Thème 1 Globalization -...

DNL – term ES/L Thème 1 – Geography 8 .00 – Sept Oct

mercredi 21 octobre 2015 – D. Catala. Cours DNL Terminales L-ES 1

Thème 1 – Geography

Globalization See the new vocabulary in blue.

Part 1 – The globalization process

Lesson 1

A case study: a cup of Starbucks coffee

Question : Drinking a cup of Starbucks Coffee : how the consumption of this good illustrates the globalization process ?

1. Introduce the document A secondary source, made with figures and statistics. We can see: A world map :

- the number and the location of the Starbucks Stores in the world

- The flows for the different goods used to make this product.

- A bar chart showing the number of Starbucks stores opened since 1987.

2. Describe - What’s Starbucks ?

A TNC (transnational corporation): an American global coffee company and a coffeehouse chain based in Seattle, (the largest coffeehouse company in the world,

with more than 19.000 stores in 62 countries : It was founded in 1971. Since 1971, it has expanded rapidly : on the source : 3 new stores opening daily in the world. 1000 stores in 1996, then X 2 until 2000 and x 3 . (the chart does not count stores from northern America).

- How is made a cup of coffee? Where’s it made? Where is it drunk? For one cup of coffee, we need coffee beans, produced in (tell where), sugar (from…), and paper from the biggest forests (Canada and Scandinavia). Most of these goods come from developing countries or the least developed countries (LDCs). They are transported by Ocean shipping to ports, then by rail or trucks.



The customers live in : north America (3/4 : > 15. 000), South and East Asia = developed and emerging (market or economy) countries, but only 2 stores in Africa (Egypt and Marocco). Even, now, you can be connected to Starbucks shops by a website (online sales), and you can get the application for you mobile phone! (I’ve not tried ) Drawing / schematize the map.

3. Analyze

Globalization makes global inequality with an uneven development between North and South but the divide is not so clear! It shows that a cup of coffee is a mass consumption product, but unaffordable to underprivileged social class (Africa, Central Asia…) The main actors are the TNCs : transnational companies. They organize the new international Division of Labor (NIDL): developed countries /Developing countries (sweatshop countries) Conclusion : What is globalization ?

- a growth to a global or worldwide scale. - the many ways in which places and people are becoming ever more closely linked. - the integration of various political, economic, and cultural systems. It is the interconnection of

people, places and ideas that collectively transforms the economy, means of communication and transportation, the political process, and culture and society.

= A world with networks (between areas and population) and expanding exchanges (material or immaterial).



Lesson 2

Globalization: Process, Actors, debates

And the earth became a shrinking world: how does it work?

1. History Globalization is an old process. The first began with the Atlantic Slave Trade (Atlantic Triangle) from the XVth to the XVIIIth century. The second occured at the Age of Manufacturing Industry and the period of imperialism and

colonization (XIXth century) : the Anglobalization until 1914 and the beginning of the WWI. - The XXth century : the US power - The process was accelerated after the WWII, but only in the West

of a bipolar world. - Second acceleration since the end of the Cold war in a multipolar world : a postindustrial society

Since the end of the XXth century, we have been leaving the fourth globalization with ICTs (Information and Communication technologies) and the Internet backbone… integrating more and more areas and people. Expanding, accelerating and interconnecting.

This phenomenon came with technological progress:

- Progress of transport :

o Railway



o Trucks o Ocean shipping, in particular the development of Containerization: a system of intermodal

freight transport using standard intermodal containers, which can be loaded and sealed intact on to container ships, railroad cars, planes, and trucks = roll on/roll off (RORO) A container is : a large box (container or shipping container) = Twenty Feet Equivalent Unit (TFU : verify the dimensions on the Wikipedia website) The first company : Maersk (Danish)

o Planes Those means of transport are faster and less expansive with new seaways (who permit to make fast rides): Panama Canal, Suez Canal, and soon a new seaway in the Arctic Ocean.

- The new technologies: mobile phones and internet who can move data at any time. Links between people, places all over the world create networks. The points on a network map are called nodes. In global network theory, the term global hub is used to describe a node that is especially well connected. Connections between nodes, or global hubs, are called flows. Container ship in Miraflores locks, Panama Canal

Another explanation: the economic liberalism model became widespread, with free trade and lower tariffs.

2. Various actors The TNCs

Definition and differences between MNCs (Multinational Corporation) and TNCs : http://www.businessdictionary.com MNC : An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation. TNC : A commercial enterprise that operates substantial facilities, does business in more than one country and does not consider any particular country its national home. One of the significant advantages of a transnational company is that they are able to maintain a greater degree of responsiveness to the local markets where they maintain facilities.

http://www.businessdictionary.com/



Their strategy is clear: find new markets, or cheap workforce (sometimes called sweat workers), or high skilled workforce… The ranking is difficult to be drawn up: sometimes the work force, or the sales, or the profits, or the foreign assets.

