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  Review Notes on   WO:  Work in the Global Economy
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 Globalization   
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          Immanuel Wallerstein   
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          World Systems Theory   
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          Americanization   
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          Economic Policies on Globalization   
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          Global Content   
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          The Effects of Globalization   
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          The Effects of Globalization in the US   
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          Low Wages   
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          Global Village   
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          Global Apparel   
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                   Textile Sweat Shops   
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          Global Office   
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          Global Banking   
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          Global Auto   
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          Global Assembly Line   
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          The Steel Industry & Globalization   
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          Intl Div Labor   
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 Trade Policy .   
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 Fordism   
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 A Socio Historical Overview   
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          Industrial Age   
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          The Era of Global Capitalism   
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           The  Post Industrial Age   
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          Stratification in the Industrialism   
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 World Agencies   
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          Asian Pacific Econ Cooperation (APEC)   
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          European Union (EU)   
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          International Monetary Fund (IMF)   
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          World Bank   
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          World Econ Forum   
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          World Trade Organization (WTO)   
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 Countries List   
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          Costa Rica   
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          Ecuador   
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          Germany   
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          Japan   
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          USA   
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 Stagnation, Globalization & the NWO   

 
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   Outline on    Globalization
Internal
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  -  Project:  Globalization & the Standardization of Culture 
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 GLOBALIZATION IS THE INTERCONNECTEDNESS OF DIFFERENT PARTS OF THE WORLD THROUGH ECONOMIC, ENVIRONMENTAL, POLITICAL, CULTURAL, ETC. CONVERGENCE & CHANGE 
 
 
 Globalization is a trend whereby production, competition, & economic exchange increasingly occur on a worldwide scale 
 
 
 Given the impact of globalization, there is almost no remote place on Earth 
 
 
 The effects of globalization include the growth of multinational corps., an increase in international trade, the creation & mystification of global content, the internationalization of capital markets, the creation of nascent world govt. & global regulatory agencies, the homogenization of culture, creating a global western culture, and the polarization of culture, creating a clash of cultures aka, cultural wars 
 
 
 See Also:  The Effects of Globalization   
  Globalization has been going on since international trade began   
  Wallerstein's world systems theory views world capitalism as beginning in the middle ages as the Europeans began their "Age of Exploration" & such nations as Italy, Spain & Portugal became world powers based on international trade & colonization  
  The trend of international trade & globalization is in a period of unprecedented acceleration  
  Researchers Chase Dunn, Kawano, & Brewer (2000) found that world trade, in relation to domestic production, grew rapidly over a 160 yr. period during the 1800s & 1900s  
  Researchers Chase Dunn, Kawano, & Brewer found that the long term trend of globalization, there are three distinct surges of globalization:  
  - about 1845 to 1880  
  - about 1900 to 1925  
  - about 1970 to present  
 
 Economics & culture are perhaps the strongest globalizing forces
How?
 
 
 The global economy is specializing through locational flexibility
 
 
 The global economy is specializing in some countries or regions through:
- extracting raw materials
- processing raw materials
- manufacturing the raw materials into parts
- assembling parts
- consuming finished good
 
 
 - Examples of globalized production include the Plastic Hoover vacuum & the Ford "World Car"
 
 
 There are over 800 mm people who are tied directly to global mkt in the US, Europe, & Japan
 
 
 The core nations have totally globalized economies & many other peripheral & semi peripheral countries are partially globalized  
 
 Global culture(s) are rising & falling
Strong cultures are infectious
Which culture is the most well known word in the world? 
 
 
 Global forces are so powerful, they are affecting the global physical env
 
 
 THERE ARE FIVE FEATURES OF THE GLOBAL ECONOMIC & CULTURAL SYSTEMS INCLUDING:  COMPLEMENTARITY, INTL DIV OF LABOR, ECON OF SCALE, TRANSFERABILITY, DIFFUSION
 
  The features of global econ & cultural systems include   
 
 1.  complementarity, which occurs when demand in one place is complemented by supply in another
 
 
 2.  the international division of labor, which is the specialization of labor by country
 
 
 3.  economies of scale, which are efficiencies created by world scale operations
 
 
 4.  transferability, which is the ability to move capital, skills, technology, or products creates deindustrialization in the core & economic development in the periphery
 
 
 5.  spatial diffusion, which is expansion, relocation, hierarchical:  the way things spread through space over time
 
  FACTORS AFFECTING GLOBALIZATION INCLUDE TECH SYS, CONSUMER MKTS, DIV OF LABOR, & FINANCE  
 
 There are FOUR factors affecting globalization & local economic development, including the international 
 
 
 1. technical systems, which today are almost all international in scope
 
  2.  consumer markets, which today are characterized by global patterns of consumption as seen in people around the world who enjoy McDonalds, Coke, etc. 
 
 
 As late as the 70s only a few peripheral nations were open to intl trade & only 33 % of the wkrs in centrally planned econs:  SU, China, etc.
 
  As late as the 70s in the core countries only 33 % of the wkrs were not in the world sys because of trade barriers, etc.  
 
 In the 00s, only 10% of the entire world's wkrs are outside of the global econ
 
 
 3.  division of labor, which today results in complex & simple products being constructed w/ parts from several nations, assembled in another nation, & sold in another  
 
 4.  finance, which operates 24 hrs a day following the business day in Am, Japan, Asia, & Europe  
 
 Americanization is a powerful quality of globalization  
  GLOBALIZATION THEORIES INCLUDE SUSTAINABLE DEV TH, MODERNIZATION TH, DEPENDENCY TH, & WORLD SYS TH  
  Sustainable development theory examines how nations can encourage economic growth in a way that will benefit those nations & their people & not just multinational corporations in a manner that can be sustained over the long run w/o further damage of the environment  
  Sustainable development theory asks who really benefits when international corps build plants or extract natural resources in developing countries  
  Modernization theory examines how both the corporations & those who live in developing countries benefit because of the jobs & new markets that are created by the investment of multinational corps.  
  Dependency theory argues that corporations take wealth out of the developing countries & gain control of resources that could otherwise have been developed & benefited from by the people living in the countries  
  World systems theory holds that all of history may be understood as a conflict btwn three sets of nations, the core, the semi periphery, & the periphery, all of whom may form strategic alliances to further their own interests  

 
Internal
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  Outline on   Immanuel Wallerstein
External
Links
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 -  Biography & Major Works  
 
 -  Supplement:  Century Past, Millennium Past 
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  -  Supplement:  The Heritage of Sociology, The Promise of Social Science 
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  -  Supplement:  World Systems Analysis 
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  -  Supplement:  Wallerstein Elected to Arts and Sciences Academy
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  WALLERSTEIN IS THE FATHER OF WORLD SYSTEMS THEORY WHICH EARLY ON ANALYZED THE DEV & OP OF GLOBALIZATION  
 
 Wallerstein's World Systems Theory ( WST ) is a body of knowledge 1st developed in the 70's & it is highly controversial 
 
  Wallerstein (1974, 1980, 1989) argues that there have been only two types of world systems in existence   
  For Wallerstein, the first type of world system is the world empire, which existed in several periods of world history   
  Although never covering such a large area of the world as today's world econ sys, these world empires did include major parts of the world; e.g. the Roman Empire, the Near Eastern empire of Alexander the Great, the Egyptian empire, & the Babylonian empire   
 
 Today's world economic system (WES) covers nearly the entire world & began w/ the trading begun by Euro in the Mid Ages 
 
  The major distinction btwn a world empire & a world econ sys is that in the former the main goal is political, as well as econ domination   
 
 The uniqueness of WST is the assumption that social change can only be understood at the level of the world system 
 

 
Top
  

Immanuel Wallerstein
 
 

Top
  
Major Works 

Many of Wallerstein's ideas are to be found in four collections of his essays: 
1979:  The Capitalist World Economy 
1984:  The Politics of the World Economy 
1991:  Geopolitics and Geoculture 
1991:  Unthinking Social Science 

 In addition he has produced a short summary of his ideas: 
1983: Historical Capitalism 

 For an overview of this approach see: 
 P J Taylor (1989): "The world systems project' in R J Johnston and P J Taylor (eds) World in Crisis 

A good read closely related to Wallerstein:   C Chase-Dunn (1988) Global Formation 


 
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Topics on Immanuel Wallerstein's   World Systems Theory
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  -  Project:  World Systems Theory 
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  INTRO:  WORLD SYSTEM THEORY HOLDS THAT GLOBAL CAPITALISM HAS BEEN DEVELOPING W/IN & BTWN NATIONS SINCE THE MID AGES   
  World systems theory ( WST ) holds that the world is made up of Interdependent systems of countries linked by political & economic competition  
  Rich nations are the core of the world econ & low income nations are at the periphery of the world econ   
  WST is similar to dependency theory in that both agree that the dependency of the peripheral nations results from:
a.  narrow, export oriented economies
b.  lack of industrial capacity
c.  foreign debt
d.  rich nations' single minded pursuit of profit.		  
  See Also:  Dependency Theory  
  WST suggests that the prosperity or poverty of any country results from the operation of the global econ system  
  The world economy: 
a.  benefits rich societies by generating profits
b.  harms the rest of the world by causing poverty
c.  makes poor nations dependent on rich ones		  
  CHARACTERISTICS OF THE WORLD SYSTEM INCLUDE GLOBAL DIV OF LABOR, THE NATION STATE, CONFLICT, INTERDEPENDENCE  
  Throughout history, each World System has had FOUR Qualities: 
a.  A world system is a broad economic entity w/ a world level division of labor
b.  A world system is a self contained social system w/ set boundaries & a definite life span
c.  A world system has systems held together by forces in tension, not consensus
d.  A world system is characterized by interdependence
 
  Today the modern world system is characterized by the relatively strong econ links btwn states, i.e. interdependence   
  The constituent geopolitical units depend fundamentally on features of the system as a whole which reflect transnational linkages   
  THE WORLD SYSTEM IS ROUGHLY DIVIDED INTO THE: 
-  CORE (1st WORLD / DEVELOPED WORLD) 
-  SEMI PERIPHERY (2nd WORLD / DEVELOPING WORLD) 
-  PERIPHERY (3rd WORLD / UNDEVELOPED WORLD) 		  
  The most important current determinant of a state's classification w/in the world system is its ability to ensure intl econ competitiveness of its domestic companies   
 
 The world is best understood by dividing the world into THREE major sectors including the core, the semi periphery, & the periphery   
 
 1.  The core includes the major industrialized countries   
  The core is also known as the first world or the developed world   
  Core regions usually have a higher per capita income than do periphery regions   
  The core is dominate trade, technology, highest productivity   
  Domination of trade, tech, & productivity allows the core to dominate the world politically & militarily   
  The core's econ is based on services & mfr   
  The core exploits other regions via colonialism, imperialism, or hegemony   
 
 2.  The semi periphery is also known as the second world or developing countries   
  The semi periphery's economy is based primarily on mfr   
  The semi periphery can exploit the periphery, but is often exploited by core   
  Brazil is currently a semi periphery state   
 
 3.  The periphery is also known at the third world, or the undeveloped countries   
  The periphery is exploited by other regions   
  The periphery's econ is primarily based on natural resource extraction, exploitation of subsistence level labor in mfr   
  Historically, the location of the sectors of world systems have changed as states compete for dominance   
  Thus, there have been different types of core states that have dominated in different stages of world development   
  The labels of core, semi periphery, & periphery are not merely descriptive; they indicate an intl div of labor in which the core is linked to the semi periphery, & periphery in dynamic & exploitative ways   
  THE TYPES OF WORLD SYSTEMS INCLUDE EMPIRES, CAPITALISM, GLOBALISM, & SOCIALISM, ALL ON A WORLD SCALE   
  There are FOUR types of world systems   
  a.  An empire world system is based on political & / or military domination   
  b.  The modern capitalist world system is based on econ domination 
 
 
 Compared to the empire world system, the modern capitalist world system is more stable, has a broader base, encompasses many independent states, & has a built in process of economic stability   
  Modern capitalism began development in late 1400s 
 
  c.  The global capitalist world system is based on the globalization of econ domination   
  Some facets of global capitalism developed w/ capitalism in the 1400s but has come to dominate world events since the early 1900s   
  d.  The socialist world govt world system is a future possibility   
  SOCIO HISTORICAL PROCESSES OF THE WORLD SYSTEM   
  There are FIVE historical processes that span types & stages of world systems   
 
 1.  GEOGRAPHIC EXPANSION GENERALLY INCLUDES THE EXPANSION OF EMPIRE, COLONIES, OR MKTS   
  The histl process of geographic expansion is a prerequisite for the many stages   
  The histl process of geographic expansion is caused by people advancing their own interests   
  During geographic expansion, the world must have enough trade to advance the social systems   
  Geographic expansion is a sign in all of the stages mentioned above, though in the later stage domination shifts forms   
 
 2.  THE DIVISION OF LABOR HAS STEADILY INCREASED THROUGHOUT HIST   
  While the typical definition of the division of labor referred to the subdivision of tasks, Wallerstein sees the division of labor developing into types of labor   
  Wallerstein sees the division labor developing from the individual in Hunter Gatherer Society, to a national division of labor, to a world wide or global division of labor   
  The sociologist Emile Durkheim recognized the division labor as the major foundation of modern society   
  See Also:  Durkheim   
  See Also:  The Division of Labor   
  See Also:  The Intl Division of Labor   
 
 An example of the development of the division of labor from the individual to the national level, to the world wide or global level is that as the nation state developed, various nations took different places in a globalized division of labor   
  Even as far back as the 16th Century,   
  a.  capitalism replaced statism as the major mode of domination   
  b.  the solidarity of capitalism was based on unequal development   
  c.  some nations could exploit & some would be exploited   
  d.  the intl division of labor relegated different nations to different roles   
  e.  the roles included creating labor power, food production, raw material production, & industry   
  In the past, different areas produced different types of labor, including the: 
-  African supply of slaves 
-  Southern Europe supply of tenant farmers 
-  Western Europe supply of wage workers 		  
  The new intl division of labor is caused by the decentralization of mfring from the core countries to semi peripheral & peripheral nations   
 
 Today, different areas around the globe produce different types of labor
 
 
 PRE INDL LABOR TYPES INCLUDED FREE LABOR, FORCED LABOR, & SHARECROPPING   
 
 Until the Industrial Age, there were THREE types of labor including free labor, forced labor, & sharecropping  
  a.  The core had free labor as its primary form of labor  
  b.  The semi periphery had sharecropping as its primary form of labor  
  c.  The periphery had forced labor as its primary form of labor  
  Capitalism's strength lies in the core w/ free labor & the periphery w/ unfree labor  
  Since the Pre Industrial Age, the amount of forced labor in use has diminished  
  3.  URBANIZATION IS A DEVELOPMENT OF THE MODERN INDL WORLD   
 
 Urbanization is characterized by a continual movement to urban areas  
  The histl trend toward urbanization has reversed itself only during extraordinary circumstances such as war, plagues, famines, etc.  
  4.  DOMINATION BY THE CORE HAS ALWAYS EXISTED   
  Colonialism is domination of regions of the core, the semi periphery, & the periphery through political/military power   
  Imperialism via neocolonialism is the domination of regions of the core, the semi periphery, & the periphery through economic power   
  Hegemony is domination of regions of the core, the semi periphery, & the periphery through a combination of economic, military, financial, & especially cultural means   
  5.  THE CYCLE OF LEADERSHIP CONSISTS OF THE INTERACTION BTWN ECON, MILITARY, & POLITICAL POWER   
  The cycle of leadership has many stages, including: 
Competitive struggle --> economic power --> political power -->
military power --> expansion/hegemony --> imperial overreach -->
decline/defeat -->
begin again w/ competitive 
 struggle -->
 
  Britain maintained world domination in two successive cycles of leadership   
  The US is now considered to be the world's hegemonic power   
  The fact that the US is not militarily conquering the world brings the cycle of leadership into question   
  Japan became a member of the world system core in the mid 20th century   
  A SOCIO HISTL ANALYSIS REFLECTS PERIODS OF STABILITY & CHANGE   
  Before the Modern Era, there was the sense that history was cyclical   
  At times in history, one nation may dominate by econ, political, & military power   
  There are also periods of flux   
  This cycle first developed during Early Empire Era era & to a great extent still exists today   
  WST holds that the world system is held together by forces in tension, not consensus   
  WST sees the world in historical & developmental terms   
  Historically the world developed through these stages such as: 
   Hunter Gatherer Society 1.5 mm BP - 10 K BC 
   Pre Empire Era:  Ancient Agricultural Society 10 K BC - 3K BC
   Early Empire Era 3 K BC - 200 BC
   Roman Empire Era 200 BC - 500 AD
   Pre Industrial Society (Middle Ages) 500 - 1300
   Early Industrial Age 1300 - 1700
   Industrial Age 1700 - present
   Global Capitalism 1910 - present
   Post Industrial Society 1970 - present
 
