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Geography 372-910 Globalisation and Territory – Global Village.

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Presentation on theme: "Geography 372-910 Globalisation and Territory – Global Village."— Presentation transcript:

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2 Geography Globalisation and Territory – Global Village

3 Divergent Trends in Territory and Function Spatial fragmentation Socio-economic integration Together they have created a global village both in terms of the number of territorial entities that now exist, and the ease with which almost everyone is affected by almost everyone else. MECHANICS

4 Theme of the course is the apparent paradox between territorial fragmentation on the one hand and social, cultural and economic globalization on the other, the former diversifying societies while the latter homogenizes them. MECHANICS

5 Bottom Line? The things that increasingly control our lives don’t, won’t, or can’t respect political boundaries: Environmental problems People and Power Corporations Poverty and Profits Financial systems National interests Technology Disease and Health Conflict and Terror Social change This course looks at all of these topics within the changing post WW2 territorial framework. MECHANICS

6 Who, Where, What, When, How Dr. Philip Coppack Course material at: !! NOT A BLACKBOARD SITE !! Lectures take place in the here and now. MECHANICS

7 COURSE EVALUATION: Essay50% (due dates see schedule below) MC Tests (5x10%)50% (due dates see schedule below) There will be no final exam in this course. NOTE: Tests will be run in the first 50 minutes of the class hour and will be comprised of 40 multiple choice questions If you miss a test, you will lose the grade for it – no exceptions, otherwise you will be swamped. A note on essays: I don’t write your essays – you do. The grade you get reflects your effort at writing not mine at reading. And remember: there are those who put in much work and get a poor grade and vice versa. But these are the exceptions to the essay rule that you usually get what your essay deserves. MECHANICS

8 COURSE OUTLINE MECHANICS

9 … is there for a reason – to inform you. Read it ALL. I will not answer any questions that are answered on the outline or in the PowerPoints. MECHANICS

10 Who, Where, What, When, How Week 1 of the Course Outline Lecture # Week of Lecture/PP Topic…Readings (GI= Global Issues. WP= World Politics) Other… 1 Jan 13th Introduction and course mechanics. Defining, Conceptualizing, and Measuring Globalization GI#1: Global Trends GI#3: The End of Easy Everything. GI#5: Why the world needs America. GI#17: Why the world isn’t flat. GI#18: Globalisation and its contents. GI#20: Who will rule the world? GI#43: UN Women’s Head… GI#44: The end of men. GI#45: Humanities Common Values… WP#3: A world in transformation. Videos in weeks following This book is required. MECHANICS This book is recommended.

11 Who, Where, What, When, How Weeks 2 and 3 of the Course Outline 2 Jan 20th History of globalisation, global change, colonialism, nation states, regions, territory, global inventory and measurement GI#19: The future of history... GI#24: Africa’s hopeful economies… GI#31: The revenge of geography. WP#1: Balancing the east, … WP#2: The future of the liberal … WP#4: The global power shift … WP#5: The shifting landscape… WP#13: The future of the United... WP#14: Decline of western realism. Video: Commanding Heights, Episode One, chapters Jan 27 th QUIZ #1 LECTURES 1,2 Population, demographics and development GI#3: The new population bomb... GI#7: Population and sustainability. GI#25: Women and work… WP#25: Gender equality and … WP#32: Population 7 billion. Video: Commanding Heights, Episode Three, chapters MECHANICS

12 4 - Feb 3rdResources and ecological footprintsVideo: World in the Balance – The Population Paradox. 5 - Feb 10 th QUIZ #2 LECTURES 3,4 Global trade and capital flow, corporations and transnationals (TNCs) Video: The Corporation chapters 1-10 Feb 17thSTUDY WEEK (INCLUDES FAMILY DAY) 6 - Feb 24thGlobal interest groups, conflict, and terror Video: The Corporation chapters 11-end 7 - Mar 3 rd QUIZ #3 LECTURES 5,6 PandemicsVideo: Rx – Deadly messengers 8 - Mar 10th ESSAY DUE Global healthVideo: Rx – How safe are we? 9 - Mar 17 th QUIZ #4 LECTURES 7,8 Communication: the digital world, travelling public, and migration 10 - Mar 24 th EnvironmentVideo: Global warming – The Signs and the Science. NOTE: FRIDAY MARCH 28th IS THE LAST DATE TO DROP COURSES WITHOUT ACADEMIC PENALTY. IT IS BETTER TO DROP A COURSE THAN TO FAIL A COURSE. REMEMBER: ‘F’ IS FOREVER Mar 31 st QUIZ #5 LECTURES 9,10 Regional Profiles Video: China Inside Out April 7thFinal Exam Review. Rest of the Course Topics MECHANICS

