Presentation on theme: "Chapter 9 Globalization and Culture Team 8- Japan Jacob Henson, Nils Floren, Aaron Whitmire, Brandon Allen, Cory Rogers, Sergio Torres, Jose Contreras,"— Presentation transcript:
Chapter 9 Globalization and Culture Team 8- Japan Jacob Henson, Nils Floren, Aaron Whitmire, Brandon Allen, Cory Rogers, Sergio Torres, Jose Contreras, Kelli Philp, Thomas Freeland, Melissa Giussani
Paradox 9.1 Can global economic integration occur without political and cultural integration?
John Naisbitt John Naisbitt believes Most ethnic groups want the positive aspects of economic integration Ex. lower tariffs and moving capital across borders Do not want to politically and culturally integrate
John Naisbitt Naisbitt predicted that there will be 1,000 small nations divided by religion, language, and ethnic backgrounds Since the Cold War ended there have been over 20 new countries in Europe Andorra, an ethnically distinct region between Spain and France, became its own nation Yugoslavia became four new nations after the Balkan Wars
Economic Integration Economic integration can happen without political and cultural integration World Trade Organization (WTO) European Union (EU) includes 27 nations North American Free Trade Association (NAFTA)
Economic Integration Issues with economic integration Not all countries conform to currency One negative vote can stall action in the EU Mexico, Canada, and the USA fight with each other making trading tense Doha trade discussions have been cancelled
Economic Integration Lower overall costs with economic relationships Increased contact between different groups lead to integrating politically and culturally Process may not be smooth Full integration of politics and culture is unlikely to occur
Paradox 9.2: Is Globalization a myth? Globalization: the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade
Segregated Some Areas that have not been touched by Globalization: -Some areas in Latin America, - Africa - Asia
Globalization: Connecting the World Since 1992 trades has more than doubled between developing nations Evolution of technology : Internet and Communications
Paradox 9.3 Is Globalization an old or new phenomenon? Past View Rome Silk Road Present View Today Business schools Technology’s Impact
Four critical elements of globalization Corporations capital base Corporate mind-set Supply chain Market presence
Supply Chain Wal-Mart Huge Stores Reverse Saturation Model Owning their own Trucks Distribution Centers delivering to Stores Barry Lynn’s View Global corporations
Global Financial Systems Bond market crisis East Asian Financial crisis Russia banking system
Thomas Friedman Wrote, “World is Flat.” Globalization is because of: Internet Video Conferencing Outsourcing
Friedman’s Critiques Many believe it is a “Spiky World.” Highest Peak Middle Peak Lowest Peak
Different Types of Globalization Globalization 1.0 ( ) Columbus, Steam power Globalization 2.0 ( ) Multinational corporation Globalization 3.0 (2000-Present) Linking individuals globally
In Conclusion World is becoming more globalized, but in a different manner than in the previous eras. Significant Overlap in previous eras. Globalization in the past pales in comparison to what is happening today, especially with the rise of China, India, other developing nations, and market economy.
Paradox 9.4 Is there a reasonable probability that a global financial collapse will occur and undermine globalization?
Financial Collapse Knowledgeable analysts have expressed fear of another major financial collapse in the future. The International Monetary Fund has identified 64 banking crises between 1970 and 1999 capable of causing a global meltdown.
Financial Collapse Undermining Globalization Experiences since 1990 suggest there is a reasonable probability a global financial collapse could occur that would undermine globalization. Companies who take part in globalization need to secure capital base and take other necessary precautionary actions.
Paradox 9.5 Does globalization encourage nationalism?
Different Examples Wuhan University in China-2004 MBA Students Czech Republic Banks
Nationalism “Also almost all citizens across the world identify primarily with their ethnic and national cultures and globalization threatens such identification.” Bhagwati 2004 Study Abroad Experience
“At a minimum, it is critical that nationalism be contained to some extent if globalization is to succeed”
Paradox 9.6 Are nations becoming simultaneously more and less powerful because of globalization?
Nation’s Losing Power Jessica Matthews, “Power shift” Increase in international trade and communication systems Example: United States approving GE’s offer to purchase Whirlpool when the EU did not approve the offer MNEs posses substantial resources Modularized factories
On the other side… China vs. Google France vs. Yahoo Law of Sea
Paradox 9.7 Can one nation dominate the global economy and political system?
The belief of Conquering the world is nothing new… -Julius Caesar -Alexander The Great -Napoleon -Hitler -British
Who do people believe will be the next nation to attempt world domination? -China and or India -The Asian Century
Some of the factors leading to a nation’s desire to conquer other regions? Scarce resources -Potable water -Arable land
What would happen if there was another attempt by one nation to rule the world?
Paradox 9.8 Is Globalization doomed?
“Foreign Affairs” by Niall Ferguson Five Factors Imperial overstretch of national governments Great power rivalry Unstable alliance system Presence of rogue regime sponsoring terrorism Rise of revolutionary terrorist organizations hostile to capitalism
Ferguson’s Comparison Great Britain was major power, now it’s the United States Imports > Exports Rivalry with China and other Nations War with Iraq. Allies doubt U.S. leadership due to national debt increase. Muslim Extremism similar to Bolshevism in Russia.
Sesit’s View Similarities Low inflation Rising commodity prices New regional powers emerging State-sponsored terrorism Growing power rivalry Financially overstretched dominant powers. Differences Democracy Decline in wars in current era
Gupta and Govindarajan Downplay similarities between eras. Globalization is inevitable, although it can be derailed by nuclear warfare/epidemics.
In Conclusion World changes suddenly and future is uncertain. There are many similarities between eras and there is a call for increased attention to macro-level influences.
Paradox 9.9 Does Globalization increase prosperity and inequality simultaneously?
Global Prosperity Reduction in poverty Wealth per capita Is there a connection to inequality?
Inequalities CEO’s vs. Corporate worker Almost all OECD countries have experiences growing inequalities Proof? What are the affects? Max Weber
Paradox 9.10 Who are the winners and losers in a globalizing world?
Not Everyone Wins The winners of globalization are clear Who loses? Farmers in China forced off public lands White and Blue collar with outsourcing Overall Economy Should assistance be provided to losers?
Paradox 9.11 Is increased education the antidote for outsourcing?
Engineering and Business degrees Blue-collar vs. White-collar workers
Gosselin 2006: College graduate salaries decreased 5%
Outsourcing will continue
Alan Blinder 2006: Personal Service Jobs are harder to outsource
Outsourcing can be prevented in some fields but not in others