  Starting w/ ancient agricultural societies, hearth areas developed which were early core areas   
  By the time of the Early Empire Era era,  there is full development of the core, semi periphery & periphery   
  Periods of stability include various centuries in the Egyptian Empire, Chinese Empire, the Roman Empire, & Feudal Europe   
  While much of history is characterized by change, some of the most studied eras of change include the collapse of the Roman Empire & the transition from feudalism to capitalism   
  The modern world system began in the late 15th century   

 
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 Outline on  Americanization
by George Ritzer
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  MANY GLOBAL FORCES HAVE A STRONG AMERICAN INFLUENCE B/C OF AM CULTURE, ECON / BUSINESS INFLUENCE, & AM GEO POLITICAL POWER  
  Americanization is a strong feature of globalization, meaning that many global forces have a strong American influence 
 
  Americanization denotes that the forces of globalization are attempting to create a world culture, that absorbs other cultures, replacing it w/ a fundamentally American culture 
 
  America is generally seen as the center of modernity & globalization 
 
  The US exports modernity to the rest of the world 
 
  Credit cards & the financial industry are deeply involved in the processes of Americanization & globalization 
 
  Credit cards are an US invention that is being exported, to an accelerating degree 
 
  Credit cards Americanize by bringing other societies this American means of exchange & the American consumer culture
 
  Credit cards also carries w/ them the expansion of the consumer culture 
 
  Americanization & globalization are demonstrative of modernity 
 
  GLOBALLY, WORK IS AMERICANIZED IN THAT ORGS COPY AM ORG STRUCTURE & AM GLOBAL CORPS ARE PERVASIVE 
 
  The process of work has also become Americanized in at least two manners:  the boiler plating (copying) of American org structure & through the spread of  American, global corps 
 
  Corp structure is relatively the same throughout the world, & this structure functions relatively the same down to the shop floor level, ie the level of where the work gets done 
 
  Some of the aspects of work do vary widely from nation to nation; eg quality control, env, & safety procedures 
 
  Whereas in the US & the rest of the developed world, env & safety procedures are highly developed, in many 2nd & 3rd world nations these procedures are where they were at during the Ind Rev in the developed world; ie non existent 
 
  However the forces of globalization & Americanization are forcing many nations to Americanize quality control, env, & safety procedures as seen in unsafe factories producing Apple iPhone products upgrading these procedures   
  An example of nations upgrading, ie Americanizing quality control can be seen in China increasing quality control on pet food b/c their products had poisoned some American pets   
  And the work process is being Americanized around the world simply b/c Am & 1st world corps are spreading to every corner of the globe & while they do adjust structure & process depending on the nation they are expanding into, the basic form is one of Americanization   

 
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 Outline on  Economic Policies on Globalization
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 The problems of globalization are many & the econ policies of govts & the strategies of multi-national & supra-national corps may either help or exacerbate those problems... or both 
 
 
 See Also:  Deindustrialization   
 
 See Also:  Stagnation, Globalization, & the New World Order   
 
 American firms respond inadequately to the heightened competition 
 
  For most elites & corps, the econ policies & business strategies on globalization appear to be rational; i.e., good for their profits   
  For most non elite classes & nations, the econ policies & business strategies on globalization appear to be irrational, i.e., bad for their economies   
  Rationality is a world view that does not always operate universally in that what is rational for one, may not be rational for another   
  See Also:  Rationality   
  See Also:  Epistemology & Theories of Knowledge   
  In general, econ policies include both govt laws & regs as well as major business strategies   
 
 Am firms respond to globalization w/ FOUR main strategies, including exporting jobs, driving down wages, deskilling, & paper entrepreneurialism 
 
 
 Am firms began to respond directly to globalization in the 1990s by increasing product quality, focusing on the development of human capital, & increasing investment in workers' training & R & D
 
 
 Paper entrepreneurialism (Reich, 1992) is the manipulation of balance sheets, profit margins, stock prices, etc. in lieu of the development of profit producing assets such as capital investment, tech, & people
 
 
 Paper entrepreneurialism occurs when corps buy & sell companies to make a profit rather than building solid businesses
 
 
 Paper entrepreneurialism & even globalization itself depend on the increased, worldwide mobility of capital
 
 
 The mobility of capital has been increased by FOUR factors, including the technology of the internet & communication systems, by the globalization of banking & financial systems, by the development of transportation systems, & by the changes to laws & regs allowing for mobility of capital
 
 
 See Also:  Global Banking  
 
 Few laws & regs have been developed to deal w/ the globalization of banking & trade & most have been written to streamline such transactions for the elites w/ little thought to security or how such transactions affect the lower classes
 
 
 Since 9-11, there is a commitment to bringing global financial transactions under govt control, but little has been done
 
 
 The concentration of capital continues to increase, but is becoming concentrated globally as major multinational corps, that previously had some type of national allegiance, such as Chrysler, merge w/ foreign multinationals to become supranational corps w/ no allegiance to anyone except the global elites that control & own them
 
 
 Examples:  BP Amoco,  Daimler Chrysler (now just Daimler)
 
 
 See Also:   Market Concentration  
  The growth of supranational corps, the concentration of capital, globalization itself is both a cause & effect of capital mobility & the changes is laws & regs that govern such transactions  
  Large corps have the financial power & political leverage to take advantage of new worldwide networks of production & mkting  
  Historically capital was less mobile than labor because it was capital investments such as factories had a long life & could not easily be moved to a new location because the skills to build a particular local factory were also local  
  Today, capital is more mobile because factories have a shorter life & the skills to build them can be imported; e.g. little Americas in Saudi Arabia  
  Historically capital was less mobile than labor because it was risky to invest in a foreign locale because of unknown laws, because of currency exchange problems, etc., & because of the animosity towards foreigners,  
  Today, capital is more mobile because laws are being synchronized worldwide, & are well understood, & because currency exchange is now completely routinized & nearly all risk can be hedged  
  Today, there is still animosity towards foreigners, but many more nations are attempting to moderate such animosity because they understand there econ development is dependent upon it  
  Historically capital was less mobile than labor because it was difficult & expensive to ship raw materials for production, as well as finished products for sale   
  Today, capital is more mobile because global transportation systems have been developed to such an extent that anyone can ship a package anywhere in the world in a few days for under $50, & likewise it is possible to ship goods to the mkt for a very reasonable amount  
  Historically, labor was more mobile than capital because the working class had little property ownership & workers had little to lose except for the very important family network that sustained them at home  
  Historically, the mobility of labor was dependent on imperialism to subdue local populations to accept foreign labor; e.g., the European working class colonizing the US, the British colonizing India, etc.  
  Historically, despite imperialism, labor moving to a new nation was extremely risky  
 
 Today, labor is less mobile than capital because the working & middle class has an investment in their home, & because the decline of imperialism makes it difficult for a person or family to move to another country  
  Two typical corp strategies for globalization that create stagnation in the US are relocation of plants to new regions or nations & low wage businesses  
  Relocation creates tax & depreciation breaks for the new business, but the costs of new schools & public services, & moving families are externalities that must all be borne by those other than the corps  
  See Also:  Externalities  
  Part of the corp strategy of relocation is to entice communities to offer the best deal to attract companies  
  When firms relocate, the communities experiencing the closed firm also experience a lost tax base, increased welfare, crime, etc., & the closing schools & other public services  
  The low wage strategy has created a declining middle class w/ commensurate growth in lower & upper classes  
  In constant $s, average wages increased steadily in U.S. until the 70s when they peaked at $12  
  Since then they have fallen 15% to $10.  The first real uptick in wages was in 1997 when wages increased 1%  
  Will it continue?  The present generation of new workers future depends on it  
 
 The strategy of driving down the wages of Am workers is carried out through the demands for concessions from unions
 
 
 If corps can break or cow a union, they can control nearly all the labor in a region
 
 
 Threats of bankruptcy, plant closings, transference to a new region or nation, etc. back up threats to lower wages & benefits
 
 
 A key corp strategy to adjust to global competition is downsizing  
 
 Workforce downsizings are now common, & a mgr or consultant may specialize in downsizing; i.e., the hatchet man  
 
 Firms downsize core employment, force the remaining workers to do more, & subcontract many functions to other regions or nations  
  The upside of downsizing is that efficiency does often rise, but there are always the externalized costs of relocation, & sometimes the costs of overwork  
  See Also:  Externalities  
  Firms are also utilizing the flexibility strategy through matching their resources to mkt needs  
  W/ the advent of mass mfr w/ the industrial revolution, flexibility & the parallel wide choice of product types & quality had decreased w/ the decrease of small flexible producers  
  W/ the advent of flexible mfr, some of this flexibility & product choice has returned  
  As discussed above, because rationality is circumscribed, the business strategies of exporting jobs & reducing wages at home has secured profits for some firms, but this strategy is costly for the Am econ as a whole
 
  See Also:  Stagnation, Globalization, & the NWO  
  For most of the middle- & lower classes, govt policies & business strategies which a rational policy focusing on increasing productivity rather than exporting jobs & driving down wages is preferable to the current policies on globalization  
 
 What has been good for supra-national corps has not been good for the economy
 

 
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 Outline on  Global Content
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  The concept of global content denotes that products in the globalized market place are frequently a mixture of labor, parts, resources, etc. from a variety of nations
 
  Content, in economics, usually refers only to the nation of origin
 
  Frequently the few nations that require content labeling only require the listing of one producer, the largest single producer out of all of the producers of one product  
  An "American" car today may be made of parts assembled in Canada, Mexico, France, & Japan, as well as the US
 
  Cars from any nation usually have major portions produced in several nations
 
  Multinational corps are multinational not only in the sense that they sell their products worldwide, but also in the sense that they produce their products worldwide
 
  While the primary issue related to global content is often the labor & resources that make up a product, other issues are becoming increasingly important including child labor, sweat shop labor, hormonal & chemical additives, genetic engineering, disease prone products (e.g. mad cow), & more
 
  Meat products from the US have frequently been banned from Japan because of the fear of mad cow disease
 
  Wood products from Canada have been banned from the US because of govt subsidies of the Canadian timber industry
 
  The US govt is constantly surveying imported products to eliminated those w/ child labor & sweatshop labor
 
  US dairy products have been banned from the EU because the US allows the use of the hormone BGH in dairy production & thus it is in our milk, cheese & other dairy products
 
  The US dairy industry has managed to defeat every attempt to have the content of its products labeled, even in the US, as to whether it contains BGH or not
 

 
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 Outline on the  Effects of Globalization
External
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 -  Project:  Video: CNN 3:  Famine Foretold 
Link
 
 -  Video: CNN 3:  Famine Foretold        3:10 minutes 
Link
  -  Video:   Blood & Oil:  The Mid East in World War 1 
Link
 
 The effects of globalization include 
1.  the growth of multinational corps 
2.  an increase in international trade 
3.  the creation & mystification of global content
4.  the internationalization of capital markets 
5.  the creation of nascent world govt. & global regulatory agencies 
6.  the reduction in the influence of the nation state 
7.  the creation of economic coalitions
8.  the weakening of democracy, the homogenization of culture
9.  an increased risk of ecological crisis
10.  creating a global western culture
11.  the polarization of culture, creating a clash of cultures aka, cultural wars
 
 
 1.  The growth & development of multinational corps is both a cause & an effect of globalization
 
  Globalization makes multinational corps ever more powerful  
 
 See Also:  Multinational Corporations  
  See Also:  Corporate Power  
 
 2.  The production & trade occurring in worldwide mkts can be seen in the growth of international trade
 
 
 In 2003, 70% of all goods produced in the US compete w/ imports
 
 
 Imports in the US increased 80% btwn 1982 & 86
 
 
 Imports in the US increased by over 100% btwn 1990 & 2000
 
  In 2004, imports into the US increased by 30%  
  Lou Dobbs predicted that if current trends continue, assuming a 4% increase in GDP & a 30% increase in imports, the US trade (account) deficit would be equal to US GDP by the year 2017 at $20T  
  While it is unlikely that imports will continue to rapidly increase, the present rate is damaging to the US econ, the US worker, & esp middle class families  
 
 US products & services are distributed worldwide & compete w/ many other local & global products
 
 
 An example of a globalized products & services is seen in the 3000 7-11 Stores in Japan
 
 
 An example of a globalized product & service are the US autos & their dealers who compete in Germany w/ Mercedes & Toyota, & compete in Japan w/ Mercedes & Toyota, & who compete in Brazil w/ Mercedes & Toyota
 
 
 All industrialized nation have seen the share of product market taken by imports increase, & the increase has been faster in many other countries than in the US
 
 
 3.  Globalization blurs or mystifies the line btwn domestic products & imports as product content becomes globalized
 
 
 The concept of product content denotes the percentage of each product's value as measured in resources & labor that is created in each nation that the product is produced in
 
 
 Product content is the value added by each nation
 
 
 In 2003, 85% of all US manufacturers use foreign material in their domestic manufacturing process, & US materials are similarly used by foreign producers
 
 
 US firms have production plants in foreign nations & foreign nations have production plants in the US
 
 
 During the 1980s, Japanese companies created over 10,000 jobs in TN
 
 
 See Also:  The Global Auto Industry  
 
 During the 1980s, US firms employed thousands of people in Mexico, as well as in other nations
 
 
 See Also:  Globalized Content  
 
 4.  Globalization has a major effect on world capital markets & banking
 
 
 See Also:  Global Banking  
 
 The trading of stocks & bonds & the lending & borrowing of money has become totally globalized
 
 
 The internet & computerization of the mkts has created a system whereby borders have ceased to have any meaning
 
 
 The mkts are managed 24 hrs. a day by such large firms as Shearson Leman Bros. et al
 
 
 The mkts begin each day in Japan, then the Euro mkts open, then the US mkts, w/ all of the smaller regional mkts in btwn
 
 
 Because increased world trade creates increased trade surpluses or trade deficits, nations have an increased need to trade currency
 
 
 Btwn 1973 & 1993, currency trading grew over ten time from $10 bb a day to $ 1.3 tt a day
 
 
 During this period, currency trading grew because of the increase in intl trade, the growth of the US federal deficit, as well as the growth of private debt
 
 
 5.  Globalization creates intl regulatory agencies & nascent forms of world govt, which some consider a blessing & others a curse
 
 
 See Also:  Global Regulatory Agencies:  UN, WTO, NAFTA, EU, NATO, GATT, Rio Protocol, etc.   
  6.  Globalization reduces the influence of nations  
  Globalization reduces the effectiveness of borders in the least in an econ & cultural sense  
  7.  Globalization creates ever more powerful economic coalitions of countries  
  See Also:  Global Economic Coalitions:  EEC, NAFTA, FTAA, ASEAN  
  Regional economic coalitions of countries cooperate w/in each coalition, & compete w/ other coalitions  
  The EEC is a free trade zone in Europe which has increased economic cooperation  
  In 2003, the Free Trade Agreement of the Americas (FTAA) is being negotiated to expand NAFTA to all of No. & So. Am.  
  The Pacific Rim nations such as Japan, Taiwan, So. Korea, China, et al are negotiating expanded trade  
  8.  Globalization weakens democracy to the extent that the nation state is weakened because as economic decision making comes to dominate, less decisions are made by democratically elected representatives  
  9.  Globalization creates an increased risk of ecological crisis  
  Globalization creates ever larger economic entities in the form of supra-national corps. & economic coalitions, all of which have an ever greater effect on the environment  
  Globalized economic entities have the possibility of unprecedented effects on the environment because of their sheer power & size, & to date, that environmental effect has not been environmentally benign  
  Deforestation is occurring rapidly  
  The use of fossil fuel has decreased on a per capita basis in the core nations, but increased overall, & is increasing on both a per capita basis as well as over all in non core nations  
  Ozone depletion is expected to decrease, & eventually improve due to a global agreement to limit the use of chlorofloracarbons  
 
 10.  Globalization creates the homogenization of culture, creating a global western culture
 
 
 11.  Globalization creates the polarization of culture, creating a clash of cultures aka, cultural wars
 
 
 See Also:  Globalism & Tribalism  
  The chance of social conflict, social violence, or war over globalized issues such as culture, religion, labor, the environment, the economy, etc. is increased w/ globalization  
  No nation wants to be deprived of the opportunity for econ development, & yet no country wants to be dictated to in terms of culture, religion, worker rights, etc.  
  Labor, environmentalists, et al are organizing to oppose what they see as multinational corps' exploitation  
 
 There are FIVE general cultural effects of globalization including the:
 
 
 1. increasing cultural & economic value of local, regional, & national identities
 
 
 2. increasing need that people feel for a place of their own & their own identity
 
 
 3. increasing perception, or environmental scanning, i.e. surveillance of transnational corps. of identities
 
 
 4. global integration & disintegration, which go hand in hand, of economies & culture
 
 
 5. rise & fall of transnational corps., national govts., & global institutions
 
 
 See Also:  The Effects of Globalization on the US  
  Because of globalization, many US manufacturers encounter substantial foreign competition  
  Products such as steel are commodities & thus production & shipping cost differences cannot be passed on to buyers
 
  Fixed costs for plants & equipment & even labor are incurred whether the plant is operating or not
 
  Producers may sell below cost, e.g. engage in econ "dumping" because they lose less as compared to not producing at all
 
  Services can also be dumped, as in the airline industry selling a seat below cost
 
  In the 1970s, US auto makers experienced global competition 
 
  Increased fuel prices, as a result of the 1972-3 oil embargo, & increased quality by European & Japanese auto makers resulted in loss of mkt share for US autos which less competitive because they were inefficient & had low dependability compared to foreign competition
 
  Differences in labor costs in the 1st, 2nd & 3rd worlds led to price advantages in some nation
 
  Exchange rates also caused variations in labor, equipment & raw materials
 
  Globalization generally increases the elasticity of demand because the industry is less concentrated, resulting in less ability to pass on wage increases  
  US manufacturers reacted to globalization by demanding wage concessions, obtaining suppliers concessions for parts & raw materials, the shutting down of less efficient plants, creating new production methods, etc.
 
