Global Interactions
1. Measuring Global Interactions

Define globalization the growing interdependence of countries worldwide through the increasing volume and
variety of cross-border transactions in goods and services and of international capital flows, and through the
more rapid and widespread diffusion of technology.
 Describe a globalization index
AT Kearney
KOF Index
What is it?
Global management consulting firm
Swiss Institute for Business Cycle Research, 2008. Definition
founded in 1926, Chicago. Analyses 62 of globalisation: the process of creating networks of
countries, 96% of world’s GDP, 85% of connections among actors at multi-continental distances,
world population.
mediated through a variety of flows including people,
information and ideas, capital and goods. A process that
erodes national boundaries, integrates national economies,
cultures, technologies and governance and produces
complex relation of mutual independence. Examines 122
countries.
Aspects of
Economic
 International
Economic
 Actual flows (Trade, FDI, portfolio,
globalisation Integration
trade
globalisation
income payments)
 Foreign direct
 Restrictions (import barriers, tariff
investment.
rate, taxes on trade, capital account
restrictions)
Political
Participation in:
Political
 Embassies in the country
engagement
 Treaties
globalisation
 Membership in international
 Organisations
organisations
 Peacekeeping
 Participation in UN Security Council
missions
 International treaties
Personal
 Telephone
Social
 Personal contact (telephone traffic,
Contact
 Travel
globalisation
transfers, international tourism,
 Remittances.
foreign population, international
letters)
Technological Number of:
 Information flows (internet users,
connectivity
 Internet users
televisions, trade in newspapers)
 Hosts
 Cultural proximity (McDonald
 Secure servers.
restaurants, IKEA stores, trade in
books)
- AT Kearney is a global management consulting firm.
- The AT Kearney Foreign Policy index measures twelve variables, which are subdivided into four “baskets”:
economic integration, personal contact, technological connectivity and political engagement. Nations are ranked
according to a calculated globalization index.
- Value of 1 given to highest data values for a variable, and others ranked as fractions of 1 so score is directly
dependent on other countries
- E.g. Singapore ranked number 1 (describe it), Iran number 62 (describe it).
Evaluate the AT Kearney index
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Over 70 countries are ranked, covering nearly 100% of world’s GDP and 90% of world’s population, including
developed and developing countries to provide a comprehensive and comparative representation.
Takes into account the different aspects of globalization for holistic measure.
Scaled according to rise/decline in GDP since a base year, so factors in changing economic context.
Can compare according to various factors e.g. Malaysia had low level of technological connectivity but ranked
highly for economic integration, second only to Singapore (world’s most globalized nation).
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But does not include all countries.
Looks at country as a whole using average, not accounting for internal disparities.
Not all variables in different aspects included.
Remittances from illegal or legal migrants
Local or global media on TV.
Describe how the index may be represented spatially: a choropleth world map with one colour for every range of
ranks.
IB definition of core and periphery: the concept of a developed core surrounded by an undeveloped periphery. The
concept can be applied at various scales.
Describe the core-periphery model
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The Core and Periphery model shows the unequal distribution of activity/power in politics, societies and
economies by mapping core areas at the focus of global interactions, and peripheral areas as unaffected by
these interactions.
The global triad describes the structure of world economy – tripolar core of North America, Europe, and East
Asia. These macro-regions contain about 85% of world GDP and world merchandise exports, as well as focus of
FDI.
Pattern within core-periphery model shifting production and industrial relocation to semi-periphery where labour
costs lower but profits tend to remain in core.
Examples of countries in core-periphery model USA is a core country, Malaysia is a semi-periphery and Cambodia is
a peripheral country.
2. Changing Space: the shrinking world
Explain how a reduction in the frictional effect of distance results in time–space convergence.
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Frictional effect of distance suggests that areas closer together are more likely to interact, and this frictional
effect is decreasing.
These improvements have increased speed, efficiency and capacity, and lowered costs of overcoming the
frictional effect of distance.
Time-Space convergence rate: Reduction in the time taken to travel between two places due to improvements
in transportation or communication technology. Expressed in mins/year.
Time-space distance: maps show this based on relative time accessibility by schedules airline. Major cities are
closer together, whereas isolated areas e.g. Papua New Guinea, are further away.
Examine the relative changes in the speed and capacity of shipping responsible for the flow of goods, materials
and people.
Introduction of containerization
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Standardized, stacked containers have increased load of goods and materials, which have lowered costs of
economic trade through economies of scale where costs of shipping are spread over all the goods.
Container ships now equipped with specialized handling devices for carrying machine parts and high-valued
manufacturing components or perishables: increased capacity for range of goods and materials.
Introduction of steam engine
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Journey by sailing ship across Atlantic Ocean from Europe to North America took 55 days
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Reduced to one week with further technical development of steam-ships
Increased migration and facilitated trade, including of perishable items
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Increasing capacity further
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Size of container boxes and vessels are both increasing, average of 10% annually this century
Examine the relative changes in the speed and capacity of airplanes responsible for the flow of goods, materials
and people.
Introduction of jet engine
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More fuel efficient and better suited for long distances: faster
Costs decreasing in relative terms, and frequency and scale of flights increasing, so have allowed LDCs like
Kenya to sell perishable agricultural/horticultural goods to Europe, Middle East and North America: Kenya
has 1/3 of global market for cut flowers
Introduction of commercial jet aircraft
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Expanded capacity to civilians: tourism expanded
Expanded capacity to professionals: growth of TNCs and take off of commercial jets both occurred 1950s
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Expanded capacity to cargo: growth of trade of goods and materials
Case Study: Changing nature of air transport in China

Context and history of China’s air transport network
Though aviation was introduced in China during the early 1900s, low economic development and civil unrest leading
up to WWII inhibited progress aviation. Focus was on military transportation. Only during Liberation (1950s) were
matters suitably stabilized.

Examine the changes in China’s air transport network
China’s timeline
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1949: first civil aviation administration established by Communist Party of China in partnership with USSR
gov’t: first post-Liberation airline, SKOGA was founded. China has 12 international and domestic routes, but
Shanghai, largest city, only 10 flights a week.
Late 1970s: under economic reforms of Deng Xiaoping, aviation identified as key to development and orders
placed for airliners in Western Countries like UK and US.
1988: Civil aviation had expanded so much broken into three large government-owned companies: Air China,
China Eastern and China Southern.
Now: well over 1000 routes, most of which domestic. Shenzhen is a city with in-migrants from all over
China: own airline helping city’s development. As emerging economy, has opened markets to foreign
investors as well.
ICT include technological tools and resources used to communicate and to create, disseminate, store, and manage
information
Describe the role of ICT in transmission and flow of images, ideas, information and finance.
The media
Introduces ideas and images quickly, cheaply and widely across national borders
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Social media: chat sites, Facebook, micro-blogging, online shopping
Mass media: message may be sent from one to millions of users – interconnectivity increases breadth of
information e.g. cultural impact of Titanic, including televised in Indian slums
Role in civil society like NGOs: raising public awareness by helping people worldwide gain information about
campaign issues, mobilizing widespread support for their activities.
Political implications: public opinion and political pressure e.g. Vietnam War
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Facilitates migration
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Skype: large skilled labour force in Dubai, telecommunications connects people (business)
Cheaper and clearer international calls and migrant workers in Singapore
Tourism
See international outsourcing notes
Civil society: any organization or movement that works in the area between the household, the private sector and
the state to negotiate matters of public concern. Civil societies include non-governmental organizations (NGOs),
community groups, trade unions, academic institutions and faith-based organizations.
Describe the role of ICT in civil society
The media
Introduces ideas and images quickly, cheaply and widely across international borders
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Social media: Facebook, micro-blogging
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Keeps audience engaged because social media is interactive
Mass media: message may be sent from one to millions of users – interconnectivity increases breadth of
information.
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Can raise profile through profound campaigns/advertising/persuasion.
Sense of solidarity in unity of issues and beliefs with global platform.
Case study: non-profit Wildlife Direct based in peripheral Nairobi, Kenya.
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Aimed to fundraise by building worldwide online conservancy community: anyone who has interest in future of
wildlife and natural habitats
In two years have formed 70 blogs and donations have increased 4 fold
Facilitates movement of people and therefore ideas
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Skype, cheaper and clearer international calls: spokespeople more readily travel to spread the word. Also
connects people worldwide through telecommunications.
Development of transport and time-space convergence: similarly increases accessibility.
Overall effect
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Raising public awareness about matters of public concern by helping people worldwide gain information.
Foster dialogue between individuals and civil society.
Mobilizing widespread support for their activities.
