What we know

1
What we know

• Collapse of USSR and communism
• East Asian strategy success
• Info-Tech revolution
• US is not declining US system is not declining
• Regionalism (From Rourke)
• NAFTA - FTAA
• EU
• APEC

2
Globalization (in class)Summer 2008

• Pro
• Spreads wealth
• Spreads technology
• Spreads cultures (Chinatown and Little Italy in
  NY)
• Increased competition
• Forces countries to be competitive
• Less conflict war is bad for business
  (Interdependence)

• Con
• Illegal commerce (smuggling)
• human trafficking)
• Rule of law hasnt caught up
• Cultural imperialism homogenization of cultures
• Does not include everyone

3
Globalization (in class)Summer 2008

• Pro
• Creates jobs in the developing world
• More communication spreads knowledge
• Acceptance of differences less racism
• Crappy jobs better than no jobs
• Drives down prices

• Con
• Competition for domestic markets
• Job losses in rich nations
• Wages go down
• Environmental damage
• Labor rights

4
Globalization (in class)Summer 2008

• Pro
• Rising incomes
• World Bank report on Africa
• Are there any other alternative ideas?
• Nothing else has worked to increase wealth and
  spur development
• How would you stop it if you wanted to?

• Con
• Rising inequality
• Smart vs. dumb globalization (exploiting
  resources vs. careful strategy that mixes
  integration with world economy and protection of
  domestic economy as S. Korea has done).

5
Growth Rates/Inequality

• Wealth upper income
• middle income
• poor
• Time

6
Questions

• Alternatives to globalization?
• How would you stop globalization, if you wanted
  to, without restricting peoples freedom?
• Is the answer this building a better
  globalization?
• Environment
• Labor rights
• health

7
Globalization (in class)Fall 2007

• Pro
• Drives down prices
• Creates jobs in poor countries
• Crappy jobs better than no jobs
• Increases agricultural output
• Education
• Interdependence (peace)

• Con
• Drives down prices
• Creates crappy jobs in poor countries Reduces
  quality of products
• Reduces wages in rich countries
• Outsourcing job loss in rich nations

8
Globalization (in class)Fall 2007

• Pro
• CEO no labor rights
• Rising incomes lead to democracy
• Rising living standards
• Mixture of cultures
• Info-tech

• Con
• Exploitation of resources
• Exploit the labor
• SEZs
• Loss of farming
• Urbanization
• Labor rights
• Ignores human rights
• Cultural imperialism
• Terrorism and organized crime are easier

9
Globalization (Newmann added)Fall 2007

• Pro
• Greater access to products
• Greater access to medical technology
• Ease of travel
• pressure on authoritarian governments to change
• Nothing else has worked

• Con
• Greater spread of disease
• governments lose control of their own economy
  (foreign investors determine economic life in
  small nations)
• Rapid movement of investment and factories
  creates economic instability
• Westernization