Globalization

1
Globalization Production

• September 26, 2005
• PSC 300.301

2
Today

• Review of Causes (1st image)
• Effects of Globalization (2nd image)
• Interrogation of Scholte Freidman
• Broader Issues (implications next week)
• Conclusion

3
Causes of globalization
Economic, Political Cultural conditions
Spatial Dimension (State)
Globalization
Production, Knowledge (Technology?)
Spatial Dimension (State/Governance)
4
Causes of Globalization
5
Structuration in a Global Context
Actors Technology Regulation
Structure Rationalism Capitalism

• Africa
• Low-end rudimentary
• Limited Regulation
• Asia
• Low High End
• Regulation

• Africa
• Rationalism metaphysics
• Subsistence capitalism
• Asia
• Confucianism rationality
• Subsistence capitalism

6
Domestic changes (2nd image reversed)
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Definitions

• Commodification
• Friedman
• Choice of goods is increased, cost is what
  determines survival (cheapest sells)
• Scholte
• Anything can become a product for sale (anything
  for sale!)

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Friedmans Commodification

• Competition (perfect/competitive markets)
• Low entry barriers
• economies of production
• kill the inefficient
• Customization
• Choice increases
• Access to information
• Products ? services products
• Commodify anything

9
Assumptions competitive markets

• Low barriers to entry and exit
• Many players
• Cannot influence price or supply
• Customers with perfect information
• Products are exchangeable
• choice for buyers
• Producers with equal access to
• technology
• resources
• factors of production
• No externalities (negative side effects)
• Production and consumption

10
Scholte Commodification
11
Scholte Organization
Fear of Capital Flight
12
Conclusion

• Causes of globalization
• Rationality, capitalism, technology, regulation
• Democratization info, technology,
  decision-making, finance
• Effects on production (Capitalism Rationality?)
• Preference changes
• Process changes
• Product changes
• Market changes
• Labor changes
• Power shift
• Democratization
• Ethics
• Agency
• When is change possible