CL4 CL4 –– English Language and Culture for English Language and Culture for BusinessBusiness

The History of AngloThe History of Anglo--American CultureAmerican Culture

Prof. Peter CullenProf. Peter Cullen

US Demographic Growth and US Demographic Growth and Comparative DemographicsComparative Demographics

PrePre--Columbian OldColumbian Old--World SystemsWorld Systems

Western Europe and CultivationWestern Europe and CultivationTime ImmemoriumTime Immemorium

BraudelBraudel’’s Secular Trends and s Secular Trends and European Production IncreaseEuropean Production Increase

The Columbian MomentThe Columbian MomentAztec CivilisationAztec Civilisation

The European The European ““Age of DiscoveryAge of Discovery””

The Columbian Moment The Columbian Moment Central American ProductionCentral American Production

The Spread of Colonisation 1600 The Spread of Colonisation 1600 --17001700

Colonial America (1750 Colonial America (1750 –– 1776)1776)

The Columbian Moment The Columbian Moment Chesapeake Civilisation in 1607Chesapeake Civilisation in 1607

The Columbian MomentThe Columbian MomentChesapeake Civilisation in 1670Chesapeake Civilisation in 1670

The Columbian MomentThe Columbian MomentNew England and New FranceNew England and New France

The British Atlantic Economy in the The British Atlantic Economy in the 1818°° CenturyCentury

The Columbian MomentThe Columbian MomentThe NorthThe North

The Colombian MomentThe Colombian MomentTrade and ExplorationTrade and Exploration

European Global PoliticsEuropean Global PoliticsWar, War, and more WarWar, War, and more War

European Expansion in AmericaEuropean Expansion in AmericaWar, War, and more WarWar, War, and more War

European Population Movements European Population Movements in North Americain North America

Refugees from the United StatesRefugees from the United States

Society and the StateSociety and the State

�� 13 Atlantic American Colonies13 Atlantic American Colonies

�� Declaration of IndependenceDeclaration of Independence

�� Drafting of the United States Drafting of the United States ConstitutionConstitution

�� Consolidation of the structures of Consolidation of the structures of Government in the USGovernment in the US

�� Problem: Monarchy, Federalism, Problem: Monarchy, Federalism, Regional Differences (state vs. State)Regional Differences (state vs. State)

Thomas Jefferson Thomas Jefferson (1743 (1743 –– 1826)1826)

�� Born in Virginia to a prominent familyBorn in Virginia to a prominent family

�� 22°° American governor of Virgina (1779 American governor of Virgina (1779 –– 1781)1781)

�� 11°° United States Secretary of State (1789 United States Secretary of State (1789 –– 1793)1793)

�� 22°° ViceVice--President of the United States (1797 President of the United States (1797 –– 1801)1801)

�� 33°° President of the United States (1801 President of the United States (1801 –– 1809)1809)

�� Principal author of the Declaration of Principal author of the Declaration of Independence (1776)Independence (1776)

�� AntiAnti--Federalist (particulalry fiscal Federalist (particulalry fiscal intrusion)intrusion)

�� Founded the DemocraticFounded the Democratic--Republican Party Republican Party with James Madisonwith James Madison

Alexander Hamilton Alexander Hamilton (1755 (1755 –– 1804)1804)

�� Born on the island of Nevis in the West IndiesBorn on the island of Nevis in the West Indies

�� Artillery captain in the War of IndependenceArtillery captain in the War of Independence

�� 11°° United States Secretary of the Treasury (1789 United States Secretary of the Treasury (1789 –– 1795)1795)

Believed in a strong a strong central Believed in a strong a strong central governmentgovernment

�� Created the 1Created the 1°° US national bankUS national bank

�� Federal funding of the national debtFederal funding of the national debt

�� Federal assumption of state debtsFederal assumption of state debts

�� Import taxes and taxes on whiskeyImport taxes and taxes on whiskey

�� Created the Federalist Party Created the Federalist Party –– later the Whig or Democratic partylater the Whig or Democratic party

�� Wanted friendly relations with Britain, industrialisation, extenWanted friendly relations with Britain, industrialisation, extensive sive federal fiscal authorityfederal fiscal authority

�� Was killed in a duel with Vice President Aaron BurrWas killed in a duel with Vice President Aaron Burr

US Elections 1789 US Elections 1789 -- 18081808

Immigration and the Consolidation Immigration and the Consolidation of the American Republicof the American Republic

European Expansion in AmericaEuropean Expansion in AmericaAnglicising a ContinentAnglicising a Continent

Pres. James Monroe and The Pres. James Monroe and The Monroe DoctrineMonroe Doctrine