Examine the contrasting rates, levels and patterns of adoption of an element of ICT in two countries. Skip this
question on the exams – didn’t study in class and way too many statistics.
3. Economic Interactions & Flows
Fact about capital: flow of finance globally far exceeds total value of international trade in goods and services
combined.
TNC: a firm that owns or controls productive operations in more than one country through foreign direct
investment.
Examine the importance of loans, debt repayment, development aid, remittances, foreign direct investment and
repatriation of profits in the transfer of capital between the developed core areas and the peripheries.
Loans
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Purpose of economic development and poverty reduction, so usually to peripheries and from core countries who
can afford to lend – especially following independence of countries and now with World Bank focusing on MDGs.
Mostly through World Bank because of low-interest and no-interest loans, so not directly from core countries,
but significant: over US$24 billion a year.
Leads onto flow of capital via debt repayment so yet another flow of capital
Debt repayment
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It’s true a lot of debt has accumulated: political corruption, legacy of colonialism (transfer of debt from France to
Haiti), excessive interest rates.
There’s been debt cancellation under HIPCs (see below), and after Indian Ocean tsunami debt relief to 12
countries affected.
Even if debt is not cancelled, the major issue with debt is that it is rarely paid while interest builds: many
countries struggle to repay loans so this flow of capital is limited.
And this is from periphery to core: what can it do? What’s the impact?
Development aid
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Not all aid is free of conditions and may overlap with loans (see Japan case study)
Main donors are core countries USA and Japan to sub-Saharan Africa, Eastern Europe and Russia and SE Asia.
Aid has decreased in relative terms, due to debt relief instead.
Although donor countries’ wealth has increased since 1990, levels of aid haven’t.
Remittances
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In South Asian countries, value of remittances is greater than international aid (in India exceeds software
industry revenue from its 20 million diaspora: talk about construction in Singapore, Saudi Arabia; PNG; Mexico –
illustrates massive flow of labour since globalization and thus relevance).
Provides household income: lessens regional/global disparities in wealth and standard of living.
Multiplier effect: increase in money supply from remittances, increased foreign exchange reserves.
Marginalized countries like sub-Saharan Africa have not received nearly as much.
FDI
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Key indicator of globalization, and increasing in increasingly globalized world and integrated world market.
Today, a whopping $1.5 trillion. Leading to massive development: China.
But investors invest in few emerging economies (Asian Tigers case study below) and FDI between the global triad
– Africa, so peripheral, isn’t exactly ideal. That said, some countries are good candidates for new generation of
NICs: Vietnam.
Reduces disparities – but between few countries.
Repatriation of profits
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As the number and scale of TNCs increase, many core countries that own parent firms find it easier to flow
capital back to country of origin
Depends on how liberalized the economy is – China makes it legal to repatriate up to 90% of annual profits – but
not all peripheral countries are so reformed
Conclusion not every country is part of trend of globalization e.g. Africa is left out of even flow of capital. Flow
from core to periphery is more meaningful and impactful.
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Case study: Japan and loans
Offers multilateral aid through international organizations but also bilateral aid as assistance, often to Asian
countries e.g. Eastern Indonesia has long dry season, so Japan has loaned to develop irrigation and introduce
agricultural technological development.
Why Africa is left out of flow of capital as a peripheral country
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Conflicts are rampant throughout
Lack of discovery of natural resources like oil reserves
Institutional quality: corruption, poor law and order, civil unrest
Lack of demographic transition: culture, traditions
HIV/AIDS epidemics greatly inhibit productivity
NICs
Asian tigers Singapore, Taiwan, South Korea and Hong Kong had: infrastructure, geographic advantages e.g. access to
the sea and became port nations, skilled, low-cost workforce, cultural traditions that revere education and
achievements, attractive interest rates.
Flow of capital also targeted to…
Offshore financial centres (OFCs) – islands and microstates that attract money by offering lower taxes and freer
regulatory frameworks e.g. Bahamas, Qatar, Luxembourg. Banks, financial institutions, investors and TNCs get
flexibility to move money freely and can declare profits strategically
Limitation of flow of capital
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Boosted economic growth in countries like China, South Korea and Singapore but other economies less
integrated into global economy are marginalized: Africa not experiencing increased flow of capital
Difficult for peripheral countries to enter world financial trade – cities that control financial market are also
centres of information interpretation.
Countries which have established corporate culture and expertise dominate e.g. London, New York and Tokyo
Role of financial institutions (such as the WTO, IMF and World Bank) in the transfer of capital.
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WTO: Formed in 1955. Trade in manufactured goods, raw materials, agricultural services and interllectual
property rights. Aims to establish rules to govern and regulate international trade such that there is liberalization
of trade. Over 150 member countries.
World Bank: established to provide aid to poor countries in terms of loans for projects, such as infrastructure
developments, but from 1980 onwards, help for debt repayments.
IMF: 185 member countries. To promote international monetary cooperation, exchange stability and orderly
exchange arrangements, foster economic growth and high levels of employment, provide temporary financial
assistance to countries to help ease balance of payments.
Case study: China and FDI, China and WTO’s influence
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China joined WTO
Moderate, reformist policies making it easier for foreign countries to expand into China.
Forced to specialize in fields of comparative advantage.
World aware of huge market potential (attracted over $90 billion in FDI a year).
Economic growth increased by average of 10% a year in past decades.
Case study of the influence of financial institutions in flow of capital
Heavily Indebted Poor Countries initiative - IMF and World Bank
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Countries can qualify for debt relief only if IMF economic policy (including SAPs) for total of 6 years
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Structural adjustment programmes (SAPs) by the World Bank
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reduce active role of state: cut government expenditure
o introduced school fees as part of cost-recovery program
o reduced spending on health so health clinic fees
o privatization: firms streamline – unemployment
promote international trade and economic competitiveness.
Promoted agricultural exports: primary product dependency.
Context of USA/Mexico labour flow: over a million Mexicans migrate to US every year. Mostly concentrated in a few
states, but now not just traditional destination such as Texas, but also southern and mid-western states like Georgia
and Nebraska. Connect to labour.
Explain the causes and effects of major flow of labour between USA and Mexico
Causes at source and destination
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40% unemployment in Mexico vs. many low-skilled jobs for Mexicans which Americans don’t want to do like
construction.
Range of goods and services in city life vs. rural lifestyle.
Perception of America as the land of opportunity and prosperity vs. agricultural society in rural Mexico
Better standard of living for children of labourers e.g. 99% vs. 55% literacy, healthcare and schooling
Effects at destination
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Illegal immigration costs US millions of dollars for border patrol and prison
Tense political relations: US Border Patrol always tries to control the many illegal immigrants desperate for a
better life, militarization
Societal tension due to influx of migrants with different culture (xenophobia), competition over jobs, resentful at
illegal immigrants
Gradual assimilation: cultural enrichment of US Border States with culture, food and music
Effects at source
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Rural economy is depressed due to shortage of economically active population
Rise in dependency ratio: the old and the young left behind
Remittances pay back $6 billion a year
Outsourcing essay intro: Outsourcing is the concept of taking internal company operations and paying an external
firm to handle them – usually to reduce costs. Analysis by A.T. Kearney confirms India as the most attractive
outsourcing country in the world. (Remember includes physical goods too though.)
Role of ICT in international outsourcing
ICT is integral to TNC operations; transfer of capital, dividends, credit through online banking – exchange of
finance/business transaction more readily occurs
Communications technology in the form of transport:
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Accessibility, time-space convergence (see China air network case study above that facilitated TNCs coming in)
Developments in shipping
Supply chain management (seeing progress of inventory as it moves through supply chain using ICT) and logistics
(warehousing, scheduling and distribution) because great efficiencies in managing information  trading
relations establish bilateral relations for outsourcing
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ICT companies, especially in the area of software development, have been outsourcing ICT work to mostly India from
US/European software developers.
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Audits (communication) gave investors initial confidence: pioneered by ICICI, which underwent one by US and
shortly joined US stock market
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ICT developed to the point where software can be developed independently of location, provided connections
are adequate e.g. coding and processing using high-tech information technology outsourcing (ITO)
For “communications development” can explain how globalization lends itself to more English-speaking Indians
therefore increasingly willingness to invest in outsourcing: after USA, India has highest number of Englishspeaking scientific manpower.
Enabled investors, who were attracted to the skilled, English-speaking and cheap labour force, to invest
Bangalore’s software industry: silicon plateau of India, home to high-tech firms like IBM, Motorola and Hewlett
Packard.
