HL7: Global interactions at local level

Global interactions at local level

Three Perspectives on Globalization

 In their book, Global Transformations, authors David Held, Anthony McGrew, David Goldblatt and Jonathan Perraton describe three perspectives on globalization.

Scholars David Held, Anthony McGrew, David Goldblatt and Jonathan Perraton provide an overview of different perspectives on globalization dominant in the 1990s. They describe the general conceptual contours of each perspective and note the limitations of each. The authors identify identify the perspective as:

• The Hyperglobalist perspective,
• The Skeptical perspective,
• The Transformationalist perspective.

HYPERGLOBALIST PERSPECTIVE

The authors describe the hyperglobalist perspective as an approach which sees globalization as a new epoch in human history. This new epoch is characterized by the declining relevance and authority of nation-states, brought about largely through the economic logic of a global market. Economies are becoming “denationalized.”

Held and his colleagues point out, however, that even within this perspective, different authors assess the value of these changes in very different ways. While hyperglobalist scholars may agree on the general factors behind globalization and the likely outcome of this process, they disagree sharply over whether these forces are good or bad. The authors distinguish between neo-liberal versus neo-Marxist orientations, and describe their different assessments of the outcomes of globalization.

Greater Benefits or Greater Inequality?

In terms of the “winners” and “losers” of the new global order, both orientations agree that the lines and cleavages of economic benefit are changing. One the one hand, neo-liberals view this as largely a good thing. They say that nearly all countries have a comparative advantage in one way or another within the global economy. There will be groups who will be worse off, but on the whole, the benefits are greater than in the past.

On the other hand, neo-Marxist scholars view the neo-liberal optimism with deep suspicion. Global capitalism, they believe, will only create and reinforce inequalities within and between countries.

The Demise of the Nation-State

With increasing economic globalization, transnational governance organizations will become increasingly important. The result is that national governments will lose influence and be forced to operate increasingly according to rules they do not create.

This may be a bad thing, according to some scholars, as the democratic social models implemented and protected by nation-states will become increasingly insupportable. Other scholars counter, however, that the diffusion of a “consumerist ideology” is the first step in breaking down traditional modes of identification. The spread liberal democracy will extend the global reach of more universal principles of economic and political organization. A truly global civilization will become possible.

Both assessments agree, however, that the fundamental reconfiguration of the global economy will spell the demise of the nation-state and the irrelevance of the welfare state.

SKEPTICAL PERSPECTIVE

Held and his colleagues say that the skeptical perspective on globalization views current international processes as more by fragmented and regionalized than globalized. In fact, according to skeptical authors, the “golden age” of globalization occurred at the end of the 19th century. Current processes show, at best, a regionalization.

The authors say that skeptics also disagree whether old cleavages are becoming increasingly irrelevant. The third world is not being drawn into a global economy that destroys old lives of benefit and exploitation. Quite the contrary, the third world, say skeptical authors, is becoming increasingly marginalized.

In contrast to perspectives that emphasize the growth of global capitalism, scholars in the skeptical perspective view global capitalism as a myth. The growth of multinational corporations does not mean that nation-states are no longer relevant for governing the flows of economic benefits. Held and his colleagues say that skeptical authors point to the fact that foreign investment flows into the control of a few advanced economies. Multinational corporations are still tied primarily to their home states or regions, and these ties produce benefits for these states or regions.

Authors with a skeptical perspective reject the notions of the development of a global culture or a global governance structure. What is really going on, they argue, is that global governance structures and culture exist as a disguised version of neo-liberal economic strategies that benefit the West.

TRANSFORMATIONALIST PERSPECTIVE

Held and his colleagues say that the transformationalist perspective differs fundamentally from the other two perspectives in that:

There is no single cause (that is, the market or economic logic) behind globalization,

The outcome of processes of globalization is not determined.

So, even though transformationalist authors describe many of the same general changes involved in globalization, their approach is considerably less certain about the historical trajectories of these changes and less limiting of the factors driving globalization.

For instance, hyperglobalist authors believe that the power of national governments is waning. Skeptic authors argue that the power of national governments is growing. Transformationalist authors, however, view the nature of national governments as changing (being reconstituted and restructured) but a description of this change as merely growing or waning is oversimplified.

Hyperglobalist authors describe the erosion of old patterns of stratification. Skeptical authors argue that the global South is becoming increasingly marginalized. Transformationalist authors understand that a new world order “architecture” is developing, though the exact nature of the emerging patterns of stratification are not yet clear.

In general, argue Held and his colleagues, the authors of the transformationalist perspective have a much less determinate understanding of the processes of globalization than authors from the other perspectives. For transformationalist authors, the range of factors influencing processes of globalization is much greater, and the outcomes are much less certain.

