chapter 9 globalization and culture
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Chapter 9 Globalization and Culture. Team 8- Japan Jacob Henson, Nils Floren , Aaron Whitmire , Brandon Allen, Cory Rogers, Sergio Torres, Jose Contreras, Kelli Philp , Thomas Freeland, Melissa Giussani. Paradox 9.1. - PowerPoint PPT PresentationTRANSCRIPT
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
Paradox 9.1Can global economic integration occur
without political and cultural integration?
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
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
Economic IntegrationEconomic integration can happen without
political and cultural integrationWorld Trade Organization (WTO)European Union (EU) includes 27 nationsNorth American Free Trade Association
(NAFTA)
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
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
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
Segregated Some Areas that have notbeen touched by Globalization:-Some areas in Latin America,- Africa- Asia
Globalization: Connecting the World
Since 1992 trades has more than doubled between developing nations
Evolution of technology : Internet and Communications
Paradox 9.3 Is Globalization an old or new
phenomenon?Past View
RomeSilk Road1870-1914
Present ViewToday
Business schoolsTechnology’s Impact
Four critical elements of globalization
Corporations capital base
Corporate mind-set
Supply chain
Market presence
Supply ChainWal-Mart
Huge StoresReverse Saturation ModelOwning their own TrucksDistribution Centers delivering to Stores
Barry Lynn’s ViewGlobal corporations
Global Financial SystemsBond market crisis
East Asian Financial crisis
Russia banking system
Thomas FriedmanWrote, “World is Flat.”
Globalization is because of:InternetVideo ConferencingOutsourcing
Friedman’s CritiquesMany believe it is a “Spiky World.”
Highest Peak
Middle Peak
Lowest Peak
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
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.
Paradox 9.4Is there a reasonable probability that a
global financial collapse will occur and undermine globalization?
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.
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.
Paradox 9.5
Does globalization encourage nationalism?
Different ExamplesWuhan University in China-2004
MBA Students
Czech Republic Banks
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
“At a minimum, it is critical that nationalism be contained to some extent if globalization is to succeed”
Paradox 9.6Are nations becoming simultaneously more
and less powerful because of globalization?
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
On the other side…China vs. GoogleFrance vs. YahooLaw of Sea
Paradox 9.7Can one nation dominate the global
economy and political system?
The belief of Conquering the world is nothing new…
-Julius Caesar -Alexander The Great -Napoleon
-Hitler-British
Who do people believe will be the next nation to attempt world domination?
-China and or India-The Asian Century
Some of the factors leading to a nation’s desire to conquer other regions?
Scarce resources -Potable water
-Arable land
What would happen if there was another attempt by one nation to rule the world?
Paradox 9.8• Is Globalization doomed?
“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
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.
Sesit’s ViewSimilarities
Low inflationRising commodity pricesNew regional powers emergingState-sponsored terrorismGrowing power rivalryFinancially overstretched dominant powers.
DifferencesDemocracyDecline in wars in current era
Gupta and Govindarajan Downplay similarities between eras.
Globalization is inevitable, although it can be derailed by nuclear warfare/epidemics.
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.
Paradox 9.9Does Globalization increase prosperity and
inequality simultaneously?
Global ProsperityReduction in povertyWealth per capita
Is there a connection to inequality?
InequalitiesCEO’s vs. Corporate workerAlmost all OECD countries have
experiences growing inequalitiesProof?What are the affects?
Max Weber
Paradox 9.10Who are the winners and losers in a
globalizing world?
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?
Paradox 9.11Is increased education the antidote for
outsourcing?
Engineering and Business degreesBlue-collar vs. White-collar workers
Gosselin 2006: College graduate salaries decreased 5% 2000-2004
Outsourcing will continue
Alan Blinder 2006: Personal Service Jobs are harder to outsource
Outsourcing can be prevented in some fields but not in others
The end