– Colombia, Peru, Venezuela, Yemen, Syria, Somalia
• Religious extremists
– Egypt, Tunisia, Afghanistan, Iraq, Syria
• Restrictions on women
– Saudi Arabia
• Liability laws and practices:
– foreigners automatically guilty
– China, India

Geopolitical Risk
• “...the threat, realization, and escalation of adverseevents associated with wars,
terrorism, and any tensions among states and politicalactors that affect the peaceful
course of international relations.” (https://www.matteoiacoviello.com/gpr_files/GPR_PAPER.pdf)
• https://www.matteoiacoviello.com/gpr.htm

The Geopolitical Risk (GPR) Index, developed by economists Dario Caldara and Matteo Iacoviello,
quantifies adverse geopolitical events and their associated risks by analyzing newspaper articles covering
geopolitical tensions. The index, which spans from 1900 to the present, highlights significant spikes
during events such as the two World Wars, the Korean War onset, the Cuban Missile Crisis, and the
aftermath of 9/11. Elevated geopolitical risk, as measured by the GPR Index, is linked to declines in
investment, stock prices, and employment, as well as an increased probability of economic downturns.
The index is constructed by evaluating the frequency of articles related to geopolitical events across ten
major newspapers, with data available in both monthly and daily formats. Additionally, country-specific
GPR indexes have been developed for 44 nations, offering insights into localized geopolitical risks.
Citeturn0search0

Lecture 3 - BARRIERS TO TRADE and REGIONAL TRADING BLOCS (PART 1)

Barriers to Trade: Tariff Barriers

• Tariffs: (often called customs or import duties) – taxes on imported goods, traditionally used to protect
local industries, which raises the price of imports

• Should not be applied if the host country does not produce this good

• May also be used bilaterally to compensate for export subsidies e.g. against agricultural products from
the EU

• Most Favored Nation status: by WTO regulation, any WTO country must set tariffs for every WTO
country the same as for the “best country” rate (“most favored nation”) i.e. give the same lowest tariff rate
to all WTO members

• Does not include the rate within trade blocs or by special bilateral agreements, which may be 0%

• NAFTA/USCMA, Canada gives 0% import duties on almost all products to the USA and Mexico, but
we have higher import duties for other WTO members
• We can set any tariff rate we want for non-WTO members, but it has to be the same on

each product for all WTO members https://www.wto.org/

Anti-Dumping Duties (Tariffs)

• Dumping: selling goods in a foreign market for less than the cost of production
• Why: excess manufacturing capacity; market access or market share in another country; included the
costs of research, etc. in the home country, therefore cheaper to sell in foreign markets (accounting
standards)
• Imposed on a bilateral basis (importing country imposes this tariff on an exporting country)
• Levied on specific goods that are being “dumped” into this country
• Examples:
• US against China and South Korea for solar panels and washing machines
• US against Canada for lumber products
• Often against steel imports
• Problem: How to determine the costs of production?
• Easiest solution: What is the price for the same product in the home country?

Non-Tariff Barriers
Government laws, regulations, policies or practices that protect domestic companies from foreign
competition:
• Quotas (particularly on textiles and footwear) – dairy in Canada
https://www.international.gc.ca/trade-commerce/controls-controles/supply_managed-gestion_offre.aspx?l
ang=eng&type=Quota%20Holders%20Lists#data
• Import license requirements (slow and onerous) Canada – restriction on cultural properties
https://www.canada.ca/en/canadian-heritage/services/import-cultural-property.html
• Product standards (lack of harmonization with international standards) – e.g. children sleepware; more
lists
https://www.canada.ca/en/health-canada/corporate/contact-us/consumer-product-safety.html
• Labeling requirements (e.g. English and French in Canada)
https://www.canada.ca/en/services/business/permits/federallyregulatedbusinessactivities/labellingrequire
ments.html
• Environmental regulations (packaging in Germany) – single packaging ban
• Local content requirements; government purchasing policies
• Sanctions or embargos – Iran

3 Types of Regional Trading Blocs

These are legally recognized by the WTO, and do not affect the most favoured nation tariff requirements.
• Common Market: no internal tariffs, free movement of labour and banking, and common tariffs for
exports from outside countries (EU).
• Customs Union: no internal tariffs, common tariffs for imports from outside the union, but no
immigration, capital, or labour agreements (Mercosur).
• Free Trade Area: no internal tariffs (in principle), but each member has its own tariff rates for imports
from non-members (NAFTA/USMCA)
European Union
• EU history and common policies toward technical standards, labour regs, taxation, social and monetary
regulations, http://europa.eu/
• 27 members in Europe
• Iceland, Norway, Switzerland, and Liechtenstein are not members
• Other former Eastern European countries and Turkey might join within 10 years – Turkish President
Recep Erdogan’s hardline has antagonized EU
• The European Council (in Brussels, Belgium) usually meets 4 times per year to decide general policy
• The European Parliament (In Strasbourg, France) has elected Members of the European Parliament
• Common market with a common currency, the Euro, introduced in January 1999 and in full use on Jan.
1, 2002; United Kingdom, Denmark and Sweden do not use the Euro
• Common Agricultural Policy (subsidies hurt developing countries who rely on agriculture)
• Schengen State – free border movement

