Globalisation
Widening worldwide interconnectedness in all aspects of life (Cultural to the Individual)
Held and McGrew Globalisation Definition
- The way that economic, cultural and political processes now extend to the ‘four corners’ of the world as ‘stretched social relations’.
- The world is shrinking as distance no longer matters for trade, travel and tourism
Deterritorialisation
Humans are less influenced by where we are actually located in the world.
Positive v Negative Views
- Optimists think the change is positive as it brings by the solutions of underdevelopment.
- Pessimists view the change is negative in which Western imposes culture on minority and underdeveloped countries
Economic Globalisation
Changing of sites of production, movement of TNCs, expansion of capitalism, International division of labour and cheap labour.
Political Globalisation
The growing importance of global institutions outside of countries (IMF/UN) the breakup of old empires and relationships, position of importance of nations and increased nationalism and far-right policies.
Cultural Globalisation
Increased connections between countries, bringing diversity and benefits or damages to other cultures, religious beliefs becoming more prevalent worldwide
Example of Globalisation: Tourism
- One of the worlds largest industries
- Global Economic Contribution of $7.6 trillion (2016)
- 75 counties earned more than $1 billion each (2016)
- 1.6 billion each year from tourism.
Advantages of Tourism
- Sharing of culture
- Jobs
- Boost economy government receives more taxes so can invest in infrastructure known as the multiplier effect
- Improves the quality of life for locals as they have access to facilities made for tourists
Disadvantages of Tourism
- Leakage of profits back to tour operators
- Food imported leading to obesity
- Clash of culture (diminished or adapted)
- Environmental problems
- Overcrowding and Crime
Tourism in relation to Globalisation
1) Economic: Jobs receive low pay and are susceptible to natural disasters (Earthquakes in Japan led to tourism arrivals 6.2m-2011 v 8.6m-2010)
2) Cultural: Appealing to western tourists can diminish culture (Couscous in Morocco in a Moroccan restaurant isn’t authentic. Named couscous but has isn’t. It’s devalued, defamed and drained of its culture)
3) Political: Additional cash is invested in attracting tourism and not the community/Terrorists target tourist-heavy areas
Example of Globalisation: Fashion
-Jobs to those in places that may lack from them elsewhere and a sense of solidarity
-Cheap labour and poor conditions in developing countries AND culture can diminish due to westernisation of fashion
=Nike is an American but products are made in Thailand, Vietnam or China. Do not manufacture themselves, due to high labour cost, so to get more profit they move it to places where labour is cheaper.
Neo-Liberal Perspective
- Support free market and globalisation is a key driver in expanding world trade and the economic growth of individual countries.
- Countries embracing the global free market are the ones developing quickly and the furthest.
- HARRIS: ‘global manufacturing system’ as levels inequalities in the world and offering hope to poor countries and paving a more equal world system.
- Globalisation encourages the eradication of poverty as wealth will trickle down and benefit the whole/ Spread of western values (democracy)
Neoliberalism and Forms of Globalisation
1.) ECONOMIC
=China went from a closed economy (1970s) to a manufacturing and exporting hub. GDP was $690b (2016) v $300b (2006). Growth due to exports. The average growth rate of over 9% since 1978, the year that effectively was the start of the market-based reforms in the Chinese economy. Has lifted over 700m out of extreme poverty. China remains a Communist but open economy where trade accounts for over 70% of GDP.
=TNCs embraced the new international division of labour. Outsource manufacturing to the developing world. Shipped to major markets in DCs and LDCs. RITZER: McDonald’ has changed patterns of production, distribution and consumption
2.) CULTURAL: ’interpenetration’-culture flow is two way/Bollywood films, KPOP and fast food outlets
3.) POLITICAL: Democracy spreads as capitalism spreads. Economy/elections are now observed by international bodies with procedures to reduce bribery and rigging.
=Liberal democracies and free and fair elections are now a condition of SAPs and aid so the number of dictators and totalitarian states has decreased
Neoliberalism and Tourism
- Opportunity for developing countries to gain income, provide employment and create links with other countries.
- Easier travel. Brings about awareness of wider cultures and bringing people into a global village.
- Employs 8% of the global workforce
Marxist Perspective
- ‘pessimist globalists’
- Globalisation is real, tangible and inevitable. Promotes polarisation whereby rich countries get richer
- Economic: World trade and globalisation benefits the developed world and TNCs at the expense of the oppression, exploitation and impoverishment of the developing world.
- Political: The neoliberal ‘Washington consensus’ shapes economic policy and the New Right agenda of privatisation and cutting back state services.
- Cultural: Cultural imperialism. A homogenised culture. Western-imposed on them so Lose their own when exposed to consumerism and American values and face its problems like high crime rates and poor mental health.
Marxism and Forms of Globalisation
1.) ECONOMIC: Directors of TNCs generate wealth at the expense of local people. Governments of LDCs will remove health/environmental regulations. Tax is removed or evaded by moving resources around. Reduce tax liability to maintain high profits so it doesn’t trickle down to the locals.
2.) CULTURAL: Globalised culture dominated by bland, homogenised, western culture that is heavily centred on American values, products and icons (McDonald’s, Coca-Cola, Western TV/films) no longer wish to follow their own cultural norms
=There was 250 Australian Aboriginal Languages now only 60 survive and very few know them
3.) POLITICAL: Western countries can influence events in developing countries quickly
=After Paris bombings in Nov 2015 The French dropped bombs in Syria the next day in retaliation
=Globalisation is a new form of neo-colonialism. Intervene in politics in developing countries to protect own interests over helping the poor.
=Indonesia cleared its areas of land and destroyed ecosystems to plant soya beans to feed cattle in China, US and Russia (200sf of rainforests destroyed to produce a pound of beef: The Rainforest Alliance) and it doesn’t go to Indonesia but instead TNCS that foreign-owned elsewhere
Marxism, Tourism and Fashion.
1.) Tourism: LDCs have borrowed money (WB) to create tourist resorts. 3b across 144 projects worldwide. Two-thirds of the revenue from tourism never sees the local economy. Development income going to international companies and not the actual country.
=90% of the hotel workers in Mexico only get the minimum wage. $4 a day so no trickle down as claimed while the average apartment costs $150 a month/Keep staff seasonal by using 28-day contracts and then hiring again
=Western TNCs own the hotels and supplies. 55% of international tourism income in the south leaves via foreign-owned hotels, airlines and tour operators (WB)
2.) Fashion: TNCs exploit cheap, flexible, non-unionised labour-force in developing countries. No strict enforced international laws mean they can exploit LCDs
=Bangladesh (2013) A factory collapsed due to poor foundations. Workers were kept working despite health and safety regulations. 100 people died. Produced cheap clothes for TNCs like Primark and H&M.
Transformationalists
- Globalisation exaggerated
- Individual nations remain politically, economically and militarily autonomous
- Naive to dismiss globalisation or to underestimate the economic or cultural and political impact but nations and people may react differently to aspects of globalisation
- Critique Marxist claim of bland Americanised culture by highlighting the innovative and exciting hybrid culture that evolves from cultures mixing
- Reject polarisation/as countries develop and emerge they gain power and previously dominated world leaders like the UK influence declines
Internationalists
- Changes are not substantially different evolves what has occurred in the past
- An imbalance in global power relations, powerful nations act in own interest like always
- Over globalisation say that economic and social activity is regional: trade with EU or AFTA reflects the importance of regionalisation rather than economic globalisation
