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Territorial Dynamics, Cooperation & Tensions in Globalization

Plan

• I. Actors of Globalization
  • 1.1 States
  • 1.2 Transnational Corporations (TNCs)
  • 1.3 The other actors
• II. Globalization Flows
  • 2.1 Population Flows
  • 2.2 Intangible flows
  • 2.3 Flows of goods
• III. At the heart of globalization
  • 3.1 Conditions for attractiveness
  • 3.2 The driving forces of globalization
  • 3.3 Global Scale
  • 3.4 Regional Scale
  • 3.5 Local Scale
• IV. Territories integrating globalization
  • 4.1 Global Scale
  • 4.2 Regional Scale
  • 4.3 Local Scale
• V. Territories on the edge of globalization
  • 5.1 Unequal integration in globalization
  • 5.2 Unequal value of territories
  • 5.3 The impact of globalization on societies
  • 5.4 Global Scale
  • 5.5 Regional Scale
  • 5.6 Local Scale

Introduction : What is Globalization ?

Globalization : The increasing interconnectedness of the world economically, culturally, and politically. The current phase is developing out of internationalism

This includes the increasing integration of :

• Trade
• Finance
• People

All in one GLOBAL MARKET PLACE

Global Scale : The scale of the world, involving the entire world

Regional Scale : The scale of a region, involving a region

New International Division of Labor (NIDL) : The process where the assemblage of a product is split up into different parts, which are then outsourced to different regions

Importance of Trade : Trade is the most vital element in growth

Why has trade accelerated ?

• Peace
• GATT/WTO - average tariffs today are 1/10 of those in 1947
• Technical, technological and structural changes (“transport & communication revolution”)
• 80s => Reagan/Thatcher deregulation
• 90s => Integration of USSR
• Opening up of China & India

Trade Blocks

• EU
• NAFTA (1994) / USMCA (2020) Free Trade Agreement between USA, Canada, & Mexico
• MERCOSUR (1991) Free Trade Agreement between Brazil, Argentina, Paraguay, & Uruguay
• ASEAN (Association of Southeast Asian Nations)

I. Actors of Globalization

1.1 States

• States finance development
  • Ex : Development of a port
• Without the states, nothing would be happening
• They are negociating and breaking down barriers

1.2 Transnational Corporations (TNCs)

• Major role
• Driving force in terms of foreign direct investment
• They are the ones who are investing in other countries (Ex : They put their factories in those countries)

1.3 The other actors

• World Bank, World Trade Organization
• Capital flow
• Mafia (Ex : Drug trafficking)

II. Globalization Flows

2.1 Population Flows

• In 2020, 272 million migrants
  • Just over 3% of the world’s population
• Migration from one country to another
• Job opportunities
• Requires larger airports
• Internet networks (Transport & communication)

2.2 Intangible flows

• Flows that we can’t touch
  • Ex : Capital flows
• Capital flows
  • Ex : Money
• Information flows
• Remittences

2.3 Flows of goods

• Container shipping
• Maritime flows
• Air transport

III. At the heart of globalization

3.1 Conditions for attractiveness

In order to be part of globalization, you need to be attractive. You must attract :

• Money
• Foreign direct investment

People don’t want to build a factory :

• In a warzone
• In a bankrupted zone
• Where the internet network isn’t developped
• Where there aren’t a lot of people (workforce)
• Where the maritime zones aren’t present or developped
• Where there’s no ressources

3.2 The driving forces of globalization

Territories must be a driving force of globalization

• Must concentrate activities
• Does it have newspaper, television, museums
• Headquarters, offices

Impulse center

• Territory which concentrates activities of command
• Presence of political decisions maker
• Economic commands
• Ex : New York, London, Paris, Tokyo, Paris La défense

Other driving forces

• Medias : Television, newspapers
• Newly Industrialised Countries
  • China, India, Russia, Indonesia, Malaysia…
  • More and more integrated in globalization
  • They capture globalization flows to recover or develop
  • Small countries : Triad countries
    • 80% of the world’s GDP
    • They concentrate the large majority of FDI
    • More free trade

3.3 Global Scale

Communication technology

• Internet
• Social networks
• Mobile phones

Transport technology

• Container shipping

Asian Tigers, AKA dragons

• Hong Kong
• Singapore
• South Korea
• Taiwan
• Also NICs
• Since the 90s, these countries have been developing at a high speed
• We can measure the development with GDP per capita and the HDI
  • HDI : Mix different data, taking into consideration the life expectancy and education
  • HDI rated from 0 to 1, 1 being the highest
• Gini coefficient : Measures the inequality of a country
  • 0 : Perfect equality
  • 1 : Perfect inequality

Territories at a global scale

• Trade is always an advantage for a country
  • Countries can specialize in what they have the most capacities for
  • They can produce based on their ressources
  • Competitive advantage
  • Ex : There is no point for Norway to export Vanilla