13 COURSE PROJECT MECHANICS

14 To Be Found In The Course Outline CHOOSE A REGION (NOTE: A COUNTRY IS NOT A REGION). Your first task is to choose a region using the United Nation’s regional groupings as discussed in Lecture 2. CHOOSE A TOPIC. Choose a topic from one of the lectures of this course. For example, Demographics such as the demographic dividend (Lecture 3), Health such as the changing nature of the double burden or pandemic threats (Lectures 7/8), Resources and Population such as ecological footprints (Lecture 4). Must use of a human geographic perspective in your discussion. For example, if you choose environment I do not want a scientific essay on climate change but one which discusses the human impact such as rising ocean levels on the coastal cities of your chosen region MECHANICS

15 The rest of today? The approach of the course. What globalisation is and possibly is not. What the global political economy looks like. Other stuff we will be doing. THEMES - BABEL

16 Globalisation, Territory and the Global Village

17 Globalisation and Territory - Attributes Arising More territories but physical distance less important. More borders but movement is getting easier as areas regionalize. Movement may be easier but places are still unique. Places may be unique but societies are increasingly homogenous. Increasing homogeneity maybe, but increasing nationalism too. Increasing nationalism requires systems of dispute mediation. Dispute mediation encourages growth of IGOs and INGOs. Dispute avoidance mechanisms such as TNCs also develop. TNCs & governments encourage new barrier reduced flow channels. Physical flows benefit from trade & migration agreements. Communication flows benefit from electronic advances. As with all flows, they go both ways and carry both good and bad. And economic growth at all costs is required to keep it going. Two images characterize globalisation. Babel and Contagion THEMES - BABEL

18 BABEL THEMES - BABEL

19 18THEMES - BABEL

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21 20THEMES - BABEL

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23 Babel’s Bottom Line? Without script. A cast of billions. Playing out their parts. Each with a different story line. Few agreeing on the dialogue that preceded. None knowing the lines that will follow. And no last page at which to sneak a peak. All performed live, on stage at Planet Earth Theatre which, for humans, is getting increasingly uninhabitable because of humans. THEMES - BABEL

24 CONTAGIONCONTAGION THEMES - CONTAGION

25 2008

26 …three years later… INTRODUCTION

27 …now

28 Yet the inhabitants of Main Street increasingly think the answer lies in Tea Parties and the simplistic right wing politics of division that drive them. INTRODUCTION

29 Political decision makers are fractious and appear unable to control the effects of enormous wealth and the avarice of the wealth makers, or they make short term decisions that delay the inevitable. Yet when people protest they are the ones considered to be the criminals and are treated accordingly while not a single financier has been prosecuted, and all facets of society face uncertain futures. INTRODUCTION

30 Global Connectivity & Finance The 2008 Financial Crisis (a.k.a. Sub Prime Mortgage Affair) A very good example of contagion. Complex cause and effect between: Sub Prime Mortgages Housing bubble Financial derivatives market Real trouble started in the U.S. with the 1999 Gramm- Leach-Bliley Act (GLBA) that repealed the Banking Act of 1933 (Glass-Steagall Act) designed to prevent the financial speculation that helped bring the Depression. THEMES - CONTAGION

31 GLBA Criticism and Support If GLBA caused 2008 then why didn’t it start in Europe where there was no Bank Act equivalent? European banking systems are regulated by their Central Banks so in effect do have banking regulations. As well, the individual players – bankers and brokers – are more risk averse in Europe than in the U.S. GLBA didn’t deregulate – it passed regulation to the Federal and Regional Reserve Banks. Unlike European central banks, U.S. Reserve Banks are not regulatory by nature but tasked with regulating and expediting the financial system through fiscal or monetary policy. They were and are ill-equipped to regulate anything, let alone the high risk and profit driven derivatives markets. THEMES - CONTAGION