But, most of them are from US, European Union, Japan (developed countries) and now from China, India, Brazil (emerging countries…). Some of those TNCs have a so big power that their sales is as big as the GDP (Gross Domestic Product) of countries: for example, Wall Mart /Norway, Exxon/Greece (not difficult ). Uneven world, Is economic power submitted to the

political power ? http://www.economist.com

Foreign Assets : actifs à l’étranger.

The STATES Sometimes, states impulse public or private works (roads, ports, airports) etc. They contribute to the space planning. They vote social laws, create free zones They are the main actor of education policies.

People Workers in bad conditions (working hours, wages, no social security, accommodation, migrations, illegal workers…) = human rights, law Consumers, do they think about this when they buy ? Citizens : they chose when they vote a way of life : taxes, solidarity, etc. For example, the world is different with Bush and with Clinton or Obama… We can add diasporas : Chineses or Indians in the world they create many flows in the world (people, goods, money (remittances)

International organizations/ NGOs - WTO : World Trade Organization

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

http://www.economist.com/



The WTO agreements cover goods, services and intellectual property. They spell out the principles of liberalization, and the permitted exceptions. They include individual countries’ commitments to lower customs tariffs and other trade barriers, and to open and keep open services markets. They set procedures for settling disputes. These agreements are not static; they are renegotiated from time to time and new agreements can be added to the package. Many are now being negotiated under the Doha Development Agenda, launched by WTO trade ministers in Doha, Qatar, in November 2001.

- IMF: international Monetary Found The WTO is very often criticized by non-governmental organizations, by many political parties and many citizen. For them, WTO organize an unfair world…

- The alter-globalization or global justice movement militates in favour of another globalization, very often against the capitalism and the liberal economy made by the WTO…

They organize street protests in many countries and each year since 2001, the World social Forum. The WSF happens most of time in developing and emerging countries (Brazil, India, sometimes in Africa). It’s a group of civil society organizations and NGO’s (Non Governmental Organizations = non-profits organizations) For NGO’s - Their main goal is to help : health (Doctors without borders), education (UNICEF), human rights and policies (Amnesty International), environment (Greenpeace). They try to regulate the globalization by advertising states and populations, by helping directly populations… Conclusion : Many actors with –very often- different, even competing interests. That’s’why we need rules in an international governance.



Lesson 3

Networks, mobility and flows

The usual definition of globalization is an increase and acceleration of exchanges (goods, capitals, informations and people) at all the scales. Key-question : How does the globalization organize networks and flows ?

1. The trade flows The trade of goods moves by airports but especially by ports. The first trade power is the E.U, followed by East and Southern Asia, then North America.

- For the E.U., it’s a special reason, because E.U. build a common market and the majority of the flows are internal or with the other Europe and the USA.

- Most of the goods move from Asia to Europe and Northern America: essentially consumption goods.

- Then, there are flows between South and North America: unequal exchanges because very often raw materials and food against consumption goods (this are not goods with the same added value!)

You can see although flows from Middle east to Asia : especially energy (oil) - At last, Africa is not totally excluded from the trade, but represents a low part of the international

trade.



The global internet map confirms our previous description. Internet flows are immaterial flows… We can see that the majority of immaterial flows moves between EU and North America with the exponential development of the services. We can see a digital gap The most connected people are from developed or emerging countries, except China which has an internal and controlled network, because of the dictatorship.

2. The mobilities Tourism flows are excluded from this description. These flows are only workers flows, without refugees or family grouping. Describe the first and the second map. Both are totally different. With the first one, you can make a classical description:

- Human flows from South to North: sweat workers with couples like Latin America to North, (and a little flow to E.U., Northern Africa to E.U and Asiatic everywhere

- Flows from North to North : the brain drain, very high skilled workers - South to south: poor workers to Middle East (building trade, oil, etc.)

The second map bring us more and precise informations: - We can find again the same but - The most important flows are intra continental flows, in the order: Asia to Asia, Sub-Saharian Africa,

Central America to USA…

3. Flows draw networks between Made with ports and airports. (diapo 12) Airports are hubs (A Hub and Spoke network is a route network where an airline will not only plan on transporting passengers between two points, but also to connect passengers between two distant cities via its hub) (diapo 13) Ports : Among the 10 biggest ports in the world, 6 are Chinese – 1. Shangaï, 2. Singapore, 4. Rotterdam, 10. South Korea (Busan) -Coastal interfaces : Asian coastline, European and eastern USA. Made with network cities : millionaire cities and megacities = worldcities Conclusion : A global connected world, making a global village with small distances and unlimited capacity !!! The non-connected spaces are enclosed territories : isolated valleys, mountains, dense forests, cold spaces, deserts.