  Global competition in basic industries has drastic effects on wages & employment of domestic workers
 
  Domestic producers are moving some labor intensive operations to countries w/ lower labor costs
 
         See Also:  Deindustrialization
 
  At the same time, German auto makers such as Daimler Chrysler & BMW, & Honda of Japan have opened plants in the US
 

 
Internal
Links

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 Outline on the  Effects of Globalization on the US
External
Links
  -  Project:  Video: CNN 5:  The Hispanic Economic Gap 
Link
  -  Video: CNN 5:  The Hispanic Economic Gap    2:10 min 
Link
  GLOBAL COMPETITION HAS OUTPERFORMED MANY US INDUSTRIES  
  As a result of globalization & other social, political, & economic factors, the US has lost its econ dominance 
 
  After WW2, the US became the unchallenged econ superpower, dominating manufacturing & services 
 
  The 1950s & the 1960s were the US's econ & cultural heydays 
 
  As other core nations recovered from WW2, & as developing nations grew, more & more countries developed the capacity to produce products of comparable or greater worth than the US 
 
  An example of the falling econ dominance of the US & the rising economic influence of other nations is that the 1960s, Japan & Korea had almost none of the world or US auto mkt, today they have a substantial proportion of both the US & world auto mkt 
 
  In 2003, Toyota displaced Ford at the number two car seller in the US
 
  In 2007, Toyota surpassed GM & became the largest auto seller in the US  
  In the early 1950s, the US produced about 60% of the world's manufactured products, & by the early 1980s, the US produced less than 30% of the world's products
 
  In 2000, the GNP of the EC is greater than that of the US
 
  In the 1990s, Japanese per capita income exceeded that of the US, & thus w/ less than half of the US's population, Japan had 2/3s of the GNP of the US
 
  OTHER ECON POWERS SUCH AS JAPAN HAVE HAD INDUSTRIES OUT COMPETED  
  Since the late 1990s, Japan & other Pacific rim countries have an economic crisis, resulting in loss of Japanese econ power
 
  In general, nations have a competitive advantage in the world mkt if they pay lower wages, though low wages create severe disadvantages that are often externalized economic costs, falling on the national govt. & the national social structure
 
  An example of a competitive advantage in low wages is seen in the Korean Hyundai corp who pays its workers less than comparable workers in the US, Europe, & Japan
 
  Low wages are not the only competitive advantage a nation may have
 
  The US & many core nations have exported jobs to the semi peripheral & peripheral nations where wages are at their lowest
 
  GLOBAL CORPS LOOK FOR NOT ONLY CHEAP WAGES BUT ALSO 'CHEAP WKING CONDITIONS'   
  While the US has exported jobs to nations around the world, the northern border region of Mexico has gained more US jobs & factories than any other single nation
 
  Foreign owned plants in northern Mexico are called maquiladores
 
  The US owned maquiladores are notorious for low wages, unsafe working conditions, envl degradation, & large profits  
 
 In the maquiladores, workers are paid 15 to 20% of what US workers earn  
  In the maquiladores, lax environmental & safety controls lower costs for the owners, but raise costs, which are usually economically externalized to the national govt. & the national social structures  
  See Also:  Low Wages  

 
Internal
Links

Top
 Outline on  Low Wages & the Minimum Wage
External
Links
  -  Supplement:  Articles on the Living Wage Debate 
Link
  IN THE US, BUT NOT MOST OTHER CORE NATIONS, A FULL TIME WKR MAY NOT BE ABOVE THE POVERTY LINE  
  In 2000, 12% of poor people worked full time 
 
  The number of of the working poor more than doubled since 1978, because the minimum wage rarely increases at the rate of inflation 
 
  In 2001, the minimum wage was $5.15 / hr. or $10,712 / yr. 
 
  In 2003, the minimum wage is $5.50 / hr. or $11,440 / yr. 
 
  The minimum wage will does not provide a living above the poverty line for a couple & is more than $7,000 below the poverty line for a family of four 
 
  Because of low pay, many military families live below the poverty line & are eligible for food stamps & welfare 
 
  The minimum wage & military pay are political footballs & therefore they have not been raised regularly to adjust for inflation 
 
  In 1996, the minimum wage had only 2/3s of the purchasing power that it did in 1968   
  MIN WAGE PROPONENTS HOLD THAT IT COULD BE USED TO ELIMINATE POVERTY; OPPONENTS HOLD THAT IT IS UNFAIR TO BUSINESS & IT SLOWS JOB GROWTH  
  Opponents of the minimum wage believe that it costs small & corporate business too much money, resulting in fewer low wage jobs, & thus ultimately hurting the people it is supposed to help 
 
  Proponents of the minimum wage believe it helps the poor, should be higher, & has little effect on the number of low wage jobs because these jobs are rarely mechanized, businesses cannot operate w/ less of these jobs, & the costs can generally be passed on the the customer 
 
  Because of deindustrialization & other changes in the economic structure, low wage jobs were one of the fastest growing sectors of the econ in the 1980s & 90s, & there was little growth in middle class jobs 
 
 
 Deindustrialization, the growth of low wage jobs, & slow growth in middle class jobs has resulted in falling incomes for the lower & middle classes, & a lower median income 
 
 
 In 2005, real wages for US wkrs fell 1/2 %, continuing the trend of falling wages that has characterized the 1st world wkforce since the late 1970s (except for a brief 3 yr period during the end of the Clinton Admin when wages rose) 
 
  WELFARE REFORM HAS MADE IT MORE DIFFICULT FOR THE WKING POOR TO RECEIVE ANY KIND OF AID  
 
 A major goal of the Welfare to Work Program is to move people off of welfare to work, & to provide a living for them 
 
 
 The Welfare to Work Program has moved many people off of welfare, but has not provided a living for them in that they earn wages at or below the min wage 
 
  Welfare to Work Programs have moved many people from govt subsidies to minimum wage jobs, w/ no health benefits or chances for advancement   
  Jobs, w/ no health benefits or chances for advancement cannot sustain an individual or family in the long term because one cannot save for or weather any of life's emergencies or make any of life's major purchases such as an auto & home   
  Jobs, w/ no health benefits or chances for advancement are called dead end jobs   
  The living wage movement is attempting to eliminate dead end jobs by raising minimum wage to a point where one has health benefits & the possibility of saving   
  The living wage movement is not operating at the national level trying to get Congress to increase the minimum wage   
  The living wage movement is operating at the state, local, & the individual enterprise level & thus small groups of dedicated individuals are having an impact   

 
Top
Outline on the  Global Village
Link
  See Also:  Globalization 
Link
  The concept of the Global Village denotes that humanity is & can live in relative harmony, recognizing the value of a multitude of cultures   
Link
 In what sense are we in a Global Village?   
Link
 Now, in what sense are we, or aren't we a global village for each of the following social structures? 
That is, do we have a global social structure? 
Social Structures
1.
 Peers
5.
 Govt
8.
 Ed
2.
 Family
6.
 Military blank
9.
 Media
3.
 Religion
7.
 Charity
10.
 Leisure/Rec
4.
 Work/Econ
 
Link
 In what sense do we have a global culture?   ( Culture is the sum our our shared KBVN )
    Knowledge:
    Beliefs:
    Values :
    Norms:		  
blank
 The Global Village's qualities today
       - Live TV/media from around the world
       - Global economic network
       - western culture is one of the dominate cultures today
       - Many nations becoming melting pots
Mal-Globalization qualities today; We are NOT a Global Village
       - many isolated spots w/o water, electricity, communications
       - individual cultures may be anathema to western culture
         Can we have individual cultures & global culture too?
       - ethnic cleansing		  

 
  Top
In what sense are we in a global village?
Economics:  products & jobs
Culture  ( KBVN )
Communications
Travel
Knowledge
Open Borders
Population Movement:  Emigration & Immigration

 
  Top
Global social structure:  Now, in what sense are we, or aren't we a global village for each of the following soc structures? That is, do we have a global social structure?
 
1. Peers While there is a lot of population movement the US has one of the richest blended cultures. 
     Most nations are very mono-culture
     Only elites have many global peer relationships
      Middle Class gets global peers only through exchange programs, guest workers, etc.
2. Family Most family is in one land
     Many families are split by int'lism, but few are true globally connected families
3. Religion Religions have always been international, but even from nation to nation there are many divisive aspects
4. Work/
Econ		 Work/Econ:  many believe that this is the greatest unifier, but it also divides
      Many more global prod's & corps
Possibly the soc structure w/ most globalization
Still a long way to go?
5. Govt Governments are unifying:  UN, World Court, EU, NAFTA;  World Bank is more problematic
6. Military Mil are nat in origin, global in action
More coalitions in last decade w/ "New World Order"
1989:  Iraq & Kuwait:  1st great coalition;  1990s:  Somalia, Rwanda, Bosnia, Afghanistan
7. Charity Has been international for decades
Not much change
1980:  We are the world relief for Somali
8. Education International studies are slowly growing for MC
steadily increasing exchange of ideas, but how do we control destructive knowledge
9. Media 1980 CNN & Live Aid in    heralded  /\ globalization
The media is the most globalized next to Work/Econ
10. Rec Rapid /\ in international tourism by MC
Recreational travel is the next highest after business travel

 
  Top
Global culture: In what sense do we have a global culture?
             Culture
1.
 Knowledge:  Great similarity in scientific knowledge & educational level, but large gaps too
    More global knowledge than ever  before, but in fact we are relatively ignorant of others
2.
 Beliefs: Ditto w/ Knowledge, but less globally shared
    Less similarity in beliefs:  world religion
3.
 Values:  Many social scientist would maintain that we ignorant of our own values 
     unless we have undergone counseling, group therapy, etc. to reveal them 
    Greater dis-similarity in values
4.
 Norms:  Norms are the only visible manifestation of culture & often other cultures' norms seem very alien
       Greatest dis-similarity in values

 
Top
  Outline on     The Global Apparel Industry
 
  History of garment industry:  1800 to present  
  In the 1800s the Garment industry developed in urban areas of core nations
Small firms used cheap, migrant or immigrant labor		  
  From 1900 - 1950 the larger firms emerged &  their success was based on mass production & mass markets  
  In 1960 less than 7 % of US apparel was imported  
  From 1950 - 1980 the deindustrialization of the garment industry resulted in its movement to the South  for cheaper labor & to avoid unionization  
  From 1950 - present the deindustrialization of the garment industry  resulted in its movement to peripheral & semi peripheral nations  
  In 1980 more than 80 % of US apparel was imported  
Link
 The Table of global sourcing by US retailers demonstrates the hierarchy inherent in the garment industry  
 
 Garment production in core nations consists of major Fashion Corporations who produce hi end apparel such as women's fashion, outerwear, lingerie, infant wear, men's suits, etc.  
  This production line is based on frequent style changes & hi quality finish  
  This production line requires short production runs & greater contact btwn manufacturers & buyers  
  Thus they are set in urban areas of core  
 
 Garment production in semi peripheral nations consists of fashion corporations, department stores, mass merchandising firms & some discount stores
There are fewer & less dramatic fashion changes in this market
This production line produces medium quality goods
This production line has longer production runs		  
  Garment production in peripheral nations sells to mass merchandising firms, discount stores, & small importers  
  US garment production has many sweatshops  
  Los Angeles:  120,000 garment workers:  80% from Mexico & Central America  
  San Francisco:  Levi Strauss headquarters
600+ suppliers in 50+ countries
W/drew contracts from China, Burma, Peru because of human rights violations		  
  NYC:  Liz Claiborne Clothing
80% manufactured overseas, mainly in Far East
300+ foreign suppliers
No single supplier manufactures more than 5 % of their total
Has moved many operations back to US to control quality 
    & to get quicker response to changing fashion
In 1994, production of 1 mm sweaters moved from Asia to Brooklyn
In 1995 showcase factory opened in NYC's Chinatown, operated by Hong Kong manufacturer		  
  Beaverton, OR:  Nike headquarters
World's largest sports apparel corporation                            $2 bb / yr
Most production in low-wage peripheral nations
Once had production primarily in US & UK
Today, all production subcontracted to So & East Asia
First in Japan, then in So Korea & Taiwan
Moving to Indonesia, Malaysia, China
Nike & Michael Jordan attacked for labor rights issues		  

 
Table of Global sourcing by US retailers
Core
Semi Periphery
Periphery
-Fashion Corps -Fashion Corps;
-Dept stores;
-Mass merchandise		 -Dept stores;
-Mass merchandise
-Discount stores		 -Dept stores;
-Mass merchandise;
-Discount stores;
-Small Importers		 -Small Importers
Italy Taiwan Indonesia Central Am El Salvador
France Hong Kong Malaysia Caribbean Nicaragua
UK Singapore Thailand Colombia Peru
Japan So Korea Philippines Chile Bolivia
blank blank Brazil UAE Qatar
blank blank Mexico Oman Bahrain
blank blank Turkey Morocco Laos
blank blank Egypt China Cambodia
blank blank India Saipan Burma
blank blank China Macau Vietnam
blank blank blank Tunisia Russia
blank blank blank Pakistan No Korea
blank blank blank Sri Lanka Madagascar
blank blank blank Bangladesh Cyprus
blank blank blank E Europe Lesotho
blank blank blank Mauritius Maldives
blank blank blank Zimbabwe Yap
blank blank blank Kenya Fiji

 
Internal
Links

Top
 Outline on  Textile Sweatshops
External
Links
  Sweatshops are shops in which workers are employed under the sweating system 
 
  The sweating system is the industrial method involved in employing workers at low wages, during overlong hours, under unsanitary, in unsafe or otherwise unfavorable conditions, often w/ reference to work let out by contract to middlemen, to be done in inadequate workshops or at the home of the workers 
 
  The archaic meaning of sweat is to exert one's self strenuously, to work hard, labor, or toil 
 
  A sweatshop usually is illegally organized; operates in the underground economy; employs workers at low wages & long hours; operates in unsafe working conditions; uses exploited groups of people such as people w/ no options for other jobs, immigrants, women, & children 
 
  Sweatshops were originally a result of the putting out system, & both were then replaced by the early factory system 
 
  In the core nations, factory conditions eventually improved due to the Labor Mvmt & public outcry from books & exposes such as Upton Sinclair's The Jungle & from workplace tragedies such as the Triangle Fire 
 
  Sweatshops have reemerged in the textile & garment industries in the core nations as a result of the competitive of globalization & as a result of the "unregulation" of much of the economy which was caused by govt downsizing which began under the Reagan admin in the early 1980s   
  In the 1970s there were fewer than 200 garment sweatshops, by the 1980s there were btwn 3,000 & 4,000 sweatshops in NY employing 50 to 70 K workers 
 
  Today sweatshop workers are often illegal immigrants from the Caribbean, Latin Am, & the Orient 
 
  Ross & Trachte, 1983, consider sweatshops to be a vital link in the processes of corp, global capitalism 
 
  Sweatshops have sprung up on the West Coast employing Asian & Latin Am illegal immigrants 
 
  College students have become aware of the roll of sweatshop labor in the production of popular brands of clothing because of such orgs as the United Students Against Sweatshops 
 
  See Also:  United Students Against Sweatshops     www.usanet.org
Link
  Some mfr's such as Nike have responded by establishing regulations limiting sweatshop labor, child labor, unsafe working conditions, & other conditions that core nations would consider to be exploitative 
 

 
Top
 Outline on the  Global Office
 
  The front office is that part of an organization where transactions occur that directly deal w/ the customer   
  Front office transactions include business services such as sales, customer help, complaints, exchanges, etc.  
  The back office refer is the part of an organization where transactions occur that support the function of the organization 
 
  Back office Transactions include routine record keeping, banking, financing & accounting
 
  Front & Back Offices have been separated from the main organizations in major metro areas & moved them to 
     a. On-Shore locations in less developed areas in small town & suburban locations
     b. Off-Shore locations in Peripheral & semi peripheral nations		  
  On & shore offices are made possible by the growth in electronic offices 
This type of growth has expanded in the quaternary sector 		  
  On & off shore offices developed for the same reasons as deindustrialization:
     a.  cheaper labor
     b.  cheaper office space
     c.  less regulation of labor
     d. avoid unionization
 
