Introduction - 1

GLOBAL SYSTEMSGLOBAL

SYSTEMSUnderstanding

GLOBALIZATIONin the 21st century

Introduction - 2

Four questions

What is ‘globalization’?

What are the ‘E-systems’ of globalization?

Who are the stakeholders?

Who oversees the process of globalization?

Introduction - 3

What is ‘globalization?’

‘Globalization … describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and expansion. … Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment. Globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors.’ (Wikipedia, Jan 2019)

Introduction - 4

Globalization keys

Globalization …

an ongoing process

economies, societies, and cultures

more integrated world

network of communication and expansion

Introduction - 5

Globalization in history

Globalization is not a new process …

~ 100 AD: who / where?

~ 800 – 1700: who / where?

~ 1700 – 1900: who / where?

~ 2000s: who / where?

Introduction - 6

~ 100 CE: Globalization by conquest and trade

Introduction - 7

~ 1800: Globalization by colonization and trade

The British Empire over the period 1700 to 1900

Introduction - 8

~ 2011: Globalization by negotiation and trade

• NAFTA – regional trade (still law of the land till USMCA approved by Congress)

• European Common Market - high degree of economic integration

• China and the US – strong economic interactions…currently?

• Internet operates globally• Global supply chains operate without

attack (mostly)

Introduction - 9

What are the ‘E-systems’ of globalization?

ENVIRONMENTENVIRONMENT

ECONOMICSECONOMICS ENGINEERINGENGINEERING

Introduction - 10

The roles of the E-systems

ENVIRONMENTENVIRONMENT

ECONOMICSECONOMICS

ENGINEERINGENGINEERINGDriver Enabler

Constrainer

Introduction - 11

Individuals - as consumers, workers, savers/investors, and citizens.

Corporations - as local, national, and global economic organizations.

Governments - as regulators of trade and finance, enforcers of social values and national interests, and wealth re-distributors.

Voluntary groups – as helpers (samaritans) and as exploiters (criminals).

Who are the stakeholders in globalization?

Introduction - 12

Top Global Corp by revenue (US$Bn):Wal-Mart $500 (2018)

If Wal-Mart was a country it would rank #24, between Sweden and Poland. (2017)

In 2009 the top 100 global economic entities included 56 countries and 44 companies.

In 2018 the top private company - Cargill -$114.7Bn.

Global corporations are VERY important stakeholders

Introduction - 13

The United Nations? International Technical Societies? Groups linked by the WWW? A critical group of world leaders? A critical group of financiers?

Who oversees the process of globalization?

Who speaks for the environment?

Introduction - 14

The fourth major ‘E’ system in globalization: Equity

ENVIRONMENT

EQUITY

ECONOMICS ENGINEERING

Driver Enabler

Controller

Constrainer

Introduction - 15

Equity: Socio-political systems and social justice

Cultural values can transcend economics Cultural values can transcend engineering /

science views Politics can get mixed with economics for

“better or worse”China is an interesting experiment.

Cultural change comes very hardFor example, can the US change from a consumption-driven economy to a more sustainable one?

Introduction - 16

As YOU see it now ...

Globalization is …

The E‐systems are …

Other takeaways are  …

Introduction - 17

Let’s discuss the 3 E-systems

ENVIRONMENTENVIRONMENT

ECONOMICSECONOMICS ENGINEERINGENGINEERINGDriver Enabler

Constrainer

Introduction - 18

Economic systems

International trade International finance International business

Economics is the DRIVER.Not much globally significant activity occurs unless economic forces push in that direction.

Introduction - 19

Economic Systems

International trade• Trade agreements can stimulate trade.• Tariff barriers usually restrict trade. International finance

• Investments move at internet speed.• Government and sovereign funds,

individual funds, and IMF all are in play. International business

• Driven by access to growing markets.• Goals are different from governments.

Introduction - 20

Out-sourcing / in-sourcing?

The Tata group (Mumbai, India) handles customer service calls for several US firms. They have ‘outsourced’ some of their work to a firm in Ohio on behalf of a US client who was willing to pay a premium for operators knowledgeable about America geography.