Telecommunications development allows embedded voice orientated technical service. Companies with
international call centres include American Express, British Airways and Swissair. (By communicating through
phone causes social tension: Americans don’t like accent, resentful their jobs are being outsourced – national
joke is centres giving staff American/European names)
Extent of outsourcing: software now takes up more than 20% of total exports
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4. Environmental Change
Agro-industrialization: development of agriculture by incorporating corporate and industrial techniques. Includes
agro-processing, distribution, organisational change (e.g. increased vertical integration), technology and market
structures.
Growth of agro-industrialization  Farming in MEDCs and increasingly in LEDCs is becoming run by large
corporations wanting to mass-produce cheap outputs, mechanized and corporate-owned.
Change in production and consumption  shift in tastes from bread and cereals to beef, pork and chicken;
expectations on quality and appearance; increasing demand for quantity.
Effect of agro-industrialization/changing tastes on the physical environment
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Increasingly international demand for narrow range of crops: monoculture. Environmentally unsustainable
because it draws from the same narrow band of nutrients from the soil without compensation from other plant
species.
Crops used to feed livestock – tiny fraction of energy in grain will be available for human consumption because
conversion to animal tissue is inefficient.
Disease outbreaks can easily and quickly spread in CAFOs due to high density and close confinement. E.g. swine
flu traced to agro-industrial farm in Mexico for pigs.
Deforestation and loss of biodiversity e.g. cattle ranches in Amazonia
Methane has more than 20 times the global warming potential of CO2.
Soil degradation:
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Sustained with artificial fertilizers and stuff whereas before natural: popularized with Green Revolution
Changing texture: loss of organic matter reduces stability of soil aggregates, which may break up and lead to
formation of soil crusts as fine particles block pore spaces – which reduces infiltration capacity.
Accumulation of unneeded minerals leads to chemical degradation.
Farmers may be forced to cultivate marginal lands e.g. ploughing fallow land before it has recovered fertility
(overcultivation)
Heavy machines can compact soil: affects fertility (seedling emergence) and porosity to store water
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Energy efficiency:
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Indirectly, implications on climate change and depletion of fuel
Energy-inefficient. E.g. 1 kJ of muscular effort yields 20 kJ of food energy for shifting cultivation. Feedlot beef
production: input 10 times greater than output – Mexico agribusiness
International nature means higher food miles – more energy input.
Water degradation
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Increased use of pesticides, herbicides, insecticides and chemical fertilisers.
Water pollution can travel long way from source e.g. nitrogen pollutants from US mid-west flows into coastal
waters and affects fish.
Also through run-off can cause eutrophication (harms ecosystem) and infiltration (groundwater)
Eutrophication
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Nutrient enrichment causes algal blooms which cut off light supply for plants below, so they die and bacteria
feed on them: depletes oxygen levels
Organisms migrate or also die: in Dianchi Lake near Kunming City, 90% of native water weed, fish and molluscs
dead.
Discuss the environmental consequences of increasing international demand for one raw material.
New South Wales context trees are cut there to provide woodchips –
raw material for making paper, for example exported to Japan from New
South Wales, Australia. Also construction and furniture industry.
Forestry industry & environmental consequences:
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300 people employed in harvesting the forests for woodchipping
around Eden.
Logging for woodchips is a clear felling operation: Every suitable tree
in the area is cut down, leaving only a scattering of unsuitable trees.
Clear felling is more profitable, with large volumes of timber
obtained within each time period. (Forests around Eden considered
derelict, no commercially useful growth, suitable for clear felling).
Forestry operations disturb the soil, exposing to soil erosion: drains
built across the slopes to stop long, fast runs of water (minimise
erosion); empty into undisturbed areas to be absorbed by ground
litter and soil.
Unlogged strips of forest 20m wide are left on both sides of all permanent streams to stop siltation.
Environmentally destructive: Loss of biodiversity: inter-dependent feeding relationships. e.g. psyllid insect lives
on eucalypts by sucking sap, birds eat psyllids.
Conservationists concerned mainly about fire in regenerated forests.
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Eucalyptus fastigata grows very quickly upon being logged to form dense vegetation. Fuel levels (oily leaves) are
very high.
Young plants have more leaves per hectare
Leaves closer to ground, increasing chance of crown fire
In 1980 most destructive forest in district’s history at Timbillica, most in regenerated forest. Fire too strong to be
fought, and after burning 44, 000 hectares, only largest trees survived: flora and fauna both eradicated – area
described to resemble desert.
Siltation and soil erosion. Especially macropores in soil become sealed by fires. This increases overland flow.
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May not be too bad
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Properly managed, timber is a renewable and recyclable resource, whereas metal ores…
Logging is done in small areas of few square km, called compartments. Only 50% of a particular compartment
logged at a time, other 50% after 20 years. 15 mature trees per hectare are left uncut.
But conservationists say that logging is at the point where forests may be require about 50 years regrowth
before a sustainable harvesting cycle can be established.
Eucalypts have high demand for light so they rely on occasional severe site disturbance. Suggested that without
logging and fires, some species would become endangered over generations, being replaced by shade-tolerant
species.
Siltation rates may increase after logging but they return to normal upon regeneration. State Fisheries
Department claim there has been no decline in quality of fish life in local streams and estuaries since logging
began.
Regenerated forests may be better because
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Old natural forests in declining state and fewer habitats, whereas regenerated forests are thicker and healthier
so habitats improved. Excellent conditions for herbivores created such as wallabies and the populations increase.
Examine the concept of food miles and the environmental consequences of increased volume of air freight.
Food miles: A measure of the distance food travels from its source to the consumer. This can be given either in units
of actual distance or of energy consumed during transport.
Consequences
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A contrail is a long, thin cloud that condense from water vapour emitted from the exhaust of jet engines at high
altitudes. If the air is cold and extremely still, a contrail may remain for a longer period. Contrails believed to be
half of aviation’s industry impact on climate: trap heat.
Aircraft accounts for just under 3% of human contributions to climate change. Talk about general enhanced
greenhouse effect.
Nitrogen oxide and water vapour participate in ozone chemistry. Increases in nitrogen oxides leads to decrease
in the stratospheric ozone layer. Stratospheric ozone filters out UV radiation.
Fossil fuel depletion: aviation fuel.
Some say that emissions can counter the enhanced greenhouse effect. This is because CO2 in the upper
atmosphere may reflect insolation.
Aircraft manufactures are experimenting with alternate fuels like biofuels that generate less CO2 and have more
energy content, but this is still in early stages. ACARE has also called for a 50% reduction in carbon emissions for
all new aircraft designed and built from 2020 onwards. Indeed, today’s engines use 70% less fuel per km.
Limitations of food miles: Many considerations, but each aircraft can carry more cargo, so more efficient in terms of
energy even if distance is the same.
Discuss the reasons for relocation of polluting industries (such as TNCs) and waste disposal (such as ICT, chemical
and nuclear waste) to countries with weakened environmental controls and safety regulations.
High fees associated with waste processing and pollution emissions make it costly to process waste/manufacture in
MDCs where there is strict environmental legislation.
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Industries want to minimize costs to ensure competitiveness in tightening market.
Disposal facilities can be built cheap without cumbersome consideration of externalities to health/environment:
in Senegal, waste landfill in Dakar very close to water table
These countries have poor experience with waste/pollution. Government officials can be easily bribed to import
toxic waste. Exporting companies can disguise hazardous waste as useful commodities.
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Containers filled with e-waste from Europe labelled as ‘second-hand goods’ end up in Ghana’s scrapyards
LEDCs attract industries by providing ‘pollution havens’: cheap land and facilities, attractive tax arrangements and
even government-sourced infrastructure such as roads and railway links.
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Seen as key to transforming rural-based agricultural economy to urban-based industrial economy
Guinea Bissau was paid $600 million to store and dispose industrial waste: twice country’s foreign debt at that
time.
Mutually beneficial because MDC exporters earn from selling waste and developing countries get a source of
raw material: more lucrative than alternatives like farm labouring.
But there are other reasons that determine relocation.
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Added incentive of low wages/large/semi-skilled/unskilled untapped workforce e.g. child labour in Ghana
Where suppliers and located and cost of transport
Asian Tigers and China case study.
Discuss the consequences of relocation of polluting industries (such as TNCs) and waste disposal (such as ICT,
chemical and nuclear waste) to countries with weakened environmental controls and safety regulations.
Waste is processed and burned by workers in Ghana: laden with toxic chemicals like lead and mercury from
batteries, copper circuit boards in acid baths. Most workers, many children, have no protective clothing/equipment.
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When burn electronic cables to reclaim metal, release toxic chemicals. Can interfere with sexual reproduction,
affect brain development.
Especially affected because low nutritional status weakens physiological defence and lack of health care
facilities.
