1 Globalization Increasing connectedness interaction and interdependency of

1) Globalization: Increasing connectedness, interaction, and interdependency of the world… - economically (trade, manufacturing, assembly, raw materials, labor, markets) - politically (more international interactions – cooperative and conflicting) - socially / culturally (travel, education, entertainment, etc. )

2) Traditional industrial jobs: manufacturing Labor in modern developed nations has transitioned to “knowledge workers”. Greater focus on communications & tech-based “information industries” (providing services and improving efficiency, rather than making tangible products)… requires more skills. Traditional manufacturing jobs have moved to developing nations (“emerging nations”)… WHY? - Plentiful cheap, semi-skilled & unskilled (less educated) labor force (OUTSOURCING!) - Closer proximity to raw materials

3) Significance of national boundaries? Decreases with globalization: - Increasing trade volume (larger ships!) - More communications infrastructure links more nations together - MULTINATIONAL (“transnational”) corporations - Production is increasingly DECENTRALIZED (Manufacturing, assembly, managing, & retailing are spread out) - Increasing international trading blocs (alliances)

4) FREE TRADE: Increased volume of trade via reduced barriers to trade (esp. the removal of tariffs). (Opposite: PROTECTIONISM – when a nation attempts to “protect” its domestic industries against foreign competition by increasing tariffs on competing imports). Organizations promoting free trade: - World Trade Organization (WTO) - International Monetary Fund (IMF) - World Bank - European Union (EU) - North American Free Trade Agreement (NAFTA)

4) (cont. )… “G 8 Nations”:

5) “Free” trade vs. “Fair” trade… considerations: - Are workers in foreign countries fairly paid? Are their working conditions humane? - Is the standard of living increasing in developing nations? Is the middle class growing? - Is democracy getting stronger in developing nations? (Or, do foreign trade agreements help to support corrupt presidents and dictators? ) - Are basic needs affordable, or is privatization making basic needs too expensive?

6) Toyota vs. Israel: Economic power measured how? Israel GDP: $207 billion Toyota global revenue: $208 billion (U. S. GDP: $15 TRILLION)

7) POSITIVE effects of globalization: + More trade = more peace (“normalized” relations) + Rising global standard of living + Job creation + Promotes investment in developing nations 8) NEGATIVE effects of globalization: - Unfair trade that disproportionately benefits developed nations (TEST: growing middle class & legitimate democratization) - Outsourcing of more jobs from developed nations (not just blue-collar, working class jobs!) - Rich get richer faster in developed nations, compared to income growth in developing nations. - Erodes local cultures

9) Globalization can be a complicating political factor: Developed nations have a strong motive toward… … cheap resources (i. e. OIL!) … cheap labor … expanded markets Which can lead to: - Enabling & legitimizing corrupt leaders & autocrats - Exploiting labor (“unfair” trade) - Illegal immigration / economic refugees - Military invasion & occupation / imperialism - Terrorism!

10) ENVIRONMENTAL impacts of global industrialization: - Burning fossil fuels (coal, oil)… = pollution = CO 2 global warming = acid rain = ozone layer depletion … effects on BASE OF FOOD CHAIN = ripple effects on entire ecosystem - Land erosion, habitat destruction, mass extinction of species - Earth ecosystem becomes UNBALANCED to sustain life as we’re familiar with it.

11) SUSTAINABLE growth & development: - Development w/o depleting air, water, land resources (“green growth”) - Growth with PRESERVATION of environment and CONSERVATION of resources - BALANCING economic development VS. environmental concerns Simply put, being able to “keep living like you’re living”, without running out of resources or destroying where & how you live!

11) Sustainability?

12) WHO is responsible for sustainability? - “Scientists & Economists”? - Corporations? - Government? - Consumers? - YOU? ! Is it what can “we” do…. or what can I do? Action can only follow from self awareness.

13) OBSTACLES to sustainable growth: - Focusing on short-term profits instead of long-term sustainability (myopia, greed) - Companies & investors who profit off the status quo will spend a lot to prevent any change that could threaten their current profitability (lobbying, advertising, public relations, campaign contributions, funding “think tanks”). - Abundance of cheap unsustainable resources (i. e. fossil fuels) - Consumer ignorance, apathy, and/or desire for convenience & instant gratification - Workers who depend on the income they receive from an unsustainable industry - Solutions are EXPENSIVE

13) SOLUTIONS to sustainable growth: Key considerations… … WHO PAYS for initiatives? … should changes be VOLUNTARY or MANDATORY? Can we reasonably depend on individual consumers, workers, and owners to voluntarily make sacrifices and change how they behave in a free market, before a full-blown catastrophe occurs?

13) PATHWAYS to sustainable growth: Possible government actions: Tax policy (tax unsustainable practices at a higher rate, provide tax breaks/incentives for sustainable practices) Publicly fund research & development (R & D) Gov. subsidies, access to capital (i. e. cheap loans) for sustainable entrepreneurship in private sector More investment in education (esp. science, technology) Limit or ban unsustainable business models? Also: - Limiting population growth (economic development, family planning, female literacy & equal rights) - Consumer / voter awareness & action (“thoughtful buying”? !)