Eugh...this class is soo hard! I'm so glad that you'll be posting notes for this class
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Globalization Study Guide for Quiz 4
Class: March 28
What is Homestrings and why was it created?
o Homestrings is an internet based-service that allows expatriates and members of diasporas to invest in
development opportunities in their home countries.
What does Homestrings sell – to whom and why? o Homestrings capitalizes on investment opportunities; Homestrings manages much of the headache of the
investment process, so its clients can not only invest easily but have reassurance that their money is making a difference and that there was a good chance of returns. o What its built on
Securities and exchange commissions
Investment crowdfunding- way to raise capital for a company by collecting a relatively small amount
from many investors
Why is Homestrings headquartered in London? o Homestrings headquarters provide the organization with a unique foundation from which to work; their proximity to many large diaspora groups and the general advantage of being in a country with strong global connections
What is the Law of Third Generation Return? Is it still relevant today?
o The theory of the psychology of migration says that the first generation tries to assimilate into the country of
residents; because of cultural differences they will have difficulty doing so. The second generation will succeed in assimilation. The third generation will revere the country of origin.
o “what the son of the migrant wishes to forget, the Don't forget about the age old question of What is the Demand equation?
grandson wishes to remember…”
o This law is less viable in the 21st century because of media and globalization. We also discuss several other topics like What is conditioned stimulus?
How has globalization affected many migrants’ political, economic, and social relationships in their countries of origin?
o There are capabilities to continue to invest and continue connection with their countries of origins. The generations of migrants can stay closely connected with the culture of origin.
Why is 1990 an important year for migration trends and the word “diaspora?” What is the relationship between these two issues?
o In 1990 both forced and voluntary migration skyrocketed. This changed the historically
disproportions of what groups of people were
displaced and drastically stimulated the cross
boarder flows of people and ideas.
What is a diaspora? Why do we say that being a member of a diaspora is an “opt-in” identity?
o Diaspora: the body of Jews or Jewish communities outside of Palestine or modern Israel
o diaspora: “a social- political formation, created as the result of either forced or voluntary migration, whose members regard themselves as the same ethno-national origin and who permanently reside as minorities in one or several host countries. Members of such entities maintain regular or occasional contacts with what they regard as their homelands and with individuals and groups of the same background residing in other host counties”
(Sheffer, 2006: 10)
What are remittances and why are they particularly important for developing countries?
o Remittance- the sending of money, checks, etc. to a recipient at a distance If you want to learn more check out What are the terms use to analyze Social Class?
o This is important because it displays what sector of the global economy is depended on aiding people outside the country where the money is generated
What are the four main diaspora investment motivations? o Financial
What are the 6 development benefits of diaspora investment?
o Direct investment
o Portfolio Investment
Know about the Boston Day Spa and Thamel.com – what countries they operate in, who founded them, and what these businesses do. Know that the Boston Day Spa is an example of diaspora direct investment and Thamel.com is an example of a diaspora transnational business. Don't forget about the age old question of
What does the US Agency for International Development (USAID) do to promote diasporas and development? o USAID is interested in diaspora engagement NOW because:
o External drivers
Demographic and economic relevance
Roles of diaspora crisis and post-crisis scenarios Regionally specific opportunities
o Agency drivers
Sustained, localized development
Opportunity to integrate diaspora into agency
Diaspora as partners under 2015 SDGs
Classes: April 4 & 6
How does the hashtag #TheSquare illustrate the role of social media in global social movements?
o #TheSquare showed the difference that social media makes on governmental responsibility to people pushing for change. Social media allows campaigns to be diffused around the world even when a government is trying to cover up people’s voices
What is a “filter bubble?” Why might filter bubbles inhibit social movements?
o The filter bubble describes the phenomenon in which people remain interacting with individuals similar to
themselves or their society online, so remain unaware of global internet movements or opinions. This might inhibit social change because individuals feel globally connected even though they are not.
What does this quote mean: “We live in a world of imagined cosmopolitanism.”
o people feel engaged or cosmopolitan even though they are not, due to the filter bubble Don't forget about the age old question of What is isotonic to the body?
Who is Patrick Awuah? What did he do and why is this an example of the importance of cross-border idea flows due to globalization?
Awuah is the founder of a liberal art’s school in Africa. He believes that liberal education in areas of poverty promote non corrupt leaders who enact positive change; so he is trying to spread this education throughout Africa
Why did Taco Bell decide to enter into the Indian market?
Lecture & Discussion:
What are the 3 components of culture?
o Material culture
Be able to give examples of how the Bhutan video shown in class illustrates good and bad aspects of the cross border flow of ideas associated with globalization.
Define cultural convergence and divergence. . o Cultural Convergence: The tendency for cultures to become more alike as they increasingly share technology and organizational structures in a modern world united by improved transportation and communication.
o Cultural Divergence is the divide in culture into different directions, usually because the two cultures have become so dissimilar. The Amish provide an easy example for understanding cultural divergence.
What is cultural imperialism? Why do some people associate it with globalization? Why and how do some people think the relationship between globalization and cultural imperialism is changing?
o Cultural imperialism is the imposition of a foreign viewpoint or civilization of a people Don't forget about the age old question of Where do cliff swallows live?
o People associate globalization with imperialism because historically the two have gone hand and hand, in less educated societies
What is “glocalization?” What evidence of “glocalization” is found in the Taco Bell case?
o Glocalization is the practice of conducting business according to both local and global considerations.
o The taco bell case described the way in which taco bell struggled with both having glocalization tendencies and lacking in.