Lack of awareness of effects. Instances of people using empty containers for domestic purposes including
storage of water.
China is second biggest producer of greenhouse gases. Pearl River delta in China is focal point of massive FDI: high
concentration of factories and power stations. Worst in Guangzhou.
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Air pollution causes skin/nose irritation, breathing problems (asthma), fatigue
8/10 rainfalls in Guangzhou classified as acid rain.
Highly carcinogenic benzene in tap water: cancer villages where rate is 30x national average
China is increasingly aware that situation is not “responsible recycling” and countries are exporting pollution. So
stricter laws of what types of waste can be imported.
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In USA and UK, proportion of workers employed in manufacturing as fallen by more than half since beginning of
20th century: legacy of deindustrialization is less demand for unskilled labour
Environmental Kuznets curve suggests a country’s level of pollution will become worse during early phase of
rapid economic development but will improve as development continues: increasing R&D on greening of
industry, deindustrialisation, as affluence increases and pollution becomes more of a problem, it is prioritized.
Draw diagram on page 109 of Global Interactions textbook.
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Environmental protests no longer confined to MDCs – spread to LDCs through civil societies
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Brazil chose to adopt global environmental standards because of fear of litigation, negative public relations and
concern about loss of export markets.
Describe one major pollution event affecting more than one country
In Chernobyl, Ukraine in 1986, testing triggered meltdown of reactor’s core, leading to only level 7 event on
International Nuclear Event Scale.
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Release of radioactivity following massive explosion.
Power station on Ukraine-Belarus border. Radioactive plume drifted over extensive parts of Europe and eastern
North America including through nuclear rain and wind. Radionuclides measurable in all countries in North
Hemisphere.
60% of radioactive fallout landed in Belarus
Examine the consequences of this event
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Radioactive particles killed 4km2 of pine forest downwind
Two people died in initial explosion, 56 direct deaths and estimated 4000 cancer deaths
Estimated cost of $200 billion makes it most expensive disaster in modern history
Industry affected, agriculture especially
Social and psychological damage/disruption including but not limited to
o Cancer (especially thyroid because inhaled or ingested)
o Abortion and birth defects and infertility. Infants especially affected because of contaminated milk and
their metabolism.
o Skin lesions, respiratory ailments
Health effects and costs still continue years later e.g. continuing decontamination costs in Ukraine, Russia and
Belarus
Examine the response to this event
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High deposition levels: restrictions on distribution and consumption of foodstuffs
Abortion requests as far away as Greece: radiophobia
Enclosed in concrete. Today 19-mile exclusion zone around reactor remains uninhabitable though 5 million still
live in areas of Ukraine, Russia and Belarus classified ‘contaminated’ with radionuclides
Plans for this Chernobyl Exclusion Zone to be opened for restricted industrial uses but environmental impact
assessment needed first and radioactive waste management program needed
Only in 2003 UN Development Programme launched Chernobyl Recovery and Development Programme
specifically for affected area. Helped Government of Ukraine on social, economic and environmental
consequences.
After Three Mile Island incident in Pennsylvania, USA and this, growth in nuclear industry halted. Only China and
India, deeply concerned with demand for energy, have really gone ahead.
Examine growth of environmental awareness as consequence of global interactions skip the question or draw on
civil society/ICT stuff/below/improvise.
Examine role of one international civil society organisation in fostering improved environmental management.
Intro
-
Greenpeace International is arguably most well-known
‘An independent global campaigning organisation that acts to change attitudes and behaviour, to protect and
conserve the environment and promote peace.”
Body
-
-
In 1900s, a small boat of volunteers and journalists sailed into Amchitka, north of Alaska, where US government
was conducting underground nuclear tests. Voyage pioneered Greenpeace’s tradition of ‘bearing witness’ in
non-violent manner.
Aim to catalyse energy revolution. Campaigns against fossil fuels. Urging governments to invest more in
renewable energy.
Urging electronics companies to eliminate hazardous substances and to take back and recycle products once
obsolete: the two issues interconnected.
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Challenging wasteful and destructive fishing, and creating global network of marine reserves. Campaigns against
industrial fishing, by-catch, trawling. Basically, sustainable fishing.
Protecting forests:
a) Malaysian Timber Certification Council to develop an internationally recognized certification scheme to ensure
timber supplies are derived from sustainable forest management practices
b) moratorium on soya crops in Amazonia
c) protection of Canadian Great Bear rainforest after decade-long campaign: not just words, also action
Some members left to join more radical organisations as non-violent approach seen as too timid.
Explain evolution of uniform urban landscapes: homogenization
Intro: decades ago, cities had distinctive characters that reflected national identity.
Effects of common commercial activity
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House TNCs sector that make same decisions as in other parts of the world.
Growing tertiary sector: world cities are part of global economic system with same leading banking and finance
centres in CBD – same functions
Global retailing: fast food outlets/global brands like McDonalds and Starbucks with standardized styles and
structures
Visual recognition important for brands like H&M, hotel chains
As affluence increases, traditional forms of entertainment wane and modern leisure common to Western cultures in
affluent societies
-
Dubai: from family-orientated dancing, singing, falconry, hunting to mall-orientated dining, cinema, paint-balling,
shopping
Structures
-
High cost of land + high population density means vertical development: high-rise skyscrapers, apartments
characteristic of cities like Dubai: before tents and nomadic lifestyle
Emerging cities like Dubai invest heavily in infrastructure such as roads, airports and buildings to attract great
share of world business: before camels/foot
Large urban areas cannot function effectively without efficient systems of transportation/land-zoning so they
adopt tried-and-tested ones from other parts of world
One-way systems and multi-lane roads linking CBD to suburban areas popular in USA applied to other parts of
world
Inner and outer city ring roads keep congestion-free
UK’s New Towns model and London’s Docklands used as model for waterfront development
Styles of construction and infrastructure
-
Emergence of world cities with migrants/tourists/affluence increase pressure for uniformity because of generic
expectations and spread ideas and cultures so dilution of identity e.g. waterfront developments for expats
Improvements in ICT and media so people aware of opportunities and trends in other cities and want the same
Large-scale developments by major companies using international standards of design
As Beijing has been exposed to pressures that impact all cities with international links, has replaced traditional
urban landscape (small courtyard-fronted homes linked by narrow laneways called hutongs now only in some
suburbs) with modern landscape
5. Sociocultural Exchanges
Describe cultural traits
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Culture: the total of ideas, beliefs, values and knowledge manifesting as the way of life of a particular society or
group.
Language
-
-
Determines human interactions
Language may generate separatist movements: e.g. Spain (Catalan, Basque); Quebec from Canada.
Transmitted through range of forms including literature and song
Countries can be multi-lingual. Canada is officially bilingual: English and French. French Canada pressed for
stronger legislation to protect French language and referendums even held in Quebec whether should just be
independent country: heavily defines cultural identity.
Can marginalize or provoke xenophobic feelings e.g. Mexicans in US
Language may generate separatist movements: e.g. Spain (Catalan, Basque); Quebec from Canada.
Customs
-
Established patterns of behaviour that are commonplace within a country, region or social setting.
E.g. Japan: bowing to show respect; tipping is insulting; shoes & thresholds; conformity.
Beliefs
-
Dictates other cultural traits, with religion being especially significant. Global religions: Christianity and Islam.
Hinduism, Buddhism, Judaism, Taoism more regional.
Saudi Arabia’s legal system based entirely on Islamic law: prohibits alcohol, pork, fornication. Even economic life
Islamic banking as opposed to capitalist commercial banks.
Secularism gaining strength, especially in Western world. Islam theocracy (e.g. Iran), radical Islam,
fundamentalist Christianity.
Dress
-
Significant in daily life. Individuals establish sense of being and place in society. Can mark out job/status.
Can be in response to climate or religion.
Older generation clings to traditional; Western casual and business has become global norm.
Traditional dress worn on special days
Marks social and economic change, political watersheds
Dress code usually stricter for women than men. Islam Burqa – essential for women to wear in public.
Images
-
Political, economic, social, environmental, historic. Recent or from earlier generations.
UK: bowler hats, Buckingham Palace, London red buses, black London taxis; now: Britpop art, EPL, David
Bechham, London Eye.
Music
- TNCs from West: rock & pop have transcended cultures more than any other genre.
- National anthem.
- Russia: Tchaikovsky, Shostakovich, Rachmaninoff, Stravinsky, Prokofiev.
- US: pop & rock stars Elvis Presley, Jimi Hendrix, The Eagles, Aerosmith, Madonna, Michael Jackson.
- Sub-Saharan: singing as an avenue of communication.
- Global influences caused traditional music and dance to decline.
