Political Outcome
Loss of Sovereignty
Discuss the links between the diminishing effectiveness of political borders and the flow of goods, capital, labor and ideas, and the role of one multi-governmental organization such as the European Union (EU).
Sovereignty
The state of being independent and being able to make your own decisions.
Nation-States
A country with a government
Nationalism
Devotion to the interests/culture of a nation
Globalization has meant that any political borders are now much more porous, with goods, capital, labour and ideas able to travel much more freely between locations. The increased movement can bring both positive and negative impacts.
European Union
Goods
A 'single market' - companies can sell their products anywhere within the EU without taxes. Tariffs are imposed on goods from outside the EU. Improved transport networks have made it better.
How and Why
Capital
Free movement of capital and the single European currency (the euro) for 18 members since 1 January 1999.
How and Why?
Labor
The 'Free Movement Directive' for workers within the EU. The Schengen agreement for all members except the UK to control migrants from outside the EU.
How and Why?
Ideas
How and Why?
Advantages of EU Membership
Discuss the shift of power from nation states to TNCs as a result of their economic size and dominance.
World’s Largest TNCs
Compare the wealth of TNCs with that of nation states.
Responses
Examine the resurgence of nationalism in one country as it attempts to retain control of its resources and culture.
Case Study – Bolivia
Discuss anti-globalization movements.
Opposition to the emergence of a single world market dominated by large TNCs.
No Logo
Discuss the attempts to control migration into one country.
Burmese Migrants in Thailand
Discuss the links between the diminishing effectiveness of political borders and the flow of goods, capital, labor and ideas, and the role of one multi-governmental organization such as the European Union (EU).
Sovereignty
The state of being independent and being able to make your own decisions.
Nation-States
A country with a government
Nationalism
Devotion to the interests/culture of a nation
Globalization has meant that any political borders are now much more porous, with goods, capital, labour and ideas able to travel much more freely between locations. The increased movement can bring both positive and negative impacts.
European Union
- 28 member countries.
- About 500 million people (7% of the world's population).
- A multi-layered organization.
- Founded in 1993.
- The EU - a family of democratic European countries, committed to working together for peace and prosperity. It promotes economic and political integration of Europe through: a common currency, freedom of movement between member states, trading market without frontiers, enlargement, and development of common foreign/security policy.
- Highly integrated à moving beyond a common market with freedom of movement towards full economic union with the introduction of a common currency, and sharing some political legislation.
- Growth of the EU would appear to be a strong symbol of globalization à member nations have given up some of their sovereignty and political power to a multinational government.
- The EU has moved beyond mere economic integration and has achieved some political, social and cultural integration.
- The EU's expansion has made it more diverse à economically, socially and culturally it is more varied and divided than ever before >> this diversity means that integration is likely to be less complete than when there were fewer member countries.
- Being large may help economic prospects (e.g. larger market) and political ones (e.g. less chance of war), but national identity and regional cooperation are likely to become more important over time.
- European integration since 1945 has partly been an attempt to prevent a world war from ever occurring again à the desire to include Turkey in the EU is to integrate a large Islamic state into the EU and reduce the possibility of war between Islam and the West.
- There has been reaction against the growth of the EU and its imposition of economic, political and social regulations:
- The UK and Denmark opted out of the single currency deciding to retain their own.
- In Spain, Catalonia and Galicia have achieved significant autonomy, while the Basque Country has not, largely in response to the violence of the independence-seeking party (ETA).
Goods
A 'single market' - companies can sell their products anywhere within the EU without taxes. Tariffs are imposed on goods from outside the EU. Improved transport networks have made it better.
How and Why
- Air freight
- Containerization
- Growth of TNCs that outsource production
- Growth of global brands
- Greater marketing and advertising
- Greater choice (although local brands may be lost)
- Possible cheaper products (economies of scale)
- Year-round choice of seasonal and perishable products
- More reliable availability thanks to international logistics (eg. buying a Dell laptop)
- Growing dependence on TNCs and their goods and services
- Small businesses struggle to compete with cheaper production costs and branded commodities of TNCs
- Homogenization of products
Capital
Free movement of capital and the single European currency (the euro) for 18 members since 1 January 1999.
How and Why?
- Global banks e.g. HSBC, Citibank
- Internet and telephone banking
- Credit card ownership
- ATMs
- Range of financial products e.g. loans, mortgages and overdrafts
- International trade in stocks, bonds, etc.
- Online shopping e.g. Amazon
- Ease of travel e.g. travellers cheques and ATMs
- Transfers between accounts and countries
- Saving money and time
- Global credit crunch
- Limited access for poor
- Credit card fraud
- Overspending and debt
- Collapse of financial institutions
Labor
The 'Free Movement Directive' for workers within the EU. The Schengen agreement for all members except the UK to control migrants from outside the EU.
How and Why?
- Greater passport ownership
- Visa relaxation
- Cheap flights
- TNCs (global divison of labor- footloose workers)
- Global business language - English?