  Examples of on & off shore offices
 

 
Examples of On Shore Offices
Some places have become specialized in back office tasks
Omaha, NE & San Antonio, TX are centers for telemarketing firms
Roanoke, VA has become a mail order center Sioux Fall, SD:  banking:  Citibank

Wise, Norton, Coeburn, Big Stone
  telecommunications:  Bell So switching center
  telemarketing:  Crutchfield stereo mail order
  Business Services:  Sykes
                                        Dickenson County

Examples of Off Shore Offices
Caribbean:  check clearing & credit card processing
India:  Y2K bug fixes,  software


 
Top
  Outline on   Global Banking & Finance
 
  Globalization of banking & finance:  $  creates  $$  
  1996 estimated a transfer of  $3 - 7 tt / DAY & only 10 % has to do w/ the world economy   
  The movement of $$, bonds, etc. is an end in itself in term of arbitrage, which is the short term trading of financial instruments to gain a short term advantage   
Link
 International finance is dominated by the finance industry in the core countries including the "world institutions" of  
         - IMF  
         - World Bank  
         - WTO  
  There are NINE developmental factors affecting  global banking, including:   
       1.  the institutionalization of savings:  pensions, etc, which established large pools of liquid capital   
       2.  the fact that in 1973 the price of oil rose 4X, creating rich oil nations who found western banks to save it ( imagine if oil rose 4X today to $15 / gal! )   
       3.  the expanded international banking operations of oil rich countries   
       4.  the globalization of manufacturing & trade which meant that global corps needed global banks 24 hrs a day   
       5.  the development of offshore banking centers which responded to the need to launder money & avoid taxes   
       6.  international economic development:  where the core lends $$ to the periphery & semi periphery through the World Bank & private banks such as Morgan & Citgroup & the borrowers incurred huge international debt   
       7.  banking deregulation under Reagan allowed banks to grow in size & enter the stock market in the 1980s   
       8.  the US Trade deficit emerging as a result of oil & foreign goods purchases & created a pool of "Eurodollars" making the $  an international currency   
       9.  the creation of hot money is created by illegal income:  drugs, economic development, gun trade, slavery, & other illegal activities   
  The world economy in the 1970s sees the emergence of global banks 
The US economy was  stressed by Vietnam war
1973 oil rose 4X to $1.00 / gallon +
The US core economy was challenged by the "WW II core" esp Europe &  Japan
By the mid 1980s,  semi peripheral nations, especially Korea, India, etc, develop & challenging the core 		  
  These economic developments caused stagflation: 
  -- A Stagnated economy is called a recession or a depression
  -- Inflation  is the general rise in prices
Economists still do not have healthy way to deal w/ this
Response of core to trade deficit / balance of trade:  printing more $$: is a short term solution:  caused inflation		  
  In 1975 the World's largest banks were spread evenly in the core
US            7            NY    &   LA            Citibank earn 70% from international operations
Europe     13           London, Paris, Berlin, etc.
Japan       10           Tokyo, Osaka		  
  In 1995 the World's largest banks were spread unevenly
US               1        NY:        only Citibank (ranked 30th)
Europe          10                     Comparatively smaller than in the 70s
Japan            18                     Comparatively larger		  
  Financial centers have reaped agglomeration effect in finances:
Location Exhange(s)
NYC Dow   Nasdaq
London Footsie
Paris Dax
Tokyo Neekay
 
  Financial centers are seen as centers of authority w/ critical mass of people in the know about market conditions, finances, etc   
  Financial centers have thus become world cities   
  Several TV stations track business news 24 hrs a day:  CNNfn, MSNBC & the global financial sys now operates 24 hrs a day, 365 days a year   
       "Old world" private banking centers mostly function as havens for the rich & are not into investment for growth  
             - Switzerland  
             - Kuwait  
             - Luxembourg  
             - Liechtenstein  
             - Canton  
       "New world" off shore financial centers  
            - Bahamas  
            - Bahrain
Link
            - Belize
Link
            - Cayman Islands
Link
            - Cook Islands  
Link
           - Costa Rica  
            - Labuan
Link
            - Panama
Link
            - Vanuatu
Link
  The attraction of off shore financial centers is 
a.  a lack of regulations 
b.  low taxes 
c.  no taxes 
d.  being a haven for undeclared income 
e.  being a haven for hot money 		  
  There are discreet mkts in which to deal currencies, bonds, loans w/o the attn of regulatory authorities in core countries such as IRS, etc.  
  $ 300 bb / yr ends up in off-shore centers through tax evasion alone   
  Overall, 60 % of world's cash resides in these pirates coves of finance   

 
Top
  
International finance
      - World Bank
      - IMF:  International Monetary Fund
      - WTO:  World Trade Organization
Violent protests against WTO 
     - in Seattle in 2000
     - in Quebec City in 2001

 
Internal
Links

Top
 Outline on the    Global Auto Industry
External
Links
  DURING THE POST INDL ERA, THE GLOBAL AUTO IND DOMINATES MEANING THAT IN ALL MAJOR NATIONS THERE IS SIGNIFICANT FOREIGN COMPETITION  
  During the 1980s, Japanese companies created over 10,000 jobs in TN  
Blank
 The development of the early auto industry, i.e. pre globalization, was characterized by an industry of small, entrepreneurial businessmen & inventors  
  In the pre globalized auto ind, many carriage makers, bicycle makes & mechanics were early innovators  
  GLOBALIZATION DEVELOPED AS RATIONALIZED PRODUCTION SYSTEMS MATURED   
  The early success of American auto industry is traceable to pioneering efforts in the creation of formally rational systems  
  There were FOUR early innovations in the formal rational systems of the auto ind, including:
a.  bureaucracy, as developed by Weber
b.  scientific management, as developed by Taylor
c.  the assembly line, as developed by Ford
d.  the divisional system, as developed by General Motors:  Sloan
 
  Japanese industrialists transported rational system techniques to Japan   
  General MacArthur & an industrialist named Demming to head the Japanese Ministry of Industry & Technological Innovation ( MITI )  
  Demming also brought QCC's to Japan because the idea was rejected by Am auto makers  
  The Japanese added TWO formally rational systems, which Americans have since adopted, including: 
a.  the just in time inventory system
b.  permanent employment		  
  The Japanese also developed the other three types of rational systems including substantive rationality, intellectual rationality, & practical rationality  
  See Also:  Rationalization  
  a.  Substantive rationality is seen in the Japanese auto ind in that they utilize the value of subordination of the individual to the group & even subordination of the individual to the corporation  
 
 Japanese wkrs were motivated by assembly line controls & group solidarity  
  The Japanese worked hard not only because of the demands of the formally rational assembly line such as surveillance, pay incentives, etc.  
  J wkrs also wanted to advance the interests of their work group & the corporation  
  b.  Intellectual rationality is seen in the Japanese auto ind in that they  created & used more engineers than the US  
  Japanese accorded a significant role to intellectual rationality in the auto industry as a result of their societal value for learning & education  
  c.  Practical rationality is seen in the Japanese auto ind in that they developed QC's to involve line workers in product improvement  
  JAPANESE AUTO MAKERS RATIONALIZED UTILIZATION OF PROFL WKRS ON THE PRODUCTION LINE VIA WKR PARTICIPATION TECHNIQUES   
  Japanese auto developed QC's to involve line workers in product improvement  
  Japanese utilized practical rationality via Quality Circles aka Quality Control Circles  
  Workers meet, usually on their own time & discuss ways to improve production in their day to day activities  
  Developing all 4 forms of rationality means developing systems, corporate values, & hi & low skilled workers  
  Thus, the Japanese utilize the skills of their least skilled workers & their best trained workers  
  Americans have largely ignored both sets of workers, expecting little more than a mindless eight hour work day  
 
 Japanese auto outperformed US auto by developing hyper rational systems while Americans continued w/ formally rational systems  
  Japanese industry exploited all four types of rationality to create a hyper rational system  
  Americans relied almost exclusively on formal rationality  
  Hyper rationality allowed Japanese auto to catch up to & then far outdistance American auto in the 1970s & 80s  
  The US auto inc began to copy some Japanese techniques & so begin to catch up... to a limited extent  
  Hyper rationality in the auto industry was one major factor that allowed it to develop into a global system  
  See Also:   Rationalization & Hyper rationalization  
  See Also:  Globalization  
  The global auto industry produces 40 mm vehicles yearly from 10 global corps  
  GLOBALIZATION OFTEN MEANS MERGERS & BANKRUPTCIES AS FORMER COMPETITORS JOIN FORCES, & SOME PRODUCERS GO OUT OF BUSINESS   
  GM, Ford Toyota, VW, Nissan, Fiat, Peugeot Citron, Honda, Mitsubishi, Renault, Chrysler (which merged w/ Mercedes in 2000)  
  In 1996, the top 41 largest auto mfr's had 244 strat alliances to share parts & establish joint ventures  
 
 Ford Motor Company developed the first global assembly line  
  The Ford Fiesta was the first in series of Fords "world cars"  
  The "World Car"  became a negative selling point during the deindustrialization of the 70s  
  Some Fords are now produced in 15 nations on 3 continents  
  Ford's world car is designed to sell in Europe, So Am, No Am, Asia  
  Ford's world car is assembled in several location from parts manufactured in an even greater number of locations  
  Fiesta followed by Escort, Mondo, Contour  
  Escorts are made & assembled in 15 countries in 3 continents  
  Ford's international subsidiaries once were independent, now are functionally integrated  
  See also:  Fordism  
  Volkswagen's global assembly line produces in 16 nations on 5 continents  
  The Rabbit / Golf, which has been in production since 1975, uses hub model w/ the main plant in Wolfsburg, Germany  
  VW sends parts for the Rabbit / Golf & finished vehicles to:
VW Canada  VW Autolatina, Brazil VW Nigeria, Africa  VW Japan 
VW No Am in Penn VW Autolatina, Argentina VW So Africa Also expanding to Delhi, India
VW of Mexico  VW Brussels  VW Shanghai, China 
 

 
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Outline on the   Global Assembly Line
External
Links
  The international division of labor makes the global assembly line possible 
Link
  Most global corporations are conglomerates who produce a variety of products 
Link
  In 1973, global stagflation, a combination of stagnated a economy (recession) & inflation, resulted as OPEC raised oil prices   
  As of the 2000s, there has never been another case of global economic woes   
  In 73, global strategies did not seem so efficient   
  Global commodity chains are global networks of 
-  labor 
-  raw materials 
-  production processes
-  markets 
which results in delivery of finished product 		  
  Commodity chains have grown longer, into global dimensions   
  There are FOUR advantages of global assembly lines   
  1.  One advantage of a global assembly line is that standardized global production maximizes the economies of scale   
  Corporations push the creation of global, standardized markets   
  2. One advantage of a global assembly line is the utilization of least cost methods   
  Wages in core countries  are 25 to 75 times the wages in peripheral countries 
$50,000 = $25 / hr in core 
    2,000 =     1/hr in periphery 		  
  Thus production assembly can be done where labor is cheapest, while accounting for nearness to raw materials & markets   
  3. One advantage of a global assembly line is that mfrs gain independence from single source suppliers   
  Today business to business e-bidding is the fastest growing sector of internet   
  Business to business e-bidding was hailed by the then Fed Reserve Chairman Alan Greenspan as a great efficiency creator   
  W/ business to business e-bidding, corp's put a bid on the internet for the cheapest product or service   
  Corps used to have loyalty to suppliers, but that is fading   
  4.  One advantage of a global assembly line is that strategic alliances are possible   
  Global assembly lines have FOUR advantages, including:   
  a.  allowing transnational corps to link up w/ local "insiders" to tap into local markets   
  b.  quick, inexpensive means to exchange info about technology, products, & processes   
  c.   the reduction of the costs of product development   
  d.  spreading out the costs of market research   
  Peripheral govts encourage subcontracting to their nation's businesses   
  Peripheral govts  offer incentives to transnational corps including: 
-  tax holidays 
-  export processing zones (EPZ's) 
-  minimization of govt bureaucracy 
-  no foreign exchange controls 
-  plentiful factory space, etc. 		  
  The US & the World Bank back regimes that support globalized production & have pushed for austerity programs to make labor cheap in peripheral countries   
  The desire of many peripheral countries is to follow path of economic development from labor intensive industry to capital intensive, hi tech goods as have Singapore & So Korea   

 
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 Outline on the  Steel Industry & Globalization
External
Links
  Lack of investment is a major problems in the US steel industry which is compounded because said lack of investment is not only a lack of response to global competition, it is a negative response to global competition 
 
  W/ few competitors after WW 2, US steel used their profits to build conglomerates, i.e. buy firms in unrelated industries to diversify a corp's investments 
 
  US steel conglomerated rather than upgrade & expand their steel capacity because like US automakers, they did not take the threat of foreign competition seriously 
 
  US Steel Corp (USS), conglomerated & became USX 
 
  USS made all of its profits from steel or integrated functions, but today makes only 11% of its operating profits in steel 
 
  See Also:  USX            www.usx.com 
Link
  USX systematically shifted operations to other areas, including oil exploration, chemicals, & real estate (Shorrock, 1983) 
 
  As a result of conglomeratization & the lack of investment in steel production, the Am steel industry operates w/ outdated tech, & dilapidated equipment 
 
  "Vintage capital" & tech performs poorly against new tech in German, Japanese, Korean, etc. steel production 
 
  Since WW 2 Germany & Japan built new, "greenfield" operations 
 
  The Germans, Japanese, et al have also outpaced Am mfr in new tech as well as in participatory workplace relations 
 
  For many leaders in govt, the military, & industry, the loss of Am steel production capacity is especially disturbing because steel production is a foundation for both industry in general, & for the national defense 
 
  Dependency on foreign steel puts a country in the same position as dependency on foreign oil in that a nation can be held hostage to foreign production & price gouging 
 
  In a war situation, a nation that is dependent on foreign steel would be extremely vulnerable 
 
  W/ respect to steel, the US is now vulnerable to foreign steel price control & to war time boycotts 
 
  Employment in Am steel declined from 450,000 in 1977 to 200,000 by the 1990s & has slowly declined since then 
 
  By 1990, the largest producer of steel was no longer USS, it was Nippon Steel of Tokyo, Japan 
 
  Nippon Steel produces 2.5 times as much steel as USX 
 
Link
 The Table on Steel Producers, 2006 shows that the US has only one firm remaining in the top ten 
 
Link
 The Table on Steel Producing Nations, 2005 shows that the US remains one of the largest steel producers, w/ about 1 / 8th of the steel of the top 10 producers & about 8% of the world total   
Link
 The Table on Out of Business Steel Producers, 2006 show that the US has lost many good firms   
  One successful method of meeting global competition is to produce specialty products that can out compete foreign corps   
  W/ the decline of USX & other large steel producers in the US, smaller firms called mini mills emerged, specializing in various steel products   
  Mini mills & small firms are more able to utilize new physical tech & new participatory workplace relation   
  Mini mills are more flexible, utilize rapidly changeable tech, & have the empowered workforce to adapt to new mkts & using tech in new ways  
  Women have made progress in the steel industry even in the face of declining employment  
  Women in steel report less sexual harassment than women in traditionally female occupations (Deaux & Ullman, 1983)  
  One reason that women experience less sexual harassment in traditionally male occupations as steel is that women work w/ men & peers & peer relations, team work, etc. builds respect & solidarity among participating members  
  For example, female clerical workers are supervised by male mgrs, & subordination in work roles encourages sexual harassment  
  While most women in steel work as peers w/ men, some 20% are janitors & other lower level occupations, & are thus subordinate to men & more likely to experience sexual harassment  
  Thus, while the gender barrier is broken in steel, occupational gender segregation w/in the industry remains a problem  

 
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The Table on Steel Producers, 2006
Wiki
 
Company Name
mm Tons Produced
Nation
1.
 Arcelor-Mittal
109.7
Global
2.
 Nippon Steel
32.0
Japan
3.
 POSCO
30.5
South Korea
4.
 JFE
29.9
Japan
5.
 Tata Steel-Corus
28.2
India
6.
 Shanghai Baosteel Group Corporation
23.8
China
7.
 United States Steel Corporation
19.3
United States
8.
 Nucor Corporation
18.4
United States
9.
 Riva Group
17.5
Europe
10.
 ThyssenKrupp
16.5
Germany
11. Tangshan
16.1
China
12. Shagang Group
14.6
China
13. EvrazHolding
13.9
Russia
14. Gerdau
13.7
Brazil
15. Severstal
13.6
Russia
16. Sumitomo Metal Industries
13.5
Japan
17. SAIL
13.4
India
18. Wuhan Ironn and Steel
13.5
Japan
19. Anshan
11.9
China
20. Magnitogorsk
11.4
Russia
21. Shougang
10.5
China
22. Jinan
10.4
China
23. Laiwu
10.3
China
24. China Steel
10.3
Taiwan
25. Maanshan
9.6
China
26. Imidro
9.4
Iran
27. Techint
8.7
Latin America
28. Usiminas
8.7
Brazil
29. Novolipetsk
8.5
Russia
The Table on Steel Producers shows that the US has only one firm remaining in the top ten