- New forms emerged with Western influence: West African highlife (Caribbean), Congolese popular music (Latin
American), Southern Africa (American swing & jive music).
Food
- “Halal” for Muslims, “Kosher” for Jews.
- Fasting for Catholics: lent, Ramadan for Muslims.
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Technology
-
Reflects values and way of life e.g. Amish is traditionalist Christian Church, prohibitions or limitations on the use
of power-line electricity, telephones, and automobiles
Diffusion of cultural traits
Mechanisms of diffusion
-
Expansion: spreads outwards, remaining strong in source
Relocation: carried to new destination
Due to time-distance decay, less likely to be adopted in further away places though there’s time-space
convergence
International movement of workers
-
Bring own cultural traits from country they move from but also pick up aspects of culture back to country,
especially circular migration
Can bring back commodities when they visit
In USA, large inflow from Mexico increased Spanish speakers e.g. California, New Mexico, Texas and Florida
effectively bilingual. Also other traits e.g. Tex-Mex
International movement of tourists
-
-
According to core-periphery enclave model of tourism, impact is limited geographically: tourists stay in enclaves
because limited number of attractions that can be reached and back within a day, on provided infrastructure.
Interactions with local people limited. Extreme e.g. is North Korea.
Costa del Sol, Spain: drinking beer, fish and chips with plethora of secondary tourists resources which locals also
use
International movement of commodities
-
Global brands created transcultural items. As TNCs want to move beyond saturated markets of West, exported
consumer culture to developing world.
Even if people don’t consume or can’t afford to purchase (China’s disparities and market for McDonalds),
become aware of lifestyle promoted because of advertising.
Changing diet and food e.g. fast food, customs like eating with fingers in Japan
Creative industries like music, especially with ICT and media, dominated by rock and pop from West. US: Elvis
Presley, Aerosmith, Madonna and Michael Jackson all global phenomena.
Describe the role of TNCs and the media in spreading consumer culture
Consumer culture: equating personal happiness with consumption and purchase of material possessions
Mass media
-
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Effectively makes consumers want more than they need through advertising: target consumer groups, positive
product images, branding
Commercializing childhood to unprecedented degree with sociological research into habits and preferences
o Viral marketing techniques that turn friendship into word of mouth networks: silly bands
Products given symbolic as well as material value to consumption is linked to expression and creation of identity
and status e.g. Adidas shoes in USA linked to hip-hop culture.
Creation of celebrities and idols: celebrity endorsement, fans.
o In China, increasing consumerism links endorsed products to status symbol so much that laws passed
against endorsement of nutritional supplements
o Sales of Nike golf apparel and footwear doubled after Tiger Woods was signed up on a sponsorship deal
Franchises like Disney create avid following for merchandise with gullible fan base
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As consumer culture grows from media, influence of TNCs grows and vice versa
TNCs
-
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All about profit maximization and mass-production
o Key principle of McDonalds is efficiency: compresses time between a want and consumer satisfaction
o Value meals and upsizing: consume volume, at cheap prices due to economies of scale
Glamorize and promote commodities through media
o Children susceptible: happy meals.
Through large market share and global influence, can create brand
o With exclusivity equated with branding, easily becomes status symbol
With overwhelming presence, possessing product can easily be perceived as integral to daily life
o Dissociating people from cultural root, replacing with media-created needs
Usually promoting Western brand and capitalist lifestyle: easily adopted because perceived as ‘exotic’ and
cultural imperialism of America
Conclusion global consumerism spreads same thin cultural film everywhere: take on consumer identities and
obscure profound differences between cultures
Select two different branded commodities and examine the spatial and temporal pattern of adoption on a global
scale.
Intro to McDonald’s
-
Long been epitome of American transnational franchising success
Company logo, the Golden Arches, is one of best known business symbols in world
McDonald’s timeline
-
-
Initially prepared in individual restaurants but from late 1990s the products have been mass produced and
delivered frozen to each franchise
As competition within US grew, turned overseas: Europe/Australia, then South America, then South-East Asia,
then China and Arab world
In 1996 peak year of expansion, company opened 2000 restaurants globally
Poorly represented in Africa, rate of expansion particularly high in China: popularizing American-style birthday
parties
In Asia, pattern of being adopted differently: not just cheap/fast food
- In China, middle-class consumption: special family outing
- Japan and Hong Kong: hip youth hang out to seek American cultural experience
Continues expanding outside the West because of health-consciousness, increasing attraction of vegetarianism
and meat scares; middle-income group in NICs growing in last few decades
Trying to increase local adoption through adapting menus to local tastes; in recent times, trying to spur adoption
through McCafes, salad
Intro to Coca-Cola: Headquarters and founded in Georgia, USA; rated most-recognized trademark in world
Timeline of Coca-Cola
-
-
In recent times, sales in North America and Europe have been stagnant, even decrease in North America
Recent years recorded record sales growth in India and China…increasingly affordable in NICs
Spatial spread of adoption coincides with spatial spread of production: aims to locate production as close to
markets as possible so many bottling plants in China creating 300, 000 jobs. Mexican coke uses real sugar, US is
corn syrup.
When spreading to Asia, adapted product: small bottles so more affordable
‘Healthier’ options like Coke Zero too
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Examine the role of diasporas in preserving culture in one country and the adoption of minority traits by host
societies.
Intro
-
Diaspora is the scattering or dispersal of a cultural group from its homeland to other parts of the world.
London arguably most cosmopolitan city in Europe, boasts advanced racial assimilation.
UK society generally more tolerant to minorities, so they can practice culture.
Body
-
-
-
-
Worldwide pattern of immigrants living in high ethnic minority concentration: formation of ethnic villages
o Germans in Richmond, Chinese in Soho
o Consolidate sense of identity: ethnic villages show clear evidence of groups that reside – German school
in Richmond adjacent to only German bakery in London.
o The greater the concentration, the higher the preservation of culture.
In these ethnic villages, interactions help preserve language as medium for social contact within community and
communal congregations e.g. Diwali celebrations
Cultural institutions, especially places of worship, bring people together regularly, encouraging traditional dress,
language and other cultural norms: London Central Mosque, Bevis Marks synagogue (Bar and Bat Mitzvah)
Chain migration due to existing diaspora: encourages preserving in true form as opposed to hybridized form
because family/friends expect continuation of cultural traits. Indians are still steadily migrating so…think Bend It
Like Beckham
Intermarriage is form of interaction between minority and host society, new generation of mixed race
Religious conversion: expansion of Islam
London’s cuisine draws extensively from other cultures – migrants set up small businesses, existing businesses
cater to demand of migrants
o 1920s arrival of Indian professionals/students: first Indian restaurant in Leicester Square
o Chicken tikka masala unique to Britain and national dish
Ethnic media and entertainment: youth enjoy hybrid British Indian band Swami – new genre created called Asian
Underground to accommodate both cultures
Adoption of minority traits by other host societies
o Mexican immigrants in US e.g. Tex-Mex, Spanish speakers
o Chinese diaspora in Malaysia and US e.g. Chinatowns, general knowledge
Examine the impact of cultural diffusion on one indigenous and remote society through the influence of
international interactions (how they responded back).
Intro
-
Irian Jaya, province of Indonesia, home to Dani people who live in Highlands, in valleys that cut deep through
forest-covered mountains.
One of last groups to be ‘discovered’, unknown till Christian missionaries became interested after Nat Geo
article: 80% converted.
Impact of cultural diffusion
-
-
Missionaries opened schools, church services, and literary programs. Read Bible and adopt religion
o Come to learn world is much bigger than them
o Still believe world is full of ghosts/spirits, but these spirits subject to God: adapted, not just adopted
o Christian names like Moses, Isaac
Pig-kill ceremonies continue but more often, to celebrate Christmas, Easter, baptisms, Indonesian Day of
Independence.
o Linked with nutrition: less protein malnutrition, women received only leftover pig meat
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o Strengthened bonds between neighbouring villages, reducing conflict
Missionaries never insisted change clothing, just concerned about skin problems cuz hard to wash: now some
wear Western clothing, sell Western at markets in Wamena
Missionaries eliminated ritual warfare/cannibalism.
Women unafraid to travel to markets in Wamena, open channels of communications
Indonesians offended by traditional clothing (women grass skirt, men penis sheath) and campaign – Operation
Koteka (derogatory term meaning tail) – launched. Dani despised Indonesians and too proud. Resented if
anything, wore it as sign of defiance against cultural imperialism: autarkism.