- Remittances sent back to friends and family
- Possible "Brain Gain' for receiving countries
- Production of cheaper products because of cheaper labor
- Spread of job skills and knowledge
- Reliance on foreign labor
- Racial tension between ethnic groups e.g. Poles in the UK, Burmese in Thailand
- Economic leakage as earnings are sent home
- Possible 'Brain Drain" for countries of origin
- Lack of skills and training amongst home workers
Ideas
How and Why?
- Internet use/access
- International media organizations e.g. CNN, BBC and Al Jazeera
- Branding by TNCs
- Diplomacy (Embassies and Consulates)
- Global organizations e.g. World Bank, IMF
- Economic migrants
- Military e.g. occupation of Iraq by US and its allies
- Shared technology e.g. nuclear and renewable energy
- Improved human rights through campaigning of governments and NGOs
- Improved freedom of press and speech
- Cultural imperialism - ideas imposed rather than voluntarily adopted
- Ideologies might not always been suitable
- Loss of sovereignty
- Prescribed policies like SAPs can sometimes cause problems.
Advantages of EU Membership
- Member citizens can travel freely between other members to go on holiday (saves space in your passport too!)
- The above should increase tourism revenue for all member countries
- Member citizens can choose to work freely in other countries
- Within the Eurozone it is not necessary for currency conversions, easing trade and tourism
- Undeveloped areas of the EU can receive support and assistance from the EU
- educed risk of internal conflict and stronger military bloc to defend external borders
- Bailouts for poorer countries e.g. Greece from stronger members e.g. Germany
- Subsidies from the common agricultural policy (CAP) for farmers
- Voice in the G20 for smaller members of the EU
- Countries in the Eurozone lose control over their monetary policy e.g. interest rates
- Free movement of members may lead to influxes of workers leading to racial tension e.g. Poles in the UK
- Economic problems in one country e.g. Greece, Ireland and Portugal can cause Europe wide recessions and the need for bailouts
- Enforced fishing quotas which may harm fishing industry e.g. Spain and UK
- Imposition of working regulations e.g. working week
- Imposition of metric measurements e.g. The UK being forced to use kilograms instead of pounds
- Growth of independence and nationalist parties e.g. UKIP and BNP in the UK
- Brain drain from poorer eastern European countries
- Cost of supporting weaker nations
Discuss the shift of power from nation states to TNCs as a result of their economic size and dominance.
World’s Largest TNCs
- Walmart (US)
- Royal Dutch Shell (Netherland/ UK)
- Sinopec (China)
- China National Petroleum Corporation (China)
- Exxol/ Mobil (US)
Compare the wealth of TNCs with that of nation states.
- Out of the world’s top 100 most powerful economics, 51 are TNCs and 49 are nation states
- TNC controls two thirds of the world’s international trade
Responses
Examine the resurgence of nationalism in one country as it attempts to retain control of its resources and culture.
Case Study – Bolivia
- Cochabamba protests of 2000
- Bolivia granted a 40 year privatization lease to a subsidiary of the Bechtel Corporation, giving it control over the water on which more than half a million people survive.
- The company raised rates by an average of 50% and in many cases much more.
- Huge protests occurred leaving 175 people injured and one dead
- After four days of protesting, the water contract was broken
- The United Kingdom Independence Party
- Nigel Farage
- Primary objective of securing the United Kingdom's withdrawal from the European Union
Discuss anti-globalization movements.
Opposition to the emergence of a single world market dominated by large TNCs.
No Logo
- People who read this book, half a million sold and translated into 20 different language
- World wide scale
- At the general population
- Homogenization and privatization of everyone's personal lives
- Limits free expression
- Able to sensor what we eat, watch or drink
- Promotes modern day slavery
- Ordinary citizens of the 99%
- Began in NYC and then went global
- Against bankers
- Taxes
- Corruption
- Unnecessary bailouts
- Aftermath of 2008 financial crisis
- Tweet!
- Indigenous people/ NGOs
- National (Brazil)
- Governments are building a dam on indigenous land
- Wide spread protests, but nothing happened
Discuss the attempts to control migration into one country.
Burmese Migrants in Thailand
- 82% of all registered migrants in Thailand are Burmese
- 5-10% of Thailand’s work force
- In 2009, there are 1.05 million registered migrants in Thailand
- With 1.5 to 2 million unregistered migrant workers
- Before 2009, there was no formal recognition of these migrant workers
- t is a long process where temporary passport for migrants to travel only to Thailand
- Migrants can apply for a work permit and visa within Thailand, which is valid for two years
- Cost of the whole process is 4,300 – 6,100 Thai baht.
- That can be a whole month’s salary for some workers
- Access to social security, legal action, travel freely and get drivers licenses
- Allowing low-skilled migrants to work legally in the country stabilizes the labor supply in labor intensive sectors which prevents uncertainties in production and fills vacancies
- Too expensive
- Corruption and extortion
- Dangerous to return to Burma
- Only around 13% of the migrants have completed the process