module 10

Question 1

define globalization

Answer 1

globalization is a “set of uneven social processes that appear to transform our social condition of conventional nationality into one of globality”

Question 2

define globality

Answer 2

“is a social condition characterized by tight global, economic, political, cultural, and environmental interconnections and flows that make most current borders and boundaries irrelevant” (Symbaluk & Bereska, 2016, p. 331). Globality and globalization are intricately linked.

Question 3

is globalization singular?

Answer 3

Globalization is in part difficult to define, in part because it is not singular. It dovetails technological, economic, political, and cultural dimensions. The framework of globalization can be used to better understand a range of contemporary issues including but not limited to the manufacturing and sales of products and resources, changing national and

Question 4

how has global trade accelerated?

Answer 4

in the last three decades, with new advancements in transportation, robotics, computers, and communications technologies, including satellites and Internet, global trade has been massively accelerated.

Question 5

transportation technology

Answer 5

• While most of us may not realize, technology is one of most important elements that contribute to creating, producing, manufacturing, and shipping the thousands of products we have at our fingertips every day.
  
  • By reading food, clothing, and other product labels we see that many of the products we find in Canada are imported from other countries (and typically from Second World and Third World countries where there are no or few minimum wage legislations).
  • While transportation technologies are an enormous aspect of the technological advances that enable globalization to grow, they are far from exclusive. To understand the depth of the role technology (including transportation technology) plays in many of the products we consume in Canada, let’s take the example of bananas.
  • Technologies used for banana production
  • Pesticides
  • Cooling containers
  • Pulley system
  • Shipping containers
  • Ripening gas
  • Washing bins
  • Cranes and other lifting technologies

Question 6

global inequality stats

Answer 6

global inequality has increased, not decreased. For example, in 1960, the wealthiest 20 percent of the world’s population took in more than 30 times the income of the poorest 20 percent. By 2000, the wealthiest 20 percent of the world’s population took in 74 times the income of the poorest 20 percent

Question 7

what affects economic dimension?

Answer 7

a big part of the economic dimension of globalization has to do with the transnational financial organizations like the International Monetary Fund (IMF), the World Bank, the World Trade Organization (WTO), and the G8/G20, all of which have given rise to the conditions that allow some countries and their companies to dominate world markets and industries.

Question 8

define neoliberalism

Answer 8

Neoliberalism, as defined by your textbook, is “an economic philosophy claiming that when market forces are unimpeded by government, prosperity and democracy will flourish”
• The North American Free Trade Agreement (NAFTA) and the Trans-Pacific Partnership (TPP) are both good examples of the operationalization of neoliberal strategies

Question 9

describe nafta

Answer 9

• NAFTA is a comprehensive trade agreement between Canada, the United States, and Mexico.
• Since 1995 when the agreement was enacted, NAFTA has eliminated most tariff and non-tariff barriers to free trade and investment between these three countries. The aim of this agreement was to promote economic growth, job creation, and better prices and selection for consumer goods.
• prosperity in the NAFTA accord has not been equally distributed. Before NAFTA, Mexican salaries were a third of those in the U.S.; now they are less than an eighth. Despite initial claims of NAFTA, Mexico’s economic growth has weakened, with more of its citizens experiencing job loss or living in poverty
South American and Caribbean countries have also faired poorly by NAFTA. Despite the fact that the United States does not grow any bananas, they control more than three quarters of the global banana industry (Rodgers, 2012). In 2014, Chiquita brand bananas merged with Irish company Fyffes to become world’s largest banana producer (Isidore, 2014). The merger between Chiquita and Fyffes is a good example of vertical expansion, where companies buy up other similar companies to increase their profit share (Lawrence & Grice, 2013). Here, given the control of ownership of the means of production, U.S. banana companies are able to earn money off the labour of often-disenfranchised citizens, notably in countries where bananas actually grow and where wages are much low

Question 10

describe the trans pacific partnership

Answer 10

• The Trans-Pacific Partnership (TPP) is set to be the largest, most ambitious free trade initiative in history. It is a trade agreement to lower trade barriers and tariffs among 12 Pacific Rim countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam
  
  • In similar language to the promises of NAFTA, the TPP aims to increase jobs, and strengthen the economies of involved parties. Opponents to the partnership highlight the risks of a proposed increase in foreign workers (which would increase our unemployment rates, not decrease them), the threat to carbon emissions reduction with an increase on foreign trade, and the erosion of national sovereignty.
  • In 2012, Canada already saw the deregulation of the Canadian Wheat Board. If the TPP goes through, there are discussions of deregulating the Canadian Dairy Association (Council of Canadians, 2016). On top of these national concerns, there are also those concerned with the global effects of such a partnership.