AN ALTERNATIVE APPROACH

The hyperglobalist and skeptical perspectives suffer from two underlying problems:

• They are unacceptably teleological. They compare current processes of globalization to ideal types. The processes are automatically progressing in a linear manner toward these ideal outcomes.
• They are unacceptably empiricist. Statistical patterns do not speak for themselves, but have to be interpreted with reference to a range of meanings.

In contrast, argue the authors, the historical process of globalization must be understood in more sophisticated terms.

Source: https://clg.portalxm.com/library/keytext.cfm?keytext_id=24

Defining glocalization

Glocalisation: The adaptation of a global product for a local market place. The word comes from an amalgamation of the words globalisation and localisation.

Globalisation: The spread of economic, cultural and social ideas across the world.

Localisation: The act of operating locally in terms of employees, product, supply of raw materials, etc.

The aim of nearly all companies is to maximize profits. Therefore TNCs glocalize their products in order to increase market share and increase profits. Other reasons why TNCs may glocalize include:

• To meet health and safety regulations
• To meet electrical requirements e.g. voltage, plug type
• To meet local laws
• To match availability of components, produce, etc.
• To meet local customs and tastes e.g. no pork in a Muslim country or beef in an Hindu country
• To meet socio-economic status of market place
• To meet local climatic or terrain conditions
• To match local languages and ideas of acceptability

Source: http://greenfieldgeography.wikispaces.com/Defining+glocalization

McDonalds (Glocalization)

McDonalds is probably one of the best examples of how TNCs adapt their global brand and products to adapt to the local market place. Despite having nearly 70 million customers daily in over 30,000 restaurants in nearly 120 countries worldwide, it is constantly trying to expand and increase its market share. Below is a list of some ways that McDonald's has adapted its brand and products to increase its market share:

• In Muslim countries pork has been removed from the menu
• In Hindu countries beef has been removed from the menu
• In Muslim countries halal food is used and in Jewish countries kosher food is used
• Certain local festivals or customs maybe celebrated e.g. during Ramadan in Muslim countries, McDonald's will offer Iftar buffets at the breaking of fast.
• The types of burgers/products are changed to local tastes e.g. McRice in Indonesia
• The number of McCafe's have been increased in localities with a coffee culture or office workers in a hurry
• The number of drive-thrus or playgrounds maybe increased in locations with a large numbers of car owners or children
• In France, Ronald McDonald was replaced by Asterix as the company logo
• In locations Antigua in Guatemala McDonald's has changed its store frontage to blend in with local architecture
• Staff have different uniforms depending on local culture
• Changing language of menus, signs, etc.

Source: http://greenfieldgeography.wikispaces.com/Defining+glocalization

Adoption of globalization

The adoption of globalization can be looked at and compared at many different scales include:

• International
• Regional i.e. a continent
• National i.e. within a country
• Settlement i.e. different areas within a settlement
• Urban v rural

The adoption of globalization can be impacted by a number of factors including:

• Population and market size (threshold population): Many products require a minimum population for them to be offered. If a country or region only has a small population, then less products (especially global brands) will be offered. For example a Starbucks restaurant is not going to open in a small village in the Sahel where most people are mainly subsistence farmers.
• Government policy and ideology: Some countries like Cuba and North Korea follow Communist ideologies which tend to prevent private ownership and increase self sufficiency. Both of these factors can create a more isolated and less globalised country. On the other hand countries like the US actively follow Capitalist policies which tends to increase globalisation.
• Levels of communication (internet, mobile network): Many aspects of globalisation e.g. TV, film, the internet require certain levels of communications. If the infrastructure is not present then not only will less products will be offered, but also less advertised and heard about. For example Walmart are not going to start offering online shopping in the Amazon Rainforest where no one has access to the internet and there are poor transport links.
• Education level: Areas that have high levels of education tend to be more globalised. This is because global companies have access to better workers, people are likely to have better jobs and therefore more disposable income and are more likely to have heard about global products.
• Electricity and Water: Many global companies require reliable water and electricity. A global company is less likely to open if they are constantly suffering from power cuts which might impact production or having to purchase bottles water because of a dirty and unreliable supply of water.
• Level of development: If a country is relatively poor (near the bottom of the Rostow or Clark model) then people will have smaller disposable incomes so less globalised products and services will be offered. For example in Sierra Leone where GDP per capita is very low, few global brands like Startbucks, GAP or Walmart will be offered.
• Safety: Countries that are suffering from war or that have high levels of crime (robbery, murder, extortion), etc. will find it hard to attract foreign companies to invest.
• Sanctions: Countries like Iran, Cuba and North Korea which either have sanctions or embargoes imposed upon them are less likely to be globalised because many global companies will be banned from trading with them.
• Start up costs: Countries with a lot of regulations and laws (red tape) are going to be less attractive to global companies because it will increase start up costs. Also countries with expensive, land, rent, etc. are going to be less attractive.
• Taxation and protectionism: Some global brands will choose not to locate in countries or regions with very high levels of taxation. This is because it is harder for them to be profitable. In order for them to be profitable their products may be so expensive that they become unattractive. Also countries that have high levels of protectionism e.g. tariffs and quotas are going to be less attractive to global companies.
• Availability of raw materials: Some global products may not be offered because of a lack of local resources/raw materials. This is less of a problem in our modern globalised world with better transport, but if a supermarket is having to import all of its products it will find it hard to be competitive and profitable and therefore less likely to open.
• Protests: Some countries may boycott or protest against certain products. For example in Iraq and Afghanistan the local populations may boycott certain US global products because they are unhappy with the ongoing occupation.
• Local culture: Certain products maybe unacceptable to certain cultures. For example alcohol, lingerie and betting companies are much less likely to be operating in Muslim countries because they are all Haram.
• Corruption (Kleptocratic governments): Global brands are unlikely or less likely to locate in countries with high levels of corruption. Afghanistan is meant to be one of the most corrupt countries in the world where bribes are common place, making for a less attractive business environment.

