+
Contemporary
globalization
Chapter 2
+

Contemporary Globalization
Definition:


#1: Force or process that involves
the entire world and results in
making something world-wide in
scope
#2: Increasing
interconnectedness of different
parts of the world through
common processes of economic,
environmental, political, and
cultural change.

Has been underway since
inception of modern worldsystem in 1500s

1800s modern framework for
globalization developed

Global connections today differ in
four ways from past

Function at much greater speed

Operates on a much larger
scale

The scope of global
connections is much broader
and has multiple dimensions

Interactions and
interdependencies among
numerous global actors have
created a new level of
complexity for the relationships
between places and regions
+

Contemporary Globalization
Modern Technology has created
quick movement of money,
materials, products, technology and
other economic assets

Globalization has had both positive
and negative repercussions:

localization: places might be
attractive because of resources, or it
might be suitable for new factories,
extract materials, sell them, etc.

heightened economic differences:
example, factories closing in the
United States and open in Mexico
due to cheaper labor.

Specialization on local level

Each place plays a distinctive
role based on its local assets
+


Economic Globalization
People are plugged in to a global
economy and culture. This produces a
world that is more uniform, integrated,
and independent.
 Only a few areas are still isolated/
sheltered
 Subsistent areas
 Most areas interdependent
 Choice of crop in one country
based on demand in another
Commodity Chains
 Networks of labor and production
processes that originate in the
extraction or production of raw
materials and who end result is
delivery and consumption of the
finished commodity
 Network span countries and
continents

JEANS EXAMPLE!!!

Pg. 53 in textbook (Knox)
+ Economic Globalization

Historically people had difficulty
moving $ and goods from one
country to another, modern
technology has changed that

Led to creation of transnational
corporations
 Definition:
 Transnational corporations
conduct research, operates
factories, and sells products in
many countries, not just where
it’s headquarters are located.

TCs assess particular asset of a
place and correctly identify the
optimal location for each activity
 ex: extract raw materials
 Produce parts
 Manage operations
 Develop engineering systems

MCDONALD’s
+ Transnational Corporations


Other examples:

Airbus, BP, Virgin Groups

2007 = 79,000 operating

Account for 11% of world’s GDP

1/3rd of exports
Globalization of economy has
heightened economic differences
among places

i.e.

factories closed in U.S. and moved
to Mexico

Using India for call-centers

Global recession 2008

1st world-wide economic recession

Usually contained to nations or
regions

Effects of recession varied

1st time global recession affected
everyone

Example

U.S. homebuyer, banker in
U.K., sales clerk in Japan,
clothing maker in China,
construction work in Nigeria

All subject to falling
demand and lack of credit
+
+

Cultural Globalization
Globalization has important cultural
dimensions

Previously cultural diffusion limited
to specific places and regions, no
longer the case

Consumer culture

“global” or uniform landscapes

Communication
 TV promotes globalization but
also can promote diversity
 Example: Sesame Street
 Shown in Japan with similar
characters, similar goals,
but stresses filial piety and
other Japanese
characteristics

Not all peoples want to be
“globalized”
 Resistance
 Shut off from “globalizing”
 Conflict
 Political (Iran, Taliban,
Afghanistan)
Lack of uniqueness

All adds to an intensified global
connectedness and the beginnings of
the world an interdependent system

For some places globalization is a
central reality, others it is still a
marginal influence


There is no one experience
+
+


Westernization
Heart of tensions is a marked
disillusionment with the West,
especially within traditional Islamic
societies
In much of the world modernization
now means “westernization” or
“americanization”
 In peripheral countries only
select few enjoy western-style
consumerism
 Gap between rich and poor
countries widening
 U.S. aid budget declining = bad
reputation for United States
 Conflict
 9/11 , Taliban

“ New Imperialism”

Imperialism of the United
States, the world’s only
superpower

The world regards U.S. as
imperialistic

“War on Terror”

Reinforced by:

military threats against
North Korea and Iran

Deployment on special
forces for rendition
+

Key Issues in a Globalizing World
The integrated global system has
increased awareness of a set of
common problems



Security issues
 Spread of weapons of mass
destruction
 Risk of accidents involving
radiation
 Instability of financial markets
 International terrorism

Disparity issues
 Core has consolidated
 Three major centers
 North America, European
Union, Japan
 Gap between wealthiest 5th of
population and poorest 5th has
increased threefold since 1965
 Resentment brewing
Environmental Issues

Human- environment interaction

Climate change

Environment degradation

Sustainability
Health issues

Increased travel = increased spread
of disease

Pandemics

HIV/AIDS
+
Future Geographies

Globalization of capitalist world
system has been developing for at
least 500 years

Since WWII it has been accelerated
and dramatic

Future?
 Optimistic:
 Potential for technological
innovations
 Faster more effective
transportation and
communication
 World governments?
 Pessimistic:
 Finite nature of resources
 Fragility of environment
 Pop growth too large

Middle road?
 Period of transition
 Soviet Union collapse
 9/11
 2008 Global financial crisis
 Increasing power/ influence of
China and India
 Shift in power in wealth from
West to East
 Increased conflict in Middle
East
 Resource pressure
 Lots of uncertainties
 Climate
 Arab- Israeli conflict
 energy