Transcript Geography 101

The Changing Global Context
The World-System
An interdependent system of countries
linked by economic and political competition
Telecommunications: Billions of Minutes
But what is Globalization?
The increasing interdependence and
interconnectedness of places globally.
Elements of Globalization
• The continual expansion of global
connections, relations and networks:
• Faster and more intense
• Increasing awareness about the world
• Driven by advancing technologies
Nike: An “American” Company
Nike HQ:
Beaverton, OR
10,000 employees
But where are Nike’s actually made?
http://manufacturingmap.nikeinc.com/
Vietnam Average:
$100 a month =
$ 25 a week =
50 cents an hour
(2013)
But where are Nike’s actually made?
A consistent pattern…
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•
•
•
•
~23,000 workers
50+ hours a week
For $.50 an hour
By hand.
Mostly by women.
Q: Is this good or bad?
http://www.huffingtonpost.com/entry/nike-labor-rightsvietnam_us_56d893f2e4b0000de403b7d0
https://www.theguardian.com/sustainable-business/2016/jul/16/robot-factories-threatenjobs-millions-garment-workers-south-east-asia-women
Then to the port
of Ho Chi Minh
City for export
Ho Chi Minh City, Vietnam
…to Long Beach, California.
…with Oil from the Middle East.
…to your local shoe outlet.
• Shoes are produced mostly by women…but why?
• 1/3 of all Nike’s are made in Vietnam: for $100 per
month ($1,200 per year or $.50 an hour).
• Materials (oil products) total ~$2 per pair of shoes.
• Shoes are shipped out of Vietnam (using oil from
elsewhere) mostly to the USA and Europe.
• Shoes are delivered to a store near you and sold
to you for $75…or more!
• Without you: They won’t make shoes.
• Without them: There are no shoes to buy.
Interconnected. Interdependent.
http://business.nmsu.edu/~dboje/nike/nikewithmap.html
THE
BIG QUESTION:
Is Globalization:
A. Good?
B. Bad?
C. All of the above?
D. None of the above?
Stay Tuned…
Current World Divisions
…for example, by economics.
• CORE
• PERIPHERY
• SEMI-PERIPHERY
COUNTRY
GDP
GDP pc
China
USA
India
Germany
Russia
Brazil
South Korea
Nigeria
Singapore
Cameroon
Luxemburg
Haiti
$18,090,000,000,000
$17,350,000,000,000
$ 4,060,000,000,000
$ 2,940,000,000,000
$ 2,223,000,000,000
$ 2,172,000,000,000
$ 1,459,000,000,000
$ 377,900,000,000
$ 291,900,000,000
$
44,330,000,000
$
41,090,000,000
$
11,480,000,000
$13,200
$54,400
$ 5,800
$46,200
$24,400
$10,800
$30,000
$ 2,500
$62,100
$ 2,300
$82,600
$ 1,200
Source: CIA Factbook (2016)
Measuring Income
• Gross Domestic Product (GDP)
o Total value of all materials, goods, and services
produced in one year
o Does not include inflows / outflows of money:
e.g.: remittances
o Impacted by:
 relative buying power: PPP-Purchasing Power Parity
- Based on hours of labor required to purchase a good
 Exchange Rate vs. Buying Power
-
Euro vs. dollar vs. yuan, etc.
• “Per capita”
– Used for equalizing comparisons between
dissimilar populations (divide GDP by population)
– “GDP per capita” vs. “GDP”
“PPP”“Big Mac Index”
Four most
expensive
Four most
affordable
Switzerland - USD 7.54
Norway - USD 6.30
Denmark: - USD 5.38
Brazil - USD 5.21
Ukraine - USD 1.20
Russia - USD 1.36
India - USD 1.89
Malaysia - USD 2.11
http://www.statista.com/graphic/1/
274326/big-mac-index-globalprices-for-a-big-mac.jpg
“PPP”
Five slowest earned Five fastest earned
Sierra Leone:
Afghanistan:
India:
Mexico:
Philippines:
136 HOURS
6:12
5:48
4:42
4:24
Australia:
U.K.:
France:
Japan:
Canada:
USA:
18 minutes
24 minutes
24 minutes
30 minutes
30 minutes
36 minutes
The Core
• Industrialized capitalist
countries, led by former
colonial powers
• So-called “1st World” or
“Developed World”
• Centers of trade, technology,
productivity, $$$, high GDP pc
• Exploit the Periphery and
Semi-periphery
• Examples: Western Europe,
North America, Japan, Australia
The Periphery
• Poor, ex-colonial nations
• So-called “Third World” or
“Developing Countries”
• Exploited countries and regions
– ex·ploi·ta·tion (ek sploi-tay shun):
• The act of employing to the greatest
possible advantage:
exploitation of copper deposits.