The Monroe Doctrine: 1823The Monroe Doctrine: 1823

�� a constitutional amendmenta constitutional amendment

�� European powers could no longerEuropean powers could no longer

colonise or interfere in the Americascolonise or interfere in the Americas

�� The US will not intervene in EuropeanThe US will not intervene in European

affairs unless its rights are disturbedaffairs unless its rights are disturbed

It is a moral objection to It is a moral objection to

colonialismcolonialism

It complements USIt complements US

recognition of South American countriesrecognition of South American countries

struggling for independence from Spainstruggling for independence from Spain

Manifest DestinyManifest Destiny

Manifest DestinyManifest Destiny

�� Term coined in 1845 by Term coined in 1845 by

journalist John Ojournalist John O’’SullivanSullivan

�� Idea supported by Andrew Idea supported by Andrew

JacksonJackson’’s s Democoratic PartyDemocoratic Party

to justify annexation of Texas to justify annexation of Texas

and Oregon and expansion of and Oregon and expansion of

territory west of the Mississippiterritory west of the Mississippi

““... our manifest destiny to overspread the continent ... our manifest destiny to overspread the continent

allotted by Providence for the free development of allotted by Providence for the free development of

your yearly multiplying millions.your yearly multiplying millions.””

The Americas and SlaveryThe Americas and Slavery Slaves Transported to America (1500 - 1800) and the American Black Population (1800) Figures x 1000

Slaves Transported out of Africa to 1800

American Black Population in 1800

Proportion of American Blacks to Imported Slaves

United States 348 1002 2.88 Spanish Mainland 750 920 1.23 Brasil 2261 1988 0.88 Carribean 3889 1692 0.43 Eng. Car. 2060 570 0.28 Frnch Car. 1415 732 0.52 Spn. Car. 414 390 0.94 Total 7248 5602 0.77

American Westward ExpansionAmerican Westward Expansion

Production, Logistics, Westward Production, Logistics, Westward ExpansionExpansion

Civil War and ProductionCivil War and Production

Slavery and Production 1860Slavery and Production 1860

The American Civil WarThe American Civil WarThe FightingThe Fighting

Civil War and ProductionCivil War and ProductionThe Economic WarThe Economic War

US Wealth Distribution 1872US Wealth Distribution 1872

The World on the MoveThe World on the Move19th Century Population Movements19th Century Population Movements

European Emigration to AmericaEuropean Emigration to Americathe 19th Centurythe 19th Century

US Expansion in Latin AmericaUS Expansion in Latin AmericaThe Monroe Doctrine and the Roosevelt The Monroe Doctrine and the Roosevelt

CorollaryCorollary

Global Trade Logistics and Global Trade Logistics and American ExpansionAmerican Expansion

The Panama CanalThe Panama Canal

AmericaAmerica’’s Place in Global Affairss Place in Global AffairsEntering the 20th Century World StageEntering the 20th Century World Stage

US Population Movement During US Population Movement During the Depressionthe Depression

The MidThe Mid--20th Century Global 20th Century Global EconomyEconomy

US Economic Growth After WWIIUS Economic Growth After WWII

US Population Movement in the US Population Movement in the 20th Century20th Century

US Highway InfrastructureUS Highway Infrastructure

Global Exports 1970 Global Exports 1970 -- 20032003

Prices and InflationPrices and Inflation�� Price stabilityPrice stability

�� Consumer pricesConsumer prices

�� Price inflationPrice inflation

�� Central BanksCentral Banks

�� Consumer ConfidenceConsumer Confidence

�� PricePrice--directed spendingdirected spending

�� Market FactorsMarket Factors

�� The cost of livingThe cost of living

�� MicroMicro--economicseconomics

�� MacroMacro--economicseconomics

�� Retail pricesRetail prices

�� B2B pricesB2B prices

�� Infrastructure and Infrastructure and ““Just in TimeJust in Time”” deliverydelivery

Prices and InflationPrices and Inflation

Production ConsumptionProduction Consumption

Info and infrastructure CommunicationInfo and infrastructure Communication

Cell phones, Internet, Courrier, road, rail, boat, air.Cell phones, Internet, Courrier, road, rail, boat, air.

Which sectors depend on physical Infrastructure ?Which sectors depend on physical Infrastructure ?

Knowledge and infrastructure influence Knowledge and infrastructure influence

distribution and development cost.distribution and development cost.

Cost influences the margin = price to end userCost influences the margin = price to end user

Prices and InflationPrices and Inflation

�� When consumer prices do not fall with the cost of When consumer prices do not fall with the cost of production = INFLATIONproduction = INFLATION

�� Negative affect on sales, jobs, and output = Negative affect on sales, jobs, and output = possible MARKET SHRINKAGEpossible MARKET SHRINKAGE

�� Cost/Price gap is driven by domestic production vs. Cost/Price gap is driven by domestic production vs. imported materials/servicesimported materials/services

�� Prices fluctuate:Prices fluctuate: every 4every 4--5 months in 5 months in consumer manufacturesconsumer manufactures

never/rarely in fuel/utilitiesnever/rarely in fuel/utilities

(until 2006/2007)(until 2006/2007)

Milton Friedman and MonetarismMilton Friedman and Monetarism

�� 19701970’’s = s = Inflation AND high unemploymentInflation AND high unemployment

Curing STAGFLATION = Monetary policy vs. Fiscal policyCuring STAGFLATION = Monetary policy vs. Fiscal policy

Milton Friedman = Milton Friedman = unemployment cannot drop unemployment cannot drop

below a certain level without below a certain level without

provoking an acceleration in provoking an acceleration in

the inflation rate.the inflation rate.

