Chapter 9 Globalization and Culture Team 8- Japan Jacob Henson, Nils Floren, Aaron Whitmire, Brandon...
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Transcript of Chapter 9 Globalization and Culture Team 8- Japan Jacob Henson, Nils Floren, Aaron Whitmire, Brandon...
![Page 1: Chapter 9 Globalization and Culture Team 8- Japan Jacob Henson, Nils Floren, Aaron Whitmire, Brandon Allen, Cory Rogers, Sergio Torres, Jose Contreras,](https://reader035.fdocuments.net/reader035/viewer/2022062515/56649ccf5503460f9499b1a2/html5/thumbnails/1.jpg)
Chapter 9Globalization and Culture
Team 8- JapanJacob Henson, Nils Floren, Aaron Whitmire,
Brandon Allen, Cory Rogers, Sergio Torres, Jose Contreras, Kelli Philp, Thomas Freeland, Melissa Giussani
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Paradox 9.1
Can global economic integration occur without political and cultural integration?
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John NaisbittJohn Naisbitt believes
Most ethnic groups want the positive aspects of economic integrationEx. lower tariffs and moving capital across borders
Do not want to politically and culturally integrate
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John NaisbittNaisbitt predicted that there will be 1,000
small nations divided by religion, language, and ethnic backgroundsSince the Cold War ended there have been
over 20 new countries in EuropeAndorra, an ethnically distinct region
between Spain and France, became its own nation
Yugoslavia became four new nations after the Balkan Wars
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Economic IntegrationEconomic integration can happen without
political and cultural integrationWorld Trade Organization (WTO)European Union (EU) includes 27 nationsNorth American Free Trade Association
(NAFTA)
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Economic Integration Issues with economic integration
Not all countries conform to currencyOne negative vote can stall action in the EUMexico, Canada, and the USA fight with each
other making trading tenseDoha trade discussions have been cancelled
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Economic Integration Lower overall costs with economic
relationshipsIncreased contact between different groups
lead to integrating politically and culturallyProcess may not be smooth
Full integration of politics and culture is unlikely to occur
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Paradox 9.2: Is Globalization a myth?
Globalization: the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade
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Segregated Some Areas that have not
been touched by Globalization:
-Some areas in Latin America,- Africa- Asia
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Globalization: Connecting the World
Since 1992 trades has more than doubled between developing nations
Evolution of technology : Internet and Communications
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Paradox 9.3 Is Globalization an old or new
phenomenon?Past View
RomeSilk Road1870-1914
Present ViewToday
Business schools
Technology’s Impact
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Four critical elements of globalization
Corporations capital base
Corporate mind-set
Supply chain
Market presence
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Supply ChainWal-Mart
Huge StoresReverse Saturation ModelOwning their own TrucksDistribution Centers delivering to Stores
Barry Lynn’s ViewGlobal corporations
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Global Financial SystemsBond market crisis
East Asian Financial crisis
Russia banking system
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Thomas FriedmanWrote, “World is Flat.”
Globalization is because of:InternetVideo ConferencingOutsourcing
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Friedman’s CritiquesMany believe it is a “Spiky World.”
Highest Peak
Middle Peak
Lowest Peak
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Different Types of Globalization
Globalization 1.0 (1492-1800)Columbus, Steam power
Globalization 2.0 (1800-2000)Multinational corporation
Globalization 3.0 (2000-Present)Linking individuals globally
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In ConclusionWorld is becoming more globalized, but in a
different manner than in the previous eras.Significant Overlap in previous eras.Globalization in the past pales in
comparison to what is happening today, especially with the rise of China, India, other developing nations, and market economy.
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Paradox 9.4Is there a reasonable probability that a
global financial collapse will occur and undermine globalization?
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Financial CollapseKnowledgeable analysts have expressed
fear of another major financial collapse in the future.
The International Monetary Fund has identified 64 banking crises between 1970 and 1999 capable of causing a global meltdown.
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Financial Collapse Undermining Globalization
Experiences since 1990 suggest there is a reasonable probability a global financial collapse could occur that would undermine globalization.
Companies who take part in globalization need to secure capital base and take other necessary precautionary actions.
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Paradox 9.5
Does globalization encourage nationalism?
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Different Examples
Wuhan University in China-2004MBA Students
Czech Republic Banks
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Nationalism
“Also almost all citizens across the world identify primarily with their ethnic and national cultures and globalization threatens such identification.” Bhagwati 2004
Study Abroad Experience
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“At a minimum, it is critical that nationalism be contained to some extent if globalization is to succeed”
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Paradox 9.6Are nations becoming simultaneously more
and less powerful because of globalization?
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Nation’s Losing PowerJessica Matthews, “Power shift”
Increase in international trade and communication systems
Example: United States approving GE’s offer to purchase Whirlpool when the EU did not approve the offer
MNEs posses substantial resourcesModularized factories
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On the other side…China vs. GoogleFrance vs. YahooLaw of Sea
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Paradox 9.7Can one nation dominate the global
economy and political system?
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The belief of Conquering the world is nothing new…
-Julius Caesar -Alexander The Great -Napoleon
-Hitler-British
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Who do people believe will be the next nation to attempt world domination?
-China and or India-The Asian Century
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Some of the factors leading to a nation’s desire to conquer other regions?
Scarce resources -Potable water
-Arable land
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What would happen if there was another attempt by one nation to rule the world?
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Paradox 9.8• Is Globalization doomed?
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“Foreign Affairs”by Niall Ferguson
Five FactorsImperial overstretch of national governmentsGreat power rivalryUnstable alliance systemPresence of rogue regime sponsoring
terrorismRise of revolutionary terrorist organizations
hostile to capitalism
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Ferguson’s ComparisonGreat Britain was major power, now it’s the
United StatesImports > ExportsRivalry with China and other NationsWar with Iraq.Allies doubt U.S. leadership due to national
debt increase.Muslim Extremism similar to Bolshevism in
Russia.
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Sesit’s ViewSimilarities
Low inflationRising commodity pricesNew regional powers emergingState-sponsored terrorismGrowing power rivalryFinancially overstretched dominant powers.
DifferencesDemocracyDecline in wars in current era
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Gupta and Govindarajan Downplay similarities between eras.
Globalization is inevitable, although it can be derailed by nuclear warfare/epidemics.
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In ConclusionWorld changes suddenly and future is
uncertain.
There are many similarities between eras and there is a call for increased attention to macro-level influences.
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Paradox 9.9Does Globalization increase prosperity and
inequality simultaneously?
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Global ProsperityReduction in povertyWealth per capita
Is there a connection to inequality?
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InequalitiesCEO’s vs. Corporate workerAlmost all OECD countries have
experiences growing inequalitiesProof?What are the affects?
Max Weber
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Paradox 9.10Who are the winners and losers in a
globalizing world?
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Not Everyone WinsThe winners of globalization are clearWho loses?
Farmers in China forced off public landsWhite and Blue collar with outsourcingOverall Economy
• Should assistance be provided to losers?
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Paradox 9.11
Is increased education the antidote for outsourcing?
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Engineering and Business degreesBlue-collar vs. White-collar workers
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Gosselin 2006: College graduate salaries decreased 5% 2000-2004
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Outsourcing will continue
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Alan Blinder 2006: Personal Service Jobs are harder to outsource
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Outsourcing can be prevented in some fields but not in others
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The end