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GLOBALISATION

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MessageMar 13 Juin - 16:18

level of analysis :
= increasing influence on global systems (of production, trade, finances,politics, etc) on local conditions. (deterritorialisation)
= but states remain important (regulatory environment, domestic stability, interstate political dynamics)
= and geograpy remains important (resources, distances, concentration of economic activities, regional political projects, regional stability)

1.    Define globalization. What are the major characteristics of a globalized world?
is a long-term historical phenomenon that intensified after the cold war.
it has a political, cultural and economic aspect
= connectivity is one of its major characteristics : even far away events have close-to-immediate impact
= interdependence: states and regions depend on each other for continuing development, worsening relations would hurt all of them.

= political globalization :
- increasing number and role of non-state actors
* global civil society, NGOs, transnational companies
- global and regional international organizations

= cultural globalization:
- language
- brands
- aesthetics
- cultural/ pop icons

2.    How has production been transformed as a result of globalization? What are the so-called global value chains?
GLOBAL NORM: liberal capitalism
= the primacy of the market, minimal state, intervention
= increase in free movements of goods, money and people is seen a s a positive thing
= questioned? trump, brexit, front national, state capitalism

TECHNOLOGY:
= technological changes have decreased communication and transport costs, increased global interaction capacity
* makes the combination of decentralized production and centralized control possible (tncs)
= 1970s : high technology, knowledge economy
= current issues :
* is technological change exhausted? innovation peaked in 19th century, less transformative today
* the rise of robots: will all kind of human work be replaceable by artificial intelligence?

FOREIGN DIRECT INVESTMENT
= FDI: direct investment (aimed at buying controlling interest, not portfolio investment) across national boundaries
= has grown faster than trade
= central role of transnational companies
*2/3 of world exports of goods and services

INSTITUTIONAL STRUCTURE : fmi, the world bank, world trade organization

GLOBALISED PRODUCTION :
= globalised production chains
= production increasingly within transnational companies
= increasing productin beyond the boundaries of single firms and its coordination through global supply or value chains (GVCs)
= geographical shift of production in the direction of the periphery.


TRADE : classical domain of globalization adn interdependece, has increased faster than production (gdp)

MIGRATION ; more than 100 million labour migrants today


3.    Explain what is meant by the “core-periphery system” of the global economy.


4.    How do economists measure countries’ level of development? Give at least two concrete indicators and explain how they differ.
5.    Describe how global demographics are expected to change by 2050. How will demographic weights shift among the different regions and what global consequences might we expect?
6.    Explain the meaning and significance of the indicator “Commodity Concentration of Exports”.
7.    When and why did the world diverge into “rich” and “poor” countries?
8.    Describe the nature and limits of the recent convergence between developed and developing countries. Which regions show convergence, which do not?
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MessageMer 14 Juin - 0:17

2. How has production been transformed as a result of globalization? What are the so-called global
value chains?

- Global value chains is the full range of activities that are required to bring a product from its conception, through its design, its sourced raw materials and intermediate inputs, its marketing, its distribution and its support to the final consumer. Simply put, the global value chain includes all of the people involved in the production of a good or service.

3. Explain what is meant by the “core-periphery system” of the global economy.

- The world systems theory, developed by sociologist Immanuel Wallerstein, is an approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited. The world systems theory is established on a three-level hierarchy consisting of core, periphery, and semi-periphery areas.
= The core countries dominate and exploit the peripheral countries for labor and raw materials.
= The peripheral countries are dependent on core countries for capital.
= The semi-peripheral countries share characteristics of both core and peripheral countries.
= This theory emphasizes the social structure of global inequality.

4. How do economists measure countries’ level of development? Give at least two concrete
indicators and explain how they differ.