 
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The Table on Steel Producing Nations, 2005
IISI
 
Nation
mm Tons Produced
1.
 China
349.4
2.
 Japan
112.5
3.
 United States
94.9
4.
 Russia
66.1
5.
 South Korea
47.8
6.
 Germany
44.5
7.
 Ukraine
38.6
8.
 India
38.1
9.
 Brazil
31.6
10.
 Italy
29.3
11. Turkey
21.0
12. France
19.5
13. Taiwan, China
18.6
14. Spain
17.8
15. Mexico
16.2
16. Canada
15.3
17. United Kingdom
13.2
18. Belgium
10.4
19. South Africa
9.5
20. Iran
9.4
 
Total: 
1003.7
 
World Total:
1,131.8
The Table on Steel Producing nations, 2005 shows that the US remains one of the largest steel producers, w/ about 1 / 8th of the steel of the top 10 producers & about 8% of the world total

 
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The Table on Out of Business Steel Producers, 2006
Wiki
 
Company Name
Nation
1.
 Bethlehem Steel (Assets bought by ISG in 2003, which merged w/ Mital, now Arcelor Mittal
US
2.
 British Steel (merged w/ Koninklijke Hoogovens (NL)  in 1999 to form Corus)
UK
3.
 Cockerill-Sambre
FR?
4.
 Hoesch Stahl AG
Ger
5.
 Koninklijke Hoogovens (merged w/ Koninklijke Hoogovens (NL)  in 1999 to form Corus)
NL
6.
 National Steel Corp
US
7.
 Republic Steel
US
8.
 Weirton Steel  (was a cooperative)
US
9.
 Youngstown Sheet & Tube
US
10.
 Northwestern Steel and Wire
US
The Table on Out of Business Steel Producers show that the US has lost many good firms

 
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 Outline on the  International Division of Labor
External
Links
 
 The division of labor is workplace relationship where different workers carry out different steps in producing a product or the specialization of work tasks, by means of which different occupations are combined w/in a production system 
 
  THE IDOL IS THE PARTITION OF WORK TASKS AMONG NOT ONLY WORKERS, BUT ALSO REGIONS & NATIONS   
 
 The international division of labor (IDOL) is simply the workplace relationship where the differentiation of production steps & specialization of work tasks is carried out in different nations around the globe   
 
 The international division of labor has always existed, but evolved rapidly on EIGHT fronts since the late 1950s 
 
 
 There are TEN FEATURES of the IDOL including: 
1.  the decline of the US 
2.  deindustrialization & globalization 
3.  producer services 
4.  globalization of consumer mkts 
5.  trade blocks 
6.   supra natl corps 
7.  NGOs
8.  hi tech 
9.  harm to some in core nations 
10. harm to some in non core nations 		  
 
 1.  THE US HAS DECLINED AS AN INDUSTRIAL, ECONOMIC, & POLITICAL POWER RELATIVE TO THE REST OF THE CORE NATIONS
 
 
 The US has declined because of loss in economic power because of our military adventurism, unwise strategic political & econ decisions, & growing intl competition 
 
 
 The US spends more on its defense than the rest of the world combined   
 
 The US has gained & lost power in various spheres such as: 
-  the gain of power in the form of global western culture 
-  the collapse of the USSR & its transformation into Russia & other nations 
-  the ascendancy of Euro & Jap as powerful econ competitors 
-  militarily the rise of our techl prowess but limited success, failure, in regional wars 
 
 
 2.  THE INTERNATIONAL DIVISION OF LABOR HAS OCCURRED VIA DEINDUSTRIALIZATION & GLOBALIZATION
 
 
 Mfr production has been decentralized & transferred, beginning in the 1970s, from core to peripheral countries 
 
 
 One reason for the IDOL & deindustrialization is cheaper wages in non core nations 
 
 
 See CG OH Figure 2.20  International differences in wages 
 
 
 The mvmt of mfr jobs to non core nations is called deindustrialization by US intellectuals & it signifies that US lost industry to the periphery 
 
 
 Deindustrialization is the relative decline in industrial production & employment in core regions as a result of the development of information technology & the export of traditional industries to semi peripheral & peripheral nations   
  See Also:  Deindustrialization   
 
 The processes of the IDOL & deindustrialization are part of a larger phenomenon called globalization, which is occurring at all levels of social structure & culture including, as discussed here, the econ sector, but also including politics, culture, religion, & more   
  Globalization is the interconnectedness of different parts of the world through economic, environmental, political, cultural, etc. convergence ( change )   
  See Also:  Globalization   
  3.  PRODUCER SERVICES ARISE & REPLACE THE CORE MANUFACTURING CORE INDUSTRIES   
 
 Producer services arise, such as info analysis, insurance, mkt research, banking, etc., which have replaced mfr in core, which are easily & profitably subject to the development of the IDOL & outsourcing 
 
 
 Global trade, which is a service, has grown even faster than global production 
 
 
 International finance is one of the fastest growing services 
 
 
 See Also:  Global Banking   
  4.  THE GLOBALIZATION OF CONSUMER MKTS BOTH CREATES & FULFILLS INTERNATIONAL GLOBAL CONSUMER TASTES   
  The US mkt. is now accustomed to foreign goods (after 20+ yr.), & the rest of world is moving that way   
 
 5.  THE CORE & SEMI PERIPHERY ORGANIZES INTO TRADE BLOCKS AS OPPOSED TO THE OLD POLITICAL BLOCKS DURING THE COLD WAR 
 
 
 Some major trading blocks include: 
NAFTA:    No. Am Free Trade Agreement 
EU:            European Union 
ASEAN:   Assoc. of SE Asian Nations 
 
 
 See CG OH 2.26  Tripolar Cores 
 
  6.  SUPRA NATIONAL CORPS DEMONSTRATES THE DISCONNECT BTWN CORP & NATIONAL INTERESTS  
 
 The development of the supra national corporation heralds the disconnect btwn corp & national interests as corps define their interests as being independent of any national interest 
 
  In the past, many corps had followed Henry Ford's famous dictum, "What's good for Ford is good for America," but today this no longer holds   
  7.  NGOs ARE ESTABLISHING GLOBAL LAW & REGS, AS A NASCENT 'WORLD GOVT' DEVELOPS   
 
 Other global organizations, so called non governmental orgs (NGOs) are becoming more powerful & are serving to develop some level of regulation over both political & economic adventurism      IMF    WTO    UN   World Bank   GATT 
 
  8.  HI TECH & THE IDOL COMBINE TO MAKE THE GLOBAL ECON A REALITY   
  The six major hi tech firms in MA, for example, employ 28% of their wkforce overseas   
  Advanced tech contributes to an unequal occupation distribution made up of a few highly paid jobs & an increasing share of poorly paid, relatively alienating jobs   
  Hi tech jobs are esp easy to outsource internationally & thus are subject to the IDOL   
  One example of hi tech & the IDOL is in the growing industry of hi tech service call centers in that these centers are increasingly found in foreign nations, esp India & Puerto Rico   
  In 2004, US firms employed about 7 mm wkrs overseas, 80% of whom were in mfr jobs   
  Pay for apparel jobs in 2002 averages about $10.06 per hr. in the US; $4.49 in Hong Kong; & $0.15 in Indonesia   
 
 9.  CRITIQUES OF THE IDOL IN RELATION TO CORE NATIONS ARE THAT IT HURTS THE MC, CREATES TRADE & OTHER ECON PROBLEMS, FOSTERS CONSUMERISM, & IS ENVLY UNSUSTAINABLE
 
 
 For workers there is competition w/ low wage workers 
 
 
 For the economy there are many "technical problems" 
 
  For the consumer there are product problems   
  In core countries, workers expect rising unemployment & wage inequality   
  The higher level of unemployment makes workers hostile to foreigners creating dysfunctional levels of xenophobia, ethnocentrism, nationalism, & isolationism   
  At the national level, there 
-  are balance of trade problems 
-  are dependencies on foreign nations for critical goods such as oil, electronics, etc. 
-  is the exportation of pollution 		  
  10.  CRITIQUES OF THE IDOL IN RELATION TO NON CORE NATIONS ARE THE SAME AS THE CORE NATIONS W/ THE ADDITION OF EXPLOITATION AT THE INDIVIDUAL & NATL LEVELS   
  At the consumer level, there are: 
-  unsafe products:  e.g. pesticide, radiation, etc. 
-  unethically produced products resulting from child labor, slaves, sweat shops, & more 		  
  At the wkrs level, there are: 
-  stagnate wages as compared to core nation's wages 
-  hi levels of exploitation by multi national corps 
-  low safety standards 
-  low levels of worker rights because there is little unionization, or procedures to resolve grievances, sex harassment, etc. 		  
  At the national level there is 
-  increased pollution
-  the need to meet corp demands or face deindustrialization 		  
  At the consumer level, the local people: 
-  cannot buy the products they produce 
-  lose indigenous small businesses as foreign competitors move in 		  

 
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 Outline on  Trade Policy
External
Links
 
 Protectionism is a trade policy that denotes that many countries need protection against price competition from products produced cheaply in other countries due to their comparative advantages or due to low wages, lack of workplace safety, or exploitation of the environment 
 
 
 Free trade is a trade policy that denotes that there should be not laws or regulations limiting trade in any manner because ultimately the mkt itself should regulate who produces what products & services, & who consumes what products & services 
 
 
 Fair trade is a trade policy that denotes that free trade should be permitted subject to rules about the labor & environmental practices 
 
 
 Critics of free trade hold that: 
 
  - core countries ultimately benefit from globalization because they can sell more of their products abroad   
  - globalization causes increased exploitation of local workers in many non core countries because multinational corps. have greater power than even many non core nation's govts   
  - core workers must compete w/ non core workers where wages are much lower, & are often not even a living wage   
  - because of low wages, unsafe working conditions, lack of envl protection & job loss in core countries, everyone loses except the owners of capital   
 
 Critics of protectionism hold that protectionism: 
 
  - makes the protected economies inefficient & only forestall the inevitable effect of globalization at which time the protected nations will be in worse condition than before protectionism  
  - often leads to retaliatory restrictions on US exports ot other countries, thus depriving US corps of markets  
  - leads to reduced productivity & higher prices in the US   
  - denies US consumers the cheapest goods  
  - makes US producers, especially the oligopolistic producers, less competitive & efficient in the long run  
 
 Critics of fair trade hold that fair trade is just protectionism in disguise
 
 
 SUPPORTERS OF FAIR TRADE ADVOCATE A WORLD MKT W/ ECON DEV & W/O HUMAN & ENVL EXPLOITATION  
 
 Supporters of fair trade hold that their purpose is to level the playing field as guided by principles that are different from those of protectionism
 
 
 Supporters of fair trade hold that 
 
 
 - global mkts should be established & equalized over a period of decades not years
 
 
 - all nations should, at a minimum, pay a living wage 
 
 
 - all nations should have safe workplaces
 
 
 - all nations should require protection of the env
 
 
 - child labor should be closely regulated & slave, & indentured labor should be prohibited
 
 
 - the ultimate conditions of free trade should create a level playing field based on fundamental workplace rights
 
 
 Despite the negative effects of globalization & free trade on non core countries, many of their govts. & many of their workers believe that efforts to restrict free trade is an effort by core countries to maintain a monopoly over world econ production
 
 
 The non core countries see the efforts by the core to demand envl protection in their economy, to demand workplace safety, to prevent child labor, etc. are all meddling by the core
 
 
 Thus, in general non core countries want free trade, but labor advocates point out that the workers are frequently given the choice of non living wage, unsafe jobs, or no jobs
 

 
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An Overview of  Fordism by Simon Clark
External
Links
  THE WESTERN ECON HAS TRANSITIONED FROM FORDISM TO A POST FORDISM MODEL, I.E. FROM A MASS INDL SYSTEM TO A SMALL BATCH, FLEXIBLE INDL SYSTEM  
  -  Summary:  Clark explores the transition from the Fordism to post Fordism industrial models by exploring the changing patterns of production, distribution, & consumption in urban societies during the last decades of the 1900s   
  Clark believes there have been shifts in the modern economic base   
  Clark refers to two phases of the modern economic base as Fordism & post Fordism   
  Many theorists agree that society has transitioned from Industrial to Post Industrial Society   
  Many theorists agree that society has transitioned from Modern to Post Modern Society   
  The various classifications given to the transformation of society today indicates that the transition is incomplete, theorists do not agree on the nature of the transition, and that the nature of the transformation is not totally understood   
  FORDISM HAS THE QUALS OF MASS PRODUCTION OF COMMODITIES, BY A BLUE COLLAR MID CLASS WHO PROVIDED A MASS MKT  
  Clark posits that there are THIRTEEN qualities of Fordism   
  1.  mass production   
  2.  homogenous products   
  3.  inflexible technology such as w/ the traditional assembly line   
  4.  Taylorism, including the standardized work, etc.   
  5.  economies of scale   
  6.  deskilling, intensification & homogenization of labor   
  7.   "mass worker" & bureaucratized unions   
  8.  uniform wages tied to profits & productivity   
  9.  an expanding market for homogenized products & consumption   
  10.  unionization create rising wages which creates increasing demand   
  11.  Keynesianism, i.e. demand mgt   
  12.  the labor market regulated by collective bargaining & federal govt   
  13.  mass education for mass production   
  POST FORDISM HAS THE QUALS OF SMALL BATCH, FLEXIBLE PRODUCTION BY AN EDUCATED BLUE & WHITE COLLAR MID CLASS TO A DIFFERENTIATED MKT  
  There are TEN qualities of post Fordism:   
  1.  falling interest in mass production; increasing interest in specialized production   
  2.  shorter production runs; smaller & more productive systems   
  3.  flexible production via new technology   
  4.  new technology which creates skilled, more autonomous workers, etc.   
  5.  production controlled by flexible systems   
  6.  huge, inflexible bureaucracy shifting to increasing flexibility   
  7.  bureaucratic unions & political parties transforming themselves to adjust to differentiated labor   
  8.  decentralized collective bargaining   
  9.  differentiated workers fill the demand for differentiated products, lifestyles, etc.   
  10.  centralized welfare state transforms itself to provide education, medical, etc. support   
 
 Fordism is part of the rationalization of the economy, utilizing formal or bureaucratic rationality   
 
 Fordism is similar to McDonaldization except that the later utilized hyperrationality   
 
 Fordism & McDonaldization contribute significantly to globalization   

 
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Simon Clark 
19  -  19 

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Major Works 

Simon Clark: "The Crisis of Fordism or the Crisis in Social Democracy" 


 
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Chart on a  Socio Historic Analysis
External
Links
  1.  Geologic Era 5 bb BP -
5 mm BP		   Earth forms 
Early primates evolve		  
  2.  Pre Human 
     Evolutionary Era		 5 mm BP -
1.5 mm BP		 Old Stone Age
Early primates		  Pre Human Ancestors  
  3.  Hunter Gather Era 1.5 mm BP -
10 K BC		 Middle Stone Age
Early humans		 Equality:  99 % of human existence has occurred in H-G society
Sexism & Racism has existed for less than 1 % of human existence		  
  4.  Pre Empire Era 10K BC - 
3 K BC		 New Stone Age
Civilization dawns
First Ag & villages		 Patriarchy & Sexism began
Agriculture begins, allowing the production of surplus		  
  5.  Early Empires Era 3 K BC - 
200 BC		 Bronze Age, Mesopotamia,
Egypt, Greece, 
China, etc.		  The first empires form
Ag transforms from Pastorialism & Horticulture to herd mgt. & agriculture		  
  6.  Roman Era 200 BC - 
500 AD		 Rome rules the West;
China, India rule the East		 Limited forms of democracy occur
The practice of colonization develops		  
  7.  Middle Ages 500 AD - 
1300 		 Fall of Rome;
Rise of Persia & Ottoman Empire
Crusades
Ends w/ the Enclosure		 Modern form of Racism began
Wallerstein & WST holds that globalization begins w/ the Age of Exploration
Proto factories & the div of lab dev		  
  8.  Early Industrial Age 1300 - 
1700		 Renaissance
Reformation
Enlightenment
Industrial Revolution		 Early water power; steam power; railroads
The development of ag has biggest transformation since Early Empire Era		  
  9.  Industrial Age 1700 -
present		 American & French Revolutions Rise & fall of smokestack industries; deindustrialization; globalization begins  
  10.  Era of
       Global Capitalism		 1910 - 
present		 WW1
WW2		 True global corporations emerge  
  11.  Post Industrial Age 1970 - 
present		 Service, Info, High Tech economies  Deindustrialization has a major impact on the developed econs  
  12.  The Future   What's next? Biotech Age?  Democratic Age?  Robot Age?   