32 OMG! HUH? WAIT! I didn’t sign up for this! OK, I understand your trepidation about: #1. Being bored to death by economics. #2. Being buried by politics. #3. Not having a clue about (or interest in) what was just said. But bear with me because there is no better illustration of the interrelatedness that globalisation is – and the contagions that affect such systems - than the 2008 crisis. THEMES - CONTAGION

33 Some numbers to set the stage… … and with which to get to grips. Global GDP in current dollars, 2012 = $72.9 trillion. Global market capitalisation 2012 = $53.2 trillion. U.S. GDP in current dollars, 2012 = $16.2 trillion (22%). U.S. market capitalisation 2012 = $18.7 trillion (35%). Canada GDP in current dollars, 2012 = $1.8 trillion (2.4%). Canada market capitalisation 2012 = $2.0 trillion (3.7%). Ontario GDP in current dollars, 2013 = $695 billion (0.95%). Cost of 2008 financial crisis by 2012 = $22 trillion (US alone). 33% of global capitalization value lost = $17.6 trillion. Sources:

34 A Simple Overview of the Financial Sector Financial sector has four primary actors: Retail banks – your savings and credit. Private (investment) banks – stocks and derivatives. Credit Rating Agencies – who assess risk. Insurance companies – who buy risk. Bank Acts in various countries (prompted by the Great Depression 1929) separated these four players, legally preventing them from trading in each others products. This was done to partition risk and prevent what would later be called “cascade failures”. THEMES - CONTAGION

35 Retail bank takes your savings and pays you interest. Retail bank lends your savings to mortgages and credit purchases, and secured investments and makes interest. Difference between interest paid and interest earned is profit, out of which… Retail bank pays you interest. A Happy(‘ish) Retail Banking Place Small risk due to defaults on secured mortgages, loans, credit cards and bonds. Equity (your money) protected to some extent by CDIC and bank reserve requirements. THEMES - CONTAGION Banks’ money protected by insurance companies who buy risk.

36 Private bank takes investors’ money and pays a ROI. Private bank buys all types of investments and makes/loses money. Difference between money invested and ROI earned is profit (or loss), out of which… Private bank pays you a ROI. A Risky(‘ish) Private Banking Place Large risk equivalent with risk of investment. Equity (investor’s money) not protected. Banks’ money protected by insurance companies who buy risk. Risk is assessed by credit agencies. THEMES - CONTAGION

37 The Happy-Risky’ish Banking System Retail bank takes your savings and pays you interest. Retail bank lends your savings to mortgages and credit purchases, and secured investments and makes interest. Difference between interest paid and interest earned is profit, out of which… Retail bank pays you interest. Small risk due to defaults on secured mortgages and loans, and on credit cards. Equity (your money) protected to some extent by CDIC and bank reserve requirements. Private bank takes investors’ money and pays ROI. Private bank buys all types of investments and makes/loses money. Difference between money invested and ROI earned is profit, out of which… Private bank pays you ROI. Large risk equivalent with risk of investment. Equity (investor’s money) not protected. Banks’ money protected by insurance companies who buy risk. Risk is assessed by credit agencies. THE BANK ACT Retail Banking Private Banking Insurance Companies Rating Agencies Gramm-Leach-Bliley Act 1999 THEMES - CONTAGION

38 The Unhappy-Very Risky Banking System Retail bank takes your savings and pays you interest. Retail bank lends your savings to mortgages and credit purchases, and secured investments and makes interest. Difference between interest paid and interest earned is profit, out of which… Retail bank pays you interest. Small risk due to defaults on secured mortgages and loans, and on credit cards. Equity (your money) protected to some extent by CDIC and bank reserve requirements. Private bank takes investors’ money and pays ROI. Private bank buys all types of investments and makes/loses money. Difference between money invested and ROI earned is profit, out of which… Private bank pays you ROI. Large risk equivalent with risk of investment. Equity (investor’s money) not protected. Banks’ money protected by insurance companies who buy risk. Risk is assessed by credit agencies. Retail Banking Private Banking Insurance Rating Agencies High risk due to defaults on unsecured mortgages and loans, and on credit cards. Trade in unsecured instruments Trade in CDO and MBS instruments Insurance companies buy (high risk) CDO and MBS Rating agencies buy (high risk) CDO and MBS and rate them lower risk! THEMES - CONTAGION Offshore Retail banks invent Sub Prime Mortgages Onshore Housing bubble. CDO bubble.

