human geography

globalization notesglobalization: processes and impactsuneven global distribution of economic activities: LEDCs, MEDCs and NIES development gap development indicatorsnew international division of labour (NIDL) causes impacts impact of new technologies on work product life cycle fordism vs post-fordism outsourcing, insourcing, offshoring strategic alliances, joint ventures, mergers & acquisitions deindustrialization, rationalization, reindustrializationimpact of global economic change rise in service sectors locational trends internationalization SMEs deregulationtransnational corporations (TNCs) characteristics spatial organization impactsrole of the state and supranational bodies state & economic development trading blocs international institutions

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introductionDefinition of Globalization- the closer integration of countries and peoples of the world which has been

bought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge and (to a lesser extent) people across borders

Global Village (Marshall McLuhan)- world in the age of high technology and international communications, through

which events throughout the world may be experienced nearly simultaneously by everyone

- apparently ‘shrinking’ world societies to the level of a single village or tribe- with the advent of the Internet, physical distances are even less of a hindrance to

the real-time communicative activities of people- social spheres expanded by the openness of the web and the ease at which

people can search for online communities and interact with people with the same interests and concerns

- technology fosters the idea of a conglomerate yet unified global community

Glocalization- tempering effects of local conditions on global pressures- simultaneity (co-presence) of both universalizing and particularizing tendencies

e.g. McDonald’s has different items in particular countries

Global (Industrial) Shift- refers to the movement of economic activity/production processes away from

MEDCs, first to NICs, then to recently industrialized countries, then to LEDCs

aspects of globalization

1) Economic- increasing economic interdependence of national economies through a

rapid increase in cross-border movement of goods, services, technology and capital

- comprises the globalization of production, markets, competition, technology, and corporations and industries

- key events: 1944 - Bretton Woods Conference, World Bank, IMF, WTO- capital flows; growth in FDI - growth of international businesses and TNCs- international trade- impacted by industrialization, advanced transportation, multinational

corporations, and outsourcing- trade agreements, economic blocks and special trade zones- tax havens - international tourism

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2) Sociocultural- increased cross-cultural contacts but decrease in the uniqueness of once-

isolated communities- controversy: predominantly driven by outward flow of culture and

economic activity from the US (Americanization/Westernization)?- cultural practices such as traditional music can be lost or commercialized

(commodification of culture) or hybridized - homogenization of culture: concern that countries with more economic

clout will have more influence in shaping this global culture- growth in multilingualism; growth in use of English as a second language- 50-90% of languages will become extinct by the year 2100- importance of technology and the diffusion of knowledge

3) Urban- hierarchy of global cities: cities considered to be important nodes in the

global economic system - Saskia Sassen- idea that globalization can be understood as largely created, facilitated,

and enacted in strategic geographic locales according to a hierarchy of importance to the operation of the global system of finance and trade

- e.g. headquarters of MNEs, international financial institutions, stock exchanges, advanced communications infrastructure

4) Political- reduction in the importance of nation states: sub-state and supranational

bodies such as the EU, WTO, G8 may replace national functions with international agreement

- NGOs influence public policy across national boundaries, including humanitarian aid and developmental efforts

- some countries have embraced isolationist policies in response to globalization e.g. North Korea

6) Demographic- international migration- many countries have some form of guest worker program- migration of educated and skilled workers: brain drain- illegal migration- remittances

7) Environmental- human challenges to natural environment such as climate change, over-

fishing, often require transnational or even global solutions- agencies like the UN must now be the global regulators of pollution- Kyoto Protocol, UNFCCC, etc.

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processes driving globalization

1) Technologya) Transportation Technologies

- transport revolution in the 19th century: steamships and railroads- introduction of commercial jet aircraft (1950s)- introduction of containerization (1950s)- development of high speed rail- since the 1970s, aviation has become increasingly affordable to middle

classes (40% fall in airfare since 2000); open skies policies and low-cost carriers helped bring competition to the market

- lowered costs of transportation, shorter transit times - facilitate trade (since 2000, >90% of world trade via containers) and movement of people

- however, technological developments in transportation tend to be geographically concentrated

- differential investment in transportation technologies - pull some places closer yet leave others behind (e.g. Africa) - time-space convergence is geographically uneven

b) Communications Technologies- transmission channels - satellites and fibre-optic cables- electronic mass media - radio, TV, cable- internet- digital age characterized by convergence between computer and

communications technologies- continuing increase in the speed and capacity of these technologies and

a continuing decrease in the cost- growth of broadband communications technologies and mobile

telecommunications- more work can be performed using a computer without regard to location

(includes accounting, software development, engineering design etc)- facilitates TNCs’ operations - able to control operations overseas at low

cost- facilitate diffusion of knowledge and knowledge-creation processes (e.g.

‘new economy’ driven by technological developments in information and communications technologies (ICT))

- led to the emergence of an international financial system: global financial deregulation allowed a massive increase in international trading in currencies, shares and other financial products

- together, these technologies overcome frictions of time and space - space-shrinking technologies

- however, important to note that technology per se does not cause any particular kinds of change

- rather, acts as an enabling/facilitating agent which makes possible new structures, new organizational and geographical arrangements of economic activities, new products and new processes

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