Geography 3422A/B Lecture Notes - Lecture 2: Geomatics, Royal Dutch Shell, Cultural Globalization

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Published on 9 Oct 2012
School
Western University
Department
Geography
Course
Geography 3422A/B
Professor
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of 5
Globalization 9/18/2012 11:35:00 AM
Globalization
The worldwide processes that makes the world, its economic
system and its society more uniform, more integrated and more
interdependent
Causes a shrinking of the world
Logistics and Pricing
Globalization requires greatly increased coordination of transport by
road, rail, sea or air and now by the internet
Prices for identical items can vary dramatically from place to place
although they are available globally
Homogenization of products does not mean homogenization of
price, companies will always price according to the market and
demand
Globalization of Culture
Culture the total learned way of life of a society
Depending on where you are in the world you will experience
globalization at different levels
Trends of cultural globalization:
o Globalization of culture is based on increasing levels of shared
beliefs, social forms and material traits
o Societies display fewer cultural differences than in the past
*Countries with most internet users Canada is 11th
o China is 1st
Powerful branding
o Apple most globally recognized brand
o Coca-Cola most valuable global brand
Foreign Direct Investment
FDI investment by foreigners in wholly owned facilities that are
operated by the foreign owner of a TNC
o US is the number one country for FDI
o Money goes from home country to host country
Home the country that money is coming out of
(outward FDI is money flowing out from the home)
Host the country where the money is going to
Most countries want to see positive FDI
Trends:
o 1914 Britain is the worlds top country for FDI (investing in
others)
o 1970 US takes over as largest FD Investor
o Japan is not as welcoming as most countries of FDI into their
economy
o Canada has been attracting less FDI than it used to
o The total stock of FDI is steadily increasing
o 1995 turning point, more money began going out of Canada
rather than coming in
o 1914 biggest host nation was Latin America
o 1914 biggest home nation was the UK
o 1938 biggest host nation was Latin America
o 1938 biggest home nation was the UK
US had large increase
Germany had a large decrease
Improved Communication
4 technological advancements that changed communication:
o Jet plane
o Internet
o Call phones
o English becoming the world business language
WWI shut down the first wave on globalization
Globalization of Finance
Three major centers of business New York City, London and
Tokyo
Deutsche Bank, Germany the largest bank in the world
Banks
Big 5 Canada Banks
o Royal Bank of Canada (RBC), Montreal
o Toronto-Dominion Bank (TD Canada Trust), Toronto
o Bank of Nova Scotia (Scotiabank), Toronto
o Bank of Montreal (BMO), Montreal
o Canadian Imperial Bank of Commerce (CIBC), Toronto
TNCs
The first wave of globalizations ended with the Great Depression in
1929
The current wave started with the end of WW2
TNCs evolve in 4 stages:
o Demand abroad export of commodity from home country to
a new foreign market
o Establishment of production facilities abroad, exports of same
item drop
o Foreign production facilities now also service foreign markets
other than the first
o Foreign production facilities export back to home country
Product life cycle model extensions to this general pattern of TNC
evolution when tied to a specific product (5 phases):
o All production in US, US exports to many countries
o Production started in Europe, US exports mostly to LDCs
o Europe exports to LDCs, US exports to LDCS displaced
o Europe exports to US
o LDCs export to US
Importance of production costs by stage:
o Capital growth, mature, initial
o Engineering/research initial, growth, mature
o Management growth, initial, mature
o Unskilled labour mature, growth, initial
o Urbanization economies initial, growth, mature
Product life cycle is getting shorter and shorter
o Innovations are more rapidly copied by competitors, pushing
down margins and transforming todays new products into
tomorrow’s commonplace commodity
o In the toys business today, up to 40% of all products on the
market are less than one year old

Document Summary

The worldwide processes that makes the world, its economic system and its society more uniform, more integrated and more interdependent. Globalization requires greatly increased coordination of transport by road, rail, sea or air and now by the internet. Prices for identical items can vary dramatically from place to place although they are available globally. Homogenization of products does not mean homogenization of price, companies will always price according to the market and demand. Culture the total learned way of life of a society. Depending on where you are in the world you will experience globalization at different levels. Trends of cultural globalization: globalization of culture is based on increasing levels of shared beliefs, social forms and material traits, societies display fewer cultural differences than in the past. *countries with most internet users canada is 11th: china is 1st. Powerful branding: apple most globally recognized brand, coca-cola most valuable global brand.