10/28-31/2013 Globalization 1 Windham E. Loopesko INTB 3000 Fall 2013 University of Colorado – Denver October 28-31, 2013 Notes

Week 11.1 – Globalization overview Globalization – the increasing/accelerating movement of money, goods, people and information Globalization – possibilities and problems – Unprecedented levels of wealth (and inequality) – Strains as workers lose jobs, ways of life change, cultures lose distinctiveness – The “global village” – borders lose meaning 10/28-31/2013 Globalization 2

Week 11.1 – The information revolution The computer – a more fundamental change than the printing press, similar to the industrial revolution More people into the world economy; removing the state’s monopoly on information Information expanding by a factor of ten every five years Unequal access to the internet – gap growing 10/28-31/2013 Globalization 3

Week 11.1 – The impact of new technologies New technologies allow many emerging areas to “leapfrog” without adopting legacy systems Mobile telephones and wireless internet (e.g., banking) help overcome poor infrastructure The results – many new entrants into the global market, raising growth and lowering poverty 10/28-31/2013 Globalization 4

Week 11.1 – Criticisms of globalization Globalization transmits western (and particularly American) culture to Global South Media concentration means small groups can dictate political and economic agendas. The 24-hour news cycle effect The emergence of Al-Jazeera, Russia Today and China Cable Television is shifting this balance 10/28-31/2013 Globalization 5

Week 11.2 – Globalization -- the importance of production and trade A shift in priorities from controlling territory to controlling means of production and services The Dell Theory of Conflict Prevention – no country involved in a major supply chain has been involved in a war – the costs of losing the supply chain are too high compared to gains 10/28-31/2013 Globalization 6

Week 11.2 – Reducing barriers to trade Tariffs have been the major barrier to trade; a succession of trade “rounds” have reduced tariffs substantially The new focus – eliminating non-tariff barriers (quotas, voluntary export restrictions, technical/administrative rules and procedures, subsidies and “buy-local” restrictions 10/28-31/2013 Globalization 7

Week 11.2 – The importance of financial flows Financial flows becoming more important than goods – countries lose control of their economy The problem of “spillover effects” The size and complexity of financial transactions (e.g., derivatives) mean that risk is increasingly difficult to price The result – nation-states’ power decreases, the IMF and EC, e.g., become more powerful 10/28-31/2013 Globalization 8

Globalization -- the problems Non-economic problems (e.g., climate change, global health and demographic issues) increasingly require trans-national solutions Is “deglobalization” possible? The multi- faceted nature and the number who benefit make even slowing the pace difficult. The challenge – finding transnational solutions, rather than slowing or stopping its course 10/28-31/2013 Globalization 9