review not just any global economy… not just any global economy… capitalist economy, organized...

ReviewReview

Not just any global economy…Not just any global economy…

CapitalistCapitalist economy, organized economy, organized around around privateprivate ownership and ownership and privateprivate gain gain

Driven by profit imperativeDriven by profit imperative

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Capitalism has inherent globalizing Capitalism has inherent globalizing tendencies, which arise from:tendencies, which arise from:

– The drive to minimize costs of The drive to minimize costs of resources and laborresources and labor

– The drive to maximize sales of The drive to maximize sales of new products in new marketsnew products in new markets

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Consequences of global capitalism Consequences of global capitalism include…include…

– Rise of differentiated core (ownership) Rise of differentiated core (ownership) and periphery (labor & resources)and periphery (labor & resources)

– Export of high-paying manufacturing Export of high-paying manufacturing jobs from core to peripheryjobs from core to periphery

– Export of environmental degradation Export of environmental degradation from core to peripheryfrom core to periphery

Difference in Degree: Silk Road Difference in Degree: Silk Road 130 BC130 BC

Difference in Kind: World Trade Difference in Kind: World Trade Organization (established Organization (established 1995)1995) [The WTO’s] main function is to [The WTO’s] main function is to

ensure that trade flows smoothly, ensure that trade flows smoothly, predictably, and freely…. By predictably, and freely…. By lowering trade barriers, the WTO’s lowering trade barriers, the WTO’s system aims to break down other system aims to break down other barriers between peoples and barriers between peoples and nations.nations.

-www.wto.org-www.wto.org

Road MapRoad Map

EconomiEconomicc

PoliticalPolitical CulturalCultural

GlobalGlobalOrganizationaOrganizationallCountryCountryPersonalPersonalEvaluationEvaluationApplicationApplication

Economic Globalization at Economic Globalization at the Organizational Level – the Organizational Level – Rise of Transnational Rise of Transnational CorporationsCorporations In 2007…In 2007…

– About 80,000 TNCsAbout 80,000 TNCs

– About 800,000 affiliatesAbout 800,000 affiliates

– About $31,000,000,000,000 About $31,000,000,000,000 salessales

TNC – Global Mergers & TNC – Global Mergers & Acquisitions (87-06), Global FDI Acquisitions (87-06), Global FDI (70-08)(70-08)

TNCs and the Auto TNCs and the Auto IndustryIndustry

Economic Globalization Economic Globalization at National Levelat National LevelChanges what nation-states are: oriented Changes what nation-states are: oriented

on economic developmenton economic development

Alternative to GDP is GNH:Alternative to GDP is GNH: Economic Wellness Economic Wellness Environmental Wellness Environmental Wellness Physical WellnessPhysical Wellness Mental WellnessMental Wellness Workplace WellnessWorkplace Wellness Social WellnessSocial Wellness Political WellnessPolitical Wellness

TNC Sales v. National TNC Sales v. National GNPGNP

Governmental versus Governmental versus Private Capital Flows into Private Capital Flows into Developing Countries 1970-Developing Countries 1970-9595 (State of the World)(State of the World)