Globalisation

Karl Fisch: “Shift Happens” (link)

Globalisation video

Shift happens:

Karl Fisch high school administrator at school in This was later generalised and improved by Scott Mcleod a professor at Univ. of Minnesota.

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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

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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

What drives globalisation?

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
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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
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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
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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
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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
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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
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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:
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USA UK Japan France Italy Germany

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Meet in Paris to discuss economic issues 1977 Canada and Russia join Rolling presidency country who holds presidency set issues

EU

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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
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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
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www.fairtrade.org.uk www.eti.org.uk

Effects of globalisation

financial cultural economic social technology

language

effects of globalisation

industrial

law travel environmental

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
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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 antiglobalisation 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 5

ref

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
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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
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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
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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

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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 the Reconstruction and Development(IRBD)

International Development Association (IDA)

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Middle income countries credit worthy companies poor companies

International bank for reconstruction and development

International development association

Loans to the poorest countries

Trans nationals

Trans nationals
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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/bab8b306-04cc4

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