Unit 9 - Globalization
1900 – Present
How these new technologies changed the world
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Globalization
The phenomenon by which trade and technology have created a politically, economically, and socially interconnected world.
In the last 2 centuries globalization has progressed at a much faster rate.
Transformed the world in some way, increasing lifespans, making energy more accessible or further connecting the world into a globalized economy.
They were not evenly distributed throughout the world
Wealthy industrialized countries had them first
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Communications technologies = Solve the problem of geographical distance
Shipbuilding Techniques, Navigational Tools, Railroads, Telegraphs
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Automobiles
Helped solve the problem of geographical distance. Widespread usage. Had the effect of fundamentally changing Urban landscapes by creating suburbs. Allowed the middle class people to live outside the city in suburbs more comfortably.
20th and 21st centuries communication technologies shrank the geographical distance between places even more
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Shipping containers
Used to ship non bulk cargo (food/clothing, raw materials)
Influenced businesses to change their manufacturing sectors to developing countries because the labor cost are lower and these businesses waste less money while their goods can be easily shipped
Shipping containers streamline the handling and transportation of goods, reducing costs and increasing efficiency
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Rich Countries — Impoverished countries
Populations of wealthy nations with well developed healthcare systems have far greater access to the various medical interventions that address disease and less developed nations do not
Diseases associated with Poverty
Malaria
A disease spread by infected mosquitoes and it typically occurs in large numbers throughout warmer, tropical regions
These people experience flu like symptoms but in some cases these symptoms can result in death
Effective medical interventions for malaria have been developed
As well as more practical measures such as mosquito nets
100,000s of deaths still occur per year in impoverished regions
Most notably sub saharan africa
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Tuberculosis
An airborne disease that severely affects the lungs and can be fatal
A cure was developed at the end of the 19th century but the access to this was favored for wealthy countries
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The spread of diseases cause no small amounts of social disruption (people were dying all over the place)
These deaths however often led to new technological and medical advances
1918 Influenza Pandemic
Spread rapidly and globally along travel and trade routes because of all of the increasing global interconnection
Claimed near 50 million lives over the course of 2 years which has a massive impact on demographics around the world
Spanish Flu
Deadliest pandemic of the 20th century
Occurred right after WWI was drawing to a close
Disproportionately affected people of working age
Medical scientist were unable to develop any significant interventions to stop the spread of the virus
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HIV/AIDS
Starting in the 1980s, led to the deaths of millions of people worldwide
HIV is the virus that causes AIDS which severely depresses the immune system making a person vulnerable to other diseases
Associated early with gay men and drug addicts the funding for researching this cure was difficult
By the 1990s those prejudices were discarded and new medical interventions were developed to treat the disease
Now This once deadly disease becoming a chronic illness
Due to the drugs being expensive AIDS remains a deadly disease among impoverished communities esp in sub saharan africa
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COVID-19
Emerged in 2020
Transmitted through the air
Due to our interconnected planet this disease spread globally and incredibly quickly
Affected societies by causing the closure of schools and businesses, as well affected global economics
The vaccine for this disease was developed rapidly to combat the virus and distributed globally
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Diseases of the Aged
With the new development of medical technology people can now live an extra decade or so however this can lead to;
Alzheimer’s Disease
A form of dementia that disproportionately affects the aging population
These people can suffer memory loss and as it progresses it undermines basic bodily functions like breathing and can lead to death
Heart Disease
With the new development of medical technology people can now live an extra decade or so however this can lead to heart complications if living with a bad diet or genetics
As people live longer heart diseases become a massive problem affecting millions
Deforestation Effects
Urbanization
The increasing size and populations of cities
Has created the problem of urban sprawl
- The increasing size of urban footprint
Farmland
Large commercial farms keep the world’s growing population fed
Largely impacts the world's forest, especially the rainforest
- Provide a home to an astonishing number of animal species that have since become endangered or have gone extinct through deforestation
Positive and demographic aspects to these developments
Creates conditions for increased levels of pollution = land without trees is susceptible to erosion
The pesticides used in large scale farming runoff into rivers and streams which contaminate fresh water supply
Desertification
Occurs when land converted to farmland is not well suited for agricultural or not well managed
Leads to the ground being emptied of nutrients and becoming desert-like
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Globalization has also led to a significant decline in air quality
Global spread of industry contributes to significant air pollution
Largely dependent on fossil fuels for energy
The Great Smog
Industrial coal emissions combined with fog created a poisonous smog that covered the city for 5 days killing 10,000-12,000 people and making around 100,000 incredibly ill
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In Mexico City the government estimated that in 2002 around 35,000 people died due to the cities polluted air per year
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Climate Change
The warming of the planet due to the release of greenhouse gasses
The potential solutions to this problem require political actions
Human causes
Would require society to slow their capacity for industrial growth which decreases economic growth