Below are some of the characteristics you may expect to find in a globalised city and a less globalised city.

CORE CHARACTERISTICS e.g. Belgium (Brussels)

PERIPHERY CHARACTERISTICS e.g. Eritrea (Asmara)

Good transport links e.g. International airport, Eurostar, good roads, usually a subway system Good communication networks e.g. broadband internet, mobile phone coverage Reliable electricity, gas and water supplies Large tertiary sector (73% of workers are in the tertiary employment) High GDP per capita ($37600 in 2011) Usually urban areas with net-migration gain (urbanisation) - 'brain gain' High levels of education and healthcare High levels of FDI High levels of employment Good quality housing and accommodation Large numbers of tourists Cultural diversity (sport, music, religion, language, etc.) Large racial mix

Poor transport and communication links. Probably no major airport or airline, poor roads and lack of public transport Very low GDP per capita ($700 in 2011) Large primary sector (80% of workers work in the primary sector) Often rural areas and/or areas that are suffering from net migration loss - 'brain drain' Poor levels of education and healthcare Unreliable electricity and water supplies Disinvestment and low levels of FDI High levels of unemployment and underemployment Poor quality housing (possibly informal) Traditional society Lack of cultural and leisure facilities

Source: http://greenfieldgeography.wikispaces.com/Adoption+of+globalization

Local responses to globalization

Source: Guinness, Paul. Global Interactions. Cambridge [u.a.]: Cambridge Univ. Press, 2011. Print.

GLOBALISED PRODUCTION	LOCALISED PRODUCTION
ADVANTAGES PRODUCER	Can benefit from economies-of scale by producing on a large scale Can source materials from the cheapest locations	Reduced transportation costs as products are purchased and sold locally Can operate just-in-time production much easier because suppliers and customers are closer
DISADVANTAGES PRODUCER	There maybe higher transportation costs both in transporting raw materials and the finished products Maybe harder and slower to change, to changes in demand Many customers are now demanding local products It is harder to ensure quality when production is outsourced or offshored	May have problems sourcing raw materials locally Local workers may not have the required levels of skill or education Restaurants and food producers will have to change their menus or products according to the seasons
ADVANTAGES CONSUMER	There is more choice of products e.g. peppers and pineapples in the UK Mass production may mean that prices are lower Perishable goods (food) are offered all year around	Perishable products (food) will be fresh and in season. Local products should be riper and have more flavour Products should meet local customs Should be more suited to personal tastes and traditions
DISADVANTAGES CONSUMER	There is less choice and products are homogenised/standardised Prices may actually increase if a monopoly exists It is harder to know the source and quality of products that you are buying Perishable goods may have been grown using chemicals and picked unripe so have less flavour They may suffer from pollution caused by large scale production and transportation	Perishable products are not available all season Some products maybe more expensive because they are produced on a smaller scale There may actually be less choice because there are few local companies
ADVANTAGES LOCAL ECONOMY	Some local companies may become suppliers to global chains Local businesses may benefit from improved levels of technology Global companies will train staff with new skills Improved trading relations with other regions and countries	Local workers are employed who pay local taxes There is less economic leakage Local workers learn new skills which can be passed to other manufacturers Positive multiplier effect as suppliers, etc. benefit from increased custom
DISADVANTAGES LOCAL ECONOMY	Local producers may not be able to compete on price and be forced to close Many managerial positions maybe filled by expatriates (foreigners) There is often economic leakage from the area (profits repatriated)	Small local companies don't pay as much in tax because of there scale Small companies will probably employ few people and buy less products Local companies maybe exploited (low prices) Local companies take risk and may incur debt