Question 11

nafta and tpp aspects

Answer 11

free trade agreements like NAFTA and the TPP carry deep-seated political aspects, in particular the regulation of trade, labour, and subsidies that impede a country from self-governance. Since theNike scandal of the 1990s, the world has become more aware of the atrocious working conditions for many low-income workers worldwide.

Question 12

examples of unethical companies

Answer 12

• Nike is not alone in the use of this labour model. Wal-Mart, Liz Claiborne, J.C. Penny, Kmart, Cherokee Jeans, Sears, and Esprit are some other well-known companies on the list.
  
  • Diplomatically referred to as the “outsourcing of labour,” sweatshop labour, or slave labour as it is more accurately referred to, is unfortunately a common practice within neoliberal governing strategies and contemporary globalization. Technology, the garment and running shoe industry, the coffee trade, and food manufacturing and production are typically some of the worst industries for labour rights.

Question 13

effects of outsourcing on employees

Answer 13

Workers are routinely forced to work long hours in deplorable conditions, for low pay, without basic benefits, and are subject to arbitrary discipline (see table below) (Klein, 2000). If workers protest their working conditions, they are fired, forced back to work at gunpoint, or in some cases, killed

Question 14

what are labor rights an example of?

Answer 14

• Labour rights are just one example of political control by globalization. On top of the human and labour rights embroiled into the political practices of globalization, globalization also affects a country’s ability to produce and sell their own products, and thus compromises their ability to sustain their own livelihood.

Question 15

effect of subsidy restrictions

Answer 15

• Because of subsidy restrictions placed on countries by the IMF and the World Bank, American grown food can often be cheaper in Third World countries than locally grown food. This trend is dangerous for a few reasons.
  
  • First, it hinders a country’s ability to support their own agriculture, which, in turn, affects a country’s ability to feed themselves. If locally grown food is not being supported by local producers (because it is more expensive) local food producers eventually go out of business. Over time, as fuel prices increase, the once-cheaper American food becomes more expensive and local food security becomes a major risk. Other political dimensions include environment protection, industry protection, and a country’s ability to enforce local laws.

Question 16

cultural dimension of globalization

Answer 16

• The cultural dimensions of globalization are wide ranging and include tourism, trade, the media, communications, and food (among others). To some degree we live in a globalized world.
  
  • here has been an increase in migration and immigration globally since the 1970s. We have access to television, radio, and Internet sites from thousands kilometres away. We’ve likely been exposed to many languages, and a wide palate of food options in our native country. To another degree, some argue that globalization is a myth—not a myth in the sense that everything we have discussed so far isn’t happening but in the sense of questioning what is “global” about globalization (Held & McCrew, 2002). For sceptics of the term globalization, it has become synonymous with a Westernization or Americanization of culture.

Question 17

what is globalization becoming homogenous with?

Answer 17

he homogenization and Americanization of culture is also reflected in the loss of global languages; by the end of the 21st century it is predicted that up to 90 percent of world languages that currently exist will be extinct. Currently,

Question 18

describe the IMF

Answer 18

• The IMF was established in 1944 and provides short-term loans to countries in need at full interest rates. On top of making money off poor countries, the IMF also sets restrictions on how that money can be spent. For example, it is common practice for many contemporary governments worldwide to subsidize their farmers (after all, they feed the country), but the IMF will often restrict a borrowing country from doing the same. The result, as mentioned earlier, is that foreign or imported food becomes cheaper than locally grown food in the borrowing country

Question 19

how does the IMF make money?

Answer 19

• As a money-making strategy, the IMF also encourages borrowing countries to devalue their currency; this may alleviate financial need in the short term, but unfortunately this strategy functions to keep low-income countries both in poverty and in debt.

Question 20

how is the IMF set up?

Answer 20

• The way the IMF is set up makes it nearly impossible to enable low-income countries a fair voice at the table. The IMF consists of 186 member states with a 24-member board of executive directors. Voting power is not democratic but based instead on the size of the member’s economy. In order to change policy within the IMF, a country must hold 80 percent of the vote, and between the United States and Western Europe, these two regions control the lion’s share of the vote.
  
  • Unlike the World Bank, the IMF also does not provide any money for development projects (i.e., roads, hospitals, or education). Long-term (sustainable) economic development therefore becomes difficult for low-income countries to achieve, especially given that in order to obtain a loan from the World Bank, a loan from the IMF is a necessary precursor.

Question 21

describe the world bakn

Answer 21

• Also established in 1944, the World Bank is an international bank that offers low-interest and interest-free loans as well as funds for development projects to low- and middle-income economies.
  
