Welcome to Globalization

1
Welcome to Globalization
2
So what is globalization anyway?

• Globalization could be described as a process by
  which time and distance cease to be major
  constraints in the organization of human activity
  (Harvey 1989)
• Technology has enabled us to diminish distances
• And, to speed up processes
• So, how does this affect human organization,
  interaction, and social sustainability?

3
Defining Globalization

• Human societies across the globe have established
  progressively closer contacts over many
  centuries, but recently the pace has dramatically
  increased.
• Jet airplanes,
• cheap telephone service,
• email,
• computers,
• huge oceangoing vessels,
• Finance and banking

http//www.globalpolicy.org/globalization.html
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Defining Globalization

• In many ways, the world has become more
  interdependent than ever.
• Multinational corporations manufacture products
  in many countries and sell to consumers around
  the world.
• Money, technology and raw materials move ever
  more swiftly across national borders.
• ideas and cultures circulate more freely
• As a result, laws, economies, and social
  movements are forming at the international level.
  But for billions of the world's people,
  business-driven globalization means uprooting old
  ways of life and threatening livelihoods and
  cultures.

5
Dissecting Globalization

• Can you think of different aspects or types of
  Globalization?
• Technology
• Economy
• Culture
• Politics
• People
• Environmental/Ecological Issues

http//www.globalpolicy.org/globalization.html
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Issues to Consider

• http//www.pbs.org/frontlineworld/stories/ghana804
  /

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Global Markets and Corporate Power

• The trend has been toward economic globalization
• Economic enterprises that engage in business
  activity around the globe
• The global economy of today was brought on by two
  social forces
• Modern speed of communication
• Modern speed of transportation

8
Multinational Corporations

• Multinational or transnational corporations are
  corporations that operate in a number of
  countries
• Multinationals have their headquarters in one
  country while operating business activity in
  other countries
• There has been a significant growth of
  multinationals since WWII

9
Multinational Corporations

• Multinationals often move to where costs of
  production are low and shift profits to where tax
  write-offs are high. This is known as
  outsourcing
• Loss of jobs in developed countries where labor
  costs are often higher
• Contribute to poverty in developing countries by
  shifting profits out to more developed countries

10
Global Factory, Global Sweatshops

• Multinationals have been transforming the worlds
  economy
• One development has been the global factory
• Two factors have made possible the globalization
  of production
• 1. High speed transportation
• 2. Component production

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Global Factory, Global Sweatshops

• Two issues related to the global factory are
• Outsourcing of work and the loss of jobs in
  America
• Sweatshops and the hiring of child or prison labor

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Effects on American Workers

• Decline in the number of employers and the
  concentration of markets by large corporations
• Export of capital and jobs overseas
• Biggest job losses have been in manufacturing
• In industrial cities of the Northeast and Midwest

13
Effects on American Workers

• There have been three major changes of labor
  force in America due to the global economy
• 1. Shift from manufacturing jobs to service jobs
• 2. Increase in the number of women in the global
  labor force
• 3. Emergence of new technologies and
  unprecedented economic growth in the last ten
  years

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From Manufacturing to Services

• Decline in farm employment
• Decline in blue-collar employment
• Growth in white-collar employment
• There has been a shift away from manufacturing
  jobs to jobs within the service sector of the
  economy

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From Manufacturing to Service

• The shift in manufacturing jobs to service jobs
  has resulted in a decline in union membership
• In 1960, 27 percent of employees in the private
  sector belonged to a trade union today that
  figure is 11 percent
• Another trend in the shift from manufacturing to
  service jobs has been the growth of contingent
  work- work not based on a written contract with
  regular hours

16
Women in the Global Labor Market

• Labor force defined - 16 and over who worked one
  hour a week or over or are out of work and
  actively looking for work during the survey week
• Major change is the growth of married women and
  the exclusion of older men in the labor force
• Women comprise well over 40 percent of the labor
  force

17
Women in the Global Market

• Approximately 6 percent of both men and women
  hold multiple jobs
• Most multiple job holders hold two or more jobs
  to pay bills
• Many hold two jobs because of part time work and
  the lack of a full time job
• Women work part time because of
• Schooling
• Family and the lack of affordable childcare

18
Technology and Specialization

• Economic growth in the U.S. was fueled by a
  number of new technologies
• Computers
• Telecommunications
• Biotechnologies
• E-commerce
• There has been a rapid growth in the application
  of computers to work

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Technology and Specialization

• Technology
• Computer and telecommunications technology has
  lead to the creation and growth of
• Internet-related businesses
• Internet commerce has led to the shift of jobs
  from a central location to home-based
  self-employment enterprises
• New technology will lead to job losses in
  traditional industries

20
Job Insecurity and Unemployment

• The economic downturn in the financial market
  along with the events of September 11, 2001 have
  led to an increase in job insecurity
• Loss of blue-collar jobs
• Loss of managerial and professional jobs
• Long term unemployment
• Many have experienced downward mobility

21
Consumers and Credit

• U.S. economy is based on consumerism
• Effects of a strong emphasis on consumption has
  been
• An overemphasis on materialism and reducing an
  individual down to the sum of their material toys
  as a measure of self worth
• Dominance of large corporations and franchises
  and a decline in small businesses

22
Problems of Debt Entanglement

• Transformation from a cash to credit society
• Increase in consumer debt
• Debt and bankruptcy
• Many bankruptcies are due to
• Divorce
• Medical expenses
• Loss of financial investments

23
Politics and Social Policy

• Two major factors have altered the world economy
• Global terrorism
• Globalization
• Policies and politics will focus on issues of
  free-trade and the expansion of markets
• NAFTA
• Most favored trade status of China