3.4 Regional Scale

Regional maritime areas

• 70% of the earth’s surface
• Widely under explore
• Very deep
• 80% of human being in the world less than 100km from the coastline
• World’s major cities are built around rivers
• 25% of world’s production of oil and gas comes from offshore territories

Oceans are more a more a source of renewable energy

• Offshore wind farms
• Tidal energy (Energy generated by water)
• Biological ressources

Jobs linked to ocean (around 1M)

• Fishing
• Cruise ships
• Maintenance of underwater internet cables

Regional transport networks

• Airports
• High speed trains
• Motorways
• Maritime routes

Typical container ship

• 400m long
• 60m wide
• 24m deep
• 20 000 containers

Underwater

• Internet flows
  • 95% of internet flows are under water
• Gaz pipelines
• Electricity cables

3.5 Local Scale

Cities & global cities

• Global cities are cities that are at the heart of globalization
• Decision/impulse centers
• Headquarters for TNCs
• Majority of these global cities are located in the Triads (northern hemisphere)
• Their influence goes beyond their borders
• Relatively populated cities
• Interconnectedness

IV. Territories integrating globalization

4.1 Global Scale

Territories are including globalization more locally

• Ex : A city is integrating globalization

4.2 Regional Scale

4.3 Local Scale

V. Territories on the edge of globalization

5.1 Unequal integration in globalization

LDCs : Less Developped Countries

• Mainly located in Africa
• They are not integrated in globalization

Territories are never immune to globalization

• Everyone is connecting everywhere in the world, but to a different extent
• If you’re not a driver of globalization, “on se fait marcher dessus”

The stability of the country is important to be a driver of globalization

5.2 Unequal value of territories

Living conditions

• Inequalities

5.3 The impact of globalization on societies

5.4 Global Scale

5.5 Regional Scale

5.6 Local Scale

Rivers are important routes for goods

• Major cities are around rivers

Demographics of the United States

• Population
• Strong base up to 60/70yo
• Population isn’t equally distributed
• More people on the coasts
• Less people in more isolated regions

People from the United States are moving to the south

• Significant increase in Hispanic/Latino immigrants
  • ispanics cross the border between Mexico & the US

Inequality : USA

• In 2020, 37 million people lived in Poverty USA. That means the poverty rate for 2020 was 11.4%
• In 2021, 27 million people - or 8.3% of the population - did not have health insurance at any point during the year
• Highest regional poverty in the South : Alabama, Georgia, Mississippi

The USA in the world - A complete power contributing to Globalization

• A large and diverse population
• A vaste territory and source of wealth (9M km^2 with Alaska and Hawaii)
• A diverse territory that offers many possibilities
• 3 large maritime seaboards
• Rich sooil and subsoil
• A territory under control

The US : A major global power

• High GDP growth
• In many ways : the only world’s superpower today
• Soft power : Many people still look up at the US
• Cultural influence in spread through soft power

Ths US : A hyperpower

NY

• Part of the Atlantic Magalopolis which concentrates 45M people
• The core of the US along with LA
• Symbol of American Power

The importance of US interfaces : The Eastern Seaboard

• Near the sun belt
• Major trade blocks
• Lots of main harbors, mixed with the resources

Economic competition

• The US is experiencing more and more economic competitors especially since 2007 - 2008, the effects of the economic crisis have been felt lastingly
• The weight of the trading blocks in which the americans are part of is decreasing

A worldwide military and political power

• The softpower and hardpower of the US are indicative of its full integration into the process of globalization
• The policeman of the world
• Global military presence
• Political pressure
• Membership and dominaion of political-military alliances dating from the Cold War
• Their military spendings are above anyone else’s spendings

Geopolitical Rivalry

• America’s strategic power is contested by China
• In Europe, the United States must come to terms with provocations from Russia
• Political failures in the Middle East
• In the Middle East, American influence has weakened
• However, the United States maintains strong points in the region. They have strong relations with Isreal

Cultural Challenge

• Revolts against cultural and economic imperialism
• The most powerful country in the world, renowned for being master in art of soft power
• Inequalities of wealth is increasing
• Certainly, the USA has one of the highest HDI

IV. US Regional Territorial Dynamics

Regional disparities : A territory on the move

• The US is a country of contrasts
• Empty spaces and densely populated areas
  • A wild west landscape
• The Sun Belt : Miami sea front
  • Dense area
  • Lots of big cities in the north east
• US territory is vast
  • 4th national area in the world
• Undergoing massive changes
  • Gravitational centers (traditionally on the East Coast) are moving to the West Coast
  • From Sunbelt to Megalopolis of desert areas = a land of contrasts

The Northeast : Manufacturing Belt

• Steel production
• Photographic equipment
• Engine production
• …

The Northeast : The importance of Services

• Banking + finance
• Advertising
• Media - TV/journalism
• Scientific R+D