Transcript Developed nations have a strong motive toward

1) Globalization:
Increasing connectedness, interaction, and
interdependency of the world…
- economically (trade, manufacturing, assembly,
raw materials, labor, markets)
- politically (more international interactions –
cooperative and conflicting)
- socially / culturally (travel, education,
entertainment, etc.)
2) Traditional industrial jobs: manufacturing
Labor in modern developed nations has
transitioned to “knowledge workers”.
Greater focus on communications & tech-based
“information industries” (providing services and
improving efficiency, rather than making tangible
products)… requires more skills.
Traditional manufacturing jobs have moved to
developing nations (“emerging nations”)… WHY?
- Plentiful cheap, semi-skilled & unskilled (less
educated) labor force (OUTSOURCING!)
- Closer proximity to raw materials
3) Significance of national boundaries?
Decreases with globalization:
- Increasing trade volume (larger ships!)
- More communications infrastructure links more
nations together
- MULTINATIONAL (“transnational”) corporations
- Production is increasingly DECENTRALIZED
(Manufacturing, assembly, managing, & retailing
are spread out)
- Increasing international trading blocs (alliances)
4) FREE TRADE:
Increased volume of trade via reduced barriers to
trade (esp. the removal of tariffs).
(Opposite: PROTECTIONISM – when a nation
attempts to “protect” its domestic industries against
foreign competition by increasing tariffs on competing
imports).
Organizations promoting free trade:
- World Trade Organization (WTO)
- International Monetary Fund (IMF)
- World Bank
- European Union (EU)
- North American Free Trade Agreement
(NAFTA)
4) (cont.)…
“G8 Nations”:
5) “Free” trade vs. “Fair” trade… considerations:
- Are workers in foreign countries fairly paid? Are their
working conditions humane?
- Is the standard of living increasing in developing
nations? Is the middle class growing?
- Is democracy getting stronger in developing nations?
(Or, do foreign trade agreements help to support
corrupt presidents and dictators?)
- Are basic needs affordable, or is privatization making
basic needs too expensive?
6) Toyota vs. Israel:
Economic power
measured how?
Israel GDP: $207 billion
Toyota global revenue: $208 billion
(U.S. GDP: $15 TRILLION)
7) POSITIVE effects of globalization:
+ More trade = more peace (“normalized”
relations)
+ Rising global standard of living
+ Job creation
+ Promotes investment in developing nations
8) NEGATIVE effects of globalization:
- Unfair trade that disproportionately benefits
developed nations (TEST: growing middle
class & legitimate democratization)
- Outsourcing of more jobs from developed
nations (not just blue-collar, working class jobs!)
- Rich get richer faster in developed nations,
compared to income growth in developing
nations.
9) Globalization can be a complicating political factor:
Developed nations have a strong motive toward…
… cheap resources (i.e. OIL!)
… cheap labor
… expanded markets
Which can lead to:
- Enabling & legitimizing corrupt leaders & autocrats
- Exploiting labor (“unfair” trade)
- Illegal immigration / economic refugees
- Military invasion & occupation / imperialism
- Terrorism!
10) ENVIRONMENTAL impacts of global
industrialization:
- Burning fossil fuels (coal, oil)…
= pollution
= CO2 global warming
= acid rain
= ozone layer depletion
… effects on BASE OF FOOD CHAIN
= ripple effects on entire ecosystem
- Land erosion, habitat destruction, mass
extinction of species
- Earth ecosystem becomes UNBALANCED to
sustain life as we’re familiar with it.
11) SUSTAINABLE growth & development:
- Development w/o depleting air, water, land
resources (“green growth”)
- Growth with PRESERVATION of environment
and CONSERVATION of resources
- BALANCING economic development VS.
environmental concerns
Simply put, being able to “keep living like you’re
living”, without running out of resources or
destroying where & how you live!
11) Sustainability?
12) WHO is responsible for sustainability?
- “Scientists & Economists”?
- Corporations?
- Government?
- Consumers?
- YOU?!
Is it what can “we” do…. or what can I do?
Action can only follow from self awareness.
13) OBSTACLES to sustainable growth:
- Focusing on short-term profits instead of long-term
sustainability (myopia, greed)
- Companies & investors who profit off the status
quo will spend a lot to prevent any change that
could threaten their current profitability
(lobbying,
advertising, public relations, campaign
contributions, funding “think
tanks”).
- Abundance of cheap unsustainable resources
(i.e. fossil fuels)
- Consumer ignorance, apathy, and/or desire for
convenience & instant gratification
- Workers who depend on the income they receive
from an unsustainable industry
13) SOLUTIONS to sustainable growth:
Key considerations…
… WHO PAYS for initiatives?
… should changes be VOLUNTARY or
MANDATORY?
Can we reasonably depend on individual
consumers, workers, and owners to voluntarily
make sacrifices and change how they behave
in a free market, before a full-blown catastrophe
occurs?
13) PATHWAYS to sustainable growth:
Possible government actions:
 Tax policy (tax unsustainable practices at a higher rate,
provide tax breaks/incentives for sustainable practices)
 Publicly fund research & development (R & D)
 Gov. subsidies, access to capital (i.e. cheap loans)
for sustainable entrepreneurship in private
sector
 More investment in education (esp. science, technology)
 Limit or ban unsustainable business models?
Also:
- Limiting population growth (economic development, family
planning, female literacy & equal rights)
- Consumer / voter awareness & action (“thoughtful buying”?!)