Now that’s globalization at work!

Introduction - 21

Engineered systems

Engineering is the ENABLER.

Engineering turns plans into action and determines energy and economic efficiencies.

o Energyo Watero Foodo Communicationo Urbanization

Introduction - 22

Engineered Systems

Energy: Global demand is skyrocketing - can renewables do the job?

Water: Is there enough in the right places? Is it clean enough?

Food: How high on the food chain can nine billion people eat?

Communication: Use of the www is cheap –but is the information secure and reliable?

Urbanization: How will we get around?

Introduction - 23

Renewable energy development

China may be the planet's biggest polluter but it's also powering ahead of other countries on 

renewable energy.“Beijing is investing hundreds of billions of dollars and creating millions of jobs in clean power.China has built vast solar and wind farms, helping fuel the growth of major industries that sell their products around the world.”(CNN/Money July 2017)

Introduction - 24

Communication development

Google argues with Chinese government about censorship policy

“Google and China have been locked in an awkward tango for over a decade, constantly grappling over who leads and who follows. Charting that dance over the years reveals major shifts in China’s relationship with Google and all of Silicon Valley. To understand whether China will let Google back in, we must understand how Google and China got here, what incentives each party faces—and how artificial intelligence might have both of them dancing to a new tune.” (MIT Technology Review December 2018)

See “Why Google Quit China” posted at site.

Introduction - 25

The Environment

o Spaceship Earth is our only homeo We must think globally about the

environmento Sustainability is a sensible target

The environment is a CONSTRAINER of our activities.

When our earth’s environment gets pushed ‘too hard’ it pushes back.

Introduction - 26

Impact equation

IMPACT = P * C * T

• PEOPLE – still increasing globally!

• CONSUMPTION – rising expectations of better life globally!

• TECHNOLOGY – more efficient; more sophisticated than ever before, for better and worse

IMPACT of human activities on our planet.

Introduction - 27

The People factor in IMPACT

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0 500 1000 1500 2000 2500

Bn

0 AD … 0.2 Bn

1800 … 1.0 Bn

1960 … 3.0 Bn

2000 … 6.0 Bn

2040 … 9.0 Bn

China … 1.3 BnIndia … 1.2 Bn(2010 data)

Introduction - 28

IMPACT of global beef production

YEAR 2012 2050

P 7.0 Bn 9.0 Bn

C 37 kg/pers-yr 52 kg/pers-yr

T 15 K-ltr/kg T2?

C is amount of beef consumed per person per year globally.T is amount of water needed to produce the beef using current technology.

Introduction - 29

IMPACT of global beef production

YEAR 2012 2050

P 7.0 Bn 9.0 Bn

C 37 kg/pers-yr 52 kg/pers-yr

T 15 K-ltr/kg T2?

Find T2 to keep IMPACT constant.I1 = (7.0*10^6)*(37)*(15) = 3885 *10^6 K-ltr/yrI2 = (9.0*10^6)*(52)*(T2) = 3885 *10^6 K-ltr/yrThus T2 = 8.3 K-ltr/kg

Introduction - 30

IMPACT of global beef production

YEAR 2012 2050 Change

P 7.0 Bn 9.0 +29%

C 37 kg/p-yr 52 +41%

T 15 K-ltr/kg 8.3 -55%

How likely is it that we can figure out how to cut water needs in beef production by a factor of 2 globally in 40 years?

Introduction - 31

Can better Engineering solve our problems?

• Can better engineering maintain our energy systems?

• Can better engineering maintain supply chains involving dangerous cargo?

• Can better engineering maintain the purity of our water?

Introduction - 32

Maintain our energy

systems?

Note the mechanical,

electrical and structural issues.

Introduction - 33

Control engineers

out of control?

Maintain supply chains involving dangerous cargo?

Introduction - 34

Maintain the purity of our

water?

Perhaps by electrocution?

Introduction - 35

What are YOUR takeaways

today?

Introduction - 36

Questions?