North American Free Trade Agreement (USMCA)

• USA, Canada and Mexico
https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreemen
t-between
• Came into force in 1994
• All goods to pass across borders with no duties if 50% of their value was added in any NAFTA country
(not just assembly of foreign parts)
• Free trade exceptions made for transportation, energy, education, and professional services
• Discussions to expand NAFTA in the near future, probably to Chile first, but Canada already has a
bilateral free trade agreement with Chile

MERCOSUR (Southern Market)

• See website: https://www.mercosur.int/
• Customs union agreement among Argentina, Brazil, Paraguay, Uruguay, and Venezuela
• Bolivia, Chile, Colombia, Ecuador and Peru, are associate members, but do not have full member
privileges
• Headquarters in Montevideo, Uruguay
• Encompasses 190 million people and $400B economy

Association of Southeast Asian Nations (ASEAN)

• Association of Southeast Asian Nations (ASEAN): beginnings of free trade agreement (since 1994)
among 10 countries: But they do not want China to be a member because China would flood their
countries with cheaper goods.

Trans- Pacific Partnership

• Canada and the remaining members of the previous Trans-Pacific Partnership (2016) agreed IN 2019 to
a revised trade agreement that will forge ahead without the United States, opening distant new markets.
• https://www.cfr.org/backgrounder/what-trans-pacific-partnership-tpp
• The deal comes exactly one year after U.S. President Donald Trump withdrew his country’s support
from the agreement, leaving Japan as the largest player in a new 11-nation pact that spans two
hemispheres.
• Notable: Neither China nor the USA will be members of this trade agreement
• Everyone would like the USA to be part of this, but Trump said “no”.
• Biden mostly likely will sign:
https://www.cnbc.com/2020/11/04/biden-would-want-the-us-to-rejoin-tpp-says-harvard-scholar.html;
https://mainichi.jp/english/articles/20230114/p2g/00m/0bu/006000c
• Why not China? No country wants to give tariff-free access to China, due to currency rate manipulation,
thereby making the price of its exports too low, potentially killing other economies.

Other Regional Trading Blocs

• New Zealand – Australia New Zealand Closer Economic Relations Trade
Agreement (ANZCERTA)
https://www.dfat.gov.au/trade/agreements/in-force/anzcerta/Pages/australia-new-zealand-closer-economic
-relations-trade-agreement
• Caribbean Common Market (CARICOM): English-speaking islands in the Caribbean; common external
tariffs https://hgc.caricom.org/

RCEP
• Regional Comprehensive Economic Partnership (RCEP): free trade agreement between the Asia-Pacific
nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New
Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam.
• https://aric.adb.org/fta/regional-comprehensive-economic-partnership
• Largest free trade agreement in the world.
• Signed: 15 November 2020
• Effective: 1 January 2022
• India and US withdrew under Prime Minister Modi and President Trump.
• intra-East Asian integration around China and Japan.
• Connect about 30% of the world’s people and output and, in the right political context, will generate
significant gains. According to Brookings Institute, RCEP could add $209 billion annually to world
incomes, and $500 billion to world trade by 2030.
•https://www.brookings.edu/blog/order-from-chaos/2020/11/16/rcep-a-new-trade-agreement-that-will-sha
pe-global-economics-and-politics/

Lecture 3 - The Global Economy (PART 2)

Globalization
Because of years of globalization, countries rely on other countries for imports. But the global
supply chain is now in chaos because of the global Covid-19 pandemic.

Many countries are shortening their global supply chains as they want to become more self-
sufficient and not rely on distant foreign partners.
What is globalization? Globalization is the process of interaction and integration among
people, companies, and governments worldwide. Globalization has accelerated since
the 18th century due to advances in transportation and communication technology.
Globalization is the spread of products, technology, information, and jobs across
national borders and cultures. In economic terms, it describes an interdependence of
nations around the globe fostered through free trade.
(https://www.investopedia.com/terms/g/globalization.asp)

Many countries have lost domestic production because they are now out-sourcing their
jobs and component parts to other countries, especially to China because of its low
Costs.

