Lecture 1 Flashcards
What is economic globalisation?
There are multiple perspectives.
1) cultural perspective such as assimilation of cultures
2) political - institutional perspective such as the EU as a supranational Gov
3) economic perspective through int. Trade
What is mcdonaldization
McDonaldization is a term coined by sociologist George Ritzer in his book “The McDonaldization of Society” (1993). It describes a sociological phenomenon where the principles of the fast-food restaurant, particularly those exemplified by McDonald’s, are increasingly dominating various sectors of society and the world. The concept is built on four primary dimensions:
- Efficiency: The optimal method for accomplishing a task. In the context of McDonaldization, this means the fastest way to get from being hungry to being full.
- Calculability: An emphasis on quantifiable objectives (e.g., portion size, cost, and the time it takes to get the product) rather than subjective ones (e.g., taste or quality).
- Predictability: The assurance that products and services will be the same over time and in all locales. This means that no matter where you go, the McDonald’s experience will be the same.
- Control: The substitution of non-human for human technology. This involves a focus on automation and standardization to maintain control over the production process.
McDonaldization affects not just fast food, but also education, work, healthcare, travel, leisure, dieting, politics, and the family, among other aspects of society. The concept highlights the homogenization of cultural products and practices, leading to a more uniform and predictable world.
Explain economic globalisation
Transnational integration of national market economies through:
Integration of capital markets
Internationalization of firms
Labour mobility
More trade → easier cross border transfer → not just of goods und services but also knowledge and culture
Summarise the history of trade and economic globalisation
4 periods: pre historic period, cradles of civilisation, silk road hauseatic league and rise of Europe
Modern globalisation: first period-1820s- WWI: British empire, post WW2 is the second period (1950s - 1990s) triadization of world economy ( us-eu-jpn), third period - 2000s “ rise of the rest”.
The defining period of the third period are:
- acceleration of technological change
- multinationals through global value chains → national to global
- nice of emerging markets
- growing importance of trade in services.
What are factors that have increased trade flows?
O technology → easier cross border communication & lower transport costs
O politics → removal of tariff barriers signing of trade agreements and the creation of Inst. That protect trade such as EU, WTO
→ enables fragmentation of production: “global value chains”
Why pursue free trade?
Explain mercantilism
- Dominant ideology from 15-18 century by friedrich list and Alexander Hamilton
Opposes free trade on two grounds:
• national power perspective (trade as zero sum game)
- gold hoarding mentality: exports are good but imports are bad because they enrich rivals.
- nascent ‘infant’ industries must be protected from foreign competitors
What were the corn laws of 1846
What is the bhagwati view on the globalisation debate?
Free trade is good for development because it:
1) allows international specialisation
2) increases competition and thus efficiency as it is cheaper and better products for everyone
3) creates employment for low skilled low wage workers in developing countries
4)can trigger race to the top in environmental and labour standards
5) offers firms from developing countries opportunities to enter global value chains
What is the Chang view of the globalisation debate?
Unrestricted free trade is bad for development because:
1) Industry in developing countries are undermined by large multinationals
2) Exploitation of tax labour and environmental standards, low taxes and low wages, race to the bottom
3) Creation of transnational oligopolies
4) governments loose a crucial source of revenues
Explain the 3 I’s of IPE: Interests, institutions, and ideas
These three I’s drive political agents and decision making outcomes?
Interests: Material gains of powerful actors
Ideas: What (powerful) actors believe to be in their interest
Instiutions: Procedureds through which decisions are being made
What are the risks of relying on superpowers to protect global trade?
Comparison to Ever Given Incident:
The Houthi militants’ attacks on ships in the Red Sea are likened to the Ever Given incident in 2021 that blocked the Suez Canal. Despite the initial fears, globalisation survived the Ever Given incident without long-term disruption.
Limited Impact on Global Trade:
The Houthi attacks pose a significant humanitarian threat to Yemenis and Sudanese but are unlikely to disrupt global trade significantly. The container shipping industry has excess capacity and can manage longer journeys if necessary.
Historical Resilience of Global Trade:
Global trade has withstood various shocks over the decades, including the 9/11 attacks, pandemics, the Icelandic ash cloud, the COVID-19 pandemic, and Russia’s invasion of Ukraine.
Role of the US Navy:
The US has historically played a crucial role in keeping shipping lanes open, contributing significantly to global maritime security. The US Navy’s dominance has been a key factor in maintaining global trade stability.
Geopolitical Risks:
The Houthi attacks, supported by Iran, could trigger larger regional conflicts.
Rising tensions in the Middle East, Chinese aggression towards Taiwan, and the ongoing conflict in Ukraine pose significant risks to global trade.
Historical Context of Naval Power:
The role of naval power in supporting trade is traced back to the 17th century with Oliver Cromwell and the English navy. The Royal Navy’s dominance in the 19th century and the US Navy’s role post-World War II are highlighted as key periods of naval influence on global trade.
US Navy’s Current Capacity:
The US Navy has significantly fewer ships now compared to its peak in 1987.
The high cost of modern ships and budget constraints limit the Navy’s ability to maintain its fleet size.
Potential Impact of US Political Changes:
A potential Donald Trump presidency might alter the US’s role in global maritime security, particularly regarding Taiwan. Trump’s previous stance on NATO and military spending raises questions about future US commitments.
EU and NATO’s Role:
The EU and NATO are increasing their focus on maritime security but cannot fully replace the US’s global presence. Recent EU and NATO missions aim to address specific regional threats, like the Houthi attacks in the Red Sea.
China’s Position:
China has joined some anti-piracy efforts but has not engaged in protecting the Red Sea from Houthi attacks.
Chinese ships benefit from reduced risk in the Suez Canal due to the Houthis targeting only Israel and its allies.
The article underscores the complexity of maintaining global trade stability amid geopolitical tensions and highlights the critical role of naval power in this context.