 
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External
Links
Summary of an Socio Historical Overview
Approximate Time Period
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1.  Geologic Era   5 bb  BP -  5  mm BP  
2.  Pre Human Evolution   5 mm BP - 1.5 mm BP  
3.  Hunter Gatherer Society   1.5 mm BP - 10 K BC  
4.  Pre Empire Civilization   10 K BC - 3 K BC  
5.  Early Empires Era   3 K BC - 200 BC  
6.  Roman Era   200 BC - 500 AD  
7.  Middle Ages   500 - 1300  
8.  Early Industrial Age  1300 - 1700  
9.  Industrial Age 1700 - present  
10. Global Capitalism 1910 - present  
11. Post-Industrial Society 1970 - present  

 
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Socio Prehistorical Time Line:  5 billion BP to 1,000 BP
  The earth's origins begins w/ the planet's origins 5 bill yrs BP & indicates that another full billion yrs passed before the earliest forms of life appeared  
  Our human origins shows that plants & animals continued to evolve for billions more yrs until, about 12 mm yrs ago, our earliest human ancestors came onto the scene  
  During the period of the earliest civilization, it is apparent that what is called civilization is a relatively recent event, w/ the 1st permanent settlements occurring in the Mid East a scant 12,000 yrs ago  
  The written record of our species' existence extends back only half this long, to the time human invented writing & first farmed w/ animal driven plows, some 5 
k BP		  
  Sociology came into being in the wake of the many changes to society wrought by the Industrial Revolution over the last few centuries  
  The modern era is characterized by innovations in social & physical technology  
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Socio Historical Time Line:  1775 to Present






 
Internal
Links

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  Outline on the   Industrial Age    circa 1700 - present
External
Links
  -  Video:  October Sky 
Link
  -  Project:  Stratification & October Sky 
Link
   - Introduction:  During the industrial age, in the core countries the economic base became totally industrialized, while agriculture & other economic systems waned  
  The previous era, the early industrial age, ( circa 1300 - 1700 ) saw the birth of capitalism  
Link
 The Chart on the Characteristics of Stratification System of the Industrial Age demonstrates a system w/ a high level of equality and social mobility
 
  Class society emerged w/ the industrial revolution as the agricultural base transformed into an industrial base & became fully developed in the industrial age, i.e. many classes exist
 
  In the industrial age, mobility is based on merit/achievement but significant ascription is still present  
  In the industrial age, there is a normative stress on equality, though the level of equality varies widely  
  Legitimation in industrial society is based on the belief that equal opportunity exists & that the merit system works  
 
 THREE historical events impact the development of world system during the industrial age including the:
  a. Industrial Revolution
  b. French Revolution
  c. independence of European colonies
 
  During the industrial age, uneven development continued and England advanced & became the dominant core country  
 
 The class system develops fully in the industrial era into the multiple classes of the upper class, the middle class, & the lower class  
  During the industrial age, the middle class becomes a political force in conflict w/ the upper class   
  See Also:    Class   
  There were THREE industrial waves in Europe that were based on technological development & the class system in that the technology was available primarily to the upper & middle classes  
  Today we call the class division of information technology (computer) availability "the great divide"  
Link
 The Table on Industrial Waves, which occurred primarily in Europe & marginally in the US, describes the development of industrial technology  
 
 The US made rapid development to core status because of the social, political, & geographic factors including that
 
  a. natural resources were relatively untouched in the US  
  b. there were few political boundaries to fragment development  
  c. these factors attracted immigration which created rapid population growth which increased  market demand & the availability of workers' skills  
  d. cultural & trading links w/ Europe helped the US  
  e. manufacturing belt spread west from Boston, NY, Baltimore to Chicago  
 
 Industrial waves also occurred in Japan
 
  In 1868 a revolution placed the Meji in power & they launched a successful modernization program  
  Other modernization programs succeeded, at great personal cost, in Russia beginning in the 1930 and in China beginning in the 1960s  
  WW1, The Great War, allowed Japan to grab market share in textiles, ships in Asia & Latin America & thus become a core power  
 
 The development of ocean shipping, especially metal hulls, advanced international trade & labor division
 
  By WW1 there were regular ocean trade routes & schedules and trade was widening & switching patterns  
 
 Automotion created a revolution in transportation & agriculture
 
  Cars, trucks, roads, tractors each created their own industry  
  There was a vast expansion of automotion industries starting in 1945 & continuing today  
  Automotion enhanced urban growth, & resulted in the decline of the rural population  
  In the US in the 1950s, Eisenhower begins interstate system  
 
 Pax Britainia, "The sun never sets on the British Empire." indicates that Britain ruled as a sole superpower through WW1
 
  Britain had competition from German, France, the Netherlands, & Japan over territorial & commercial domination of the periphery  
  Britain was top dog of the core; a sole superpower  
  Peace reigned when the balance of power was maintained  
  War ensued when the balance of power failed  
  Core nations competed via militarism, administration, & economic dominance  
 
 The final quarter of 19th Century saw a 2nd wave of imperialism in the competition over control of Africa & other corners of the world such as SE Asia
 
  Btwn 1880 & 1914, the Europeans sliced the periphery into a patchwork of colonies   
  As the Europeans sliced up the periphery into colonies, there was no regard for existing mini systems & empires  
 
 Europeans colonized an area 3 times the size of the US
 
 
 The Berlin Conference, 1885-6, established “rules” for European powers over colonization including that nations will
a.  give a notice of intent to colonize
b.  live by the rule that occupation equals sovereignty
c.  settle disputes by arbitration
 
  Africa was divided into zones of commodification of industrial, agriculture, & mining production, & subsistence agriculture to produce labor  
  In the 1990s, recent conflicts in Sudan & Rwanda are the result of independent groups vying for power w/in a boundary as establish. by Europeans at turn of century  
 
 The periphery in the industrial age retains the same characteristics even though everything else has changed
 
  Africa & other sectors of the globe made up the periphery  
  The core needed the labor & resources of the periphery to develop  
 
 Colonies specialized when there was demand in the core, the colony had a comparative advantage, & the colony did not compete directly w/ a core country
 
  Bismarck of Germany launched the "Sporting Wars" which were characteristic of European colonization around the world  
 Link
 The Table on US Size indicates that from 1870 - 1900 European powers colonized an area over three times the size of continental US
 
  The Euros colonized   10 mm square miles which was 20 % of land surface of Earth  
  The Euros colonized 150 mm people into their empires which included 10 % of the world's population  
 
 Gender relations in the industrial age result in women gaining equality 
 
 
 Gender relations in the industrial age are advanced by the intelligencia of 1st Wave Feminism  
 
 Gender relations in the industrial age are advanced by the women voters of the Suffragettes  
 
 Gender relations in the industrial age are advanced by the working women the Depression Era & WW 2 Women  
 
 Race relations in the industrial age became transformed as slavery was eliminated in most industrialized nations, but powerful vestiges of racism remained  
 
 The next era is the age of global capitalism ( 1910 to the present )  

 
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Chart on the Characteristics of the Stratification System of the Industrial Age
PW
Type of System Ranks Placement Legitimation Basis of Ranking Equality
Primitive open achievement tradition status hi equality
Slavery generally closed ascription legal/racism economic hi inequality
Caste closed ascription religion status hi inequality
Feudal generally closed generally ascription legal/religious economic highest inequality
Class open mostly achievement legal economic / bureaucratic low to medium
Post-industrial open mostly achievement legal economic/bureaucratic low to high

 
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Table on Industrial Waves, which occurred primarily in Europe & marginally in the US
PW
The Golden Triangle of London, Paris, Berlin developed during the Industrial Age
1790 - 1850 water power, steam power, cotton, iron, textiles, canals, & turnpikes
1850 - 1870 coal steam, steel, machine tools, steam ships, Rail Roads, world shipping
1870 - 1914 electricity, telecommunications
1890 - 1950 internal combustion engine, oil, plastics, electricity, aircraft, radio & telecommunications
1950 to  present nuclear power, aerospace, electronics, chemicals, interstates, global air travel
1990 to  present solar, robotics, microelectronics, biotech, advanced materials, information technology, internet

 
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Table on US Size: Europeans colonized an area three times the size of the US
PW
U.S. 3,618,770 square mi 2,316,012,800 ac 2.3 bb ac
AK     591,004 square mi     378,242,560 ac   .378 bb ac
US - AK  3,027,766 square mi  1,937,770,240 ac 1.9 bb ac

 
Internal
Links

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  Outline on  Global Capitalism circa 1910 to present
External
Links
  GLOBAL CAPITALISM IS A ECON SYSTEM WHERE CORPS ARE TRULY TRANS NATIONAL, OPERATING ON A GLOBAL SCALE, & NOT SIGNIFICANTLY LINKED TO ANY NATION STATE OR MKT   
  The previous era, the industrial age, ( circa 1700 - present) saw the development of modern capitalism  
 
 In the era of global capitalism, this economic system, accompanied w/ the development of technologies w/ a global reach, became truly global in scope reaching to the farthest corners of the planet
 
 
 The Chart on the Characteristics of the Stratification System of Global Capitalism demonstrates that this system has a wide range of equality, w/ some regions w/ high equality & other regions w/ low equality
 
 
 During the era of global capitalism, Pax American replaces Pax Britannia
 
  After WW 2, the US emerged as the dominant state  
  The seeds of the Cold War are planted during WW2, sprout in the 1940s and by the late 1950s, the Soviet Union was a superpower w/ equal status to the US  
  Decolonization started in the 50s and smoothed out in 60s, but was complicated by the cold war  
  The Cold War creates neo colonialism  
  Neo colonialism is an economic & political strategy whereby the colonizers indirectly gain/maintain influence in the periphery via  
  a.  international financial regulations  
  b.  commercial relations  
  c.  intelligence operations  
  d.  international corporate imperialism via transnational corporations which established overseas subsidiaries  
 
 Corporate imperialism is the process whereby nations or regions are dominated & controlled economic rather than military force
 
  THE MAJOR CORPS ARE MORE POWERFUL THAN 3 / 4s OF NATIONS  
  By the mid 90s, 40,000 transnational corporations, of which 90% are headquartered in the US, had 180,000 subsidiaries w/ $6 trillion in sales, which is equal to the US's total output  
  International corporate imperialism exercises considerable power, & frequently adversely affecting the periphery  
 
 -  Supplement:  The Fortune 500, 1998,  1 - 50
Link
  -  Supplement:  The Fortune 500, 1998,  51 - 100
Link
  -  Supplement:  The Fortune 500, 1998, Overview of GM
Link
 
 -  Supplement:  The Fortune 500, 2000, 1-50
Link
  -  Supplement:  The Global 100, 1998, 1-51
Link
 
 -  Supplement:  The Global 100, 1998, 51-100
Link
  -  Resource:  The Table on a Comparison of Corporations' & Nations' Income, 2005
Link
  The Table on a Comparison of Corporations' & Nations' Income, 2005, demonstrates that of 500 corps & 181 nations: 
                -  the top   10 corps are larger than 140 nations 
                -  the top 200 corps are larger than 100 nations 
                -  the top 500 corps are larger than   80 nations		  
  FIRST WORLD NATIONS (US, EURO, JAP), & THEIR CORPS, ARE CONSTITUTED BY 1 / 3 OF WORLD POP, & THEIR ECONS ARE IMPACTING SECOND WORLD NATIONS; LEAVING ONLY SOME THIRD WORLD NATIONS OUTSIDE OF GLOBALIZATION   
 
 "The Gulf Widens btwn the Fast & Slow Worlds"
 
 
 The catch phrase on the fast & slow worlds means that the gap in income & quality of life btwn the rich & the poor in the core & peripheral nations increased by three btwn the 1960s & 1990s
 
 
 An example of "the gulf" is that 5% of world has 40% of telephones
 
  An example of "the gulf" is that 10% of the world uses 90% of its resources  
  Does the fast world, western culture, affect entire world?   
  The fast world now encompasses everywhere, but not everybody...   
  An example of the pervaisiveness of the fast world is that poor Mexicans are aware of details of international soccer, music, film, fashion, etc.  
  An example of the pervaisiveness of the fast world is that poor Appalachians are aware of details of NASCAR racing, music....  
  Even in the fast world, the core, there are significant regions of the Slow World, i.e. regions that have peripheral economic development  
  The next significant historical era is the post industrial age, circa 1970 - present  
  See Also:  Globalization  
  See Also:  International Division of Labor  
  See Also:  Gender & global capitalism  

 
Internal
Links

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A Socio Historical Overview of the  Post Industrial Age  circa 1970 to Present
External
Links
  -  Project:  Your Experience of the Post Industrial Age 
Link
  -  Project:  Your Experience of the European Model 
Link
 
 Introduction: During the Post Industrial Age, the economy shifted from basic industry to services & high tech jobs
 
  The Post Industrial Age may be seen as a product of both the Industrial Age & the Era of Global Capitalism in that industry matured, resulting in the development of the service & the high tech sectors, and the deindustrialization of the core, i.e. movement of basic industry to the periphery, & the globalization of all facets of society, e.g. the economy, culture, etc.  
 
 The previous era, the Era of Global Capitalism, ( 1910 to the present ) created many of the conditions that came together to herald the Post Industrial Age  
Link
 The Chart on the Characteristics of the Stratification System of the Post Industrial Age indicates that the ranking system is open, placement is based on achievement, legitimation is based on the culture of law ( "the rule of law" ), the basis of ranking is accomplished through a bureaucratized state capitalist, economic system, & the range of equality is broad, running from low to high  
 
 There are 10 fundamental qualities of Post Industrial Society
1.  Less heavy basic industrial production
2.  The service economy comes to predominate in the first world
3.  More high tech jobs
4.  The information economy / internet is integral to the overall economy & growth
5.  Knowledge & education are equivalent to property & wealth
6.  Working middle class transforms into the white collar middle class
7.  Rise of professional classes
8.  Part time, serial employment
9.  The continuation of the growth of global capitalism
10.  Global monopolies & mergers develop		  
 
 Some of the fundamental qualities of post industrial society have decreased inequality and many other have increased inequality  
 
 During the Post Industrial Age, many people have not made the educational shift to high tech / service because education is an expensive investment
 
 
 Some people see the rise of professional class in the Post Industrial Age as the end of the class dominated system  
 
 In the Post Industrial Age, production is more complex, forcing the elites to make concessions to get knowledge from workers
 
 
 In the Post Industrial Age, there is increased productivity which creates more surplus, of which more is going to workers, resulting in less strikes & bigger markets
 
 
 Employment relations in the Post Industrial Age achieve many Labor's goals, w/o the intervention of the Labor Movement
 
 
 In the Post Industrial Age, the reduced population growth rate in industrial society has created a larger "pie", & less mouths to feed
 
 
 In the Post Industrial Age, elites must invest in the workforce as they never have before
 
  But an educated workforce & open trade systems creates a value system of egalitarianism / democracy  
 
 Historically, the elites needed the allegiance of the population only during times of war
 
 
 In the post industrial era, the elites need the allegiance of the general population, especially the middle classes, for the normal functioning of the high tech / service economy
 
 
 Given the high tech nature of wars of the 90s & 00s, it is not clear that the elites still have the need for the allegiance of the population during times of war, but most agree that they do  
 
 The marginal utility of wealth declines in the Post Industrial Age  
 
 Review the Marginal Utility  
 
 The declining MU of wealth means that middle & upper class workers & professionals are less motivated by $$ which result in the demand for more free time & other perquisites
 
 
 But on the other hand, the international division of labor has resulted in increased world inequality which demonstrates that improved employment relations have not been globalized  
 
 The degree of inequality in the stratification system in the modern world system has increased   
 
 Historically there has been extensive social mobility in the US mostly from the beginning of immigration & conquest in the 1400's to the 1950s  
 
 There is clear evidence that upward social mobility slowed & eventually reversed from the 1960s through the 1980s  
  In the mid 1990s, there was a restart of upward social mobility which ended w/ the "slowdown" of 2001 to 2003 & has not restarted as of 2004  
 
 The economic decline of the US in the modern world system appeared as early as the 1960s  
 
 Economic decline stimulated support for Reaganomics in the 1980s  
  Average Americans became more afraid for their economic security  
  The corporate class became more involved in politics in an attempt to reverse the decline in US profits & market influence  
 
 Today's development of the modern world system goes beyond capitalism and communism in that there is competition among many forms of state and monopoly capitalism  
 
 The process of stratification has moved to a new level, the global level  
 
 Deindustrialization was the label given to the movement of industry from the core to the periphery & semi periphery  
 
 A major cause of the increase in inequality in the P-I Age is the large loss of industrial jobs in America  
  A major cause of the increase in inequality in the Post Industrial Age is the growth of jobs at both the higher & lower ends of the income scale  
 
 The P-I era is characterized by Reaganomics, the fall of the Berlin Wall in 1989, the collapse of Communism during the early 90s, the "New Democrats" (Clinton, et al) in the 90s  
 
 It is no longer simply capitalism vs. communism, but competition among differing forms of organization in the capitalist world economies  
 
 Historically speaking, most global competition, which is often in the form of nationalism, has been among differing forms of capitalism  
  The cold war / competition btwn capitalism & forms of socialism are the historical anomaly  
 
 Ronald Reagan was the President from 1980 to 1988 & he ushered in a "Republican Revolution" which was labeled "Reaganomics"  
 