39 The Unhappy-Very Risky Banking System Retail bank takes your savings and pays you interest. Retail bank lends your savings to mortgages and credit purchases, and secured investments and makes interest. Difference between interest paid and interest earned is profit, out of which… Retail bank pays you interest. Small risk due to defaults on secured mortgages and loans, and on credit cards. Equity (your money) protected to some extent by CDIC and bank reserve requirements. Private bank takes investors’ money and pays ROI. Private bank buys all types of investments and makes/loses money. Difference between money invested and ROI earned is profit, out of which… Private bank pays you ROI. Large risk equivalent with risk of investment. Equity (investor’s money) not protected. Banks’ money protected by insurance companies who buy risk. Risk is assessed by credit agencies. Retail Banking Private Banking Insurance Rating Agencies Retail banks invent Sub Prime Mortgages High risk due to defaults on unsecured mortgages and loans, and on credit cards. Trade in unsecured instruments Trade in CDO and MBS instruments Insurance companies buy (high risk) CDO and MBS Rating agencies buy (high risk) CDO and MBS and rate them lower risk! THEMES - CONTAGION 2008 The Largest Failure of Unregulated Capitalism Since 1929

40 What happened to financial markets? Bursting USHB left financial institutions with devalued and hard to sell equity funds (the SPM based MBSs & CDO – the CDS). Since the value of a company is based on all its assets and their liquidity, the net worth of the companies declined. It became harder for them to raise capital for their day-to-day business. What Happened to SPM & USHB? SPM defaults helped create a housing oversupply that drove down housing values, leaving homeowners with negative equity on their refinanced homes. This in turn also drove down housing values and helped create a recession that caused more SPM defaults, and so on. What happened to the overall economy? Cash flow dried up as people lost spending power, so jobs dried up as people stopped spending. Companies could not get credit to fuel cash flow to keep manufacturing and retail going. THEMES - CONTAGION

41 What happened to world economies? People walked away from their homes, lost their equity, stopped spending, drew more on social services. Housing and related businesses and industries almost came to a standstill as consumption of their products declined steeply. Many large financial institutions went bankrupt, leaving people with only deposit insurance amounts. Surviving banks, now risk averse, offered fewer and more expensive loans, reducing capital available in the system for manufacturing and retail sectors. Reduced capital & spending led to slower economic production, impacting employment, further exacerbating housing market woes and related consumption decline. THEMES - CONTAGION

42 What happened to people’s futures? Perhaps most unfairly, people who had played it safe and invested in equity secure bonds, GICs and other securities found themselves facing near zero interest rates because of monetarist central bank rates. Those in retirement who relied on these types of secure investments for income found themselves facing greatly reduced income and thus spending power. Those planning retirement in the two decades after 2008 found themselves facing the need to work longer to make up the shortfalls. The governments of western developed nations dressed this up by removing mandatory retirement ages, opening the door to unwanted longer work lives and higher graduates unemployment rates. THEMES - CONTAGION

43 Contagion - Who Gets Affected? Financial companies who directly participated lose billions directly and quickly. Financial companies who did not participate but still held loans and insurance policies to banks who did also lost billions. Private individuals who had deposits in bankrupt banks lost billions. Manufacturing that relies on credit to keep production going could not get it so went out of business. Nations (taxpayers) who had to bail out the banks to break the cycle lost billions, whether they were involved or not. THEMES - CONTAGION

44 Contagion - Where Gets Affected? Everywhere: Developed world economies that: started the problem; held debt from other developed economies; needed credit to keep their manufacturing going; needed customers to keep their economies going. Emerging economies that: held debt from the developed economies; needed credit to keep their manufacturing going; needed customers to keep their economies going. THEMES - CONTAGION

45 Sample of US bank mergers 1990 to 2009 (Think ecology here – the more complex ecosystems are, the safer THEMES - CONTAGION 1999

46 Trillions of dollars. At their peak in June 2008, total derivative value was almost $700 trillion – ten times global GDP and seven times what they were in The derivatives bubble is clearly seen in these data. It is over 13 times global market capitalization - the global value of all stocks.

