Unit 9- Globalization

Unit 9 review: Globalization 

Environment 

Land problems:  

Deforestation- Large scale clearing of trees. Effects of deforestation are urbanization (increasing size of population of cities). Urban sprawl- Rapid expansion of cities and towns. Development of suburbs. Large commercial farms were created to feed the growing population. Animals went extinct because their homes were destroyed. 

Pollution- Result of deforestation. Farmlands caused erosion and contamination of rivers (less freshwater supply). 

Desertification- Fertile land became infertile. When farmland isn’t managed well, the ground is deprived of nutrients and turns desert-like. 

Air and water problems:  

Decline in air quality- Global spread of industry led to air pollution. Became dependent on fossil fuels for energy, which causes air pollution. 

The Great Smog of London in 1952- Coal emissions combined with fog to create poisonous air. Killed 10-20k people, 100k sick. 

Mexico City’s polluted air killed 35k people each year. 

Competition for fresh water- Only 3% of water is usable but whole world needs water. Half the world’s population today lacks clean water. 

Climate change- Warming of planet due to greenhouse gases. 

Debate about whose fault it is for climate change. 

Economics 

The spread of free market economies- The global economy is new in some ways, but old trends also stayed. 

Neoliberalism- Emphasis on free market policies such as tariffs and private parties. Government takes its hand off the economy. 

Examples of liberalization- Ronald Reagan started liberalizing the US economy. He was against new deal policies (laws to restrict banking). He was against government spending on public services. He also decreased taxes in the wealthy and reduced government regulation of businesses. 

Margaret Thatcher (PM of UK) reduced income taxes, less government involvement. 

• These economies reduced inflation and led to economic growth, but also decline in power of labor unions and more power went to big business leaders. Rich-poor gap increased. 

Augusto Pinochet (Pres. Of Chile) lowered state control of economy which led into free market. 

New global distribution of work- Knowledge workers didn’t do physical labor but used their minds for income. 

• Example: Finland invested in communication tech and education --> share of the world’s software and cellphone market. HUGE shift for them because they used to be agrarian. 

• Example: Japan invested in education. Focused on exporting more than imports. Workers were paid low, labor unions gained strength. They became world leaders in knowledge economy by focusing on banking, finance, and IT. 

Manufacturing was relocated to Less developed countries (LDC) for cheap labor (Bangladesh, Vietnam, Mexico, Honduras) 

Global economic institutions- Caused by globalization and also fostered growth of globalization. 

World trade organization- Regulate trade on global scale. Acted as moderator of trade and helped less developed countries take initiative. 

Regional trade agreements: European union- Integrate coal and steel operations and remove trade borders. Started as trade agreement and later formed European Union now consisting of 27 countries. Association of Southeast Asian Nations- Kept tariffs low with each other. 

Multinational corporations (MNC)- Entity in one country but manufactures and sells goods in another. Examples are Nestle and Mahindra & Mahindra. Both use cheap labor and child labor. 

Technology 

A bunch of new technologies were developed in the 20^th and 21^st centuries that increasingly connected the world. Globalization is trade and technology creating a socially, economically, and politically connected world.  

New communication technologies- Reduced geographical distance.  

Radio reduced the need for newspapers. Franklin D. Roosevelt used radio and gave speech during the great recession.  

Televison replaced radio- feel connected to places which were geographically far.  

Cellular telephone- talk with people across the world.  

Internet- first created to share military and scientific data, eventually by 1990s citizens had access too(WWW). Internet connected people through email. 

Transportation tech- Also reduced geographical distance 

Automobiles + Railroads for land travel 

Air travel popularized in West 

Shipping containers- Almost all consumer goods are transported through them. Businesses manufacture their products in third world countries because labor is cheaper. 

Energy technology- 

Petroleum- Not only was petroleum used for cars and planes, but it is also used to generate electricity. Replaced coal as main power source of industrial manufacturing. This led to increased production to meet demands for consumer goods worldwide. 

Nuclear power- Has less pollution from chemical reactions, cleaner alternative to petroleum. Disasters at nuclear power plants in the US and USSR in the 70’s and 80’s led to large amounts of human environmental damage. 

Medical technology-  

Antibiotics- killed bacterial infection. Penicillin was created in 1928. Soldiers were dying less. 

Vaccines- Prevention of world diseases like measles, pneumonia, polio, and influenza. 

Birth control- Developed in 1950. Fertility rates declined around the world.  

Agricultural technology- Increase in global food supply 

Commercial farming- Farmers sell agricultural products on market and maximize their profit. This occurs usually in wealthier nations because it is expensive to do (expensive tractors). 

Green revolution- GMOs introduced in Mexico, India, Indonesia. Extensive use of soil led to exhaustion and erosion. Runoff could also pollute rivers.