  • Similar to the IMF, voting power is based on the size of a member state’s economy, where again the United States and Western Europe have the most sway.
  • The World Bank is subdivided into two components—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The former division provides medium-term loans to credit-worthy (i.e., middle and high income) countries and the latter division offers long-term interest-free loans to low-income countries worldwide.

Question 22

what replaced GATT? describe it

Answer 22

• Established in 1995, the WTO replaced the former General Agreement on Tariff and Trade (GATT), which was established in 1948 as a multilateral agreement regulating international trade. The WTO consists of 150 member states and aims to regulate world trade and to provide a fair and equal forum for trade negotiations to take place. Unlike the IMF and the World Bank, decision-making in the WTO is based on a consensus model in order to allow small, less powerful countries equal and fair participation. But because of the consensus decision-making forum, negotiations can take years to resolve.

Question 23

describe the g8 and g20

Answer 23

The Group of Eight (the G8) began as an informal forum in 1975 in response to a global oil crisis. The original six countries (and regions) included France, Germany, Italy, Japan, the United Kingdom, and the United States. Canada joined in 1976, and Russia joined in 1996 (after the collapse of the Soviet Union in 1989). These eight countries represented the majority of the world’s economic and military power. Unlike the IMF, World Bank, and WTO, the G8 lacks administrative structure, meaning that they are not accountable to any mandates of the organization. Instead, they meet annually (often behind closed doors) to informally discuss and presumably also make deals on issues of mutual or global concern including health, law enforcement, labour, economic growth, trade, social development, energy, environment, foreign affairs, justice, and terrorism. The presidency of the G8 rotates annually, and Canada last hosted in 2010 in and around the Toronto area.

Question 24

criticism of the g8 and g20

Answer 24

• Many have rightly criticized the G8 for being an exclusive group. And indeed, when looking at the G8 there are no low-income economies represented and, like we’ve seen with the IMF and the World Bank, there is an over-representation of North American and Western European countries. In response to the exclusivity of the G8, the G20 was founded in 1999 with the aim of discussing policy issues pertaining to the international economy. The G20 includes all G8 countries, plus 12 others: Argentina, Australia, Brazil, China, India, Indonesia, Italy, Mexico, Saudi Arabia, South Africa, the Republic of Korea, and Turkey. While the G20 is certainly a better world representation, it is far from an inclusive list. There are no Caribbean countries represented, one African nation, one Middle Eastern nation, and one Latin American nation—notably the poorest regions globally (again) have the least representation.

Question 25

are the effects of globalization negative or positive?

Answer 25

• Many effects of globalization are negative, especially for those in low-income countries. It may be hard to always see the consequences of global inequality, especially when we live in one of the richest countries in the world, but as global citizens and as global consumers we have some obligation to understand how globalization has affected low-income countries.

Question 26

describe economic disparity

Answer 26

One of the most glaring effects of globalization has been the growing gap between high-income and low-income economies. By 2002, the wealthiest one percent of the world’s population received the same amount as the poorest 57 percent (Murray et al., 2012). At the 2011 World Economic Forum, income inequality was singled out as one of the two most serious challenges facing the world today (the second being corruption). Of the total world income today, 42 percent goes to those who make up the richest 10 percent of the world’s population, while just one percent goes to those who make up the poorest 10 percent (Conference Board of Canada, 2011).

Question 27

list of wealthiest people commonalities

Answer 27

• The majority in the top 10 are from the United States.
  
  • There is only one person here who is not from the United States or Western Europe.
  • The majority are men (only two women are in the top 10).
  • The three wealthiest people have strongholds in technology and telecommunications.

Question 28

why does the US have so many billionaires?

Answer 28

• The U.S. has more billionaires than any other country. Because the United States and Western Europe control much of the World Bank and the IMF, they are able to tailor economic, trade, and currency policies to their benefit. While the official era of colonization ended at the end of the Second World War, many globalization and colonial scholars argue that colonization continues under globalization. While countries are no long under colonial rule, they find themselves ruled by a different type of master (Ellwood, 2006). Finally, we can see many of the resources that dominate the world economy—namely the wealth in technology and telecommunications and, to a secondary degree, in retail. Recall above that the problem industries for human rights and wage labour are the same industries that earn upwards of 40, 60, and 70 billion dollars.