If greenhouse gases are restricted, developing nations who are attempting to improve their economic standing will not have the access to the tools that create economic wellbeing in an industrialized world
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(Unit 7) During the world wars and the great depression and trend in many places was that the government took an active role in directing economic decisions of states
In the 1980s this was rejected significant states in favor of the free market of neoliberalism = an economic emphasis on free market policies that include the lowering of trade barriers like tariffs, deregulation of industry, and the transfer of public sector industries to private parties
Economic Liberalization
Ronald Reagan
Started the liberalization of the U.S. economy
Elected as a staunch antagonist of new deal policies and gov. Spending of public services
Led the government to decrease taxes on the wealthy, reduced government regulation of businesses, cut spending on social welfare programs
He was in power during the cold war so his caution on government spending did not apply to military spending
Under his presidency that number spiked
Margaret Thatcher
Prime minister of the United Kingdom
Emphasized the deregulation of businesses, a reduction in income taxes and the privatization of state-owned assets
Both helped reduce inflation and create conditions for economic growth of both countries
Their policies however undermined the power of labor unions = more power in the hands of business leaders
The gap between the wealthy and the poor increased
Augusto Pinochet
President of Chile
Led the chilean economy away from state control and led them into the free market
Inforced these reforms with brutality therefore they were unpopular
His free market groundwork allowed Chile and its future leaders to lead Chile into a fairly balanced economy
Chicago Boys
Responsible for Pinochet leading Chile away from state control and into the free market
Group of economists
Graduated from the University of Chicago
Wanted to solve the economic problems in Chile
Addressed Chile’s rampant inflation and privatize state-run businesses
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Globalized Economic Landscape
Most powerful states = most industrialized states
At the beginning of the 1970s the cost of domestic manufacture increased significantly
Corporate investment in factory infrastructure no longer seemed to be a good investment
This led to a new global distribution of work
Weathlier developed countries became more characterized by knowledge workers whose main capital for work was not their bodies but rather their minds
Workers in a knowledge economy aren't people who makes things but people who think about things
(engineers, teachers, lawyers, ect.)
Became a major players in the globalized world
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In the 1990s Finland invested heavily in communication technology and education
Big part of that investment was a healthy share of the world’s cellphone and software development markets
This was a massive shift since as of the 1950s it was mainly an agrarian society
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Japan also invested heavily in education in order to transition into a knowledge economy
Japan's economic policies resembled the old mercantilist economies, which emphasized exports above imports
Subsidizing manufacturing
- keep cost low and enacting steep tariffs to stifle imported goods
Result
Labor unions began gathering strength and were able to agitate for themselves an agreement for high wages
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During the 20th century Japan became a churning engine of manufacturing
However they eventually diversified their economy and later became a world leader in the knowledge economy by focusing on banking, finance, and the development of technology
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Weather developed countries are doing more thinking meanwhile manufacturing was now increasingly being located in developing countries so international businesses could save money by paying lower wages to foreign workers than was legal in their own countries
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Global manufacturing
Now being located in areas in Asia such as Vietnam, Bangladesh
As well as in Latin America in areas such as Mexico and Honduras
Made possible because of communication and transportation technologies
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World Trade Organization
Exist to regulate trade on a global scale, the WTO promotes global trade by assisting in the negotiation of trade deals, acting as a moderator for various trades disputes and creating initiatives to assist developing countries along the scale of development
WTO was caused by globalization and increasing economic interconnectedness
By creating the conditions for increased global trade it has as well fostered further globalization
Regional Trade Agreements
European Union
Today it represents a complicated conglomerate of many European nations into a political and economic block
It began as a simple economic agreement in the post WWII era between six European countries
Agreed to integrate their coal and steel operations by removing barriers to trade between them
This arrangement evolved over time and included more countries until 1993 when the European Union was officially established
As of today 27 countries are members - Merged into a single economic unit - more economically powerful than they would be on their own
Association of Southeast Asian Nations
Facilitates trade among southeast asian countries by keeping trade barriers like tariffs low
As a result the member nations together have experienced significant economic growth unlike non-member nations like Japan or India
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Multinational Corporations
An entity which is incorporated in one country but manufactures and sells goods in other countries
Employ knowledge workers in their own countries
Manufacture goods for sale in others
Sell those goods on a global market
Similar to joint stock companies, like the Dutch East india Company, during the age of Imperialism
After 1900 the complexity and geographical distribution of these companies became more complex
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Nestle
Headquartered in Switzerland
Purchase and manufacture their chocolate with low wage work in West Africa (some cases child and enslaves labor)
Sell it on the world market
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Mahindra and Mahindra
Indian company that makes automobiles, farm equipment, and many other things
Based in Mumbai but they have operations in North America, Australia, Europe, Africa and Latin America