Welcome to Globalization

So what is globalization anyway?

– Globalization could be described as a process by which time and distance cease to be major constraints in the organization of human activity (Harvey 1989)

• Technology has enabled us to diminish distances

• And, to speed up processes

– So, how does this affect human organization, interaction, and social sustainability?

Defining Globalization • Human societies across the globe have

established progressively closer contacts over many centuries, but recently the pace has dramatically increased. – Jet airplanes,

– cheap telephone service,

– email,

– computers,

– huge oceangoing vessels,

– Finance and banking

http://www.globalpolicy.org/globalization.html

Defining Globalization

– In many ways, the world has become more interdependent than ever.

– Multinational corporations manufacture products in many countries and sell to consumers around the world. • Money, technology and raw materials move ever more swiftly across national

borders.

• ideas and cultures circulate more freely

– As a result, laws, economies, and social movements are forming at the international level. But for billions of the world's people, business-driven globalization means uprooting old ways of life and threatening livelihoods and cultures.

Dissecting Globalization• Can you think of different aspects or types

of Globalization?

• Technology

• Economy

• Culture

• Politics

• People

• Environmental/Ecological Issues

http://www.globalpolicy.org/globalization.html

Issues to Consider

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

Global Markets and Corporate Power

• The trend has been toward economic globalization

» Economic enterprises that engage in business activity around the globe

• The global economy of today was brought on by two social forces

» Modern speed of communication» Modern speed of transportation

Multinational Corporations

• Multinational or transnational corporations are corporations that operate in a number of countries

• Multinationals have their headquarters in one country while operating business activity in other countries

• There has been a significant growth of multinationals since WWII

Multinational Corporations

• Multinationals often move to where costs of production are low and shift profits to where tax write-offs are high. This is known as outsourcing

» Loss of jobs in developed countries where labor costs are often higher

» Contribute to poverty in developing countries by shifting profits out to more developed countries

Global Factory, Global Sweatshops

• Multinationals have been transforming the world’s economy

• One development has been the global factory • Two factors have made possible the globalization

of production» 1. High speed transportation » 2. Component production

Global Factory, Global Sweatshops

• Two issues related to the global factory are» Outsourcing of work and the loss of

jobs in America» Sweatshops and the hiring of child or

prison labor

Effects on American Workers

• Decline in the number of employers and the concentration of markets by large corporations

• Export of capital and jobs overseas• Biggest job losses have been in manufacturing

» In industrial cities of the Northeast and Midwest

Effects on American Workers

• There have been three major changes of labor force in America due to the global economy

» 1. Shift from manufacturing jobs to service jobs

» 2. Increase in the number of women in the global labor force

» 3. Emergence of new technologies and unprecedented economic growth in the last ten years

From Manufacturing to Services

• Decline in farm employment• Decline in blue-collar employment• Growth in white-collar employment• There has been a shift away from manufacturing

jobs to jobs within the service sector of the economy

From Manufacturing to Service

• The shift in manufacturing jobs to service jobs has resulted in a decline in union membership

» In 1960, 27 percent of employees in the private sector belonged to a trade union; today that figure is 11 percent

• Another trend in the shift from manufacturing to service jobs has been the growth of contingent work- work not based on a written contract with regular hours

Women in the Global Labor Market

• Labor force defined - 16 and over who worked one hour a week or over or are out of work and actively looking for work during the survey week

• Major change is the growth of married women and the exclusion of older men in the labor force

» Women comprise well over 40 percent of the labor force

Women in the Global Market

• Approximately 6 percent of both men and women hold multiple jobs

»Most multiple job holders hold two or more jobs to pay bills

»Many hold two jobs because of part time work and the lack of a full time job

• Women work part time because of:» Schooling

» Family and the lack of affordable childcare

Technology and Specialization

• Economic growth in the U.S. was fueled by a number of new technologies

» Computers» Telecommunications» Biotechnologies» E-commerce

• There has been a rapid growth in the application of computers to work

Technology and Specialization

• Technology• Computer and telecommunications technology has

lead to the creation and growth of» Internet-related businesses

• Internet commerce has led to the shift of jobs from a central location to home-based self-employment enterprises

• New technology will lead to job losses in traditional industries

Job Insecurity and Unemployment

• The economic downturn in the financial market along with the events of September 11, 2001 have led to an increase in job insecurity

• Loss of blue-collar jobs• Loss of managerial and professional jobs

» Long term unemployment» Many have experienced downward

mobility

Consumers and Credit

• U.S. economy is based on consumerism• Effects of a strong emphasis on consumption has

been• An overemphasis on materialism and reducing an

individual down to the sum of their material toys as a measure of self worth

• Dominance of large corporations and franchises and a decline in small businesses

Problems of Debt Entanglement

• Transformation from a cash to credit society» Increase in consumer debt» Debt and bankruptcy

• Many bankruptcies are due to» Divorce» Medical expenses» Loss of financial investments

Politics and Social Policy

• Two major factors have altered the world economy

• Global terrorism• Globalization• Policies and politics will focus on issues of free-

trade and the expansion of markets» NAFTA» Most favored trade status of China