1. Globalization

2. Essential Idea
Globalization is the driving force as we enter the 21st century and affects economics, security, and culture.

3. ECONOMIC GLOBALIZATION
MULTI-NATIONAL CORPORATIONS
OLD: Dutch East India Company?
1602 company of Dutch merchants & independent trading companies
Spice trade monopoly in East Asia
Power to colonize territories & enslave indigenous people
Indonesia & South Africa

4. Global Economy Multinational Corporations
Companies that operate in a number of different countries
Exxon Mobile, Ford, BP, Toyota
View the whole world as a market for their goods
Royal/Dutch Shell: global group of energy and petrochemical companies, operating in more than 140 countries and territories, employing more than 112,000 people

6. Global Economic Development
In the postwar era, the expansion of the world’s economies led to an increase in production of goods and services so that many nations benefited. Manufacturing moves from developed nations to emerging nations.

7. Globalization 1975 8% of world’s countries had a free-market system
% of world’s countries had a free-market system
% had one with $644 billion FDI

8. Global Economy
Global Economy: includes all the financial interactions that cross international borders

10. Global Economy
Free Trade: elimination of trade barriers (ex: tariffs) among nations
Regional trade blocs- EU, NAFTA

11. Globalization What does “globalization” mean?
What are its causes?
Why is it proceeding rapidly?
What is its impact on
Jobs?
Incomes?
Labor and environmental policies?
National sovereignty?
International Trade patterns
Foreign direct investment (FDI) flows
Economic growth rates
Multinational corporations and their impact

12. Globalization The “Electronic Herd”
Power in the hands of stock, bond and currency traders moving funds
around the world
Multinational corporations looking for most efficient, low-cost producers
Beginning to replace governments as primary source of capital for both companies and countries

13. Impact of the Global Economy
Environmental
Political
Global Warming
Large-scale soil erosion
Habitat destruction
Need for oil = conflict

14. Illustrative world trade flows ($billions)
Western Europe
intratrade: 1430
194
227
241
North America
intratrade: 465
200
Asia / Pacific Rim intratrade: 632
393
382
279
365
Rest of world intratrade: 175
381
140
137
313

15. Global Security Peacekeeping Activities: UN Peacekeeping Forces
Made up of soldiers from different nations
Work to carry out peace agreements, monitor cease-fires, or put an end to fighting and allow for negotiations

17. Global Security Weapons of Mass Destruction:
Nonproliferation- stop spread of weapons
Various treaties to stop production and/or destroy stockpiles
Some nations continue to pursue development of WMDs
Is this a problem that can be solved?

18. Global Security Ethnic and Religious Conflicts:
Protestants and Catholics in Ireland
Palestinians and Israelis in the Middle East
Serbs, Bosnians, and Croats in Southeastern Europe

20. Global Security Human Rights:
Universal Declaration of Human Rights- UN issued (1948), sets human rights standards for all nations
Violations occur all around the world

21. Global Security Health Issues:
Diseases of poverty persist (Cholera, Malaria)
Epidemics occur with some regularity (Flu Epidemic, AIDS, Ebola)

22. Global Security
Terrorism: the use of violence against people or property to force changes in societies or governments
Modern terrorism has become increasingly destructive and high-profile
Nations respond aggressively

23. Global Culture
21st century technologies allow for widespread cultural diffusion
Popular Culture- cultural elements that reflect a group’s common background and changing interests
Music
Sports
Movies
Clothing fashions
Foods
Hobbies and leisure activities

24. “Drivers” of Globalization: Technological Change
Globalization of markets and production
result of lowering of trade barriers
enabled by technological change
Telecommunications and microprocessors
The internet and the world-wide web
Transportation technology

25. Globalization Crash Course #1- The Upside Globalization Crash Course #2- Is it a net positive?