Economic GlobalizationEconomic Globalization Global system of production, Global system of production,

consumption, and tradeconsumption, and trade

Organized around the profit Organized around the profit imperative: to maximize private imperative: to maximize private ownership and private gainownership and private gain

Review – Economic Review – Economic Globalization at the Globalization at the Organizational LevelOrganizational Level

Rise of the transnational corporationRise of the transnational corporation

– Conduct business and control Conduct business and control assets in more than one countryassets in more than one country

– Relatively recent creationsRelatively recent creations

– Now control 25% of global GDPNow control 25% of global GDP

Review – Economic Review – Economic Globalization at the Country Globalization at the Country LevelLevel

Economic globalization imposes the Economic globalization imposes the development imperative on countriesdevelopment imperative on countries

Both strengthens and weakens nation-Both strengthens and weakens nation-states:states:– Economic activity requires public Economic activity requires public

orderorder– Economic actors seeks deregulationEconomic actors seeks deregulation

Economic Globalization at Economic Globalization at the Personal Levelthe Personal Level

We’re all producers and We’re all producers and consumers now….consumers now….

We’re all owners and sellers We’re all owners and sellers now….now….

We’re All Owners: Percentage Households We’re All Owners: Percentage Households Owning Mutual Funds 1980-2007Owning Mutual Funds 1980-2007 Investment Investment

Company Institute 2008 Fact BookCompany Institute 2008 Fact Book

We’re All Owners: Mutual We’re All Owners: Mutual Fund PerformanceFund Performance

Fidelity Latin America Fund Fidelity Latin America Fund (FLATX)(FLATX)

Neuberger Berman Socially Neuberger Berman Socially Responsive Fund (NBSRX)Responsive Fund (NBSRX)

We’re All Sellers: U.S. Participation We’re All Sellers: U.S. Participation in Paid Labor Force 1947-2007 in Paid Labor Force 1947-2007 (Federal Reserve)(Federal Reserve)

We’re All SellersWe’re All Sellers : U.S. : U.S. Participation in Paid Labor Force Participation in Paid Labor Force 1947-2005 1947-2005 (Bureau of Labor)(Bureau of Labor)

With More Women in Labor Force…U.S. With More Women in Labor Force…U.S. Marriage & Divorce 1920-2004Marriage & Divorce 1920-2004 (National Center for (National Center for Health Statistics)Health Statistics)

With More Women in Labor Force…With More Women in Labor Force…Out of Wedlock Births 1970-2003 Out of Wedlock Births 1970-2003 (U.S. Census)(U.S. Census)

With More Women in Labor Force… With More Women in Labor Force… Percentage Females Never Married 1961-Percentage Females Never Married 1961-96 New Zealand96 New Zealand

% of marriages ending in % of marriages ending in divorce, Asian countries divorce, Asian countries (www.time.com/time/asia)(www.time.com/time/asia)

19901990 20022002South KoreaSouth Korea 1111 4747Hong KongHong Kong 1313 4141JapanJapan 2222 3838SingaporeSingapore 1515 2626ChinaChina 88 1515