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Chapter 9

SOCA02H3 Chapter Notes - Chapter 9: International Inequality, Trade Bloc, Marlboro Man

Course Code
Shelly Ungar

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Chapter 9: Globalization, Inequality, and Development
The Creation of a Global Village
- World seems like a smaller place today than it did 30 years ago, some saying we created a
gloal illage
o More English speakers abroad than before
o Less dependence on local currency, now with credit cards and ATMs available
o News now available worldwide instantly, with Internet
The Triumphs and Tragedies of Globalization
- Globalization occurs as people and institutions across the planet become increasingly aware
of, and dependent on, one another
o International calls pricier in past than present (free with Skype)
o International tourists increased 274% between 1982 and 2012
o More international organizations span globe than before (4x as much as in 1981)
Individual nation-states given up some independence when joining international
organization/signing intl. arguments (ex. NAFTA)
Autonomy of nation-states has eroded with eatio of a tasatioal
bodies and treaties
o Over 909 million internet hosts connect 2.4 billion people everyday (through IM, email,
file transfers, websites, videoconferencing compared to 231 in 1981
- Rapid movement of capital, commodities, culture, and people across national borders has
transformed and improved way we live
- Not all happy about globalization, as inequality between rich and poor countries remain
staggering (and increasing in some respects)
- Globalization said to maybe be turning world into more unequal place, hurts local cultures and
- Some claim globalization to be a form of imperialism the economic domination of one country
by another
o They view globalization putting entire world under control of powerful commercial
interests, also contributing to homogenization of the world
The Sources and Contours of Globalization
Globalization in Everyday Life
- When we buy a commodity, we often tap into a global commodity chain a worldwide network
of labour and production processes whose end result is a finished commodity
o Ex. sport shoes being originally from US, now produced abroad by Nike, while other
aspects (design, marketing, etc.) remain in industrial countries (US)
o When people buy Nike shoes, they insert themselves in global commodity chain
Bues do’t eate soial elatios that eploit foreign labour and enrich
endorsed players, but still, in part, helping those social relations persist
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- “oiolog akes us aae of ople e of soial elatios ad iteatios hih e’e
embedded in
- Sociological imagination allows us to link our biography with history and social structure
o Globalization extends the range of that linkage, connecting our biography with global
history and global social structure
The Sources of Globalization
- Few people doubt significance of globalization
- Most social scientists stress importance of technology, politics, and economics
- Technological progress made it possible to move goods and information over long distances
quickly and inexpensively
o Commercial jets shortened time for necessary international travel, costs dropped
dramatically after the 50s
o Other means of communication (telephone, fax, email) allow us to reach people
worldwide cheaply and almost instantly
- a ke pat of gloalizatio, hethe it’d e iteatioal tade o iteatioal tael
- Gloalizatio ould’t ou ithout adaed teholog, BUT adaed teh. o its o
ould’t ig aout gloalizatio
- Ex. North vs. South Koreas
o Both are about same distance from America
o Major brands (Hyundai, Samsung) from South Korea, none from NK
o Able to meet Koreans in Canada, none from NK
o Canada has technological means to eah oth outies, … politial easos
We have strong relations with South, ally since Korean War in early 50s, they
sought greater political, economic, cultural integration with outside world
NK remains isolated from rest of the world, to preserve authoritarian political
system and communist economic system
- Politics is important in determining the level of globalization
- An important source of globalization, as industrial capitalism always seeking new markets,
higher profits, and lower labour costs (capitalist competition has been major spur to intl.
- Transitional corporations large businesses with head offices in rich countries. They rely
increasingly on foreign labour and foreign production; skills and advances in design, technology,
and management; world markets; and massive advertising campaigns. They are increasingly
autonomous from national governments.
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- Transitional corporations differ from traditional corporations in 5 ways:
1. Traditional corporations - rely on domestic labour and domestic production.
Transnational corps. - rely increasingly on foreign labour and foreign production
2. Traditional corps. extract natural resources or manufacture industrial goods
Transnational corps. - increasingly emphasize skills and advances in design, technology, and
3. Traditional corps. sell to domestic markets
Transnational corps. depend increasingly on world markets
4. Traditional corps. rely on established marketing and sales outlets
Transitional corps. increasingly on massive advertising campaigns
5. Traditional corps. work with or under national governments
Transnational corps. ieasigl autooous fo atioal go’ts
- Tehologial, politial, ad eooi fatos do’t ok idepedetl i leadig to
o Go’ts ofte poote eooi opetitio to help tasatioal opoatios i
global markets
Marlboro, introduced in 1954, became the best-selling cigarette partly due to ad
campaign, featuring Marlboro Man symbolized rugged individualism of
American frontier, an icon
Maloo, oe the “tates’ sallest toao opa out of , eae the
largest by the 70s
During 70s, anti-smoking campaign impacted sales and P. Morris and others
tobacco companies decided globalization was next
To get politial ifluee to ake toao the out’s iggest export, US trade
rep C. Yeuter worked hard to dismantle trade barriers in Japan, Taiwan, S.
Korea, etc.
Legal action threatened for breaking international trade law and said US
would restrict Asian exports if igaette sales ee’t alloed
Such actions were critical in globalizing world trade of cigs
- P. Morris case shows, economics and politics typically work hand in hand to globalize the world
A World Like the United States?
- One consequence of globalization: the degree to which globalization homogenizes societies
o Many economic and financial institutions around the world operate roughly same way
The World Bank, International Monetary Fund, have imposed economic
guidelines for developing countries that are like those governing developed
industrial countries
o In politics, the UN engages in global governance, where Western standards of
deoa, epesetatie go’t, human rights have become intl. ideals
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