Transcript Welcome to Globalization

Welcome to Globalization
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?
Defining Globalization
• Human societies across the globe have
established progressively closer contacts over
many centuries, but recently the pace has
dramatically increased.
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Jet airplanes,
cheap telephone service,
email,
computers,
huge oceangoing vessels,
Finance and banking
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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.
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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.
Dissecting Globalization
• Can you think of different aspects or types
of Globalization?
• Technology
• Economy
• Culture
• Politics
• People
• Environmental/Ecological Issues
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Issues to Consider
• http://www.pbs.org/frontlineworld/stories/ghana804/
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
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
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
Global Factory, Global Sweatshops
• Multinationals have been transforming the world’s
economy
• One development has been the global factory
• Two factors have made possible the globalization
of production
» 1. High speed transportation
» 2. Component production
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
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
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
From Manufacturing to Services
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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
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
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
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
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
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
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
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
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
Politics and Social Policy
• Two major factors have altered the world
economy
• Global terrorism
• Globalization
• Policies and politics will focus on issues of freetrade and the expansion of markets
» NAFTA
» Most favored trade status of China