Global economy
Session 4-8
Learning unit 2
 MO2
Module
outcome
covered
 Evaluate the role and impact of media and new communication
technology in a globalised world.
 MO4
 Differentiate between media communication practices in South
Africa and abroad.
 MO5
 Analyse the impact of global communication on various socioeconomic and technological environments
Learning
Content:
 Global economy and division of labour and their relevance to
global communication.
 Electronic imperialism.
 Transborder data flow with reference to free trade.
 Explain the concept “global economy”.
Learning
Objectives:
 Explain what is meant by “division of labour” and its role in the
global economy.
 Define “electronic imperialism”.
 Explain the term “Transborder data flow”. Use a local example to
enhance your answer.
 Discuss why developing countries are wary of both free trade and
free flow of communication.
 Explain the US-centric notion of the Internet
Material to be
used :
 Prescribed text pp.39-54.
 Additional notes are given in the Introduction to this Learning Unit
to supplement the prescribed textbook.
 Pages to focus on: pp.39-42, 46-52.
How to
prepare for
this Learning
Unit:
 Before the first class, be sure that you read Sections 1-4 of this
Learning Unit, and pp.39-53 in the textbook.
 As you read these sections, see if you can find the answers to the
following questions:
 How was the pre-modern world different to the modern world in
terms of the division of labour?
 What is your view of the dominance the US has over the world in
terms of global media flow?
 What are the merits of free trade?
 Does South Africa engage in free trade, and if so on what levels?
Are there any specific restrictions?
Recommende
d Additional
Reading
 . Giddens, A. 2001. Sociology. 4th edition. Cambridge: Polity Press.
Recommende
d Digital
Engagement
and Activities
 http://www.economist.com/blogs/dailychart/2011/08/apple-andsamsungs-symbiotic-relationship
 Explain the concept “global economy”
 The world economy, or global economy, the economy, which is
based on economies of all of the world's countries' national
economies
global
economy
 The system of industry and trade around the world that has
developed as the result of globalization (= the way in which
economies have been developing to operate together as one
system):
 Reflect on how the global economy has affected you personally.
Where was your textbook published?
 Where do your clothes and shoes come from?
 Where were your laptop, tablet and/or cellular phone made?
 Is your favourite food dish (e.g. sushi, Chinese or Italian) originally
from a different country?
 This learning unit introduces you to the concept of the global
economy and shows how the Industrial Revolution sparked global
communication as we know it today.
 Price of oil, international brands
 The international spread of capitalism, especially in recent
decades, across national boundaries and with minimal restrictions
by governments.
 The global economy has become hotly controversial.
 Critics allege that its props, free markets and free trade, take jobs
away from well-paid workers in the wealthy nations while creating
sweatshops in the poor ones.
 Its supporters insist that the free movement of capital stimulates
investment in poor nations and creates jobs in them.
Division of labour
 Explain what is meant by “division of labour” and its role in the
global economy.
 Developed out of the Industrial Revolution.
 It refers to the process whereby cooperating people that are
working for the same company or towards the same goal perform
various, but specific tasks and fulfil certain roles (Kamalipour,
2007, p. 40).
enhances
productivity;
 As a result of the development of the division of labour,
production of goods (or provision of services) became quicker and
cheaper.
 Individuals were also able to concentrate on their task and in so
doing, build up their expertise, which in itself would increase
overall output
 There are a few disadvantages that developed .
 interdependencies, thus if just one individual performs poorly, the
entire production process will be adversely affected.
PROBLEMS
 Coordination and control are thus vital managerial skills that have
to be constantly monitored.
 . While it may have been a simple process to coordinate and
control workers within a small factory during the 13th century,
since then companies have become multinationals and the task of
monitoring and controlling employees around the world becomes
a very difficult managerial one.
 Companies going global –goods could be made at a lower cost in
other countries, therefore workers would be in a constant state of
anxiety over the security of the job for fear of being replaced by
another worker in a another country, so as to save the company
money and increase profits (Kamalipour, 2007, p. 41) .
 These days, division of labour has even spilled over beyond
national boundaries.
Link to global
economy?
 By way of an example, according to the Economist blog (The
Economist, 2011), an Apple iPhone is made up of components that
are manufactured in over 5 countries, and interestingly, its rival
Samsung, plays a pivotal role in the manufacturing of the iPhone.
