GEOG 216 – Lecture 2: Geographies of the Global Change
- Geographic perspectives
- Internationalization vs. Globalization
- The debate: competing explanation
- Is a global Economy new?
- Novel elements
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
Integration can come through branch plants: ex. Car parts are produced in different
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
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
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.
o  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.