Cash economy introduced and consumer culture when missionaries bought food from Dani, leading to small
agricultural markets. Also handed out seeds to grow vegetables such as cabbages, tomatoes, carrots.
o Diversified diet and malnutrition further decreased
o Money come to replace pigs as measure of wealth
Adventurous trekkers also coming up.
o Hiring and paying locals as guides and porters increases consumer culture and diverts away from
traditional roles like growing food
o Learn English: further cultural imperialism
o Cargo cults where expect gifts/charity – differs from traditional way of life of giving rather than receiving
o Two-way process because tourists also buy Dani artefacts like spears/arrows
Cultural imperialism the practice of promoting the culture of one nation in another to the point it becomes
dominant or perceived as superior.
Exemplify cultural imperialism
-
All these examples above and below of brands: American culture traditionally perceived as road to wealth and
affluence so adopted with little resistance.
Dani people - Indo/Western/Christianity over indigenous
English is taught as additional language worldwide. 2/3 of scientific papers. Medium of communication in air
travel, finance, internet. Official language in Africa, the Pacific, south and SE Asia e.g. Singapore due to
colonialism.
Examine the ways in which international interactions may result in the homogenization and dilution of culture.
Intro
Can be assimilation (original traits overwhelmed by dominant
hybridity/glocalization), autarkism (culture reasserts traits in face of threat)
culture),
acculturation
(cultural
Body
McDonalds case study. Also add:
-
Adaptation also: teriyaki burgers in Japan, McLaks (grilled salmon sandwich) in Norway, burgers made from
mutton in India to preserve Hindu culture also spicy vegetarian patty called McAloo Tikki
Certain local festivals or customs may be celebrated e.g. during Ramadan in Muslim countries, McDonald's will
offer Iftar buffets at the breaking of fast.
Japanese rarely ate food with hands, but now commonplace
Coke case study. Also add:
-
Coca Cola also sponsored Beijing’s Olympic Torch Relay and had major advertising presence at Olympic Games.
Also Official Beverage and Global Partner of Expo 2010 Shanghai. Social and economic relationships with
countries key to acceptability of brand.
Dani case study
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As Westernization takes place, not just adopted their brands but also local brands opening inspired by Western
culture e.g. Urban Truth in Bangladesh – crop tops!
But not just Westernization. In interaction, dominant western culture also influenced e.g. adoption of Eastern
religions by youth in West searching for new meaning, oriental sub-genre of metal music (hybridization),
acceptance of Japanese management practices by western companies, ‘pyjamas’ and ‘shampoo’ and drinking tea
from British colonization of Indian subcontinent, Black/Hispanic dialects on rap
Media and TNCs
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Dominance by West e.g. Disney: values culturally challenging in Asia
Local culture challenged when foreign culture portrayed as superior
6. Political Outcomes
Sovereignty: the authority of a state to govern itself and be answerable to no other authority.
Discuss the links between the diminishing effectiveness of political borders and the flow of goods, capital, labour
and ideas.
Remember the interaction is a two-way process; when explaining diminishing effectiveness, think about the purpose
of a political border
Ideas
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Ideas spread most readily, through info and communications e.g. civil society creating global voice and uniting
people on common interest, people seeing similarities between themselves and others thus eroding sense of
being different
Linked to freer world trade: economic policies of WTO, IMF spread e.g. SAPs
Cultural imperialism and cultural homogenization
Labour
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Impact of Mexican immigration on American culture – link to socio-cultural chapter
Chinese diaspora worldwide unifying many SE Asian and even Western nation-states
Flow of labour less readily occurs because of restrictions on immigration (no country in world allows free
international movement), and natural attachment people feel for home leads to immobility of labour. Then
again, have EU.
Capital
-
Prior to global deregulation, financial activities confined within national boundaries, now information and
communications stuff has enabled flow of capital
In opening up borders to capital (China and WTO case study), flow of other stuff like goods and culture; citizens
and companies travel abroad to invest when capital can flow freely
Synthesize with growth of TNCs through enabling large sums of money to be transferred, and thus shift of
power; effectiveness of borders = government governing own people
Goods
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Formation of global market where free trade overrides protectionism e.g. China, economic hubs like Beijing in
China have taken great measures to establish trading links
Siberia has become fertile given climate change, so China is inhabiting it by migrants setting up bazaar or
exploiting timber or oil/gas. Border now expanded into Siberia.
o In the border area, 6 million Russians versus 90 million Chinese.
o Intermarriage, trade and investment, Siberians feel Beijing is closer than Moscow
19
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o Chinese owned factory churning out finished goods, as if economy is part of China’s.
Link to EU case study below, which is an economic union (extreme end of trade blocs)
Conclusion culmination of grey areas rather than clearly defined; the fluidity of borders in today’s world at least
are by peaceful means.
Discuss the role of one multi-governmental organization and the diminishing effectiveness of political borders.
Intro
-
What is understood by effectiveness of political borders: upholding the function of a border which is to uphold
nation-state (see definition)
Essay will be organized into labour, capital, goods and ideas
Diminishes effectiveness of political borders
-
Loses sovereignty because decision-making handed to a higher authority.
- Has seven main institutions including European Parliament and Council of the EU
-
Domestic policies, traditionally national government role, done in conjunction with other parties
Infrastructure
-
EU wants to improve cross-border infrastructure through Trans-European Networks e.g. channel tunnel carrying
the Eurostar: high-speed railway service between London and Paris.
Improves accessibility and facilitates flow of people.
Schengen area of 25 nation-states: flow of people
-
unity strengthened further when documents checks loosened creating a single state with no internal borders
controls: suggests key function of borders absent
form of social integration
flow of labour: professional qualifications equally recognized – permeable land borders means less effective
Creation of single market with common policies rather than decision-making on national level
-
Eurozone: monetary union with euro as common currency and sole legal tender
Free circulation of goods and services: companies can sell freely, consumers buy freely with same prices. Firms
take advantage of expanded market access: unregulated flow of goods also affects culture and identity.
Flow of capital (property purchases, dividends) favour worker mobility and easier for businesses to span over
states
Readjust national economic policies to conform to EU standards: interest rates, common fisheries policy to
maintain marine biodiversity, free market economy
No customs, quotas or discriminatory taxes while common external tariff e.g. The tariffs on Chinese shoes 16.5%,
Vietnamese shoes 10%: adopt same product regulation.
Beyond mere economic integration. Goal is to be “an ever closer union among the peoples of Europe”, and
objective includes asserting the European identity of the international scene and introduce a Europe citizenship.
EU has own flag, own anthem and celebrates Europe Day.
May strengthen some political borders or not necessarily diminishing
-
Europe’s borders are strengthened against others countries through preferential terms among members, strict
border controls against outsiders. Regional identity = midway between nation-state and fully globalised world.
Before UK entered EU, Commonwealth countries like NZ and Australia enjoyed preferential import taxes in UK.
Then sharp fall in imports.
Within EU’s borders, although regional identity, some countries have strong nationalistic tendencies, like Spain
and UK
20
Despite common features, all still exercise differences through other means
-
Different geography, history and distinctive climates give rise to different cultures
Are free to have additional policies and law on top of EU ones, as long as doesn’t contradict
-
Union can also carry out actions to support, coordinate or supplement only on following areas: tourism,
education, culture, sport, public health
THAT SAID, EVEN IF TALKING ABOUT EU’S BORDERS
EU: originated with just six nation-states, and expanded to include 28. Membership is likely to expand more as
applications are considered, including Turkey.
-
This sort of fluidity and amorphous border means boundary of EU, and even Europe poorly defined –.
Membership of Turkey would affirm it’s acknowledgment as European rather than Asian.
The future raises question of where the boundaries settle, because ever-expanding.
Discuss the shift of power from nation state to TNCs as a result of their economic size and dominance. Compare
the wealth of TNCs with that of nation states.
Intro
-
Nation-state: area under control of single government and ideally a homogenous group of people bound by
consciousness of being different from other nation
Hyperglobalists speak of the death of the nation-state.
Shift in power to TNCs
-
-
Dominance and wealth: TNCs control ¼ of global economic activity
- $US 3 billion is GDP of Zimbabwe, and Wal-Mart, Exxon-Mobil and Royal Dutch Shell have annual sales well
exceeding $US 300 billion
- Resources and assets they possess e.g. in energy crisis, large energy companies have huge power in
negotiation
- Wealth enables them to hold best technology and knowledge (R&D), most skilled people, best lawyers for
favourable contracts which exploit
TNCs instrumental to socio-economic development, therefore LDCs subservient to demands because of TNCs’
bargaining power when threatening to relocate e.g. tax breaks, environmental damage condoned.
Role of lobbying in UN controversial – manipulation and influence greater than voting nation-states.