GDP
• Gross Domestic Product (GDP) is the total value in current market prices of all goods and services
produced by residents of a country, and investments into the country, in one year.
• It is equal to the sum of:
• Personal consumption expenditures (purchases)
• Investments
• Government expenditures
• Total of exports minus imports of goods and services
• https://www.imf.org/external/datamapper/profile/CAN

Top 10 countries by GDP (2023)

United states
China
Germany
Japan
India
UK
France
Italy
Brazil
Canada

GDP per capita (per person)

Monaco
Liechtenstein
Luxembourg
Bermuda
Ireland
Switzerland
Cayman Islands
Isle of man
Norway
Singapore

Deglobalization
• Deglobalization is a movement towards a less connected world, characterized by powerful nation states,
local solutions, and border controls rather than global institutions, treaties, and free movement.
(https://www.chathamhouse.org/2021/10/what-deglobalization )
• The most recent era of globalization seems to have come to an end.
• The ratio of global exports of goods and services to world GDP peaked in 2008 and has trended down
ever since.
• According to the World Bank, FDI peaked in 2007 at 5.3% of world GDP and drifted down to 1.3% by
2020.
• The world’s two largest economies, China and the US, have become increasingly hostile, trying to
reduce their dependence on each other for goods and services.
• (https://www.foreignaffairs.com/reviews/gospel-deglobalization-fractured-world-economy )

Global Inflation
• Inflation is a measure of the rate of rising prices of goods and services in an economy -> higher prices
for basic necessities such as food, fuel and rent -> negative impact on society.
• Generally, in developed countries the inflation rate was 2% annually because central banks monitored
this and changed their monetary policies, such as interest rates, to keep it stable.
• Despite the economic impact of the coronavirus pandemic, the global inflation rate fell to 3.23 percent
in 2020, before rising to 4.7% 8.75% in 2021 and 2023, respectively.
• https://www.imf.org/external/datamapper/PCPIPCH@WEO/OEMDC/ADVEC/WEOW
• ORLD

Covid-19 Effects on Inflation

• Economists have attributed the rise in consumer prices over the past year to several factors, including
supply chain breakdowns, labor shortages and a sudden burst of spending after widespread lockdowns
during the COVID-19 pandemic.
• Cost of food: In Canada, -> food supply chain disruptions; labor shortages along several links of the
food supply chain, including production, point-of-sale staffing, and even delivery; weather conditions
have created more problems.
• Elephant in the room-> Price gouging by grocery chains?

(ARTICLES)
https://globalnews.ca/news/9247691/loblaw-big-grocer-profit-inflation-analysis/
Loblaw Companies Ltd. has seen a significant profit surge, outperforming its past five-year average, as
detailed in a report by Dalhousie University. Critics accuse major grocers of profiteering amid soaring
food prices, with Loblaw’s gross profit in 2022 exceeding its previous best by $180 million. In contrast,
Metro Inc. and Sobeys parent Empire Co. posted lower-than-expected profits. The lack of transparency in
grocer financial reports fuels concerns of "greedflation" as food prices rise at the fastest rate in decades.
https://centreforfuturework.ca/2023/12/10/new-data-on-continued-record-profits-in-canadian-food-retail/:
~:text=Industry%2Dwide%2C%20food%20retail%20profits,the%20five%20years%20before%20COVID
. The Centre for Future Work's analysis reveals that Canadian food retail profits have more than doubled
since the pandemic, with net income reaching almost $6 billion in 2022, despite slowing food inflation.
This growth contrasts with the moderation of profits in food manufacturing sectors. The report challenges
claims from grocery chains that they are simply passing on costs to consumers, highlighting a substantial
increase in profit margins. While these retailers argue their low margins, the data shows a strong return on
capital, fueled by significant share buybacks and dividends
https://www.ctvnews.ca/business/grocer-profits-set-to-exceed-record-in-2023-expert-says-ahead-of-comm
ittee-meeting-1.6682465
The CTV News article discusses how grocery store profits in Canada are expected to exceed record levels
in 2023, despite public concerns about high food prices. Experts highlight that while consumers face
inflation, grocers, particularly large chains, are still posting significant profits. The article touches on the
ongoing debate surrounding food price inflation and the role of retailers in contributing to higher costs,
with scrutiny over their financial practices continuing as profits soar.

Recession
• In short, a period of significant decline in economic activity -> ↓ output & investment -> ↓ business
profit -> ↑unemployment.
• The world is reeling from shocks in geopolitics, energy and economics.
• The editors of the Collins English Dictionary have declared “permacrisis” to be their word of the year
for 2022 -> “an extended period of instability and insecurity” -> Ukraine war, soaring food and energy
costs -> highest rate of inflation since the 1980s -> biggest macroeconomic challenge for central banks.

