Unit 9 (9.1-9

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