Source: http://greenfieldgeography.wikispaces.com/Local+responses+to+globalization

Alternatives

The role of civil societies - The Fair trade foundation

WHO WE ARE

Fairtrade is a global movement with a strong and active presence in the UK, represented by the Fairtrade Foundation.
Fairtrade is a movement for change that works directly with businesses, consumers and campaigners to make trade deliver for farmers and workers.
The international Fairtrade system (which the Fairtrade Foundation is a part of) represents the world's largest and most recognised fair trade system. We are a global organisation working to secure a better deal for farmers and workers.

What the Fairtrade Foundation does

The Fairtrade Foundation is an independent non-profit organisation that licenses use of the FAIRTRADE Mark on products in the UK in accordance with internationally agreed Fairtrade standards.
Our four key areas of activity include:

• Providing independent certification of the trade chain for products, and licensing use of the FAIRTRADE Mark on products as a consumer guarantee
• Help in growing demand for Fairtrade products and empowering  producers to sell to traders and retailers
• Working with our partners to support producer organisations and their networks
• Raising awareness of the need for Fairtrade in the public and the significant role  of the FAIRTRADE Mark in making trade fair 

Source: http://www.fairtrade.org.uk/en/what-is-fairtrade/who-we-are

Contemporary non-globalized society - The Amish

Source: https://reesephoto.me/all-galleries-3/amish/

The Amish group are a Christian group believed to have been formed by a schism (disagreement) in an Anabaptist group in Switzerland in 1693. In the 18th Century members migrated to the US. The largest Amish communities are now found in the US and Canada. In the US the largest population is in Ohio where there are about 55,000, followed by Pennsylvania where there are about 51,000 - in total the Amish are believed to number over 250,000. The Amish population is growing fast (4% per annum between 1992 and 2010). The many reason for this is the very high fertility rate of 6.8 (remember the replacement rate is about 2.1).

The Amish normally pray in families and not churches. Congregation are based on location. Each congregation normally has about 25 families. Prayer meetings are held in different houses on a rotating basis. Members are normally baptised between the ages of 16-25 and are encouraged to marry within the Amish community. Family groups are very common within the Amish community. Elderly members are cared for within the family and also corporal punishment is handed out within the family.

The Amish are famous for trying to avoid the globalisation of their society. Below is a summary of the some of the ways that they have avoided globalisation, as well as some of the ways that they have been forced to globalise. There is also a summary of some of the positive and negative impacts that this has had on their way of life.

AVOIDANCE OF GLOBALISATION

GLOBALISATION OF AMISH

Anti-individualist (avoidance of labour saving technology so that they can work as a community) They have largely separated themselves from society because they believe they are ‘Gods own people’. Many groups still where traditional dress (must be plain and simple), use traditional tools and traditional forms of transport Many speak traditional language ‘Pennsylvania German’. Amish do not use mains electricity (must be self-generated) Telephone discouraged to encourage direct communication No computers, TVs or mobile phones

Expensive land prices and growing populations have forced many Amish to work outside communities Amish have opened tourist shops selling handicrafts Some groups have allowed the use of cars They do not used motorised farm equipment, but do use pesticides and fertilisers. Most Amish now also speak English At the age of 16, members can spend time outside the community to decide if they want to remain a member, 90% decide to remain a member

POSITIVE QUALITY OF LIFE INDICATORS

NEGATIVE QUALITY OF LIFE INDICATORS

Lower than average rates of cancer because of their clean living e.g. simple diet and limited use of tobacco and alcohol. Close family ties and support network e.g. care for elderly Little pollution because of no electricity Suicide rates below national average (family support?) Above average in lower grades (spelling, word use and mathematics) Low rates of theft, fraud and other non-violent crimes Self-sufficient so are not vulnerable to changes in supply and demand of goods Pacifists so all disputes will be resolved within the community Healthier diet, because people don’t east fast food, but a more basic healthier diet. Maintain traditional culture

High incidence of genetic disorders (small gene pool) Above average infant mortality (compared to US) Education stops at grade 8 Overpopulation because of reluctance to use technology (food shortages) Reluctance to use contraception has also led to overpopulation Avoidance of medical care Discrimination from outside because of lack of understanding High profile sexual abuse cases (often not reported) Physical abuse (corporal punishment) They don’t accept state benefits during hard times Women are subordinate to men (also true in many societies) Traffic accidents with slow moving horse and carts

Source: http://greenfieldgeography.wikispaces.com/Alternatives