Lecture 4 - Global Warming and Climate Change, Is this reversible? Probably NOT

Videos
• https://www.youtube.com/watch?v=SDRxfuEvqGg
The video "Climate Change 2022: Impacts, Adaptation & Vulnerability" discusses the key tipping points
of climate change, highlighting the crucial moments when small changes can trigger large-scale,
irreversible impacts on ecosystems and human societies. It addresses potential scenarios such as melting
ice sheets, changes in ocean circulation, and biodiversity loss. These tipping points have global
consequences, emphasizing the need for urgent climate action to avoid catastrophic effects.
• https://www.youtube.com/watch?v=MBKZWKeKYqE
The video "What Will Earth Look Like When These 6 Tipping Points Hit?" explores the major
environmental tipping points that could lead to irreversible consequences, such as the collapse of
ecosystems, accelerated ice melt, and changes to weather patterns. It focuses on how these tipping points,
like the Amazon rainforest's decline and the melting of Arctic ice, will drastically impact life on Earth if
not addressed. The video underscores the urgent need for action to avoid triggering these points.

Global Problems with Climate Change

• Greenhouse gas emissions called Green Houses Gases (GHG) are the sum of emissions of various gases
into our atmosphere: carbon dioxide, methane, nitrous oxide, and smaller trace gases such as
hydrofluorocarbons (HFCs) and sulfur hexafluoride (SF6). (CO2 = approx. 76% of GHG by human
activity).
• GHG emissions form a thickening blanket around the Earth’s atmosphere which traps heat on the Earth,
rather than letting heat escape, like a greenhouse that traps heat inside it from the sun for the plants.
• The largest source of greenhouse gas emissions is from burning fossil fuels for electricity, heat, and
transportation.
• If GHG emissions continue unabated, human costs will escalate due to increasing wildfires, oceans
rising and warming, droughts, floods, extreme heat, and glaciers melting rapidly in both the Arctic and
Antarctica as well as in mountain ranges such as the Himalayas.
• Such environmental disasters are already the cause for the increasing number of ‘climate’ refugees.

Global Warming & the Resultant Climate Change

• Global warming is the term used to describe a gradual increase in the average temperature of the Earth's
atmosphere and its oceans, a change that is believed to be permanently changing the Earth's climate. (
http://www.livescience.com/topics/global-warming/ )
• There's a lot of information floating around about climate change. Most people know it has something to
do with industrial pollution, changing weather and car exhaust, and they kind of get what Al Gore was
trying to say in the Inconvenient Truth.
(https://www.youtube.com/watch?v=8ZUoYGAI5i0&ab_channel=YouTubeMovies An audience and
critical favorite, An Inconvenient Truth makes the compelling case that global warming is real,
man-made, and its effects will be cataclysmic if we don't act now. Gore presents a wide array of facts and
information in a thoughtful and compelling way: often humorous, frequently emotional, always
fascinating. In the end, An Inconvenient Truth accomplishes what all great films should: it leaves the
viewer shaken, involved and inspired. )
• Climate change occurs when long-term weather patterns are altered — for example, through human
activity. Global warming is one measure of climate change
(http://www.davidsuzuki.org/issues/climate-change/science/climate-change-basics/climate-change-101-1/
?gclid=CJ3mtLOo-MsCFQQEaQod7mYKkQ )

How It Happens (David Suzuki)

• Life on earth is possible because of the warmth of the sun. While some of this incoming solar radiation
bounces back into space, a small portion of it is trapped by the delicate balance of gases that make up our
atmosphere.
• Without this layer of insulation, Earth would simply be another frozen rock hurtling through space.
Carbon dioxide (CO2) is the most important gas in this layer of insulation.
• Carbon is stored all over the planet — in plants, soil, the ocean, and even us. We release it into the
atmosphere as carbon dioxide through activities such as burning fossil fuels (coal, oil and gas) and cutting
down trees. As a result, today's atmosphere contains 42% more carbon dioxide than it did before the
industrial era.
• We have released so much carbon dioxide and other greenhouse gases that our planet's atmosphere is
now like a thick, heat-trapping blanket.

Major Sources of Greenhouse Gases (GHGs)

• https://www.e-education.psu.edu/geog438w/sites/www.e-education.psu.edu.geog438w/files/im
ages/module8/GHG_emissions_by_sector2.jpg
• Global GHG emissions from energy use and production (27%) far outweigh emissions from other
activities. Most of these emissions come from coal-fired power plants that generate electricity, heat, or
both (through co-generation).
• Increasingly, because supplies are becoming cheaper and more plentiful, natural gas is replacing some of
the generation capacity provided by coal, thereby reducing GHG emissions when there is a direct
substitution of natural gas for coal.
• Power generation from natural gas emits about 50% the emissions of coal, but is nevertheless still a
potent source of GHGs.
• Developing countries such as China and India are building huge numbers of coal-fired power plants and
–– although the newer ones use more advanced technologies that emit about 1/3 fewer GHGs than old
technologies –– are adding vast quantities of GHGs to the atmosphere.
• Transportation accounts for 12% and is rising.

