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Week 4 Lecture Notes Geo 171

by: Bryce Caplan

Week 4 Lecture Notes Geo 171 GEO 171

Marketplace > Syracuse University > Geography > GEO 171 > Week 4 Lecture Notes Geo 171
Bryce Caplan
Human Geography
Don Mitchell

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Globalization 1 and Global Commodity Chains
Human Geography
Don Mitchell
Class Notes
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This 6 page Class Notes was uploaded by Bryce Caplan on Tuesday September 29, 2015. The Class Notes belongs to GEO 171 at Syracuse University taught by Don Mitchell in Fall 2015. Since its upload, it has received 14 views. For similar materials see Human Geography in Geography at Syracuse University.

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Date Created: 09/29/15
Geo 171 Human Geographies Globalization 1 Lecture 6 92115 Overview 0 Defining Globalization 0 What are the driving forces behind globalization o The role of commodity chains 0 Coreperiphery relations Defining Globalization Business expanding to other countries interactions between peoples in different locations 0 Increasing interconnectedness different locations becoming interlinked place and scale shift 0 There s a quantitative and qualitative aspect of globalization Expansionintensification of linkages and flows 0 Transnational rules and governance 100 years ago the nation state was the critical arbiter now nationstates are influential but they are trading off elements of their sovereignty to gain this aspect of globalization Ex The UN environmental debates 0 Globalization is an objective empirical process of increasing economic and political connectivity a subjective process unfolding in consciousness as the collective awareness of global interconnectedness and a host of specific globalizing projects that seek to shape global conditions Pieterse2004 0 Empirical process can be exemplified by online interactions between people of various nations 0 Awareness is a widening area with individuals being responsible for understanding what is happening in the world 0 Projects are goals that may be in conflict that are a product of social and political forces in an attempt to better the world 0 Globalization is not unprecedented to a large degree i has been occuring for at least several hundred years ie British expansion 0 Contemporary globalization is in terms of both spread and depth as in number of people it touches and how it affects those people 0 A blurring between scales is occurring what happens on a local scale affects larger scales more 0 The world is globalizing and is not globalized this is an ongoing process it comes in waves and recessions recessions frequently happens i war or economic crisis etc o Tariffs taxes on imported goods are good indicators of globalization in 1940 the average tariff was 40 in 2000 it was 5 What Drives Globalization 0 The New International Division of Labor NlDL has been developing since the 1970s 0 Shift from old colonial division of labor 1970s1980s Trade of raw materials from periphery and finished goods from core 0 Shifting from import substitution to exportled strategy eg Mexico 0 Led by TNCs Transnational Corporations Ex Ford going to Europe and Brazil it developed the first world car the fiesta in the 1940s which was built in various parts of the world and sold in many places 0 ChinaIndia become major exporters of goods and services In 2006 China surpassed the US as the leading manufacturing nation in the world 0 Internationalization of Finance 0 1970s Collapse of the Bretton Woods agreement which was set up at the end of the second world war to set up a table exchange between countries Under the agreement the US dollar was fixed to the price of gold and exchange rates were fixed It was premised on the fact the US was the major economic power left standing at the end of the world war As other countries caught up the US abandoned it which was hurting it o Floating of currencies 24 hour financial trading This powers the stock market exchange 0 Deregulation of financial services Pre170s currency controls were set people were allowed to take only a set amount of money Also investment banking and commercial banking were merged allowing banks to use people39s money to invest gamble o Financialization of global economy The Economy shifts from being based upon goods and services and becomes more based upon trade between speculation stocks which is worth 70100 times more than the worth of the actual goods and services being traded 0 New Technology 0 Telecommunications and internet closes distances to allow for closer change 0 Global Consumerism 0 Global brands are becoming more prevalent 0 Globalization of US culture Ex Hollywood got under 30 of its revenue from foreign audiences now it gets over half of it from foreign audiences All linked together by Global Commodity Chains It s no longerjust individual firms 0 Producerdriven commodity chains auto industry computer companies firms that make a product are the most important drives of these industries 0 BuyerRetail driven chains clothing footwear it s not the manufacturer with control over who gets what but the retailer determines