• Utilization of another person or group
for selfish purposes:
exploitation of unwary consumers.
• Exploited by Core and
Semi-Periphery
• Tend to export resources and
provide labor; low GDP pc
• Examples: Kenya, Bolivia,
Pakistan, etc.
The Semi-Periphery
• Somewhere in-between core and periphery
• Industrializing ex-colonial countries (NICs)
• Countries or regions with mixed processes:
– Both exploited and exploiters.
– Both exporters and importers of goods.
• Examples: India, Brazil, Mexico, Russia,
Thailand, Turkey, etc. But What about…?
…CHINA?
CHINA
• Historically considered as “periphery”
• But never colonized
• With trade opening up to China over past
20 years, China has emerged into the
“Semi-Periphery”
• Recent impact on international markets
and HUGE demand (i.e. oil, metals, etc.)
• Huge population will affect globalization
Q: Will China be considered a “Core”
player in the not-too-distant future?
Gross Domestic Product (GDP)
(2014, 1998 estimates-PPP)
Rank
1
Country
E.U.
2
China
3
U.S.
4
Japan
2014 %
GDP
Growth
$18,120,000,000,000
1.4%
$ 9,829,449.300,000
$18,090,000,000,000
7.3%
$ 700,277,800,000
$17,350,000,000,000
2.4%
$ 7,338,400,000,000
$ 4,767,000,000,000
-.1%
$ 557,900,000,000
Source: CIA Factbook (2016)
Which of these statements
do you think is true?
• Because of globalization, the rich
have become richer, yet the poor
have also become richer.
• Because of globalization the “gap”
between rich and poor has widened.
“Gap” between Rich and Poor
Brief History of “Globalization”
In my 1995
Human
Geography
textbook, the
word
“globalization”
was not in the
glossary,
index, or text.
The Early Days of Globalization
The Silk Road
(evidence dates back to 1600 BC, lasted
through Mongol Empire ~1400)
“Western” World-System
(Globalization) History
• Nile Valley, Mesopotamia
• Greeks, Romans
• 1400s-1800s:
European Colonialism /
Slave Trade
• 1800s/ early 1900s:
Industrial Revolution
• After 1900:
Neocolonialism /
Multinational Corporations
• 20th Century:
World Wars /
Cold War /
Decolonization
• 21st Century
E-Commerce (Internet)
However! Keep in mind…
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•
•
China
Native civilizations: Inca, Maya, Aztecs
India
Assyrians
Persians
Mongols
Ottomans
And others!
All engaged in some form of globalization
(a.k.a. trade)
1400s: European Colonialism
• Christopher
Columbus:
Where was he
going? Why?
• $$$
• Church
• Food and
Labor =
Spices and
Slavery
Hegemony
• Domination over a
region or the world
Colonialism:
• Not just political or
military control
• Most pervasive is
economic and
cultural control
• The “Golden Rule”
Colonialism
Non-European Countries
“Never Colonized”
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•
•
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•
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•
•
* Identified and used as a slave colony
Japan
by
U.S.
from
1822-1862
who
China
exported freed and slave blacks to
Thailand
Liberia to allow greater employment
opportunities for whites in the U.S.
Ethiopia
** A U.S. / U.K.-led coup in 1953
Bhutan
deposed their democratically-elected
Liberia*
leader to impose and defend the
more Western-friendly Shah as the
Iran**
autocratic leader of Iran for 26 years
Tonga*** *** 1900-1970 Tonga was a protectorate
of the U.K.
http://www.vox.com/2014/9/8/6103453/38-maps-that-explain-europe
But what about the U.S.?
Q: Was the U.S. a “colonial power?”
Q: Did the U.S. exploit / control sources
of cheap labor to help grow its
economy in the old days?
Q: Did the U.S. take advantage of cheap
natural resources to also help build
its economy in the old days?
1800-1900
Geographic Implications
• Imperialism and
Colonialism
• Ethnocentrism
and Racism
• Environmental
Determinism
Imperialism:
Formal Colonialism
• Colonies under
direct governance
and control
• Core controls labor,
resources, land
• Often indirect
political rule through
local leaders
Industrial
Revolution
• Early-1800s
– Core needed raw materials
– Economic boom in Core built on
cheap slave / labor in Periphery
for raw materials
– Women and children for cheap
production labor in Core
• Mid-1800s
– Slavery ends, but more
production moves to Periphery
– Local steel / iron ore used for
railroads, steamships, telegraph
(means of globalization)
• Late-1800s/ early-1900s
– All of Europe, US, Japan
– Increased transportation and
communication
– Rise of Multinational /
Transnational Corporations
Ethnocentrism and Racism
• “Our way is best”
• “Civilizing”
– Natives
– Non-whites
Environmental Determinism
• The belief that certain physical
environments (climates) are more
inclined to produce advanced
civilizations than others
– Torrid (tropics)
– Temperate (mid-latitudes)*
• “Mediterranean”=“Middle of the Earth”
– Frigid (polar regions)
* Theorized that this region was most likely
to produce advanced civilization
Environmental Determinism:
Example
Q: Is it true
that tropical
climates
cause
laziness and
promiscuity?