Carbon Sinks
Trees are excellent carbon sinks
• Carbon sinks: natural systems that suck up and store carbon dioxide from the atmosphere.
• Natural carbon sinks are plants, the ocean and soil.
– Plants grab carbon dioxide from the atmosphere to use in photosynthesis; some of this carbon is
transferred to soil as plants die and decompose.
– Oceans are a major carbon storage system for carbon dioxide. Marine animals also take up the gas for
photosynthesis, while some carbon dioxide simply dissolves in the seawater.
• “Combined, the Earth’s land and ocean sinks absorb about half of all carbon dioxide emissions from
human activities,” – Paul Fraser (Commonwealth Scientific and Industrial Research Organization).
• Sinks in danger due to deforestation and human-induced weather changes that are causing the oceanic
carbon dioxide “sponge” to weaken, a new study says.
• http://www.livescience.com/32354-what-is-a-carbon-sink.html

North America and Europe focusing on Renewables (Solar, Wind, Hydrogen)

Dirty coal is back due to Ukraine war:

https://www.dw.com/en/how-colombias-dirty-coal-fuels-germanys-energy-transition/a-67583407
The article explores the environmental and human rights issues surrounding Colombia's El Cerrejón coal
mine, which supplies coal to Germany. Local communities, particularly the Afro-Colombian Chancleta,
have been displaced by the mining operations, facing deteriorating living conditions. While Germany’s
energy transition is supposed to be values-driven, critics argue that coal imports from Colombia contradict
these values due to the severe social and environmental harm caused. Activists are calling for greater
transparency and adherence to human rights and environmental standards.

The Ukraine war has led to a resurgence in the use of coal in Europe, as countries like Germany seek
energy security amid disruptions to natural gas supplies. Despite progress in renewable energy, many
nations have turned back to coal to meet energy demands, exacerbating environmental concerns. This
situation highlights the challenges of balancing energy transitions with geopolitical realities.

Major Effects of Climate Change

• Climate change is already having a significant impact on ecosystems, economies and communities.
• Some regions will experience more extreme heat while others may cool slightly.
• Flooding, drought and intense summer heat could result.
• Violent storms and other extreme weather events could also result from the increased energy stored in
our warming atmosphere.
• One of the most serious impacts of climate change is how it will affect global water resources.
• Water is intimately tied to other resource and social issues such as food supply, health, industry,
transportation and ecosystem integrity.
• The global meltdown of ice sheets and alpine glaciers represents another, serious impact taking an
immense toll on Arctic ecosystems.
• (http://www.davidsuzuki.org/issues/climate-change/science/impacts/impacts-of-climate-change/)

Himalayan Meltdown
• The Himalayas are the tallest mountains in the world and their glaciers comprise 40% of the world’s
fresh water.
• Life blood of Asia – billions of people depend on this vital source of water.
• Himalayan glaciers are the source of water for 5 major rivers:
– Indus (Pakistan)
– Ganges (Nepal, India)
– Mekong (China, Myanmar, Thailand, Lao PDR, Cambodia and Viet Nam)
– Yangtze and Yellow (China)
• The glaciers are melting rapidly due to global warming!
• www.youtube.com/watch?v=oS3eWowJJ3M
The Himalayan Meltdown is a documentary film co-produced by the UN Development Programme,
Discovery Asia, and Arrowhead Films. The movie examines the human development impact of the glacial
ice melt on communities in Bangladesh, Bhutan, China, India and Nepal. It shows the plight of the
affected countries and the ways they are adapting, adjusting and preparing for tomorrow's inevitable
changes in the Himalayan glaciers.
It features innovative fog-catching in Nepal, man-made glaciers in India, views of life in the changing
plateaus of China, and pioneering UNDP climate change adaptation projects in Bhutan and Bangladesh.

Desertification: Formerly Green Areas are Becoming Deserts

• Desertification: is the persistent degradation of dryland ecosystems by variations in climate and human
activities (home to over a third of the entire human population and they occupy nearly half of Earth’s land
area).
• Affects the livelihoods of millions of people who rely on the benefits that dryland ecosystems can
provide.
• Some 10 to 20% of drylands are already degraded, and ongoing desertification threatens the world’s
poorest populations and the prospects of poverty reduction.
• One of the greatest environmental challenges today and a major barrier to meeting basic human needs in
drylands.
•(https://savory.global/what-is-desertification-and-how-can-we-solve-it/?gclid=CjwKCAiApfeQBhAUE
wA7K_UH4k73XKxFJfr0ECYxFSQOM3Ot2sogyVxmLkGvc7TnTF2gLZYqvWR_hoC_eMQAvD_BE )