-
WHO accused tobacco TNCs of using third party organizations like trade unions to influence WHO members,
funding ‘independent’ experts to conduct research that would challenge WHO findings, setting up press
conferences to draw attention away from WHO anti-smoking events
Maybe not all power to TNCs
-
Not only deal with TNCS, but also UN, World Bank, IMF, WTO.
Governments still have power over market e.g. Bolivia case study, North Korea, protectionism (tariffs, quotas),
Central Bank and currency
Power of TNCs is linked to power to state e.g. China’s bargaining power
Conclude nature of political governance transformed in terms of clout of TNCs, but death of the state is
exaggerated
Examine the resurgence of nationalism in one country as it attempts to retain control of its resources and culture:
see my essay
Intro
-
Nationalism: ideology that emphasizes patriotism, loyalty to and the advancement of a particular nation.
21
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Bolivia introduced free market reforms to receive aid from World Bank. Poor people promised gaining more
from participation in world economy and allowing foreign investors access to half public sector like electricity.
Poor progress led to public disquiet. Concern that TNCs and rich benefitted to detriment of poor. Evo Morales of
left-wing Movement Towards Socialism (MAS) elected.
Bolivia’s resurgence of nationalism
-
-
-
-
-
Morales nationalised gas and oil industry. Has second largest natural gas reserves but small amount had been for
domestic use.
- Foreign companies told six months to leave or new contracts
- New contracts for high revenue for government
- Now all foreign companies must deliver production to state for distribution/processing
- New govt. saw regaining control of resources as getting revenue for development
Resentment against some SA neighbours: Bolivia lost half territory since mid-1900s in natural resource disputes,
esp. to Brazil. Want to extend nationalism “to land”.
- Bolivia accused Brazilians of illegal/undocumented occupation of land along border, esp. growing soya
beans.
- Bolivian constitution prohibits foreigners from owning land in that territory.
Bolivian government concerned by people moving abroad to find work and children left behind. Aim to create
360,000 jobs by 2010 but fell short due to global financial crisis.
Almost half of the world’s lithium in Bolivia’s salt lakes
- Obama administration want to increase fuel efficiency/decrease oil imports; car companies want for electric
cars; Korea still pushing for control: nationalism does not make border impermeable
- Considered as minor partners because advancement may be limited by lack of knowledge and skills: how
state ownership may inhibit outcome of nationalism
Resource nationalism strengthens culture. Has increased patriotism and thus sense of identity. Nationalism seen
as force to counter homogenization that global interactions bring – provides sense of identity/stability in rapidly
changing world. Morales: “it’s a matter of national dignity”
Morales re-elected, winning over 60% of vote. MAS holds majority in Senate and Lower House. Supported
strongly by large poor indigenous population. Promises further reform.
Discuss anti-globalization movements.
Context
-
Global recession in 2008 led many in MDCs to question globalization.
They mainly oppose unregulated expansion of capitalism and large profits of large TNCs.
Also oppose environmental destruction, child labour, third world debt. Promotes animal rights, rights of
indigenous people.
Often express in language of socialism: ‘ruling elites’, ‘corporate greed’, ‘capitalist colonisation’ and ‘oppression
of the masses’.
Anti-globalization movements
-
-
Attack organizations seen to promote globalization: WTO (argues for reduced tariffs and freer world trade),
World Bank (advice and long-term development to LDCs), and IMF (gives countries crisis loans). Conferences to
demonstrate and disrupt meetings.
Less effective in mobilizing support in LDCs though they claim to support rights of poor. LDCs see them as threat
to livelihood and jobs.
Increasing media attention. Also support of prominent religious leaders concerned with obsession with
consumerism.
22
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People’s Global Action is network for spreading info/coordinating action between grassroots movements
worldwide. Diverse groups share opposition to capitalism and commitment to direct action/civil disobedience as
most effective.
Met in Geneva 1998 against WTO. Later, demonstrations and street parties across five continents against G8
and WTO meetings.
- In 1999, WTO negotiations was disrupted through peaceful protest in Seattle.
Ex-British PM Gordon Brown stated he would support ending agreement under which leadership of World Bank
and IMF divided between Americans and Europeans. UK also indicated support for enlarging UN Security Council
from only five countries.
Focus on the Global South also tries to promote demilitarisation and peace-building.
Lacks focus. Some within favour of globalization but slower. Others focus on different issues (see above).
Consists of environmentalists, small businesses, poverty campaigners…
-
-
-
Discuss the attempts to control migration into one country.
Context: Historically concern about number and origin of migrants.
US attempts to control migration
-
In 1924, system of national origins quotas to stem influx of Eastern and Southern Europeans. Restriction already
against Chinese contract labourers and whereas largest quotas to British, Irish and German immigrants.
- Racist overtones led to internal/international opposition and ultimately abolished.
- As intervening obstacles reduced, composition of migrants changed. Now Latinos account for most and if trends
continue, will dominate Texas/California.
- Illegal immigration carries civil penalty. Fines, imprisonment, deportation.
- To reduce illegal border crossing, US House of Reps voted to build separation barrier along border not already
protected, blockading with vehicle barriers and triple layer fencing. Stricter enforcement of border has failed
significant to curb immigration, instead pushing flow to more remote regions and increasing cost to taxpayers of
each arrest from by over $1000 since implementation.
- About half illegal immigrants are visa overstays who remain after legitimate visa expires. US officials tightened
data gathered for all foreign visitors, including collection of biographic, travel and biometric info such as
fingerprints. Also insisted all foreigners use electronically readable passports.
- Visa fraud. Especially green card marriage: foreigner marries American to settle in US though not living together
as couple. Also human trafficking, payment for personal letter of recommendation. Other than effective security
checks, visa fraud very difficult to control until exposed after migrant already arrived to US.
- Also important for US economic growth. US prosperity linked to ability to get high level of labour, both skilled
and unskilled. US population is aging and immigrants accounted for 50% of growth in labour market in 1990s.
- Increasing globalization and growing diversity of migrants make it harder to restrict.
7. Global Interactions at the local level
Distinguish between globalization and glocalization
-
-
Glocalization is a term that emphasizes that the globalization of a product is more likely to succeed when the
product or service is adapted specifically to each locality or culture in which it is marketed.
Where the global and local interact to produce hybridized outcomes. Local populations no long victims of global
homogenization but interpreters of such change which preserve diversity. Whereas globalization is a move
towards centralization, glocalization is a move toward decentralization.
Through local people delivering goods, services and cultural traits and also consumers in terms of how they
respond to what is on offer.
Examine the extent to which commercial activities have become globalized; the adoption, adaptation
(glocalization) or rejection of globalized goods, services and cultural traits.
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Mcdonalds case study (see socio-cultural notes)
Walmart case study:
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In 1996 Walmart entered Chinese market but as development progressed realized Chinese tastes were different
Leafy veggies can only be purhcased local which complicated Walmart’s normal strategy of “global centralized”
purchasing
Veggie section in Chinese Walmarts is double that of American; has chicken feet, stewed pork ribs and pickled
lettuce
Government regulations which state alcohol and tobacco purchased locally only, poor transport: 85% of
products are from Chinese supplies.
Halal business case study: commercial production has adhered to Muslim standards on local, national and
international scale – preserving differences and glocalization
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Jawhara Hotel chain do not stock alcohol, have conservative dress code and generally quiet environments
McDonalds, Subway and KFC testing halal-only outlets in predominantly Muslim areas of UK
Halal slaughtering facilities in Brazil because exports large quantities to Saudi Arabia, NZ exports lamb to Muslim
countries
Examine the reasons why the level and rate of adoption of globalization varies from place to place; the adoption,
adaptation (glocalization) or rejection of globalized goods, services and cultural traits
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Most civil societies against globalization have more participation from MEDCs than LEDCs: governments
welcome and want TNC involvement because benefits reaped by locals, whereas MEDCs are now becoming
overshadowed e.g. unemployment.
Most rapid rate in NICs, whereas Africa level of adoption stays low (see previous notes)
TNCs examine the market
- Threshold populations and profitability
- As for production and relocation, quantity/quality of labour e.g. China, Bangladesh
Effective infrastructural, technological and economic links: accessibility opens up upward development spiral
- Asian tigers case study, esp. China and WTO, air network; Singapore as port city and positive attitude to
modernization, export-orientated growth in electronics
- Conversely some areas have high protectionism less attractive for TNCs
Urban vs. Rural
- Global hubs with strong links will attract FDI, foreign interest
- Immigrants, diplomats and businesspeople have expectations of goods/services
- Digital divide: poor, rural have limited ICT and media
Women are among those marginalized from globalization: see migration/gender notes
See North Korea, Bolivia nationalism case study for rejecting and barrier so low adoption
North Korea case study
Intro
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North Korea, currently under dictatorship of Kim Jong-un
Arguably world’s most isolated country e.g. discourages visits by foreigners and forbids foreign investment, only
ally is China
Reasons for rejection of globalization
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History: aftermath of WWII North Korea (DPRK) was a Communist country under USSR whereas South Korea
followed a capitalist approach under guidance of US.