Birth Rate
Income PC
34.41
38.57
22.31
42.01
$ 900
$ 2,000
$ 1,800
$ 900
11.41
7.93
12.15
12.49
$44,100
$38,200
$65,400
$56,300
Tropics
Liberia
Afghanistan
Haiti
Burundi
Mid-Latitudes
Belgium
Japan
Australia
United States
CIA World Factbook: Estimates for 2015
Is it true?
• The stats are accurate.
• Must be true then?
• If so, then do we, based on the statistics, have
a right to conquer (colonize) these lazy,
promiscuous people to show them how to live
more civilized?
• Let’s ask the Nazis, the Spanish, the English.
Or the Yanks?
• Maybe there are some other factors that help
explain the statistics…
1900:
Rise of Multinational
Corporations (MNCs)
(Transnational-TNCs)
• Investments, activities
transcend borders
• Cheap labor / resources
in Periphery / S-P
countries supply core
Cartoon on Standard Oil,
1904
• Int’l business and
government become
increasingly linked
• Industrial revolution
helped create the rise of
MNCs / TNCs
• No more slavery in core =
need to find cheap labor
elsewhere
• Rules made by core in
interest of business
• “Golden Rule” in full
effect
http://blogs-images.forbes.com/liyanchen/files/2015/05/G2000-map3.jpg
Examples of MNC’s / TNCs
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Standard Oil
Nokia
Starbucks
Coca-Cola
Ford Motor Company
McDonalds
Microsoft
Chiquita
Oldest MNC / TNC: Dutch East India Trading Co.:
(1602)
• Indonesia, SE Asia
• Later began the Dutch
West India Company:
• Traded in Caribbean,
Americas (1621)
“Modern”
Imperialism
(Frequently
viewed as
Post-WWII)
1945: World War II
“Begins” contemporary globalization
• Sudden shifts in
economic hegemony,
political power
• Sudden technological
innovations
• Sudden growth of
transportation,
communications
networks
Nagasaki
Late 1940s:
U.S. dominant
• Sole possession of
atomic bomb to 1949
Frankfurt
• War destroyed
industries of Europe,
Russia and Japan
• U.S. finances
reconstruction
Anticolonial
revolts
• Decolonization:
Colonial flags come down
– Asia, 1940s-1950s
– Africa 1960s-1970s
• Neocolonialism begins
– Periphery countries “free,” but…
– Ex-colonial powers still dominate economies,
resources, cultures, etc.
Neocolonialism (Informal Colonialism):
Spheres of Influence
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•
•
•
Post-WWII (today!)
Core-dominated
NOT militarily controlled
“Controlled” through trade and resources ($)
World divisions: Late 20th century
• First World (“Global North”) - Industrialized
capitalist countries of Western Europe, North
America.
• Second World - Centrally-planned “socialist”
countries such as former Soviet Union.
• Third World (“Global South”) - Ex-colonies:
India, Malaysia, Brazil, Algeria, etc.
• Fourth World (“Global South”) - Poorest
nations including indigenous communities
North / South Divide
The World Bank estimates
more than 1 billion people
(17% of world population)
live in extreme poverty of
< $1.25 (U.S.) per day.
70% women and children
“Global North vs. Global South”
Regions of the “Global Village”
In a world village of 100 people:
East
Asians
South
Asians
Africans
European
Latin Am
North Am
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•
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•
22 East Asians
38 South Asians
15 Africans
10 Europeans
9 Latin Americans
5 North Americans
1 from Oceania
Oceania
Source: World Bank, 2015
Household Income
•
Average
annual
(per year) income $4,890
• 71 poor or
low-income
• 22 middle- and
upper middle
income
• 7 high-income
Ownership / Consumption
• 20 richest villagers
own and consume
80% of goods
• Other villagers own
and consume
remaining 20%
• The “80 / 20” Rule
“Miniature Earth:” https://www.youtube.com/watch?v=i4639vev1Rw
So what will continue to drive globalization?
Globalization of the Future?
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Industrial growth of Asia and Europe
Continued low wages in periphery
“Cheap” Oil
More Internationalization /Int’l Trade
New Global Markets
– New global technologies (Internet, cell phones, etc.)
– Easy and fast online trading / commerce
– Worldwide marketing (via satellite, Internet)
• Desire!
Globalization…
It’s here to stay.