Chapter 16

Globalization

Chapter Outline The Development of Global Trade The Emergence of the Global Economy Globalization: The Continuing Process Population Growth and Inequalities in the

Global Economy Consequences of Globalization and the

Global Economy

Globalization The process of integrating the worlds

peoples economically, socially, politically, and culturally into a single world system or community.

Development of Global Trade Before 1500, world regions were virtually

isolated from each other. The Old World (Africa, Europe and Asia)

formed a unit within which trade allowed spread of technology and institutions.

Major States and Regions of Europe, Asia and Africa, ca. 1500

European Expansion Began with the discovery of the Americas

by Columbus in 1492. The Spanish, Portuguese, English,

French and Dutch invaded the Americas. The European global maritime trade

network allowed the exchange of technology, food, animals, diseases and people.

Industrial Revolution Starting in about 1800, European contact

with non-Western people changed to political domination.

19th century was a time of European imperial expansion as the countries of Europe began claiming lands and people of Africa, Asia and Oceania.

Emergence of the Global Economy

Three factors Collapse of the existing colonial empires. Developments of technology have made

geography irrelevant. International finance and the globalization

of world capital.

Globalization global trade

The direct or indirect exchange of good and services in an integrated global market.

global economy The buying and selling of goods and

services in an integrated global market.

Growth of World Trade: 1905-2000

Continuing Process of Globalization Every country still has its own regulations

regarding imports and exports. The World Trade Organization is attempting to

negotiate the elimination of all import/export regulations in favor of global free trade.

The International Monetary Fund is assuming a regulatory role in international monetary transactions.

Transnational Corporation One that has most of its employees,

produces and sells most of its products or services, and generates most of its gross revenues outside the national boundaries of its “home” country.

Population Changes

1950 (%) 2025 (%)

Developed countries 33.1 15.9

Undeveloped countries 66.9 84.1

Population Growth and Inequalities in the Global Economy

The population of the world is growing rapidly. In the last 50 years world population has

jumped from 2.5 billion to more than 6 billion. The population growth of the developed

countries has stabilized and in many cases started to decline, however, in the underdeveloped countries it continues to grow rapidly.

Population Growth and Inequalities in the Global Economy

While the global economy has greatly benefited the developed countries, many of the countries of Asia, Africa, and Latin America have seen their economies decline.

There is an increasing skewing of wealth between countries and regions of the world.

Globally, there is an inverse correlation between economic development and population growth.

Population Growth and Inequalities in the Global Economy

Throughout the world there is a massive movement of people from rural agricultural areas to urban centers.

There is also a massive migration of people from underdeveloped countries to more developed countries.

Refugees Individuals and families who temporarily

take up residence in another region or country to escape famine, warfare, or some other life threatening event.

Consequences of Globalization Increasing contact among peoples and

increasing exposure of non-Western peoples to Western cultural traditions.

Growing resentment of Western economic dominance and cultural influences.

Quick Quiz

1. Globalization is:

a) just an economic issue

b) a continuing process that began 500 years ago

c) a term used since the beginning of European expansion

d) all of the above

Answer: b

Globalization is a continuing process that began 500 years ago.

2. The industrial revolution escalated:

a) political revolutions in the Americas

b) the slave trade

c) taxation of local peoples

d) all of the above

Answer: d

The industrial revolution escalated political revolutions in the Americas, the slave trade, and the taxation of local peoples.

3. The largest proportion of immigrants to the U.S. comes from:

a) Mexico

b) Latin America

c) Canada

d) Asia

Answer: d

The largest proportion of immigrants to the U.S. comes from Asia.