Polar Ice Caps are Melting

• The polar ice caps are melting six times faster than in the 1990s, according to the most complete
analysis to date.
• The ice loss from Greenland and Antarctica is tracking the worst-case climate warming scenario set out
by the Intergovernmental Panel on Climate Change (IPCC)
• https://www.scientificamerican.com/article/melting-ice-sheets-could-worsen-extreme-weather/

Rising Oceans
• The Intergovernmental Panel on Climate Change (IPCC) projections forecast a sea-level rise of 52-98
cm by 2100 if greenhouse emissions continue to grow, or of 28-61 cm if emissions are strongly curbed.
• The majority of this rise is likely to come from three sources: increased ocean expansion; glacier melt;
and surface melting from the Greenland ice sheet. These factors will probably be offset to an extent by a
small increase in snowfall over Antarctica.
• With continued emissions growth, it is entirely possible that the overall rate of sea-level rise could reach
1 m per century by 2100 — a rate not seen since the last global ice- sheet melting event, roughly 10,000
years ago.
• Every fraction of a degree of global warming sets in motion sea level rise that will profoundly threaten
coastal cities across the world.
• Most of the coastal US would be under water, including cities like New York, Boston, LA, San
Francisco
• Arctic Ice is melting
(http://www.livescience.com/54191-arctic-sea-ice-cover-2016.html?li_source=LI&li_medium=most-popu
lar )

Wildfires
• Wildfires that have devastated California, Australia and Siberia will become 50% more common by the
end of the century, according to a new report that warns of uncontrollable blazes ravaging previously
unaffected parts of the planet.
• Likely to increase by a third by 2050, warns UN (Feb. 23, 2022)
• It is already happening in several countries in Europe, such as Portugal, Spain, Greece and Turkey.
• Wildfires are becoming an expected part of life on every continent, except Antarctica, destroying the
environment, wildlife, human health and infrastructure.
• 2016 Fort McMurray

Floods and Droughts

• Floods in Pakistan in Summer 2022: https://youtu.be/aTR2nDTDRx4 (nearly 6mil without shelter,
global climate crisis)
• Recent floods in California: https://www.bbc.com/news/world-us-canada-68202944 (California has
recently experienced significant flooding events, primarily due to atmospheric rivers—long, narrow bands
of concentrated moisture in the atmosphere. These systems have brought heavy rainfall and snow to the
state, leading to widespread flooding and mudslides.)
• Droughts in Horn of Africa: Somalia and other countries in the Horn of Africa have been facing a severe
drought of over 5 years.
– There crops are dead as are many of their animals from the lack of water.
– Their children are dying because of lack of food and water.
• https://youtu.be/YuyLbK_jeRU
Stress in the Oceans: Great Barrier Reef
• Australia's Great Barrier Reef corals are in trouble.
• GBR experienced bleaching events in 1998 and in 2002, but the current mass bleaching is much more
severe, experts are saying.
• 95% of the GBR's northern reefs are currently showing signs of extreme bleaching, compared with 18%
that experienced bleaching in 2002.
• Bleaching happens when corals are exposed to stresses such as warmer-than-average waters for
prolonged periods of time.
• Corals respond to the stress by expelling the algae that provide them with their color, which makes the
corals look like they've been bleached white.
• Bleaching can be fatal for corals if the stress is too intense, or if it continues for too long and the algae
are unable to recolonize them.
• http://www.livescience.com/54272-great-barrier-reef-worst-coral-bleaching.html

Climate Refugees
• Global warming could create 150 million 'climate refugees' by 2050
• Environmental Justice Foundation report (2009) says 10% of the global population is at risk of forced
displacement due to climate change
• Nearly 1/3 of coastal countries have more than 10% of their national land within 5 metres of sea level.
Countries liable to lose all or a significant part of their land in the next 50 years, said the EJF report,
include Tuvalu, Fiji, the Solomon islands, the Marshall islands, the Maldives and some of the Lesser
Antilles.
• Bangladesh, Kenya, Papua New Guinea, Somalia, Yemen, Ethiopia, Chad and Rwanda, could see large
movements of people. Bangladesh has had 70 climate- related natural disasters in the past 10 years.
• WHERE WILL THEY GO?
• More than 13 million Americans could become climate refugees by 2100 if the worst sea-level rise
comes to pass, new research suggests.
• Rising seas caused by climate change could permanently flood hundreds of U.S. counties. The
hardest-hit county will be Miami-Dade, Florida, where 2 million people could be forced to relocate.
Florida is home to about half of these potential U.S. climate refugees.
• (http://www.livescience.com/topics/global-warming/)

Paris Climate Agreement (November 2016)

• Signed by 200 countries in December, 2015 and approved in Nov 2016
• Paris Agreement’s central aim is to strengthen the global response to the threat of climate change by
keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels
and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
• Agreement aims to strengthen the ability of countries to deal with the impacts of climate change.
• To reach the goals, appropriate financial flows, a new technology framework and an enhanced capacity
building framework will be put in place, thus supporting action by developing countries and the most
vulnerable countries, in line with their own national objectives (rich countries will help the poor
countries to reach their commitments).
• Agreement also provides for enhanced transparency of action and support through a more robust
transparency framework (reporting).
• Most countries not meeting the target.

