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GEOG 216 - Lecture 2.docx

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GEOG 216
Geraldine Akman

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GEOG 216 – Lecture 2: Geographies of the Global Change Overview: - Geographic perspectives - Internationalization vs. Globalization - The debate: competing explanation - Is a global Economy new? - Novel elements - Consequences Introduction: Geography of the World Economy - Explains the why of the where o Uneven development: Why are some places rich and other places poor? o Industrial Location: Why do certain economic activities occur in particular places? - Globalization is not a new topic; it is a 200 year old topic that has been brought up in the present. Internationalization vs. Globalization - Internationalization: Extent to which different national economies interact with one another through the exchange of goods and services. o Indicators: Trade data, Production o Focus on the ―extension‖ of economic activities across national boundaries. Usually arms length, meaning between neighboring countries. Ex. Internationalization of Canada into the US. o Quantitative approach to global integration - Globalization: Involves more than simply increased international trade o Set of processes through which economic activities are increasingly interconnected  Interconnected includes functional integration of production activities by multinational corporations (MNCs)  Integration can come through branch plants: ex. Car parts are produced in different countries o Emergence of new set of actors on global stage (institutions, agreements)  Agreements: Help set the stage of how the new economy is going to behave Ex. Labor laws, environmental laws - Difference between internationalization and globalization is not just quantitative data, but also the qualitative data that facilitate global integration The Debate: Competing Explanations 1) Hyperglobalizers o New world economic order; ‗borderless‘ economy o Nation states are not significant actors o Everything is becoming homogenous, standardized o Neoliberals: are pro-hyperglobalizers – free up the market, get the prices right and deregulate Antiglobalization: Must regulate globalization to prevent people going poor and suffering from the phenomena 2) Skeptics: o Economic globalization is overblown—a myth or a mislabeling of internationalization o Argument: 1860-1913 there was more trade and investment happening then up until recently. So this flow of goods is not new. o Tend to downplay qualitative changes 3) Transformationalists o Agree that globalization is happening but it is transformative o New geographies are being created o Economic relationships are being stretched and intensified Is Economic Globalization New? - [pre 1500] China and India traded with South East Asia, Eastern Europe, the Islamic world and the Mediterranean. Trade of raw materials and/or semi-processed materials - [1500 to 1800] Commodity integration grew slowly (a little over 1%/annum) o Mainly spices, silk, silver, slaves (sugar and cotton) o [1720 to 1780] International Trade double in value. Mostly non-competiting goods. Your product is rare and not transported in bulk. Pre-stages of industrialization o [1780 to 1840] International Trade increases more than threefold. Industrialization. 1720s and on: transportation innovation and communication technologies. - [1848-1914] o [1848] Unified world is not generally known o [1870-1914] Some argue world economy was more intergraded than it is today but… o … Past integration was shallower o Current deeper integration is organized primarily within MNC production network. No longer arms length. Novel Elements - Technological
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