Part 2 – Globalization’s territories

Lesson 4 A case study : Singapore, territory of globalization

Sources :

. A map of the city-state

. A view of the port .Singapore Datas

Population 5.47 millions Economy GDP per capita > 78 000 $ GDP growth (annual %) : 6.9 % in 2014 Agriculture (% of GDP) : 0 % Industry (% of GDP) 25 % Services, etc. (% of GDP) : 75 % Exports of goods and services (% of GDP)191 Imports of goods and services (% of GDP) 167.5 States and markets Time required to start a business (days) 3 Mobile cellular subscriptions (per 100 people) 155 Internet users (per 100 people) 73 High-technology exports (% of manufactured exports) 46 Merchandise trade (% of GDP) 274

Question: Show that the city of Singapore is a territory of globalization.



1. The local scale : Before beginning, locate Singapore on google map : = a city-state, located on an island, in the south of Malaysia and in the East of Indonesia. It’s a small territory with an area about 720 square Km. The seaway from Singapore to the Indian Ocean by Indonesia is called Strait of Malacca, the most crossed strait in the world. This island is in permanent transformation: the territory is adapted to globalization with

- Reclaimed lands : since 1819, 140 square Km were conquered on the see (20 % of the territory) = an harbor industrial zone (oil storage area, refineries, industries) = the container terminal with container storage area = Changi Airport (20 Km2) : in form of a aircraft-carrier = a leisure center on Sentosa Island = a marina in a luxurious setting

- One of the largest container storage area : look at the containers, the cranes and container cranes - In the background, we can see the CBD (Central Business District) with skyscrapers. At the origin, it

was by the sea, but with reclaimed lands, it’s now an inner land.

2. The regional and world scale A major shipping and air transport node linked by see and air to all part of southeast Asia and beyond WITH

The Port of Singapore - The port is connected to over 600 other ports in 123 countries and spread over six continents - One of the world's busiest port in terms of total shipping tonnage, container port, transshipment

port (1st Shangai)

Changi Airport - about 4,340 weekly flights operated by 80 airlines to over 130 cities in 59 countries - 2008 : Over 37 millions passengers - Almost 2 millions tons of air freight movements (the busiest cargo airports in the world) - With the 3rd terminal for the A380 plane, annual capacity of 70 millions passengers

Singapore CBD - A major telecommunications hub (internet, phones) - A production base for manufactures (exports) - A place for regional headquarters for many European, Japanese, American TNCs (around 6,000

foreign MNCs/TNCs companies) - A financial center:

o Local and international commercial banks, Finance companies, Insurance companies Investment advisers

- A research, development and technologies hub with the Science park of Singapore - An educational hub with offshore institutions like:

o MIT (Massachusetts Institute of Technology) o University of Chicago o INSEAD (Institut européen d'administration des affaires) o Stanford University

Conclusion : => a multimodal transport and logistics hub



Lesson 5 Territories unequally integrated to globalization

In the context of globalization, territories are not all integrated in an equal way: - Impulse centers which establishes poles and major spaces - Abandoned spaces = territories and people in margin But be careful to all the scales. The key-question : How globalization has created a hierarchical organization of the world ? You have to define cores and periphery in the world, at different scales Sources :

. the human development index (2013)

Short definition of HDI : a composite statistic of life expectancy, education, and income indices used to rank countries into tiers (levels) of human development On this map, you have to classify the countries : Catégory 1 : The Most Developed Countries (MDCs)

- The Triad (composed of the USA, the European Union and Japan) - The developed countries - (NPI1) or 4 dragons = The Newly Industrialising Countries of first generation (NIC1) or the four

dragons (South Korea, Hong-Kong, Taiwan and Singapore) Catégorie 2 : The Less Developed Countries (LDCs

- the emerging countries (China, India, South Africa, Brazil and Mexico) - the Developing countries - the Least Developed Countries or the Fourth world

In general, the most developped spaces are the coasts, the cities (the center and sometimes the rich suburbs)



Definition : A global city, also called world city or sometimes alpha city or world center, is a city generally considered to be an important node in the global economic system. Describe : Standard characteristics are : A variety of international financial services : insurance, banking, Headquarters of several multinational corporations The existence of financial headquarters, a stock exchange and major financial institutions Domination of the trade and economy of a large surrounding area Major manufacturing centres with port and container facilities Considerable decision-making power on a daily basis and at a global level Centres of new ideas and innovation in business, economics, culture and politics Centres of media and communications for global networks Dominance of the national region with great international significance High percentage of residents employed in the services sector and information sector High-quality educational institutions, including renowned universities, international student attendance[ and research facilities Multi-functional infrastructure offering some of the best legal, medical and entertainment facilities in the country = ports, airports, multimodal platforms, hubs, interfaces (east and south Asia, northern Range, the atlantic coast of US, the Mediterranean sea, the Gulf. Some territories are still outside of the globalization .Some are enclosed :

- Mountains (Himalaya, Andes…), dense forests - Islands : in the Pacific Ocean or at the opposite countries located in the middle of the continent - Cold spaces (polar) or deserts, less populated

fortunately, the ICTs reduce the distances. . Some are totally excluded for ideological reasons (North Korea) or reasons of security (disadvantaged districts, ghettos… )

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