Implementation
• The Paris Agreement requires all Parties to put forward their best efforts through “nationally determined
contributions” (NDCs) and to strengthen these efforts in the years ahead.
• Each country sets its own targets and has put forward a national plan to reduce their greenhouse gas
emissions.
• All Parties will report regularly on their emissions and on their implementation efforts.
• There will also be a global stock take every 5 years to assess the collective progress towards achieving
the purpose of the Agreement and to inform further individual actions by Parties.
• http://unfccc.int/paris_agreement/items/9485.php

Going Nuclear for Electricity

• Nuclear power can provide energy anytime and anywhere -> low carbon
• Not a vaccine for climate change, but it is an important component to reducing carbon emissions on the
scale required.
• Produce no GHG emissions -> produces about the same amount of carbon dioxide-equivalent emissions
per unit of electricity as wind, and one-third of the emissions per unit of electricity when compared with
solar.
• Small nuclear energy reactors are now available -> Modular, relatively inexpensive
• Environmental concern -> radioactive wastes such as uranium mill tailings, spent (used) reactor fuel,
and other radioactive wastes -> can remain radioactive and dangerous to human health for thousands of
years.
• Chernobyl, Fukushima

Potential Solutions
Overall, we must drastically cut greenhouse gases, mostly CO2 to keep the global
warming below 2°C:
1. Don’t use fossil fuels for power generation (use nuclear, hydro, solar, wind,
geothermal).
2. Replace combustion engines in vehicles with batteries (electric vehicles).
3. Consumer preferences – fast fashion, flights (one of the largest carbon
footprints).
4. Walk or cycle more.
5. Reforestation (plant trees) – they capture and store carbon dioxide.
6. Scrubbers/filters in smokestacks.
7. Stop fracking for shale gas, which produces a lot of methane gas.
8. Make polluters pay: carbon tax.
9. Buy locally grown food to reduce transportation.
10.More importantly -> consume less!
Lecture 5 - cultural variables

What is Culture?
“Culture is a set of beliefs and values about what is desirable and undesirable in a
community of people, and a set of formal or informal practices that support the
values.”
Beliefs: Beliefs are the convictions that we generally hold to be true, usually without actual proof or
evidence.
Values: Our values are things that we deem important and can include concepts like ‘“ equality, honesty,
education, effort, perseverance, loyalty, faithfulness, conservation of the environment and many, many
other concepts.
(http://www.differencebetween.net/language/difference-between-values-and-beliefs/#ixzz2Jm7VdCaI )

Do We Have A Choice?
• Our culture is programmed into us when we are babies and as we grow up, by our family, friends,
schools, religion – we do not have a choice
• When we move to a different culture, we can change some of our ideas or beliefs, but our native culture
will still be there, often creating a conflict in our mind
• When we refer to a country’s culture, we have to remember that we are stereotyping (assuming that
everyone is the same), but we are really looking at the mean on a normal population distribution curve,
and there will be “outliers” (people who are very different)
• Culture shock: confusion and discomfort a person experiences in an unfamiliar culture

Cultural Clusters – GLOBE Study(2004)

• We refer to a “common cultural heritage” for people from a particular culture
• To share a common culture, people generally are from the same geographic area
or country, they have a shared history, they speak the same language, and often they have the same
religion
• Identified 10 clusters of countries, using both cultural and climatic data:
• Latin America
• Anglo
• Latin Europe
• Nordic Europe
• Germanic Europe
• Confucian Asia
• Middle East
• Southern Asia
• East Europe
• Note: There were no African countries included in this research
* “Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies”, SAGE Publications:
2004.

Cultural Dimension: Power Distance

• From Geert Hofstede’s (1980) “Culture's Consequences” based on IBM employees around the world in
the mid-1970’s
• “Power Distance” reflects the extent to which a community accepts and endorses authority, power
differences, and differences in status privileges.
• Inequalities based on status have always existed in societies.
• What does this mean when negotiating with foreign clients or customers in a culture with high power
distance?
• People in some cultures prefer to negotiate only with people of equivalent rank.
• The senior person should walk into the room first and sit first.
• Shake hands with and address the most senior person first.
• Do not use first names, sometimes just the
title.https://www.hofstede-insights.com/product/compare-countries/

Cultural Variable: Uncertainty Avoidance

• Uncertainty avoidance is the tolerance for uncertainty in coping with issues like new technologies,
challenges to religious beliefs, rules, and rituals.
• Does a culture avoid uncertainty and the resultant high anxiety by imposing numerous rules and rituals,
or does it embrace an unstructured environment?
• This mostly about following tradition

Cultural Dimension: Individualism - Collectivism

• Individualism - Collectivism dimension assesses whether an individual's first priority is to him/herself,
or whether it is to his/her social group (family, community, firm, etc.).
• In some societies, individualism is viewed as a blessing and a source of inspiration and motivation; in
others, it is seen as alienating and the source of instability.