 Reaganomics was a unique combination of:
-  econ policy which cut govt regulation, cut taxes, & had no Industrial Policy,
-  social policy which eliminated welfare, &
-  foreign policy which supported Poland & the Pope & oversaw the beginning of the collapse of communism		  
 
 The effects of Reaganomics, including tax cuts, a military buildup, & deficits, were significant & are still felt in the 00s  
 
 Reaganomics in the 80s resulted in downsizing, “service” jobs, cut wages, mergers, less regulation & govt  
  During the era of Reaganomics, the US moved from having average inequality to having the greatest inequality  
  Reaganomics contributed to an increase in income & wealth inequality that had already begun as a result of changes in the world economy  
  But Reaganomics did little to change the basic causes of American economic decline  
 
   In 1989 temp jobs were only 3% of new jobs
  In 1993 they were 26%    (New York Times, March 10, 1994)		  
 
 The poverty rate increased because of Reaganomics... & persisted  
 
   1989   poverty rate was 12.8%
  1991   14.2 % as the recession grew
  1992   14.8 %  at the height of the recession
  1993    15.1 % when the recession was over		  
 
 Average family income declined after Reaganomics, & increased w/ Clinton  
 
 There has been a decline in average family income through 1994 when it temporarily increased, followed by continued decline
It was down 7 % since 1989		  
 
 There was a short recession at the end of the 1st Bush admin, ( Bush, Sr Presidency 1989 - 1992 ) that ended in 1992 & there was econ growth by 1994  
 
 The econ growth in the 90s & 00s is a historically new phenomenon in that few new jobs were accompanying gen econ growth  
  When jobs appeared, they were "soft jobs"  i.e. temporary, part time, w/ low wages & few benefits  
 
 In the 90s the effects of Reaganomics began to be reversed  
 
 From the beginning of the 1980s, the US already had the highest level of income inequality among industrial nations  
 
 By the end of the 1980s, this inequality was even higher, & it continued to grow in the 90s finally leveled out toward the end of the 90s  
 
 By 95, the US was coming out of the recession in better shape than Europe & Japan  
 
 By the late 90s the growth of inequality resulting from job cuts, lower paying jobs, & more temp jobs created higher profits, was reversed.... at least in the short term  
 
 Some analysts belief that the European Model will create a better econ in the 21st century  
 
 Germany & Japan have less inequality than the US because:  
 
 a.  workers are paid more  
 
 b.  workers have higher levels of education  
 
 c.  workers have higher levels of skill  
 
 d.  both the labor force & corp mg. are more loyal to each other than in the US  
 
 The major point of the P - I Age is that there has been a historic shift in the American stratification system & the place of the US in the modern world system  
 
 It is the end of the Cold War & while American is dominant, it is not absolute, economically speaking, because we are challenged by Europe & Japan  
 
 See Also:  Gender in the P - I Age:  The "New Woman"  
 
 See Also:  Race in the P - I Age:   
 
 At this time there are no more historical eras on the horizon, but possibilities include
- the Biotech Age
- the environmental / global warming / population crash era
- Pax Democratica / market econ era
- "The End of History"
- the Information Age		  

 
Top  
Chart on the Characteristics of the Stratification System of the Post Industrial Age
PW
Type of System Ranks Placement Legitimation Basis of Ranking Equality
Primitive open achievement tradition status hi equality
Slavery generally closed ascription legal/racism economic hi inequality
Caste closed ascription religion status hi inequality
Feudal generally closed generally ascription legal/religious economic highest inequality
Class open mostly achievement legal economic / bureaucratic low to medium
Post Industrial open mostly achievement legal economic / bureaucratic low to high
The Chart on the Characteristics of the Stratification System of the Post Industrial Age indicates that the ranking system is open, placement is based on achievement, legitimation is based on the culture of law ( "the rule of law" ), the basis of ranking is accomplished through a bureaucratized state capitalist, economic system, & the range of equality is broad, running from low to high

 
Internal
Links

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 Outline on  Stratification in Post Industrial Society: 
The Fall of Extractive & Mfr Employment &
The Rise of Professional & Service Employment
External
Links
  The transition to the Post Industrial (P-I) economy has eliminated hundreds of thousands of manufacturing jobs & created hundreds of thousands of service jobs   
  The P-I economic transition has divided the labor force into two unequal segments 
 
  One new segment in the P-I economy consists of doctors, lawyers, researchers, financial specialists, technicians, engineers, etc. 
 
  The P-I professional segment  is relatively well paid, well educated, & has high prestige 
 
  One new segment in the P-I economy consists of service workers, clerical workers, retail sales people, etc. 
 
  The P-I service segment is paid less than were many workers under the industrial economy, is less educated, & has lower prestige 
 
  The P-I economy is creating greater socioeconomic inequality 
 
  The more advanced segment of the workforce is creating the demand of services which the lower segment of the workforce provides, such as self fulfillment services, healthier, food preparation, etc. 
 
  In 1977 approximately 13% of meals were eaten outside the home while in 1995 approximately 27% of meals were eaten outside the home 
 
  The education & professionalism of at least part of the P-I workforce is an impetus towards democratization 
 
  In P-I Society, more people 
- demand to be informed 
- refuse to follow rules blindly 
- object to discrimination 
- think all people should be free 
 
  Inequality & the amount of stratification has increased in P-I Society because lower paying service jobs have replaced higher paying manufacturing jobs 
 
  In SW Va, in 2003, on average 
- mining jobs paid $46,000 
- construction jobs paid 34,000 
- service jobs paid 28,000 
 
  In SW Va, in 2003, mining jobs are being steadily replaced by service jobs resulting in a decline in pay income for the area 
 
  "Deindustrialized", "down sized" workers often cannot afford the education to gain professional employment 
 
  Deindustrialized workers are often older & find it difficult to undergo education & career change 
 
  The number of professional jobs in the P-I economy are not sufficient for all of the deindustrialized workers 
 
  Deindustrialized workers often have a home & roots in a locale & find it unrealistic to relocate to where the new jobs are   
 
 The share of income going to the working or lower classes has fallen sharply whereas those in the upper & upper middle classes have gained income   
 
 It is fair to say that compared to industrial society, in P-I society, the rich have gotten richer & the poor have gotten poorer, & the middle & working classes are smaller 
 
 
 Nielson & Alderson found that internationally in P-I society, the rich have gotten richer & the poor have gotten poorer, & the middle & working classes are smaller 
 
 
 Nielson & Alderson found that inequality declines w/ the development of industrial society, then levels off, & then increases w/ the development of P-I society 
 
 
 The transition from industrial to P-I Society has hurt the industrial workers & their families who once had high paying manufacturing jobs, but have since become unemployed or moved to low paying service jobs 
 
 
 With deindustrialization, blacks, Hispanics, poor whites, etc. in the Midwest & Northeast have had difficulty finding employment as the mfr jobs disappeared 
 
 
 See Also:  Wilson:  The Declining Significance of Race 
 
 
 See Also:  Going Into Debt for College 
 
 
 The increasing stratification of P-I Society is seen in the further development of the professional class, which may be seen as a subclass of the middle & upper middle classes 
 
 
 The pay & prestige of the professions are generally enhanced in P-I Society 
 
  Professionals generally have the quality of: 
- greater autonomy on the job 
- greater status on & off the job 
- higher pay 
- extensive & specialized training to enter the profession 		  
  See Also:  Professionals   
  The "classic professions" historically included only doctors, lawyers, accountants / banker, & professors   
  Today nurses, social workers, teachers, & others are also labeled as professional   
  Professionalization is the process whereby an occupation attempts to be recognized as a profession by increasing education, licensing, regulation, etc. requirements   
  Some social theorists would call nurses, social workers, teacher, & others semi-professionals   
  Police, firefighters & others are attempting to professionalize   
  Police, firefighters & many other occupations are called blue collar professionals by some social theorists   
  The proportion of professions in the workforce has risen steadily during the development of the P-I economy   

 
Internal
Links

Top
 Outline on   World Agencies
External
Links
Link
 The Asia Pacific Econ Cooperation (APEC)   
Link
 The European Union (EU)   
Link
 The Intl Monetary Fund (IMF) 
 
Link
 The World Bank (WB) 
 
Link
 The World Economic Forum (WEF)   
Link
 The World Trade Organization (WTO) 
 

 
Internal
Links

Top
 Outline on the  Asian Pacific Econ Cooperation (APEC) 
External
Links
  -  Supplement:  Wiki on APEC 
Link
  -  See Also:  Asian Pacific Econ Cooperation (APEC)             http://www.apec.org/
Link
  APEC ADDRESSES TRADE ISSUES AMONG NATIONS ON THE PACIFIC RIM 
 
  The Asia Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries to cooperate on regional trade & investment liberalization & facilitation 
 
  APEC's objective is to enhance economic growth & prosperity in the region & to strengthen the Asia Pacific community 
 
  Members acct for approximately 40% of the world's population, approximately 54% of world GDP & about 44% of world trade 
 
  The Table:  APEC Membership indicates that APEC currently has 21 members, including most countries w/ a coastline on the Pacific Ocean 
 
  The APEC Business Advisory Council (ABAC) was created by the APEC Economic Leaders in Nov 1995 
 
  The ABAC's aim is to provide advice to the APEC Economic Leaders on ways to achieve the Bogor Goals & other specific business sector priorities 
 
  APEC  provides the business perspective on specific areas of cooperation to nations on the Asian rim 
 
  Since its formation in 1989, APEC has held annual meetings with representatives from all member economies 
 
  In 1997, the APEC meeting was held in Vancouver
 
  Controversy arose after officers of the Royal Canadian Mounted Police used pepper spray against protesters  
  The protesters objected to the presence of autocratic leaders such as Indonesian president Suharto  

 
Top
  
Table:  APEC Membership 
Member economy
Date of accession 
Australia
1989
Brunei
1989
Canada
1989
Indonesia
1989
Japan
1989
Republic of Korea
1989
Malaysia
1989
New Zealand
1989
Philippines
1989
Singapore
1989
Thailand
1989
United States 
1989
Chinese Taipei
1991
Hong Kong, China
1991
People's Republic of China
1991
Mexico
1993
Papua New Guinea
1993
Peru
1998
Russia
1998
Vietnam
1998
The Table:  APEC Membership indicates that APEC currently has 21 members, including most countries w/ a coastline on the Pacific Ocean 

 
Internal
Links

Top
 Outline on the European Union ( EU )
External
Links
  -  Supplement:  The European Union.  Wikipedia. 
Link
  -  See Also:  The European Union ( EU )         http://europa.eu/
Link
  THE EU HAS 27 MEMBERS & IS LIBERALIZING TRADE & GOVERNANCE, & OPENING BORDERS
 
  The European Union (EU) is an econ & pol union of 27 member states, located primarily in Europe 
 
  The EU has developed a single mkt through a standardized system of laws which apply in all member states, ensuring the freedom of mvmt of people, goods, services, & capital 
 
  The EU has developed a limited role in foreign policy, having representation at the WTO, G8 summits, & at the UN 
 
 Link
 The Table:  EU Membership lists the 27 nations of the EU 
 
  There are three official candidate countries, Croatia, Macedonia and Turkey & other nations would like to join, but are not yet candidates 
 
Link
 The Table:  EU Languages demonstrates that the 27 nations of the EU speak 18 major languages   
 
 THE EU IS GOVERNED BY A PARLIAMENT & A PRESENT ELECTED BY THE MEMBER NATIONS 
 
  The EU is often described as being divided into 3 areas of responsibility, called pillars 
 
  The original European Community policies form the first pillar 
 
  The second pillar consists of Common Foreign &  Security Policy 
 
  The third pillar originally consisted of Justice &  Home Affairs
 
  The second & third pillars can be described as the intergovernmental pillars because the supranational instits of the Commission, Parliament & the Court of Justice play less of a role or none at all 
 
  The lead in governance is taken by the intergovernmental Council of Ministers & the European Council
 
  Most activities of the EU come under the first, Community pillar which is an economically oriented pillar & is where the supranational instits have the most influence
 

 
Top
  
Table:  EU Membership 
Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
 Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom
The Table:  EU Membership lists the 27 nations of the EU 
Top
  
Table:  EU Languages 
Language
Native Speakers
Total
English
13 %
51 %
German
18 %
32 %
French
12 %
26 %
Italian
1 3%
16 %
Spanish
9 %
15 %
Polish
 9 %
10 %
Dutch
5 %
6 %
Greek
3 % 
3 %
Czech
2 %
3 %
 Swedish
2 %
3 %
Hungarian
2 %
2 %
Portuguese
1 %
2 %
Catalan
1 %
2 %
Slovak
1 %
2 %
Danish
1 %
1 %
Finnish
1 %
1 %
Lithuanian
1 %
1 %
Slovene
1 %
1 %
Feb 2006, before the 2007 the addition of  Bulgaria & Romania. 
Native: Native language 
Total: EU citizens able to hold a conversation in this language 
The Table:  EU Membership & Language demonstrates that the 27 nations of the EU speak 18 major languages 

 
 

 

 
Internal
Links

Top
 Outline on the  International Monetary Fund (IMF) 
External
Links
  -  See Also:  The IMF           http://www.imf.org/external/index.htm
Link
  -  Supplement:  About the IMF 
Link
  -  Supplement:  What Is the International Monetary Fund?
Link
  -  Supplement:  IMF Member, Quotas, Governors, & Voting Power General Department & Special Drawing Rights Dept
Link
  -  Supplement:  IMF Organization Chart 
Link
  -  Supplement:  IMF Photos
Link
 
 -  Supplement:  IMF at a Glance 
Link
  -  Supplement:  IMF:  How We Lend 
Link
  -  Supplement:  IMF:  Executive Board Selects Horst Köhler as IMF Managing Director, March 23, 2000
Link
 
 THE IMF LENDS MONEY TO THE SEMI PERIPHERY & PERIPHERY TO PREVENT ECON COLLAPSE, BUT THEY ARE OFTEN EXPLOITATIVE DEALS
 
 
 The IMF & the WB grew out of what were called the Bretton Woods talks in 1944 after WW 2 
 
  The idea of the IMF & the WB was to organize the world econ to prevent world depressions as occurred during the 30s 
 
  The function of the IMF is to be the banker of crisis in the world, lending money to nations in econ trouble to keep them from sliding into collapse that would hurt other nations & the world econ 
 
  The IMF & the WB are not democratic orgs 
 
  Since the founding of the IMF & the WB after WW 2 there has been a "gentleman's agreement" btwn the US & Euro corp class that the WB will always be headed by an Am while the IMF will be headed by a Euro 
 
  Behind the scenes meetings are carried out, w/ power plays & demands made by Eros & Am corp leaders 
 
  Japan, the world's second largest econ, is completely left out, as is Russia, China, & all other nations 
 
  Thus, the IMF & the WB are controlled by the US & Euro corp classes, & to a lessor degree, their pol leaders 
 
  Many believe the US dominates even the Euros because even the Euros needed the approval of the US for their appointee to lead the IMF 
 

 
Internal
Links

Top
 Outline on the  World Bank (WB) 
External
Links
  -  See Also:  The WB             http://www.worldbank.org/ 
Link
 
 -  Supplement:  The World Bank 
Link
  -  Supplement:  About the World Bank 
Link
  -  Supplement:  Why do we need a World Bank? 
Link
  -  Supplement:  Who Runs the World Bank? 
Link
  -  Supplement:  What is the World Bank's Mission?
Link
  -  Supplement:  Why do we need a World Bank? 
Link
  -  Supplement:  World Bank Programs
Link
  -  Supplement:  What does the World Bank do? 
Link
  -  Supplement:  Development Is Everyone's Challenge 
Link
  -  Supplement:  What is the World Bank? 
Link
  -  Supplement:  Where does the money go? 
Link
 
 THE WB LENDS MONEY TO THE SEMI PERIPHERY & PERIPHERY TO PREVENT ECON COLLAPSE, BUT THEY ARE OFTEN EXPLOITATIVE DEALS
 
 
 The WB & the IMF grew out of what were called the Bretton Woods talks in 1944 
 
  The WB is an org that provides funds to poor nations for development projects 
 
  The WB & the IMF are not democratic orgs 
 
  Corp class leaders demand that recipient nations follow their rules & their views of how capitalism should operate 
 

 
Internal
Links

Top
 Outline on the  World Economic Forum    ( WEF )
External
Links
 
 -  The WEF       http://www3.weforum.org/en/index.htm 
Link
  -  Supplement:  The WEF Exec Summary.  Retrieved on Aug 28, 2009  http://www.weforum.org/docs/AMNC09/AMNC09_ExecutiveSummary.pdf
Link
 
 THE WORLD ECONOMIC FORUM ( WEF ) IS A GLOBAL AGENCY W/ LITTLE POWER OTHER THAN THE 'BULLY PULPIT' 
 
  The WEF brings together an exclusive group of intl corp & pol leaders each yr for discussion & consensus blding 
 
  The WEF has little power beyond that generated by the dynamics of meeting together & the publications of their discussion 
 