47 Global Growth in Derivatives, : Adjusted for inter-dealer double- counting. 2: Share refers to the percentage of semiannual reporters in the global total. Source: Bank for International Settlements, OTC Derivatives Statistics November 2013 Nominal value invested in all derivatives in 2013 = $693 trillion. This is about an 8- fold increase in value since THEMES - CONTAGION

48 Share by Type of Derivative, : Adjusted for inter-dealer double- counting. 2: Share refers to the percentage of semiannual reporters in the global total. Source: Bank for International Settlements, OTC Derivatives Statistics November 2013 Credit derivatives are CDO and include MBS. They barely existed in By 2007 their nominal value was $51.1 trillion of all derivatives). In 2013 it was still $24.4 trillion. THEMES - CONTAGION

49 Credit Debt Obligations CDO), : Adjusted for inter-dealer double-counting. 2: Share refers to the percentage of semiannual reporters in the global total. Source: Bank for International Settlements, OTC Derivatives Statistics November 2013 The boom and then bust of CDO pre- and post 2008 is evident. THEMES - CONTAGION 2008

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51 MBS were AAA or better rated, meaning low risk and high liquidity (as good as cash). Banks held billions in triple AAA MBS derivatives. By mid 2008 rating agencies had downgraded about $1.9 trillion in MBS. Basically they had devalued the assets of the banks and financial companies holding the MBS. The MBS were almost worthless and the banks, well, bankrupt. THEMES - CONTAGION

52 In 2009 Robert Rubin, Alan Greenspan and Larry Summers formed to so called “committee to save the world” that developed the bank bailout plans in the U.S. to the tune of $14 trillion. In 1999 Robert Rubin, Alan Greenspan and Larry Summers fought for and won the repeal of the Glass- Steagall Act thereby deregulating the financial sector that allowed the 2008 crisis to occur. THEMES - CONTAGION

53 The Results

54 Mortgage Issuances THEMES - CONTAGION End of 1999, issuances begin to grow rapidly, especially private label. By 2008 government was carrying the SPM weight.

55 UK Housing Prices Adjusted for Inflation THEMES - CONTAGION Housing Price Bubble And the offshore loop wired in European nations, in classic contagion fashion.

56 Spain Housing Prices THEMES - CONTAGION Housing Price Bubble

57 Ireland - Housing Prices THEMES - CONTAGION Housing Price Bubble Dublin Eire

58 Canada - Housing Prices c THEMES - CONTAGION

59 Foreclosures Foreclosures 1 st quarter 2008 In the U.S. … Foreclosures 1988 to 2008 THEMES - CONTAGION The Bubble Begins to Burst…………. Bang!

60 Annual Change in Home Prices Housing THEMES - CONTAGION 2008

61 Industry THEMES - CONTAGION 2008

62 Job Openings Unemployment Rate Employment THEMES - CONTAGION 2008

63 Discretionary Retail Sales THEMES - CONTAGION 2008

64 The Co$t

65 Cost of TARP (Well known bailout program): $750 billion Cost of 50 other US federal government programs, guarantees and write-downs: $14.4 trillion Annual value of US GDP: $14.2 trillion THEMES - CONTAGION

66 A Reprise on Global Dollars Global GDP in current dollars, 2012 = $72.9 trillion. Global market capitalisation 2012 = $53.2 trillion. U.S. GDP in current dollars, 2012 = $16.2 trillion (22%). U.S. market capitalisation 2012 = $18.7 trillion (35%). Canada GDP in current dollars, 2012 = $1.8 trillion (2.4%). Canada market capitalisation 2012 = $2.0 trillion (3.7%). Ontario GDP in current dollars, 2013 = $695 billion (0.95%). Cost of 2008 financial crisis by 2012 = $22 trillion (US alone). 33% of global capitalization value lost = $17.6 trillion. Current notional cost of global derivatives: $600 trillion. Sources:

67 The 2008 CDO/MBS crisis is example of the cascade failure that results from a contagion. Triple A financial securities considered almost risk free - “as good as cash”. Risk estimate on the CDOs and MBSs was evaluated by credit rating agencies at about 1% - they might lose 1% of their value. They lost 20%. But credit agencies were underestimating risk on the very derivatives they were buying. AND THE LEGACY? THEMES - CONTAGION Contagion and Cascade Failure

68 Hi! My name is U.S. Hi! My name is Japan Hi! My name is E.U. THEMES - CONTAGION

69 THEMES - OTHER

70 Overpopulation Resource Depletion Climate Change Terrorism Pandemics Disease THEMES - OTHER

71 Overpopulation Resource Depletion Climate Change Terrorism Pandemics Disease THEMES - OTHER

72 And now for something completely different

73 The Changing Territorial Structure of the World 1 Movements in which a part of a nation state is trying to secede. They can be violent or fairly peaceful. Sources: See data in later lectures. Caution should be used with the data for They are roughly approximate at best. THEMES - DEFINITIONS AND ATTRIBUTES

74 TERRITORY Nation States, Regional Blocs, Seccesionary Movements, Terroir Driving Factors Transportation, Trade, Communications, Migration Societal Structures Affected Social, Economic, Cultural, Environmental, Developmental Outcomes Environmental Degradation Health Threats Resource Exploitation Security Outcomes Development Health improvements International law Increased safety? THEMES - DEFINITIONS AND ATTRIBUTES

75 Politics and Economics Politics studies comparative systems of governance. Democracy Socialism Fascism Anarchy Economics studies comparative systems of exchange. Capitalism Communism Underground Anarchy Together they form the Political Economies that underlie the social and cultural structures of all nations. THEMES - DEFINITIONS AND ATTRIBUTES

76 Defining Globalisation What is it? How does it work? What are its attributes? Can they be measured? Globalisation is defined as much by its flows of money, people and commodities, as by the things themselves – people, firms, nations, supranational groups. Fundamentally it is a process rather than a thing. THEMES - DEFINITIONS AND ATTRIBUTES

77 Oxford English Dictionary: The process by which businesses or other organizations develop international influence or start operating on an international scale. Financial Times: Globalisation describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation. Defining Globalisation THEMES - DEFINITIONS AND ATTRIBUTES ?

78 Defining Globalisation Two Approaches The hyperglobalist perspective: Globalisation is a new phenomenon. The skeptical perspective: Globalisation is just internationalization modernized. The truth lies somewhere between. THEMES - DEFINITIONS AND ATTRIBUTES

79 Globalization Everything? Everyone? Everywhere? Extent of globalization has limitations: Not all parts of the world are connected. Not all economic sectors are integrated. Not all economic sectors are global. Not all flows are two-way. THEMES - DEFINITIONS AND ATTRIBUTES

80 Globalization – A Timeline References: 1990 articles and books using the word globalization and over – million entries – million entries – million entries Protests: 1990s – virtually no protests or NGOs focusing on the excesses of globalization to 2010: starting with the World Trade Organization meeting in Seattle, there were almost daily protests on the topic. Currently, only occasional protests, including the Occupy Movement focused more on the excesses of the financial system. THEMES - DEFINITIONS AND ATTRIBUTES

81 Attributes of Globalization Economic Globalization Political Globalization Cultural Globalization Globalization of the Environment The Globalization of Law Health, Security, and Globalization Conflict THEMES - DEFINITIONS AND ATTRIBUTES

82 Attributes of Globalization (cont…) Economic Globalization International Trade Economic Growth Economic Development Foreign Direct Investment Currency Use Fiscal Policy Corporations THEMES - DEFINITIONS AND ATTRIBUTES

