L4:THE STRUCTURE OF GLOBALIZATION AND IT’ S GLOBAL GOVERNANCE

Legitimation
The claim to legitimacy by ruling authority and the belief in the authority’s legitimacy by its
subjects.

Integration
Provides the society with stability as it creates, preserves and protects the persons and groups.

North American Free Trade Agreement (NAFTA)

NAFTA is a free trade pact between the United States, Mexico, and Canada created on January
1, 1994.

Capitalism and Socialism

Capitalism is a system in which all natural resources and means of production are privately
owned.
It emphasizes profit maximation and competition as the main drivers of efficiency.

Socialism
The property is owned by the government and allocated to all citizens, not only those with money
to afford it.
Socialism emphasizes collective goals expecting everyone to work for the common value on
everyone’s basic needs than on individual profit.

Communism
It is a political and economic system in which all members of a society are socially equal.

Reasons for market integration

*To remove transaction costs
*Foster competition
*Provide better signals for optimal generation and consumption decisions.
*Improve security of supply

Newly Industrializing Countries (NIC’s)

7 NIC’s including China, South Korea, Mexico, Brazil, India, Indonesia & Thailand in order.

China
2nd largest exporter of manufactured goods Brazil & India rank 9th& 10th.

Asian NIC’s manufacturing growth is highest Asian “Tigers”

Largest gains in manufacturing growth:

*South Korea
*Hong Kong – separate political entity from China
*Taiwan
*Singapore
*Malaysia
*Thailand
All have access to Ocean Port shipping for Export
1
Geographies of Office Employment Decentralization
Back-office functions means rote jobs with job security.
Outsourcing Temporary workers with no rights.
Clusters of specialized offices
Offshore financial centers

Future Geographies
*Availability of resources
*Expansion of world economy
*Globalization of industry

Transportation technologies
*High-speed rail systems
*Smart roads
*Smart cars

GLOBAL GOVERNANCE
One World
A nearly 8 billion souls living on this hurtling through empty space. Many peoples
with different ethnicities, languages, beliefs, religions, traditions, resources, capacities,
knowledge and desires.
• refers to the various intersecting processes that create an international order
• A long history of conflicts but we have nevertheless created a global civilization based on
ever more sophisticated ways of cooperating amongst ourselves.
• The sum of laws, norms, policies, and institutions that define, constitute, and mediate
trans-border relations between states,
cultures, citizens, inter-governmental and non-governmental organizations,and the market.
• A rule-based order with no central authority or government

GOVERNANCE
The governance challenge requires a quantum leap in our ingenuity and our
commitment to one another.

SOLUTIONS
Diplomacy is used to modify the anarchic nature of international relations
1. International agreements
- states that break these rules are called rogue states
2. International law
- the collection of rules and regulations that define the
rights and obligations of states

INTERNATIONAL ORGANIZATIONS
1. INTERNATIONAL governmental organizations (IGO)
2. INTERNATIONAL NON-governmental organizations (INGO)

Powers of International Organizations

1. The power of classification
2. The power of creating and fixing meanings
2
 3. The power of diffusing norms and setting standards

ASS:
Identify the roles and functions of the United Nations
What are the challenges of global governance in the 21st century
How is the world governed in the absence of a world govt?