 Whereas global trade in the past was limited to lightweight items,
today tons of steel, oil, grain, and other commodities are routinely
moved across the world.
 These movements affect not only the consumption of luxuries by
the wealthy, as in the past, but also the consumption of everyday
items by the common people (Kamalipour, 2007, p. 42).
 Define “electronic imperialism”-GLOBAL MEDIA FLOW
 . roots in imperialism dating back to World War II.
electronic
imperialism
 Many scholars argue that although the formal empires have been
dissolved, the global political structures created during the age of
imperialism remain in place (Kamalipour, 2007, p. 46).
 These structures create a relationship of dependency between the
rich and poor countries.
 Electronic imperialism refers to the fact that developed countries still
have the upper hand over developing countries in many regards, but
specifically with regards to electronic communication such as
television and the Internet.
 The US overwhelmingly dominates the cinema and television
screens all over the world economic power and spreading its
culture across borders.
 No other country even comes near the US presence on the world’s
electronic entertainment stage.
 New Information Order NWIO- encourages regulation of
information by governments however technology is now making it
difficult.
 Explain the term “Transborder data flow”. Use a local example to
enhance your answer.
Transborder
data flow
 Refers to the sharing of data or information across national
borders (Kamalipour, 2007, p. 48), is probably a new concept to
you so make sure you familiarise yourself with this notion and
ensure that you can comment on South African examples to
further your knowledge.
 The terms “free trade” and “free flow of communication” are also
important in this regard.
Purpose:
 The purpose of this task is for you to gain a better understanding
of the term “transborder data flow” and do some research in
terms of where South Africa is with regards to sending and
receiving information on a global scale.
Activity 1
Task:
 Within groups of about 4-5 people, work through the section
“transborder data flow” (Kamalipour, 2007, p. 48) in your
textbook. Then, doing some online research, gather information
on where South Africa can be positioned in terms of the flow of
global communication from and to our country.
Emerging
network
structures
 Read page 52 on emerging network
Izimvo
Exchange
 Discuss why developing countries are wary of both free trade and
free flow of communication.
 Explain the US-centric notion of the Internet page 46-47 and 52
Internet
 Basically the US-centric nature of the Internet suggests that the
United States overwhelmingly dominates the Internet in terms of
the sheer number of American websites and Internet hosts
available.
 The global Internet exhibits a centre-periphery relationship similar
to how African telephone networks work
 An email from Stockholm to London goes via the United States
even though the direct physical distance between them is shorter.
 The US-centric nature of the global Internet is also evident in the
financial arrangements for international circuits (Kamalipour,
2007, p. 52).
 Unlike the telephone system, in which the cost of the international
circuit connecting the two countries is evenly split between them,
Internet service providers (ISPs) in other countries pay the entire
cost of the circuit connecting them to the US.
 The US carriers are able to get away with this because of their
leverage with overseas ISPs
 The ISPs are willing to pay for the entire circuit because they need
access to US websites and exchange points that can connect them
to other countries.
Izimvo
Exchange
 Working within groups, discuss the merits of globalisation. Is
globalisation something that has helped South Africa in terms of
development, or is it a process that has done more harm than
good? Give specific examples of both the positive and negative
consequences of globalisation on South Africa.
 The positive frame;
 points to the potential gains and benefits of globalisation.
.
 The negative frame;
Globalization
Frame
 points out the increasing potential for economic crisis, the threat
to the livelihoods of workers, and the growing income inequality
caused by globalisation.
 This frame also includes discourse (1) which is primarily concerned
with the negative impact of globalisation in the Third World.
 The neutral frame;
 portrays globalisation as a natural , evolutionary, and largely
inevitable development.
 This discourse, which is associated with the financial community,
avoids making moral judgments
 The constructive frame.
 The constructive frame is an emerging frame that is more positive
and constructive than the negative frame.
 This discourse supports global cooperation and interaction while
opposing some of the negative effects of globalisation.
 As a class, debate the merits of free trade. As part of your discussion,
incorporate South Africa’s position on free trade. Also incorporate
your view on how free trade has impacted on South Africa in terms
of the global economy.