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US and Western culture demonized because a) supported South Koreans in Korean war b) by turning people
against major superpower can hoist own country on pedestal
Isolation because seen as resisting imperialism (a product of globalization)
Conditioning to hate the US and fear the outside world, and South Korea portrayed as puppets of US
imperialism: school children learn math by counting numbers of dead US soldiers, learn foreign languages by
translating ‘Yankees are wolves in human shape’
Flow of information and communication
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Ignorance makes unaware of the benefits that can be reaped: many not yet informed humans on the moon,
and instead believe they have reached the sun
Censorship further breeds personality cult and subserviently accepting globalization is bad: government
controls media, cellphones are banned, internet is unavailable
- That said, they defend by saying Western media organizations controlled by a handful of pro-US and procapitalists
Dictatorship and reverence for Eternal Leader Kim Il Sung, and fear and submission
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Radio on all the time with news of Dear Leader, biography propagating god-like qualities, propaganda
around country: brainwashing
- Criticism illegal – high risk of death, concentration camps
State ideology Juche is the antithesis of globalization.
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Translated as ‘self-reliance’
Including economic self-sufficiency, because reliance on others shifts power onto their hands
Examining reasons for rejection of globalization
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Perhaps not fully antagonistic intentions and quite humane: rejection of commercial activity/capitalism
- Doctrine: life devoted to society and having socio-political integrity as a social being
- By resisting Western values, they pride in these untainted North Korean principles and values: although
deriving from Marxist Communism, combined with Confucianism
Compassionate care for children, radically improved status of women, genuinely free housing and free
health care
Economic self-sufficiency?
- They trade (mainly weapons, drugs and counterfeit currency) few billion a year and even import petroleum,
coal, machinery/equipment, grain from EU, South Korea and China
- They receive food and medical aid, from UN and even negotiating disarmament deals with US
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- Tourists bring western gifts like cigarettes and face creams
Anti-globalist groups like World Social Forum note reasons like opposing all domination, upholding respect for
Human Rights (reduces disparities), participatory democracy, peaceful relations. Is North Korea following this?
Evaluate the relative costs and benefits of local commercial production to the producer, consumer and local
economy, compared to globalized production.
Producer
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Outsourcing: low cost of labour, rent, low taxation, loose environmental legislation = higher profit, growth
Global operations allows much higher growth and market share, as well as economies of scale
Local commercial production means producer has greater knowledge of local market and can react quickly to
consumer: personal relationships and strong consumer loyalty
- Many TNCs originated as local, but many grow because they want high volume of sales
Consumer
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Cheaper goods, possibly – or overpriced compared to the cost of production, especially for branded goods like
Nike
Local commercial production means producer has greater knowledge of local market and can react quickly to
consumer: personal relationships and strong consumer loyalty
Rawfully Organic: fresh foods with nutritional benefits, exposed to new vegetables and new ways of cooking,
develop relationship with farmer, visiting farm for awareness
Local economy
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Unemployment of low-skilled labour at US, but Nike has positive impact and stimulus to development of high
level skills in design, marketing and R&D in Oregon; substantial employment in Vietnam with higher wages than
local companies, improves their skills
Exports are positive contribution to balance of payments for Vietnam whereas footwear imported to USA
Direct and indirect taxation back to USA which is leakage for Vietnam, but local tax base in Vietnam helps with
improvements to infrastructure, positive multiplier effect
Success of outsourcing may lead to influx of more TNCs
Nike sweatshops infamous – including child labour, wages below legal minimum, forced overtime
Evaluate the quality of life of a contemporary non-globalized society.
Intro see North Korea case study above
Quality of life is good
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Perhaps not fully antagonistic intentions and quite humane (see above)
North Koreans acknowledge juche is not appropriate for others but claim it provides a moral/philsophical basis
highly appropriate for Korea’s culture and history. Claim unfair to measure philosophy against Western capitalist
standards unrelated to juche.
- Even if ignorant, many have genuine affection for juche and Kim Il Sung’s percieved defeat of US forces and
defeat of Japanese
As for government control of media, they argue Western media organizations controlled by handful of elite procapitalists
Quality of life is crap
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Forbids foreign investment: underdeveloped compared to Asian Tigers
Freedom of speech and access to knowledge/truth/balanced judgement is a key human right
Severe shortages of power, most forms of technology banned, even absence of street lights in Pyongyang: total
energy consumption is less than that of a medium-sized South Korean Town
Marginalized from technological advancement
Famine
- Economic mismanagement and loss of Soviet support, and still relying on foreign aid and not resumed food
self-sufficiency
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Malnourished: children 3 inches shorter than South Korean counterparts, cannibalism
Civil society any organization or movement that works in the area between the household, the private sector and
the state to negotiate matters of public concern. Civil societies include non-governmental organizations (NGOs),
community groups, trade unions, academic institutions and faith-based organizations.
Discuss civil society responses to globalization (adopt, adaptation, rejection of goods, services and cultural traits).
Discuss the position held by anti-globalization groups.
Adaptation: reformists
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Aim to civilize globalization so economic benefits more widely shared, including pursuit of human rights and
social justice
Includes NGOs, trade unions and social movements: grassroots approach
ILO safeguards worker’s rights
- Companies have signed agreements on basis on core ILO Conventions e.g. between Building and Wood
Worker’s International and IKEA raised labour standards in China, Malaysia and Poland
Rejection: rejectionists
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Nationalist movements, authoritarian states, anti-capitalist social movements
Left wing opposes global capitalism, right and left want to preserve national sovereignty
Are Hyperglobalists who see victory of capitalism over socialism, and demise of the nation-state
Either way both oppose three organizations WTO, IMF and World Bank. May be questionable since these groups
claim to promote development of LEDCs – though critics say free-market policies are divisive and not appropriate for
all, and loans = debt.
Supporters: adoption
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Pro-globalization groups advocate capitalism (form of liberalism) and claim they act more peacefully than
sometimes anarchic actions of anti-globalization groups.
Describe the role of civil societies in raising awareness of local and global environmental, social and cultural
issues.
Cooperative Rawfully Organic in Houston, Texas
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Visiting farms for awareness
Can talk with volunteers and develop relationship with farmers on importance of organic farming and
implications of health
AWARE
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Opposes cultural homogenization in media which undermines status of women with Western objectification
Collaborate with schools through talks, Love Yourself Campaign started by Poly student
Research on media and publish findings, especially on newspapers
Shell in Nigeria
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Shell is focus of many protests, especially since operating in Niger Delta where the Ogonis live.
Greenpeace, Body Shop International and Friends of the Earth published on newspaper about following issues:
- Economic issues: whether public should buy. Shell responded Nigeria’s Liquefied Natural Gas project will
hurt thousands working on it and benefit local economy.
- Social: poor people unable to defend themselves, especially farmers and fishermen who rely on land and
water. Shell said spent tens of millions on community programs.
- Environmental: degradation/pollution of water, land and air. Shell said oil will flow if they withdraw anyway.
Examine the role of civil societies in supporting local economic activity and strengthening local cultural values.
Community-supported agricultural programs e.g. cooperative Rawfully Organic
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Local, seasonal food delivered directly to doorstep, usually box of veggies and even eggs, homemade bread,
meat and cheese
Rawfully Organic: develop relationship with farmer who may be otherwise marginalized by agribusinesses with
huge market share and technology
Grameen Bank
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Muhammad Yunus believed poor and women underutilized because of lack of access to finance
Reasserted this human right and lessened marginalization from globalization
Micro-credit and social business: small loans, often so poorer start own businesses e.g. buy a cow then sell milk
Strengthening a new cultural value: gender equality because women receive almost all loans
The Fair Trade Foundation
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See previous notes
They also research and expose – awareness
Consists of labelling organizations and used widely by large retailers like Starbucks and Sainsbury’s
Nearly multi-billion dollars industry now and fastest growing food sector
Trade Union
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Can lead to increase in production costs too. Hence, some may move from China to cheaper locations like
Vietnam/Bangladesh. This is the danger with the increase in informal unionization leading to strikes and protests
(although been suppressed so far because unions controlled by Communist party).
Shell in Nigeria see above. But ultimately failed cuz Shell didn’t do anything, though may have raised awareness
regardless.
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