83 Attributes of Globalization (cont…) Political Globalization Governmental Political Integration NGO Growth Growth of Statehood Corruption & Failed States Citizenship and Nationality Guns for Hire THEMES - DEFINITIONS AND ATTRIBUTES

84 Attributes of Globalization (cont…) Cultural Globalization Communications Technology Entertainment & Media Language Homogenizing Consumerism Education THEMES - DEFINITIONS AND ATTRIBUTES

85 Attributes of Globalization (cont…) The Globalization of Law Global Legal Institutions Global Legal Indictments Global Laws Alien Tort Claims Act Law of the Seas Extradition Treaties THEMES - DEFINITIONS AND ATTRIBUTES

86 Attributes of Globalization (cont…) Globalization of the Environment Global Environmental Problems Local Environmental Problems Global Resource Depletion Fresh Water Environmental Policy THEMES - DEFINITIONS AND ATTRIBUTES

87 Attributes of Globalization (cont…) Health, Security, and Globalization Health and Well Being Incipient Pandemics Non-Endemic Diseases New Diseases Big ‘Pharma’ Terrorism & Global Policing THEMES - DEFINITIONS AND ATTRIBUTES

88 Territory and Function in Globalisation INTENSITY Degree of functional integration of economic activities SPATIAL SCOPE Geographic extent of economic activities Internationalizing processes Globalizing processes Regionalizing processes Low High Source: After Dicken, 2003, p13 Limited functional integration but wide spatial scope Wider functional integration but limited spatial scope Wide functional integration and spatial scope THEMES - GLOBAL SYSTEM

89 Linear System + Finite World = Problems Resource Depletion Environmental Degradation Income Inequality Solutions? Exploit Others Others “Develop” Apply Technology Fixes But the linear system in a finite world still exists. THEMES - GLOBAL SYSTEM

90 Supposedly represents youRepresents stockholdersMediates THEMES - GLOBAL SYSTEM

91 Check it out: THEMES - GLOBAL SYSTEM

92 Globalisation and the Territorial Economic System P S T A. Economic System Economic Sectors: Primary (Resources) Secondary (Manufacturing) Tertiary (Services) Firms: Large firms (TNCs) Medium Firms (regional) Small firms (local) THEMES - GLOBAL SYSTEM

93 B. Territorial System Sector based trading blocs Nations Regionally isolated nations Regionally integrated nations Globally isolated nations Globalisation and the Territorial Economic System Regions Regional based trading blocs THEMES - GLOBAL SYSTEM

94 P S T C. The complexity of the global economic and territorial system. Some national economies are only partly integrated, or depend solely on one economic sector Flows of goods and especially capital are less restricted in the economic system than they are across the territorial system Flashpoints exist at the intersections of economy with territory. Globalisation and the Territorial Economic System THEMES - GLOBAL SYSTEM

95 The Production Process and the Physical Environment EXTRACTION PROCESSING FABRICATION CONSUMPTION Local and global environment as supplier of resources and energy Local and global environment as pollution dump Local and global environment as energy dump Source: After Dicken 2003, p26 INPUTS FROM ENVIRONMENT OUTPUTS TO ENVIRONMENT Recycled products Non-productive output EXTERNALITIES STRUCTURE OF THE SPACE ECONOMY

96 EXTRACTION PROCESSING FABRICATION CONSUMPTION Changes to space as subsistence activities become cash based traded activities Changes to space as industrial development and demographic change drives urbanisation Changes to cultural attitudes as consumption drives behaviour through demonstration effect and product homogenization Changes to economic system as capitalism begins, a wage economy develops, and employment changes Changes to transportation and communications technology as goods and people need to be moved and information and money exchanged Globalisation: Changes in the Social, Economic and Cultural Systems THEMES - GLOBAL SYSTEM

97 Summary Globalisation is: Multi dimensional dynamic process as much as a thing to be defined. Asymmetrical - creates inequalities, and acts out on a global playing field with built in inequalities from the past. Opposition to globalisation: Comes from small nations and INGOs. See it as another version of colonialism and empire building by the powerful western developed nations and transnationals. Are they correct? THEMES - DEFINITIONS AND ATTRIBUTES


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