- The indicators are the following:

= The Human Development Index (HDI) : This is mainly a social measurement because it takes into consideration education, which is adult literacy rate and years of schooling, health care which is judged by life expectancy and finally the economic factor of GDP. It tracks changes in the level of development of countries over time with two main features.
* A scale from 0 (no development) to 1 (complete development)
* An index, which is based on three equally weighted components: Longevity, Knowledge, Standard of living (real gdp per capita)

HDI is a very useful means of comparing the level of development of countries. GDP per capita alone is clearly too narrow an indicator of economic development and fails to indicate other aspects of development, such as enrolment in school and longevity. The PQLI is very similar to the HDI but it includes infant mortality and it’s measured between 0 and 100.

= GNP & GDP : If you were to judge a countries development by its economic status then its GNP (Gross National Product) and GDP would fit accurately. These measure the net income of a country and, though they can be very effective, don’t take into consideration the living standards of the country. For example with Saudi Arabia, with a high GDP it ranks well on a global scale but its living conditions, health care and education are poor.

Problems with Development Indicators
The development indicators above all have their advantages and disadvantages, the main problems with them are that they only focus on certain aspects of development, socal, economic, political or even enironmental. Because of this there tend to be countries with will rank highly due to part of their country but realistically aren’t as good as another country.
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MessageMer 14 Juin - 0:18

5. Describe how global demographics are expected to change by 2050. How will demographic
weights shift among the different regions and what global consequences might we expect?

-
= Shifts in the current population rankings: world population projected to reach 9.7 billion by 2050. By 2050, six countries are expected to exceed 300 million: China, India, Indonesia, Nigeria, Pakistan, and the USA. India expected to become the largest country in population size, surpassing China around 2022, while Nigeria could surpass the United States by 2050.

= Growing population in Africa : Africa is expected to account for more than half of the world’s population growth between 2015 and 2050. The concentration of population growth in the poorest countries presents its own set of challenges, making it more difficult to eradicate poverty and inequality, to combat hunger and malnutrition, and to expand educational and health systems, all of which are crucial to the success of the new sustainable development agenda.

= Slower world population growth due to lower fertility rates : Future population growth is highly dependent on the path that future fertility will take. In recent years, fertility has declined in virtually all areas of the world, even in Africa where fertility levels remain the highest of any major area.

= Higher life expectancy : Life expectancy at birth has increased significantly in the least developed countries in recent years. While significant differences in life expectancy across major areas and income groups are projected to continue, they are expected to diminish significantly by 2045-2050.

= climate change : At least half a million people will die in the year 2050 as a result of the impact climate change will have on food production, according to experts. climate change could cut improvements in food availability by about a third by 2050. This would lead to around 3.2 per cent less food being available for the average person.
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MessageMer 14 Juin - 0:18

6. . Explain the meaning and significance of the indicator “Commodity Concentration of Exports”.
- is held to be important for developing countries because they are often highly dependent on relatively few primary commodities for their export earnings. Unstable prices for these commodities may subject a developing country exporter to serious terms of trade shocks. Since the covariation in individual commodity prices is less than perfect, diversification into new primary export products is generally viewed as a positive development. The strongest positive effects are normally associated with diversification into manufactured goods, and its benefits include higher and more stable export earnings, job creation and learning effects, and the development of new skills and infrastructure that would facilitate the development of even newer export products.
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MessageMer 14 Juin - 0:24

7. When and why did the world diverge into “rich” and “poor” countries?
Industrial revolution: '1785 in England, late 1820 to 1870)
= radically new sources of power (coal, oil)
* increased western economic productivity
* increased western military power
= new communication and transport technologies
* increased interaction capacity
* increased capacity to project power

West-Rest divergence in economic output (diverging levels of industrialization)
+ Western imperialsim, subordination of the Rest

8. Describe the nature and limits of the recent convergence between developed and developing countries. Which regions show convergence, which do not?

= aggregate convergence in share in global economy:
- gdp
- manufacturing
- major companies
- markets

limits :
much sclower convergence in per capita gdp/development
= uneven convergence
* only china as a potential greay power
* east asia as the leading factor
= least developed countries still left behind
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