  The WEF's discussions reflect important conflicts among natl interests
 
  The mission of the WEF, in their own words is "Reviving economic growth is the most important priority for policy makers and business leaders in 2009. Efforts that prevented a collapse of the international financial system failed however to avert a global collapse of demand for goods and services. A crisis in manufacturing has now followed the financial one, which in turn has led to a widespread crisis of confidence."   
  The participants in the current WEF include 400 global growth corps, 300 CEOs, 150 "young, global leaders," 100 public figures, 100 Media figures, 60 tech pioneers, 60 young scientists, 50 members of the Global Agenda Councils   

 
Internal
Links

Top
 Outline on the  World Trade Organization (WTO) 
External
Links
  -  See Also:  The WTO          http://www.wto.org/ 
Link
  THE WTO IS A DEMOCRATIC ORG, CONSISTING OF MOST OF THE NATIONS OF THE WORLD, WHOSE GOAL IS TO REG & FOSTER TRADE
 
  The WTO has ironically become the focus of intl protest 
 
  The WTO is somewhat democratic in that most nations of the world are members & have representatives 
 
  The WTO was created in 95 out of the old General Agreements on Tariffs & Trade (GATT) 
 
  The GATT was created to help org the world econ after WW 2 
 
  There are more than 150 member nations of the WTO who are able to vote on trade issues, w/ no nation able to veto any decision of the membership body 
 
  The core nations are able to bully the semi periphery & periphery nations into decisions, & the semi periphery & periphery nations often lack experience & knowledge about the world econ to allow them to protect their interests as well as the rich nations 
 
  The WTO is not the ruler of global capitalism & exploiter of poor nations to the extent many would suggest 
 
  The recent dispute btwn core & semi periphery & periphery nations over who would be elected as head of the WTO, the core nations had to compromise & the next head of the WTO will be a rep from a semi periphery nation:  Thailand 
 

 
Internal
Links

Top
 Outline on the  Countries
External
Links
  -  Supplement:  List of Independent States  as complied by the US State Dept
Link
  Bahrain 
Link
  Belize 
Link
  Cayman Island 
Link
 Link
 Costa Rica   
 Link
 Ecuador   
 Link
 Germany   
 Link
 Japan   
  Labuan 
Link
  Panama 
Link
 Link
 USA   
  Vanatu 
Link

 
Internal
Links

Top
 Outline on the  Costa Rica:  Alternative Tourism / Off Shore Banking
External
Links
  ALTERNATIVE TOURISM IS AN IMPORTANT & RAPIDLY GROWING INDUSTRY 
 
  Alternative tourism is one of the major industries in Costa Rica 
 
  One quarter of the land is in biosphere protection & wildlife preserves 
 
  The large amounts of protected biosphere attracts tourists 
 
  The 800,000 annual tourists' generated income exceeds the income from banana exports 
 
  THERE ARE MANY 'OFFSHORE BENEFITS' AVAILABLE TO AMERICANS 
 
  Retirees from No America flock to Costa Rica because of the climate, alternative tourism, strong health system, low taxes, & inexpensive living conditions 
 
  Costa Rica is developing a public health system 
 
  There are no taxes on pensions, dividends or trust funds 
 
  50,000 Canadians & 120,000 US citizens partake in some form of offshore benefits 
 
 
 

 
Internal
Links

Top
 Outline on  Ecuador:  Alternative Tourism
External
Links
  ECUADORIAN ALTERNATIVE TOURISM IS STRONG DUE TO NATURAL LANDSCAPES & A DIVERSITY OF LIFE WHICH ENTHRALLED DARWIN 
 
  While being relatively small, Ecuador has 6 natl parks, 7 nat reserves, & 20 private protected areas 
 
  Ecuador has some of the oldest rain forest in the world 
 
  Ecuador has many active volcanos 
 
  Native Amazonian tribes still survive in the rain forest 
 
  The plant & animal wildlife in the Galapagos Islands is world renowned & attracted Darwin & many other naturalists to the area 
 
  The native Andean culture continues to thrive 
 
  Ecuador has taken many steps to preserve the legacy of Spanish colonialism 
 
  Two thirds of tourism is run by the private sector while the govt & ensures sustainable dev thru env awareness 
 
 
 

 
Internal
Links

Top
 Outline on Germany
External
Links
 
 -  Supplement:  List of Independent States 
Link
 
 GERMANY IS A CORE NATION W/ A MIDDLE PATH IN THE WES COMPARED TO THE US & JAPAN; W/ MID LEVELS OF REGS, TAXES, SAFETY NET, LABOR RELATIONS, INCOME INEQUALITY, ETC. 
 
  Germany is the 3rd largest econ, & is more similar to the US than Japan 
 
  Since WW 2, Ger has had extensive labor laws such as the Works Constitution Act, co determination laws, strong works councils in every company, along w/ powerful unions 
 
  Ger wkrs have much more influence in the wkplace than wkrs in any other nation 
 
  Ger wkrs indulgence how each corp is managed & operated, as well as much influence in how the overall econ is run 
 
  While most capitalists in the US would tell US that you cannot create a strong econ w/ hi levels of wkr 'interference,' & yet the Germans have done just that 
 
  W/ these relations of production, Germans have rebuilt their WW 2 war torn nation into the 3rd largest econ power 
 
  Ger has much less income inequality; the lowest of the indl nations 
 
  GERMANY HAS THE HIGHEST BALANCE OF POWER BTWN CORPS & LABOR IN WHAT MAY BE CALL A NEW DEAL OR CORPORATIST SYSTEM 
 
  Ger, & most nations in Euro are relatively more influenced by class interest below the corp class as compared to the US 
 
  Euro nations tend to have strong & effective labor unions, & govt controls protecting the wking class, Y even significant ownership of stock in major corps that give classes below the CC a means of influencing corps through govts 
 
  While the term 'New Deal' comes from FDR's policies in the US in the 1930s, Germany's system best exemplifies this model today since the US moved away from it to Reaganomics 
 
  The New Deal polices of Germany embrace govt regs limiting corp mkt concentration, i.e. monopoly power, maintaining a balance of power btwn corps & Labor, a social safety net, reg of financial sector of business, etc. 
 
  See Also:  The New Deal 
Link

 
Internal
Links

Top
 Outline on  Japan
as a Core Nation
External
Links
 
 -  Supplement:  List of Independent States 
Link
  JAPAN HAS BEEN AN INDUSTRIALIZED, CORE NATION SINCE THE 1800s 
 
  Even w/ Japan in stagnation since the early 1990s, the rapid econ growth of the other Asian nations means that Asia will again acct for more of the world's GDP 
 
  Japan has the second largest econ in the world, at about 1 / 3 the size of the US; $ 4 tt & $ 12 tt respectively   
  Most projections see China as having the biggest econ, followed by India, the US, & Japan in 40 yrs 
 
  China, India, the US, & Japan are expected to acct for over half the global econ 
 
  JAPAN HAS THE MOST UNIFIED POPULACE & ELITES OF ANY CORE NATION 
 
  Japan has elites who are more unified & influential than anywhere else but it also has much less democracy 
 
  Japans econ is a planned econ organized by permanent govt bureaucrats who still dominate the Japanese corps 
 
  Japanese corps are monopolistic w/o significant private family ownership 
 
  JAPAN HAS THE MOST REGS OF ANY CORE NATION 
 
  Japan, like most other Asian nations has a natl govt that restricts the freedom of its CC more than the US or Euro 
 
  In the Japanese sys, the govtl bureaucracy results in more decisions being made in the natl interest than in the interest of the CC alone 
 

 
Internal
Links

Top
 Outline on the  USA
as a Core Nation
External
Links
 
 -  Supplement:  List of Independent States 
Link
 
 THE US IS THE LEADING CORE NATION TODAY, W/ A WEALTH OF NAT RESOURCES & FEW REGULATIONS
 
  In many respects the US is the odd capitalist nation when compared to other core nations because is has abundant land, cheap resources, a motivated but not so educated workforce, & minimal govt intervention
 
  There is much more private ownership of corp stock in the US than other core nations 
 
  There are only limited labor laborers, & labor unions are extremely weak in the US compared to other indl nations 
 
  The US has much more income inequality; the highest of the indl nations 
 
  CORPS, THE GLOBAL CORP CLASS (GCC), & THE NATION STATE ARE ALL IMPORTANT ACTORS ON THE WORLD SCENE 
 
  While examining the WES, globalism, & the global corporate class (GCC), it is important to stress that the nation state must not be assumed an insignificant factor in global class conflicts 
 
  If the nation state of other core nations looked like that of the US, then perhaps the assumption would be that a GCC would emerge "organically," i.e. on its own; however, because each nation is unique, each has its own advantages & disadvantages 
 
  The CC in the US has been successful in dominating the LCs through its influence of the US pol sys that the US pol sys protects the CC interest far more than the interests of other classes 
 
  The US pol sys puts far fewer restraints on what the corp class can do than other major indl nations 
 

 
Internal
Links

Top
 Outline on  Stagnation, Globalization, & the New World Order
External
Links
 
 INDUSTRIES IN THE CORE HAVE STAGNATED OR DECLINED DUE TO THE INTL COMPETITION OF GLOBALIZATION; BUT NEW ECON SECTORS HAVE GROWN, E.G. HI TECH & SERVICES  
  Many mfr industries in No Am & in other industrialized nations have stagnated in recent decades
 
  One reason for the stagnated mfr industry is because of increased international competition
 
  International competition has increased because of the natural cycle of capitalism & because of the greenfield advantages of the post WW2 nations & the newly industrialized semi peripheral nations
 
  After WW2, European & Japanese firms rebuilt new, "greenfield" factories in the 1950s & 60s 
 
  By the 1970s, the greenfield factories of Europe & Japan were online & increasing the competition for Am firms
 
  The peripheral & semi peripheral, 3rd world nations are pursuing the path of industrialization
 
  Some nations have had only limited success, while others such as Mexico, Taiwan, So Korea, & Brazil have won mkt share
 
  The newly industrialized nations are suffering the same decimating effects of early industrialization as did the nations of the first wave of the industrial revolution including Europe, the US, & Japan
 
  Today the newly industrialized nations have horrible worker injury rates, unregulated working hours & conditions, & uncontrolled pollution 
 
Link
 The Table on Decline of US Mfr Workforce & Increase of US Overseas Production demonstrates that the US lost over 1/3 of a million mfr jobs in the 1980s
 
  THE TRANSFORMATION OF THE ECON FROM INDUSTRY TO HI TECH & SERVICE HAS RESULTED IN LOWER WAGES & LESS JOB SECURITY  
 
 Since the onset of globalization, real income for the average Am has decreased as costs to local communities has increased in the wake of large scale layoffs & plant closings (Edwards, 1993)
 
 
 Since the onset of globalization, new jobs that are created in the service sector pay less than the jobs lost in mfr & other high paying sectors
 
 
 In March of 2004, after months of low wage growth, averaging less than 100 K new jobs / mo., 308 K new jobs are created, but none in the higher wage mfr sector
 
  Many lost mfr jobs are replace by employment growth in smaller firms; however, many of these new jobs have a short life span  
  Growth in the small firm sector has been produced by start ups of subsidiaries of large corps in the process of seeking out locations w/ cheaper labor costs (Vallas, 2001)  
  The growth of the service sector has also provided new jobs, but these generally pay much less than jobs in mfr & contribute to the nation's income  
  Displaced auto workers lose an average of 44% of their previous income in the 2 yrs after their layoff & workers in steel, meat packing, & aerospace report similar losses  
  See Also:  The Declining Middle Class  
 
 Under globalization, the downward pressure on wages & benefits, i.e. give backs, are accompanied by attacks on Social Security, education & other social programs secured by the middle- & working classes during the post WW 2 boom years (Levine, 1995)
 
  Give backs create a two tiered wage structures where new workers work under a lower wage & benefits scale
 
  NEGATIVE EFFECTS OF DEINDUSTRIALIZATION FOR THE CORE ARE:  CLOSED BUSINESSES, LOW WAGES, LESS JOB SECURITY, DECLINE OF THE INNER CITIES & 'RUST BELT' REGION, DECLINE OF ORGANIZED LABOR, & SHRINKAGE OF THE MC, ETC.   
  See Also:  The Effects of Globalization   
  For the core, negative effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  businesses have closed & sometimes, entire industries have shut down  
  2.  wages have declined in the core nations since the 70s   
  3.  wkrs have lost job security in that there are more temp jobs & fewer full time jobs are expected to be permanent / careers   
  4.  closed businesses, low wages, & temp work have decimated the inner cities resulting the   
  5.  closed businesses, low wages, temp work, & the decline of cities have resulted in entire regions, esp the rust belt of the NE, being decimated  
  6.  organized Labor has declined to less than half its former membership because of the decline of industries which were traditionally unionized   
  7.  overall, the MC has shrunk, generally moving people downward, as a result of all the negative factors of deindustrialization:  closed businesses, declining wages, loss of job security, the decline of inner cities, & the decline of entire regions like the rust belt   
  NEGATIVE EFFECTS OF INDUSTRIALIZATION FOR THE SEMI PERIPHERY & THE PERIPHERY INCLUDE SWEATSHOP LABOR CONDITIONS, LACK OF / LOW TAXES & ROYALTIES, POLLUTION, UNPLANNED ECON DEV, DISPLACEMENT, LOSS OF TRADL ECONS, ETC.   
  For the semi periphery & the periphery, negative effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  sweatshop labor conditions such as poverty wages, child labor, unsafe conditions, unregulated hazardous materials, forced labor, abusive supervision, no unions, no benefits, no pensions, etc.   
  2.  corps operating in a host country w/o returning any benefit to that country in the form of taxes, royalties, infrastructure, etc.   
  3.  non existent envl laws which is resulting in rampant pollution & the creation of haz mat dumping grounds   
  4.  unplanned econ dev whereby shanty towns & indl waste lands co exist   
  5.  industrialization / modernization often allows corps & govts to 'buy' or take land by eminent domain, thus displacing peasant pops that had lived on the land for gens   
  6.  that when people leave their tradl lives to work in the factories, the tradl econs which had supported them declines & then collapses   
  Because of the cyclic nature of industry, eventually there are econ downturns / busts, & because the dev of ind eliminated tradl econ of ag, hunting, gathering, crafts, etc., the people often have no econ w/ which to sustain themselves   
  POSITIVE EFFECTS OF DEINDUSTRIALIZATION FOR THE CORE INCLUDE RECORD PROFITS FOR CORPS & STKHLDRS, CHEAPER PRODUCTS, TRANS TO NON POLLUTING ECON, THE CREATION OF A GLOBAL ECON & CULTURE, ETC.   
  For the core, positive effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  corps have experienced record profits & the stk mkt has soared, which mostly benefited the UC & the UMC   
  2.  many consumer products are cheaper, & there is also a wider variety   
  3.  while tradl heavy, polluting industries have declined, new, hi tech & services businesses, which generally do not pollute, have grown   
  4.  both the global econ & culture have grown which may have indirect positive effects such as greater understanding, less conflict, more opportunity, more variety, etc.   
  POSITIVE EFFECTS OF INDUSTRIALIZATION FOR THE SEMI PERIPHERY & THE PERIPHERY INCLUDE:  JOBS, ECON DEV, CONSUMER PRODUCTS, ED, GENERAL MODERNIZATION, ETC.   
  For the semi periphery & the periphery, positive effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  the creation of jobs w/ wages; many in the semi periphery & the periphery have only produced for a subsistence econ, but w/ the dev of ind there is at least the possibility of getting ahead   
  2.  econ dev, the dev of a modern econ transitioning out of hunter gatherer & ag econ to a mod, ind econ   
  3.  the opportunity to buy mod consumer products including TV, healthcare, 'modern food,' mod clothes, etc.   
  4.  jobs, a tax base, econ dev, etc. all create the possibility of a society developing an edl system for its youth & young adults   
  5.  all the benefits of modernization including jobs, products, etc. as well as the mod way of thinking, the mod lifestyle, etc.   
  The positive effects of industrialization for the semi periphery & the periphery are realized only when the govt of the host nation & the corps intentionally plan / design for positive effects, otherwise the negative effects may predominate   
  Some semi periphery & the periphery nations have successfully implemented policies that allow the benefits of ind to be realized, but many have not   
  The govts of semi periphery & the periphery nations sometimes have a problem w/ corruption resulting in the elites of the semi periphery & the periphery nations realizing profits while the people are exploited   

 
Top
  
Table on Decline of US Mfr Workforce & Increase of US Overseas Production
HS 0208
Company
1980 employment
1993 employment
Jobs Lost
Jobs Moved Overseas
GM
517
360
157 
  
GE
402
268
134 
5 in the 70s
IBM
335
301
34
  
Ford
123
89
40
  
Westinghouse
123
89
34
  
Boeing
109
133
+24 
  
Chrysler
77
92
+15 
  
Caterpillar
62
37
25
  
Amoco
45
35
10
  
RCA    
14
5
 
All figures in thousands
  
395 net job loss
  
The Table on Decline of US Mfr Workforce & Increase of US Overseas Production demonstrates that the US lost over 1/3 of a million mfr jobs in the 1980s

The End
 
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