Transcript Topic 1 * The Global Economy: Emergence and

GS 120 – iGlobalization: Moving The Things We Buy
Professor: Dr. Jean-Paul Rodrigue
Topic 1 – iGlobalization: Emergence and
Convergence
A – What is iGlobalization?
B – The Age of Interdependency
C – Transportation and Logistics
Hofstra University, Department of Global Studies & Geography
What is iGlobalization?
How can iGlobalization be defined? What are its driving
forces?
iGlobalization: Generating added value through globalization
Research and Development
• Finding better products and processes.
Input Costs
• Using the labor and resources advantages of locations.
Transportation
• Effectively transporting and distributing resources, parts and
finished goods.
Sustainability
• Improving environmental and energy efficiency.
Complexity and the Cheeseburger…
Capital on the Move (Containers)
Panamax Containership, Le Havre
53 Footer Domestic Containers, Corwith Rail Yard, Chicago
Dedicated Air Cargo Plane
Pallets waiting to be loaded in a container, APL DC Shenzhen, China
FedEx Freight Truck at Distribution Center, Kansas City
Qualitative and Quantitative Product Improvements
Product Design and Distribution Efficiency
Ultra Large Crude Carrier, Persian Gulf
Major Forms of Globalization: A Multidimensional and
Dynamic Concept
Form
Cultural / Social
Political
Economic
Nature
How globalization
changed human
behavior?
What forms of regulation
or control are linked with
globalization?
How globalization
influences wealth
creation and
distribution?
Outcomes
Homogenization
Hybridization
Rejection
Transnational agreements
(global or regional)
Trade, new markets,
new products
Issues
Is a global culture
emerging?
Are forms of global
governance suitable?
Is globalization
promoting inequalities?
The Drivers of Globalization
Integration
Production
Transportation
Transactions
Regulatory
chains.
Supply chains.
Transport chains.
Offshoring.
Containerization.
Information
chains (ICT).
Harmonization of
regulatory
regimes.
Global
production
networks.
Transborder
transportation.
Capital for
investments.
Trade
agreements.
Credit for
transactions.
Economic Integration Levels, 2011
The Age of Interdependency
What are the main relations holding the global economy?
World GDP, 1AD - 2008
80%
70%
60%
United Kingdom
Italy
Germany
France
United States
Japan
India
China
50%
40%
30%
20%
10%
0%
1
1000 1500 1600 1700 1820 1870 1900 1913 1940 1970 2008
Powered Transatlantic Passenger Modes
Steamship
• 1830s to 1960s (About 6 days; 4 days by the 1930s)
Dirigible
• 1931-1937 (About 80 hours)
Sea Plane
• 1934-1946 (About 15 hours)
Propeller Plane
• 1934-1960 (11 hours)
Jet Plane
• 1958- (7-8 hours); Supersonic jet (1976-2003: 3.5 hours)
Days Required to Circumnavigate the Globe
400
360
350
300
Days
250
200
150
150
100
100
60
50
3
2
1
1950
1975
2000
0
1850
1875
1900
1925
World Trade Routes, 1912
The Flows behind Globalization
Trade
Migration
Telecommunication
Nature
Flows of physical goods
Flows of people
Flows of information
Types
Raw materials, energy,
food, parts and
consumption goods
Permanent, temporary
(migrant workers),
tourism
Communication,
power exchanges,
symbolic exchanges
Medium
Transport modes and
terminals (freight)
Transport modes and
terminals (passengers)
Transport modes and
terminals (postal),
telecommunication
systems
Gateways
Ports
Airports
Global cities
Speed
Low to average
Slow to fast
Instantaneous
Capacity
Very large
Large
Almost unlimited
World Merchandise Trade, 1960-2011
Value (Trillions of Current $US)
18
16
60
Value of Exports
Merchandise trade (% of GDP)
55
50
14
45
12
40
10
35
8
30
6
25
4
20
2
15
0
10
Share of World GDP (%)
20
World Air Travel and World Air Freight Carried, 1950-2011
6,000
Freight
160
140
4,000
120
Billions of tons-km
Billions of passengers-km
5,000
Passengers
180
100
3,000
80
2,000
60
40
1,000
20
0
0
Global Net Migration (2005-2010)
Visa Restrictions Index, 2011
Afghanistan
Pakistan
Iran
China
Egypt
Vietnam
India
Thailand
UAE
Russia
South Africa
Brazil
Israel
Hong Kong
Malaysia
South Korea
Singapore
Canada
Australia
Switzerland
United States
Japan
France
United Kingdom
Germany
Denmark
24
31
36
40
41
42
53
63
67
89
92
140
142
149
158
163
164
164
166
167
169
170
171
171
172
173
0
20
40
60
80
100
120
140
160
180
200
Diffusion of Personal Computing Devices, 1977-2011
Units Shipped per Year
100,000,000
10,000,000
1,000,000
TRS-80 (1977)
Apple II (1977)
Atari (1979)
Commodore (1982)
PC (1981)
Macintosh (1984)
Symbian (2001)
Blackberry (2003)
Android (2009)
iPhone (2007)
iPad (2010)
100,000
10,000
1,000
100
1975
1980
1985
1990
1995
2000
2005
2010
2015
Technological Convergence, 1993-2013
Transportation and Logistics
What is the role and purpose of transportation? What are
the relations between transportation and logistics?
Core Components of Transportation
Modes
• Conveyances (vehicles) used to move passengers or freight.
• Mobile elements of transportation.
Infrastructures
• Physical support of transport modes, such as routes and terminals.
• Fixed elements of transportation.
Networks
• System of linked locations (nodes).
• Functional and spatial organization of transportation.
Flows
• Movements of people, freight and information over their network.
• Flows have origins, intermediary locations and destinations.
Different Representations of Distance
Euclidean Distance
A
B
Transport Distance
A
Pickup
Transshipment
Mode 1
Logistical Distance
A
B
Mode 2
Order
Pickup
Order Processing
Packing
Scheduling
Delivery
Transshipment
Mode 1
Delivery
Mode 2
Sorting
Warehousing
B
Inventory Management
Unpacking
Transportability of Some Key Goods
Type
Weight
Storage
Fragility
Perishable
Person
Very light
NA
High
NA
Coal
Heavy
Simple
None
None
Grain
Heavy
Average
Low
Low
Petroleum
Heavy
Simple
None
None
Fruits
Average
Complex
High
High
Container
Average (15-20
tons)
Simple
Low
Variable
Transportation as a Derived Demand
Activity
Working
Vacationing
Manufacturing
Taxi
Air travel
Touring bus
Trucks
Containership
Direct
Commuting
Warehousing
Indirect
Energy
Derived Demand
Transportation cannot exists on its own and cannot be stored.
Logistics
■ Definition
• Activities related to the transformation and circulation of
goods.
• All operations required for goods (material or nonmaterial) to
be made available on markets or to specific destinations:
• Material supply of production.
• Distribution and transport function.
• Wholesale and retail.
Logistics Goals and Operations
Fulfillment (Goals)
Demand (Operations)
Order
Transportation
• Right product
• Right quantity
• Handling
• Packaging
Delivery
• Right location
• Right time
Quality
• Right condition
Cost
• Right price
Stock Management
• Production scheduling
• Warehousing
Orders Processing
• Sales
• Purchase
Global Maritime and Air Cargo Traffic, 2008