Masculinity – Femininity
• Also called “Career Orientation versus Quality of Life” or “Assertiveness vs Humane Orientation”
• “The degree to which individuals encourage and reward individuals for being fair, altruistic, friendly,
generous, caring and kind to others” (GLOBE 2004).
• Masculinity - Femininity assesses whether a culture prefers masculine tendencies (aggressive) versus the
traditional female role of being nurturing and supportive.
• Masculine - Feminine
• aggressive nurturing
• competitive supportive
• firm flexible

Cultures and Global Diversity

Stages in adjusting to a new culture:
• Confusion
• Small victories
• The honeymoon
• Irritation and anger
• Reality
Gender Egalitarianism
• One of the two dimensions developed to reflect part of Hofstede’s masculinity index
• “The degree to which an organization or a society minimizes gender role differences while promoting
gender equality” (GLOBE 2004)
Most Equal
Hungary
Russia
Poland
Slovenia
Denmark
Namibia
Kazakhstan
Sweden
Canada
Least Equal
South Korea
Kuwait
Egypt
Morocco
Zambia
Turkey
India
Iran

Gender Egalitarianism
• HIGH GENDER EGALITARIANISM societies have characteristics such as:
• More women in positions of authority.
• Less occupational sex segregation.
• Similar levels of educational attainment for males and females.
• Afford women a greater decision-making role in community affairs.
• LOW GENDER EGALITARIANISM societies have characteristics such as:
• Fewer women in positions of authority.
• More occupational sex segregation.
• A lower level of female educational attainment, compared to that of males.
• Afford women little or no decision-making role in community affairs.

Cultural Variable: Approach to Time

• Some societies believe that time is an absolute - everything must be done according to schedule
(monochronic); other societies view time as flexible - there is no rush because time flows on
(polychronic).
• Monochronic cultures like to do just one thing at a time.
• They value a certain orderliness and sense of there being an appropriate time and place for everything.
• They do not value interruptions.
• They like to concentrate on the job at hand and take time commitments very seriously as well as adhere
religiously to plans.
• Polychronic cultures like to do multiple things at the same time.
• A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all
going on at the same time.
• Though they can be easily distracted they also tend to manage interruptions well with a willingness to
change plans often and easily.
• Issues such as promptness are firmly based on the relationship rather than the task and objectives are
more like desirable outcomes than must do's. (Almost everything is late).

Honesty versus Saving Face

• Is truth absolute or relative?
• Is it better to tell the “truth” and hurt someone or tell a “little white lie” to help someone save face?
• Saving face signifies a desire to avoid your own humiliation or embarrassment, to maintain dignity or to
preserve your reputation. (Think of it as saving your dignity.)
• Most of us have been guilty of embarrassing or humiliating someone, either willfully or inadvertently.
Even when not angry, we may accidentally cause another person to lose face due to misunderstanding or a
lack of information. Generally this happens when we embarrass someone in front of other people, such as
their fellow employees.
• When you cause someone to lose face in front of others, you in turn lose face in their eyes.
• Example: “Why are you late again today?” said in front of coworkers.

Personal Space
• How big is your “bubble”?
• the personal space that you need to feel comfortable
• English-based societies and northern Europeans generally have a big bubble and don’t like to be touched
or for others to get too close
• Middle Easterners, Latin Americans and Asians generally have small personal bubbles, they are also
more comfortable with touching others of the same gender eg. holding hands, hugging

Hospitality
• This is an crucial aspect of social conduct in many cultures
• Be prepared to offer and accept hospitality
• Taking gifts to the home may be expected
• Consult a “Business Culture guide” before visiting any country on business
• Example: Doing business in Japan
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Cultural Convergence – New Shared “Customs” Globally

• In the GLOBE study, global respondents asked to fill out 2 questionnaires: your cultural “as is” and
“should be”.
• Most people understand the traditional beliefs and values in their country, but many said that there are
now global values, which they would prefer.
• This cultural convergence comes mainly from sharing movies, videos, fashion magazines, international
stores and advertising, shared curriculum in schools and universities, and a wish to be seen as “global”.
• This sometimes creates friction with their families.
• The internet has increased the convergence of cultures.