Question 29

inequality effects on health

Answer 29

Many people in low-income countries have a harder time achieving physical, mental, and social well-being than those in middle- and high-income economies. Health and wealth are intricately linked and we can see this not only globally but also nationally. Consistently, those who are more economically marginalized are also more likely to have higher rates of infant mortality, high rates of disease and disability, and higher rates of stress and mental illness. Globally there are close to 3 billion people who do not have proper sanitation, and another 1.5 billion who do not have access to safe water. Moreover, about 12 million people die every year from malaria, HIV/AIDS, tuberculosis, and other infectious diseases—diseases that in high-income economies are for the most part both preventable and treatable (Murray et al. 2012).
We can also see the effects of income inequality when looking at life expectancy rates internationally. Very quickly we can see that high-income economies (Canada, the UK, Western Europe, Japan, and Australia) typically have life expectancies over the age of 80. In some of the low-income economies globally (Sub-Saharan African countries most notably), life expectancy rates can be as low as the mid-40s.

Question 30

life expectancy rates

Answer 30

The highest longevity rates are in Japan where the average longevity of a person is 84 years. Canada’s average life expectancy is at 82 years, the United States at 79 years (remember the U.S. do not have national access to free health care), and the lowest international longevity rates are in Sierra Leone, where the average life expectancy is 46 years (WHO, 2015). High rates of infant mortality, limited access to medical care and maternal health care, limited access to food and water, civil war, and infectious diseases are all factors that hamper low-income economies and are all a result of systemic economic marginalization.

Question 31

education and literacy connection to poverty

Answer 31

Education and literacy are key facets of escaping poverty. Unfortunately, the poorest regions in the world typically have the lowest rates of education and literacy. The adult literacy rate in low-income countries is roughly half the adult literacy rate of high-income economies. And for women in low-income economies, the education and literacy rates are even lower (Murray et al., 2012). The Conference Board of Canada (2013) measures literacy based on three categories: prose literacy, document literacy, and quantitative literacy.

Question 32

what is prose literacy?

Answer 32

Prose literacyis the ability to comprehend and use information from books, texts, poems, and other word-based sources

Question 33

describe document literacy

Answer 33

Document literacyis the ability to understand and use information from forms, schedules, maps, tables, and graphs

Question 34

describe quantitative literacy

Answer 34

quantitative literacyis the ability to perform basic arithmetic and calculation-based tasks (i.e., such as calculating a tip). Sweden and Norway fair the highest in adult literacy rates, where education is highly subsidized and where income inequality is far less an issue than in many other countries

Question 35

development and modernization theories

Answer 35

Development and modernization theories argue that countries that modernize and develop (note: through a western, capitalist model) will fair better in economic standing. Modernization perspectives contend that to be economically, socially, and politically stable, countries must achieve self-sustained economic growth. In doing so, low-income economies can move to middle-income economies, and middle-income economies can move to high-income economies. While development and modernization theories have been touted as success stories in countries such as India and China, they both still have massive amounts of poverty and social inequality

Question 36

faults of development and modernization theories

Answer 36

It presumes that all countries are even players in the globalization and as we’ve seen with the IMF, the World Bank, and the G8/G20, high-income economies like Canada and the United States have much more economic and political sway to tailor economic policies to their benefit.
Countries may be wealthy in natural resources but, given the history of colonization, do not control these resources. Many African countries, for instance, are rich in cotton, jewels, and coffee (sought after commodities on the global market), but few countries control their own resources.
It presumes that all countries want to “modernize” (i.e., westernize).

Question 37

describe dependency theory

Answer 37

Dependency theory claims that high-income countries have more economic power and because of this, have a vested interest in maintaining the dependent status of low-income countries. While we may erroneously think that low-income countries are dependent on high-income economies (for foreign aid and subsidies), dependency theorists argue the opposite. They maintain that high-income countries are dependent on low-income countries for two predominant reasons:

1. Natural resources. Remember, not all natural resources are found in high-income countries.
2. Cheap (exploitative) labour. Remember, high-income countries tend to have more strict or fair labour laws.

Question 38

describe world systems theory

Answer 38

World systems theory characterizes the world economy as a global system that is based on hierarchical relationships between nations. Core nations are those that control much of the world’s resources and economy. These countries like Canada, the U.K., the U.S, and Western Europe have been among some of the first to modernize and industrialize and in many cases have also been colonizing nations. Semi-peripheral countries like Brazil, Mexico, Russia, China, Argentina, and India are countries that have become economically tied to core nations through trade relationships. Peripheral nations like many of those in Eastern Europe, the Middle East, and Southeast Asia are farthest from the core of economic power and income equality. Economic mobility, according to world systems theory, is in part conditioned by the resources that characterize the international system. So, for example, countries rich in oil, like Saudi Arabia, fair better in globalization than countries that don’t control their own resources.

Question 39

other theories

Answer 39

While postmodernism, symbolic interactionism, and feminism do apply to globalization, they don’t align as easily with specific globalization theories as functionalism (development and world systems) and conflict theory (dependency theory) do.