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
http://video.google.co.uk/videosearch?hl=
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

http://video.google.co.uk/videosearch?q=naoimi+kelin&hl=en&emb=0&aq=f#hl=en&
Video on anti globalisation
http://video.google.co.uk/videosearch?
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
 http://www.globalisationguide.org/01.htm
1
 http://www.leedsdec.org.uk/positively_glo
2
 http://media.ft.com/cms/bab8b306-04cc-
4