Dynamic of globalization

  The dynamic of globalization

INTRO :

• .Definition

 The growing economic interconnectedness of countries worldwide through increasing volume of variety cross broder transaction in goods and services, free international capital flows, growth of human and cultural exchanges, more rapid and widespread diffusion of technology and improved transport networks (IMF)

• . Globalisation is a centuries-long process

3 major waves of globalization :

1. From the discovery of America (1492)  to the 1st Industrial Revolution (1780’s) : creation of 1st col empires + human & cultural flows + triangular trade
2. From 1st Ind Rev to 1970’s : increasing trade btw Euro Empires + globalization ↘ during the WWs but ↗ after
3. Since 1970’s an accelerated globalization : new technologies (e-commerce) + new means of transportation + new markets+ new emerging countries which adopted liberalism free trade.

• . A process difficult to measure 

There are two globalization indicators :

•  The AT KEARNEY Index : have 4 components of global integration incorporating measures such as investment flows, mvmt of people across borders, volume of international telephone calls, internet usage and participation in international organizations. Has not been actualised since 2007 and according to this index the top 10 are small countries.
• The KOF Index was introduced in 2002 composed of 3 indices used to measure each dimension of globalisation :

• Economic globalization : actual flows and restrictions in trade and capital
• Social globalisation : spread of ideas, info, images and people. 3 categories employed ➡ personal contacts, info flows, cultural proximity (number of major US brand in a country ie McDo)
• Political globalisation : diffusion of gvnt policies.

It measures globalisation on a scale from 1 to 100. First position in 2009 : Belgium Ireland least = african countries.

1. Sharp increase in the volume of global flows since 1970’s.

Trade = exchange of goods and services for money. Most of the trade concern manufactured products, fuel and mining products (together gather 60% of world trade)

In 2015, world trade accounted for more than 30 % of global GDP (3 times more than in 1960)

A) The amount of global trade increases fast:

Why have world trade flows increased since the 1950’s:

• Free trade :

• Removal of trade barriers (tarrifs quotas) thanks to GATT (1947) and WTO (1995) based in Geneva.

• Dvlpmt new markets

• Developing and emerging countries

• Creation of trade blocs 

• EU + NAFTA (north Atlantic Free trade association btw CA, USA, Mexico) + Mercosur

• Strategies implemented by TNCs  = outsourcing and relocation
• Improved means of transports which make global trading faster, more secure and less expensive.

Case study : Ocean Shipping 

• It has been X7 since 1960. 80% of world trade is moved by water.
• Ships have increased in size and specialisation
• Cargo revolution in 1950s with the introduction of containerization (=an innovation in the handling and transportation of cargo by ship)
•  Creation of UCVLs (Ultra Large Container Vessels) the biggest is the Emma Maersk capable of carrying 11000 containers
• Busiest container ports (Shanghai, HK)

B. A sharp increase in human flows

International migrations

             ↪mvmt of people,involving a permanent change of residence (1yr >)

1. Number of international migrants 

  It has >X2 since the 60s. In 2005 : 131 million =3% of the world pop. In 2010= 215 million.

                  b.Diversity of migrants

• Refugee : a person forced to leave his country bc of fear of persecutions for reasons of race religion,nationality,political ideas + internal strife or environment disaster. Asylum seeker : ppl who have left their country of origin, have applied for recognition as a refugee and r waiting for a decis° on their applicat°.

• Economic migrants =

•  work related migrations.
• Voluntary migration
• Migrations concerning skill and unskilled Wers. ➡ Brain drain
• Rpz 75% of world migrations ( 145 M legal eco m +20-30 M illegal today). It’s a sharp ↗ : 80 M (1970) ➡ 170 M today which is due to improvements in transportation + gap btwn poor and rich widened ↪encourages migrations for better opportunities.

• Family related migrations = to join a family member in another country.
•  Voluntary (move from choice to improved quality of life) migra° # Forced migrations (no choice but to move bcz of natural disaster, economic, religious or social impositions)
• Lega l# illegal migrations (=enter a country without meeting the legal requirements for entry of residence.) The mvmts are usually from LEDCs to MEDCs (USA➡Mexico or Africa ➡EU). Modes of entry : visa overstay, sham marriage or border crossing usually with the help of smugglers.

          Why do people move?

Lee’s migration model : created in 1966 abt push (ppl leave when their are negative features in their source country)) and pull factors (ppl pulled to a new place bc of its positive features)

      World migration patterns

International migrations are becoming more global in the sense that more countries are affected at the same time and the diversity of areas of origin is increasing.

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