1. UAMG 3053 Communication Technology Week 10 Global Capitalism

2. Introduction - Globalization  The terms “globalization”, “globalize”, and “globalizing” started in 1960  The Economist reported Italy’s ‘globalised’ quota for imports of cars has increased  Globalization is a staggered (spread out) concept

3. Intro Globalization …  Direct consequence of the expansion of European cultures across the planet via settlement, colonization, and cultural replication  The world entered “the age of global civilization” after the end of European dominance.

4. Intro Globalization …  “Global civilization” includes the formation of European Union, the rise of Japan as an industrial power, and emerging and testy confrontation between rich and poor nations  The Internet is poised to narrow the gulf that separates rich nations from poor even further in the decade to come

5. Globalization from 1870 to 1914 1)Development of transportation and communication networks - physically linked different parts of the world – railroad, shipping, and the telegraph 2)Rapid growth of trade - pattern of dependency between the industrialized countries and the rest 3)Huge flow of capital (assets) from Western direct investment

6. Definition of Globalization  Globalization is “a concept refers both to the compression of the world and the intensification of consciousness of the world …both concrete global interdependence and consciousness of the global whole” (Water, quoting Robertson, 2000, p. 4)

7. Intro Globalization…  Interdependence – between national systems by trade, economic, military  Social compression  Intensification of global consciousness – local happenings are shaped by events occurring many miles away and vice versa

8. Definition of Global Capitalism  Globalization - meaning the rise of market capitalism around the world – business across border  A process driven by economic forces  Reorganization of production, international trade, and integrated of financial markets  Has undeniably contributed to America's New Economy boom. e.g., McDonald’s, Microsoft

9. Capitalism  The vehicle of economic internationalization – financial markets, commodities, contractualized labour, alienable property  In Marx theory, capitalist seeks to transect national boundaries extending transportation and communication unto the furthest reaches of the planet, restlessly seeking to expand markets throughout the world and to appropriate ever greater tranches of labour power

10. Global capitalism…  Global capitalism was pushed by leaps (increase and jump) in technology, the failure of socialism, and East Asia's miraculous success  Multinationals have contributed to labor, environmental, and human-rights abuses as they pursue profit around the globe

11. Inequality in Global Capitalism  Profit the rich and harm the poor  Unequal development - two extremes of global capitalism 1. The economies of East Asia have achieved rapid growth 2. There has been little overall progress in much of the rest of the developing world

14. McDonaldization  Describes the McDonalds Corporation;  And any corporation that employs the standard practice of making a product efficiently and predictably  To maximize profits in a global marketplace, cultural products must be standardized - McDonaldization  From fast food, childcare, healthcare, computer technology production

15. McDonaldization  George Ritzer – to describe a sociological phenomenon  The process of rationalization – substitution of logically consistent rules for traditional rules  Modern Western world becoming more and more rational – “efficient, predictability, calculability” as human work are replaced by machines

16. Process of McDonaldization  Any task can (should) be rationalized  Takes a task and breaks it down into smaller tasks  Find the SINGLE most efficient way to complete the broken down smallest tasks

17. Four Dimensions of McDonaldization 1. Efficiency  Optimum method of completing a task  Rational determination of the best mode of production  Individuality is not allowed 2. Calculability  Assessment of outcomes based on quantifiable criteria  Quantity over quality  Selling “Big Mac” not “Good Mac”

18. Four Dimensions of McD… 3. Predictability  Production process is organized to guarantee uniformity of product and standardized outcomes 4. Control  Substitution of more predictable non- human labor for human labor

19. Conclusion of McD…ion  As more companies around the world take on the characteristics of McDonaldization system, the consumers have little choice but to frequent these business, as fewer and fewer options are readily available  McDonaldization is an infection to other countries  Many businesses feel that in order to be successful they must adhere this guidelines

21. How Web- Advertising works  The rapid increase in the number of people who can access the Internet, especially in US and Europe, has resulted in similarity strong increase in the amount of money spent on online advertising.

22. Internet Advertising  Distinguish between three broad kinds of advertising on the Web: they are: 1.Placed ads (including banners, Rich Media ads, pop-ups, animated cursors) 2.Sponsored elements within sites; and 3.Company marketing sites. ( product catalogs with order forms) However, sales sites and sales banners should be considered in a direct marketing context rather than in an advertising context.

23.  Does Internet Advertising works?  According to the reviews based on research done on the impact of online advertising, shows that advertising on the Internet can be very effective and  works best if it is part of a coordinated campaign that includes traditional media.

24.  The research has shown that Internet advertising can  increase sales,  enhance the image of the brand,  effect the consumers’ attitudes towards the product, and  it can impact new information about products and brands.  Reaching the right audience is key

25. Tutorial Questions Week 11 1.(a) What is McDonaldization? (b) Is globalization a cause of McDonaldization? (c) What are suggestions from Ritzer to fight McDonaldization? 2. Do you agree that Internet Advertising works best if it is part of a coordinated campaign that includes other traditional media? Why?

26. References Duresky, S. (2005). McDonald’s: Selling cages masquerading as the American dream. Retrieved on March 23, 2005 from http://student.fortlewis.edu/smduresky/268project/hom e.htm Engardio, P. (2000). Global capitalism: Can it be made to work better?. Retrieved on 21 March, 2005 from http://www.businessweek.com/2000/00_45/b3706001. htm http://www.businessweek.com/2000/00_45/b3706001. htm http://www.businessweek.com/2000/00_45/b3706001. htm Hogg, C. (1999). Pornography and the Internet in the United States. Retrieved on March 22, 2005 from http://www.slais.ubc.ca/courses/libr500/fall1999/www_ presentations/c_hogg/default.htm http://www.slais.ubc.ca/courses/libr500/fall1999/www_ presentations/c_hogg/default.htm http://www.slais.ubc.ca/courses/libr500/fall1999/www_ presentations/c_hogg/default.htm

27. References Thurlow, C., Lengel, L., & Tomic, A. (2004). Computer Mediated Communication: Social interaction and the internet. London: Sage. Water, M. (2001). Globalization. New York: Routledge.