Be able to point to specific examples of the taco bell case in relation to glocalization
Classes: April 11 & 13
Why and how does the story of the Gros Michel banana illustrate the benefits and negatives of the cross-border flow of product due to globalization?
o It perfectly illustrates the best of the increase supply and travel of goods, however it also displays the negative impacts on the environment and labor forces
What is happening with the Cavendish banana globally? Why is it vulnerable and how has globalization played a role? What is its future according to scientists and how might this impact individuals, firms, and nations? o International banana trade began in early 1800s
o As faster more reliable ships became available fruit could be shipped greater distances
o With better post-harvest practices (refrigeration and regulated gas environments) even greater distances were possible
What is fast fashion?
o Fast fashion is a contemporary term used by
fashion retailers to express that designs move from
catwalk quickly in order to capture
current fashion trends. Fast fashion clothing collections are based on the most recent fashion trends presented at Fashion Week in both the spring and the autumn of every year.
How does fast fashion put pressure on global natural resources?
o The need for constantly new product means huge amounts of water and other resources are being used wasteful in large quantities to keep up with the amount needed.
Why does H&M not know for certain at the beginning of the case whether they have sourced from Rana Plaza or not? o The businesses H&M and many other places use to
create their product often time contract out, with little documentation, to sweatshops and factories who also
may contract out. There is little accountability in the
What are the drivers of cross-border flows of product and production? Be able to list and explain each.
o Overcapacity in many industries, global competition seeking lower labor costs, developing transport
infrastructure, information technology improves
communication, WTO/trade agreements, regionalism of triads (North America, EU, Japan/Pacific Rim)
How have trends in global trade changed since 2008 and what are the 3 reasons why this has taken place? o Before the 2008 crisis, global trade grew as much as TWICE the rate of global output for DECADES…
o Since 2011, trade growth has slowed to be in line with – or even below – the broader growth of the global
What is a supply chain? What is outsourcing? o Supply Chain: The network created among different companies producing, handling and/or distributing a specific product from inputs to consumer.
o Outsourcing: To obtain goods from an outside
o or foreign supplier in place of an internal source
Watch BigBoxmart video about the critiques of global supply chains.
What are some of the internal and external to the firm risks of global supply chains?
How has the textile and apparel industry contributed to development in many nations?
o The textile and apparel industry is the first industry nations develop into after agricultural industries, so it stimulates the economies and progress in developing countries.
Why do some people say the concept of a sweatshop is “relative?”
o – a shop or factory in which employees work for long hours at low wages and under unhealthy conditions. o Varying degrees of conditions lead this to be subjective o See Travels of a T-Shirt Discussion - “Sisters in Time: From the Farm, the Sweatshop and Beyond”
What was the Agreement of Textiles and Clothing and why is it important for the globalization of the textile and apparel industry?
o o Lead to quota elimination
How has quota elimination in the textiles and apparel industry affected individuals, firms, and nations? o Vastly stimulated trade and women’s roles in work
How is the rise of fast fashion connected to the Agreement of Textiles and Clothing? How has the rise of fast fashion
furthered the development of sweatshops around the world?
o Fast fashion directly connects to increased need in the amount of quota produced by sweatshops, therefore the increase of this trend increases worldwide textile
Why do firms like H&M source from factories like Rana Plaza?
o Places like Rana Plaza provide cheap and little regulated labor, which large cooperation’s feed off of.
Class: April 18
Does Pankaj Ghemawhat (featured in the TED talk) believe the world is flat? Why or why not?
o No, it is a metaphor for the increased intercommunication and trade networks globalization has provided the world o “Globaloney can be harmful to your health”
o Data to assess degree of globalization
Telephone service (2%)
What is the DHL Global Connectedness Index? Which countries/regions are some of the leaders and laggards of this index?
o How active nations are in global interaction, it seems to directly correlate with development however not with trade
o 3 Dimensions
Depth – how much economic activities/flows are
international vs. domestic by comparing size of
international flows (and stocks cumulated from prior
year flows) with relevant measures of its domestic
Breadth – how broadly the international component of any given type of activity is distributed across
Directionality – examines whether and to what
degree activities of flows are inward or outward.
What is the main argument of the article, “Globalization: The Good, The Bad, and the Uncertain?”
o “While global policy has been focused on facilitating integration, the implications of growing interdependence have been largely ignored.”
Increased fragility through vulnerabilities created by exposure to global shocks, e.g., financial crises,
climate change, food & water insecurity, pandemics,
bioterrorism, cybersecurity, supply chain
“To harness these opportunities, we need an
intellectual revolution. We need a citizen’s
mobilization and we certainly need a fundamental
leadership and institutional shift.”
Is globalization good, bad and for whom? What were some of the main ideas discussed in class along each of these themes? o Multinational Production: Firms are firms, but big decisions at Intel were made by people.
o Negotiations: There are good and bad negotiators, but the structure of the negotiation is your friend. Or enemy. o Inequality: Globalization can increase or decrease inequality for countries, regions, groups, families, or individuals.
o Demographic Pressures: Globalization has improved social & health indicators, spurring more countries to enter into demographic transition, leading to an aging world. Increased migration creates pressures for economies & societies to integrate new populations.
o Resource Pressures: Globalization has both contributed to climate change and pressures on natural resource stocks but also has increased opportunities for the collaboration necessary to work toward solving these looming problems.
o Cross-border Flows: Increased flows of ideas, people, product and production globally has increased potential for innovation, creativity and growth while at the same time increased risk for conflict created perceived threats to local cultures, and even
partially weakened national sovereignty.