�� Price inflation Price inflation waswas linked to wage inflation linked to wage inflation –– which which

depended on inflationary expectations of depended on inflationary expectations of

employer/worker negotiationemployer/worker negotiation

Milton Friedman and Monetarism Milton Friedman and Monetarism

�� WorkersWorkers wageswages EmployersEmployers

(unions)(unions) pricesprices (capital)(capital)

= layoffs= layoffs

unemploymentunemployment

�� Theoretically, wages conform to business cyclesTheoretically, wages conform to business cycles

wages and prices rise until unemployment reaches market wages and prices rise until unemployment reaches market

equilibrium =equilibrium =

Labour market in balance with consumer marketLabour market in balance with consumer market

Milton Friedman and MonetarismMilton Friedman and Monetarism

Goverment regulation and policies to cutGoverment regulation and policies to cut

unemployment necessarily drive UP inflationunemployment necessarily drive UP inflation

FRIEDMAN: instead of employment reform, FRIEDMAN: instead of employment reform,

government should guarantee agovernment should guarantee a

steady supply of money steady supply of money (print more)(print more)

Problem: Problem: The globalisation of industrial and The globalisation of industrial and

financial processes = financial processes =

OFFOFF--SHORING and OUTSOURCINGSHORING and OUTSOURCING

Milton Friedman and MonetarismMilton Friedman and Monetarism

Friedman advocated DEREGULATIONFriedman advocated DEREGULATION

1972 = 1972 = the US $ is no longer tied to GOLDthe US $ is no longer tied to GOLD

it is tied to PRODUCTION GROWTHit is tied to PRODUCTION GROWTH

Friedman and Ronald Reagan (Republican Friedman and Ronald Reagan (Republican –– 1980 1980 –– 1988)1988)

�� DeDe––regulate production to stimulate the economyregulate production to stimulate the economy

�� print a great deal of moneyprint a great deal of money

�� increase US deficit immensly (3.x trillion dollars)increase US deficit immensly (3.x trillion dollars)

�� do this by speculating on the value of US productiondo this by speculating on the value of US production

Milton Friedman and MonetarismMilton Friedman and Monetarism

Monetary policy = a central bankMonetary policy = a central bank’’s strategys strategy

for managing thefor managing the

production and circulationproduction and circulation

of moneyof money

Affects:Affects: DI =DI = $ circulating = spending$ circulating = spending

exchange value of currency = change in impt/exptexchange value of currency = change in impt/expt

interest and circulationinterest and circulation

inflation = changes in spending/cost of production/inflation = changes in spending/cost of production/

unemploymentunemployment

Price Fluctuations in Europe and Price Fluctuations in Europe and the US (2006)the US (2006)

2006 2006 -- The European Central Bank (ECB) The European Central Bank (ECB)

publishes a 3 year study on retail publishes a 3 year study on retail

pricesprices

�� Euro consumer prices change every 4 Euro consumer prices change every 4 --5 quarters5 quarters

�� Prices change more often in the USA where discount Prices change more often in the USA where discount

sales are importantsales are important

�� Euro price changes tend to be BIG (Euro price changes tend to be BIG (average cut = 10average cut = 10%)%)

((average hike = 8%average hike = 8%))

Price Fluctuations in Europe and Price Fluctuations in Europe and the US (2006)the US (2006)

GENERAL RULE: GENERAL RULE: more raw material in more raw material in

production = more price production = more price

fluctuationfluctuation

i.e. Gas prices change every 5/6 monthsi.e. Gas prices change every 5/6 months

Fresh food prices change faster than processed foodFresh food prices change faster than processed food

Service prices are Service prices are ““stickierstickier”” because they arebecause they are

LABOUR INTENSIVE = little downward movementLABOUR INTENSIVE = little downward movement

�� EuropeEurope’’s labour market is s labour market is ““gummiergummier”” than the USthan the US

-- cost of labour is highercost of labour is higher

-- unions are more powerfulunions are more powerful

Commerce and the Balance of Commerce and the Balance of PaymentsPayments

The US and ItalyThe US and Italy

OPEC and Oil PricesOPEC and Oil Prices

US Trading Partners in 2002US Trading Partners in 2002

Global Population IncreasesGlobal Population Increases

Global Transnationals and SMEsGlobal Transnationals and SMEs

Scale of Scale of MultinationalMultinational CorporationsCorporationsa a --1990 1990 -- 2005, b 2005, b --Q3 2006Q3 2006

a b

The US Mexican Border 2006The US Mexican Border 2006