where things are sold 0 Marketing chains breakfast cereal soft drinks chains based on international marketing Globalization and CorePeriphery Relations 0 Rise of ChinaIndia has narrowed overall coreperiphery differences but nor for the rest of the periphery they are a special circumstance 0 Top fifth of world population 2010 o 75 of global income 0 84 of world exports 0 Increasing inequality within nations 0 Overall economic growth much faster than employment gains ILO 2006 Lecture 7 Global commodity Chains and Global Labor Standards Sept 23 2015 Overview The issue with labor standards What are labor standards and rights The labor standard debate notjust in academia but also in public affairs Different models of labor standards and right Case study Cambodia textilesapparel the first bilateral agreement between US and a periphery country that made Cambodia improve its labor standards Thelssue Globalization has raised concerns for labor rights and standards Why Market led commodity chains are starting to cut across various nation statesThe nation state is still the primary institution for setting labor standards Rapid increase in global labor force The global labor force has more than doubled in the past 80 years This compiled onto increases in technology allowing ease of access to new labor forces causes most of the end consumption to occur in first world countries Possible race to the bottom It is possible that one country may undercut their standards to become more competitive in providing ideal production environments causing lower environmental and humanitarian standards The evidence for this is mixed however Global Manufacturing Workforce NonNay has an average of 6415hour with a workforce of 232000 The american workforce has an average of 3571hourw1 1 9m India has a 1 17hour with 156m workers The education and quality of the workers in the more developed countries allows them to have such high prices What are labor standards and labor rights Standards v rights 0 Standards An underlying idea that maintains a level of work Ex minimum wage 0 Right A basic human right that should allowed by an employer Ex The right to free association or talking to others about pay etc Most important international body International Labor Organization ILO Founded 1919 o 187 Acts have been signed 8 are core they include I Freedom of associationorganization the right to talk about one s standing in the workplace Right to collective bargaining right to negotiate as a group of employees Elimination of forced labor lnstated by US Abolition of child labor lnstated by US Elimination of discrimination o The ILO as no enforcement power so many have yet to follow these rules The Labor Standard Debate 0 Free market 0 Sweatshops are better than the alternative garbage picking in an informal sector of the market Markets will raise standards via comparative market advantage and trade As a demand for a product increases wages will increase even if it stems from low quality unskilled labor Imposed standards and regulations will distort markets Ex lfthere is a minimum wage or if it s raised fewer workers will be hired Standardsimperialism Asian Values Saying that imposing standards are suppression of a culture 0 Counter free market argument 0 Supply of workers much greater than demand none of these scenarios described by the profree market argument apply The free market can t raise the wages by themselves Labor standards and rights can be economically positive Currency flows through the working classes causing more spending Notjust a two sided issue Those near the bottom aren tjust trying to stay low Different models 0 Standards Public or private hard or soft O 0 Public or hard standards can be like laws Private or soft standards can be like voluntary codes a company can t belong to an association unless it has some standard 0 Linkage model fair trade 0 US generalized system of preferences GSP If a nation has a Favored nation status it will have the lowest tariffs but this is frequently ignored This model tends to set the two sides in the global standards It s often viewed as a type of protectionism Formal economy bias It works well if this is an area of formal employment but doesn t stretch to informal employment Role of side agreements Each country has to maintain its own labor standards One country can mount a complaint against another This isn t used often 0 Pressure and response model 0 O O 0 Global firms are vulnerable to attacks on image Trade unions nongovernmental organizations and consumers influence the practices Voluntary codes of conduct are enacted to ensure the raising of their standards Ex Fair Labor AssociationFLA No workers or representatives are involved Conflicts of interest and problems of monitoring 0 Process model 0 0 All nations should ratify ILO and work with firms for annual improvements Includes workers in all sectors formal and informal Conclusions 0 Different models face different challenges 0 A Problem results from costprice pressures in the global commodity chain c Silverstein argues that there needs to be a trickle up strategy The manufacturing companies need to be consumers as well


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