1) Globalization:

1. 1) Globalization: • Increasing connectedness, interaction, and interdependency of the world… • - economically (trade, manufacturing, assembly, raw materials, labor, markets) • - politically (more international interactions – cooperative and conflicting) • - socially / culturally (travel, education, entertainment, etc.)

2. 2) Traditional industrial jobs: manufacturing • Labor in modern developed nations has transitioned to“knowledge workers”. • Greater focus on communications & tech-based “information industries” (providing services and improving efficiency, rather than making tangible products)… requires more skills. • Traditional manufacturing jobs have moved to developing nations (“emerging nations”)… WHY? • - Plentiful cheap, semi-skilled & unskilled (less educated) labor force (OUTSOURCING!) • - Closer proximity to raw materials

3. 3) Significance of national boundaries? • Decreases with globalization: • - Increasing trade volume (larger ships!) • - More communications infrastructure links more nations together • - MULTINATIONAL (“transnational”) corporations • - Production is increasingly DECENTRALIZED (Manufacturing, assembly, managing, & retailing are spread out) • - Increasing international trading blocs (alliances)

4. 4) FREE TRADE: • Increased volume of trade via reduced barriers to trade (esp. the removal of tariffs). • (Opposite: PROTECTIONISM – when a nation attempts to “protect” its domestic industries against foreign competition by increasing tariffs on competing imports). • Organizations promoting free trade: • - World Trade Organization (WTO) • - International Monetary Fund (IMF) • - World Bank • - European Union (EU) • - North American Free Trade Agreement • (NAFTA)

5. 4) (cont.)… • “G8 Nations”:

6. 5) “Free” trade vs. “Fair” trade… considerations: • - Are workers in foreign countries fairly paid? Are their working conditions humane? • - Is the standard of living increasing in developing nations? Is the middle class growing? • - Is democracy getting stronger in developing nations? (Or, do foreign trade agreements help to support corrupt presidents and dictators?) • - Are basic needs affordable, or is privatization making basic needs too expensive?

7. 6) Toyota vs. Israel: Economic power measured how? Israel GDP: $207 billion Toyota global revenue: $208 billion (U.S. GDP: $15 TRILLION)

8. 7) POSITIVE effects of globalization: • + More trade = more peace (“normalized” relations) • + Rising global standard of living • + Job creation • + Promotes investment in developing nations • 8) NEGATIVE effects of globalization: • - Unfair trade that disproportionately benefits developed nations (TEST: growing middle class & legitimate democratization) • - Outsourcing of more jobs from developed nations (not just blue-collar, working class jobs!) • - Rich get richer faster in developed nations, compared to income growth in developing nations. • - Erodes local cultures

9. 9) Globalization can be a complicating political factor: • Developed nations have a strong motive toward… • … cheap resources (i.e. OIL!) • … cheap labor • … expanded markets • Which can lead to: • - Enabling & legitimizing corrupt leaders & autocrats • - Exploiting labor (“unfair” trade) • - Illegal immigration / economic refugees • - Military invasion & occupation / imperialism • - Terrorism!

10. 10) ENVIRONMENTAL impacts of global industrialization: • - Burning fossil fuels (coal, oil)… • = pollution • = CO2 global warming • = acid rain • = ozone layer depletion • … effects on BASE OF FOOD CHAIN = ripple effects on entire ecosystem • - Land erosion, habitat destruction, mass extinction of species • - Earth ecosystem becomes UNBALANCED to sustain life as we’re familiar with it.

11. 11) SUSTAINABLE growth & development: • - Development w/o depleting air, water, land resources (“green growth”) • - Growth with PRESERVATION of environment and CONSERVATION of resources • - BALANCING economic development VS. environmental concerns • Simply put, being able to “keep living like you’re living”, without running out of resources or destroying where & how you live!

12. 11) Sustainability?

13. 12) WHO is responsible for sustainability? • - “Scientists & Economists”? • - Corporations? • - Government? • - Consumers? • - YOU?! • Is it what can “we” do…. or what can I do? • Action can only follow from self awareness.

14. 13) OBSTACLES to sustainable growth: • - Focusing on short-term profits instead of long-term sustainability (myopia, greed) • - Companies & investors who profit off the statusquo will spend a lot to prevent any change that could threaten their current profitability (lobbying, advertising, public relations, campaign contributions, funding “think tanks”). • - Abundance of cheap unsustainable resources (i.e. fossil fuels) • - Consumer ignorance, apathy, and/or desire for convenience & instant gratification • - Workers who depend on the income they receive from an unsustainable industry • - Solutions are EXPENSIVE

15. 13) SOLUTIONS to sustainable growth: • Key considerations… • … WHO PAYS for initiatives? • … should changes be VOLUNTARY or MANDATORY? • Can we reasonably depend on individual consumers, workers, and owners to voluntarily make sacrifices and change how they behave in a free market, before a full-blown catastrophe occurs?

16. 13) PATHWAYS to sustainable growth: • Possible government actions: •  Tax policy (tax unsustainable practices at a higher rate, provide tax breaks/incentives for sustainable practices) •  Publicly fund research & development (R & D) •  Gov. subsidies, access to capital (i.e. cheap loans) for sustainable entrepreneurship in private sector •  More investment in education (esp. science, technology) •  Limit or ban unsustainable business models? • Also: • - Limiting population growth (economic development, family planning, female literacy & equal rights) • - Consumer / voter awareness & action (“thoughtful buying”?!)