Globalisation - Geographic perspectives - global interactions

Global Interactions

All of the varied economic, social, political, cultural and environmental processes that make up globalisation.

Encompasses the many local opposition movements and new cultural forms that result when globalising forces meet and interact with local societies and stakeholders.

Transnational corporations (TNCs)

Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services.

Many of the largest are instantly recognisable “global brands” that bring cultural change to the places where products are consumed.

Globalisation

The growing interdependence of countries worldwide through an increasing volume and variety of cross-border transactions in goods, services, capital flows and the rapid diffusion of technology.

How were global connections achieved in the past?

• Trade - especially after 1492, when Columbus reached the Americas and the traditional world economy began to take shape

• Colonialism - by the end of the nineteenth century, the British Empire directly controlled one quarter of the world and its peoples

• Cooperation - since WW1 ended in 1918, international organisations similar to the UN have existed

Economic globalisation

• The growth of TNCs accelerates cross-border exchanges of raw materials, components, finished manufactured goods, shares, portfolio investment and purchasing

• Information and communications technology (ICT) supports the growth of complex spatial divisions of labour for firms and a more international economy

• Online purchasing using Amazon on a smartphone

Social globalisation

• International immigration has created extensive family networks that cross national borders - world-city societies become multi-ethnic and pluralistic

• Global improvements in education and health can be seen over time, with rising world life expectancy and literacy levels, although the changes are by no means uniform or universal

• Social connectivity has grown over time thanks to the spread of universal connections, such as mobile phones, the internet and email

Political globalisation

• The growth of trading blocs (eg. EU, NAFTA) allows TNCs to merge and make acquisitions in neighbouring countries while reduced trade restrictions and tariffs help markets to grow.

• Global concerns such as free trade, the Global Financial Crisis (GFC) and the global response to natural disasters (such as the 2011 Japanese tsunami)

• The World Bank, the IMF and the WTO work internationally to harmonize national economies

Cultural globalisation

• “Successful” Western cultural traits come to dominate in some territories, eg. the “Americanization” or “McDonaldization” of tastes and fashion

• Globalisation and hybridization are a more complex outcome that takes place as old local cultures merge and meld with globalising influences

• The circulation of ideas and information has accelerated thanks to 24-hour reporting. People also keep in touch using virtual spaces, such as Facebook and Twitter

Modern globalisation - difference from before

Post 1940:

• Lengthening of connections between people and places (products shipped greater distances than in the past, people travelling further from home)

• Deepening of connections - sense of connection to other people and places (eg. food sourced from different places)

• Faster speed of connections - eg. people talking to each other in real-time using Skype, travelling quickly between continents using jet aircraft. Virtual environments - globalised communities

KOF Globalisation Index

• An index of the degree of globalisation of 122 countries

• Data source examples: levels of internet use, TV ownership, imports and exports of books

• Criticism: does possession of a TV really make a family more globalised?

AT Kearney World Cities Index

• New York, London, Paris, Tokyo and HK - ranked highly as Alpha’s global hubs for commerce

• Established ranking - analysing business activity, cultural experience and political engagement - data supporting this includes a count of number of TNC headquarters, museums and foreign embassies ect.

Neo-colonial

Indirect actions by which developed countries exercise a degree of control over the development of their former colonies. This can be achieved through varied means, including conditions attached to aid and loans, cultural influence and military/economic support (either overt/covert) for particular political groups, or movements within a developing country.

Soft power

When countries are able to make others follow their lead by making their policies attractive and appealing. A country’s culture (arts, music, cinema) may be viewed favourable by people in other countries.

Hard power

When countries get their own way using force. Invasions, war and conflict are blunt instruments. Economic power can be used as a form of hard power: sanctions and trade barriers can cause harm to other states.

Global superpower

Used originally to describe the ability of the USA, USSR and the British Empire to project power and influence anywhere on Earth to become a dominant worldwide force.

British Empire

• 1500-1900 - originally a colonial power alongside France, Spain, Portugal and other European states.

• Result: the diffusion of European languages, religions, laws, customs, arts and sports on a global scale.

USA

• Since 1945 - USA has dominated world affairs through indirect forms of influence or neo-colonial strategies.

Soft power strategies:

• US government’s provision of international aid

• Cultural influence of American media companies (including Hollywood and Facebook)

Hard power:

• Geopolitical use of military force/threat of its use

• Economic influence through forceful trade policies, including economic sanctions/import tariffs

Smart power

Used to describe the skilful combined use of both hard and soft power in international relations.

Emerging economy

Countries that have begun to experience higher rates of economic growth often due to rapid industrialisation. Emerging economies correspond broadly with the World Bank’s “middle-income” group of countries and include China, India, Indonesia, Brazil, Mexico, Nigeria and South Africa.

What other states can claim to be true global superpowers?

• China became the world’s largest economy in 2014, exerting power over the global economic system through its sheer size.

• Other emerging economies including India and Indonesia play an increasing important global role

• Russia uses military force and exports of gas to maintain influence

• View that European states can only rival the USAs global superpower status when they work together as members of the EU.

Qatar

Qatar has proved to be capable of exerting great influence over the world:

• Has the highest per capita GDP in the world, in excess of US$100,000

• Has wealth and global influence partly due to its fossil fuel wealth (14% of all known gas reserves)

• City of Doha - powerful place where international conferences and sporting events are held (served by Qatar Airways & Doha International Airport)

• Al Jazeera media network rivals the BBC and CNN - soft power

However, may people regard Qatar as a regional power.

China

A rising superpower:

• Since 1978 - standard of living has tripled due to market reforms being introduced gradually

• Deng Xiaoping - inject element of free enterprise into agriculture, allowing peasant families to keep anything they produced over the state quota = immediate leap in food production

• Similar approach applied to the industrial sector = gave official blessing to business entrepreneurship throughout China.

• CN economic growth - major impact on trade among the superpowers and the geographic regions of the world - EU is the dominant trading region, followed by Asia, then North America.

• China’s GDP has continued to grow 8% a year - despite the 1997-8 Asian financial crisis, which saw the collapse of many Asian banks and the values of their stocks and shares, forcing many countries to restructure their economies and reduce their levels of debt

• Demand for raw materials for this economic boom - major impact on world markets on oil, iron ore, metals, petrochemicals and machinery.

Developing country characteristics:

• Despite rapid change, the structure of the CN economy still has the character of a poor developing country

• Almost half the workforce is employed in the primary sector

• Industry accounts for 22% of jobs but 51% of output

• Manufacturing 35%

• Reflects the fact that CN has become the world’s leading manufacturing center - although most of the value-added output is from foreign owned plants

• In 2014 China produced 17% of the world’s GDP, surpassing the US’s 16%

• However, China remans well under the USA in terms of GNI/head.