Decline of Europe

Fareed Zakaria’s “The Decline And Fall Of Europe” supports my previous article about the future of European economics. Europe is quickly falling behind in the global marketplace. It’s aging population and lack of work incentives will force Europe into decline if current trends hold. Growth occurs through innovation and Zakaria points out that science, education, and innovation are fleeing Europe. Coupled with the heavy socialized programs Europe is in a serious crunch. At its current rate those relying on government aid in retirement will outnumber those in the work force within 25 years. Despite this, many in Europe are pushing for shorter work weeks and better benefits. Europe is transforming into a time bomb.

Only growth has a chance to curb the decline in population and the underachieving growth rates. Growth will require an infusion of labor most likely from immigrants. In Europe however, great racism an biased exists against immigrants for ethnic and religious reasons. In term immigrants will eventually have to gain the rights of citizens if they are being taxed to take care of the native citizens. Only time will tell but Europe is in big trouble. Protectionism and Socialism are currently leading Europe into decline.

MNC vs Globalization

What is the relationship between multinational corporation’s and globalization. Are Starbucks and McDonalds simply companies or a piece of the greater globalization puzzle. Without checking my facts I believe there was coffee before Starbucks, and I will further assume that most countries with Starbucks restaurants had coffee and other cafe’s before Starbucks. Sooo what is special about Starbucks? On the other hand McDonalds is an extremely American enterprise in terms of its ideas, food, etc. Starbucks is different. What about Starbucks is globalization and not simply just a global enterprise.

Living in London which had roughly 3 Starbucks per capita I can honestly say I don’t think it changed English culture at all. I think the seminar’s participants are incorrectly or for lack of information making an incorrect inference about MNC vs. Globalization or companies that had fueled or benefited from globalization. While Starbucks is a symbol of urban life and civilization in general. I may be out on a limb here but I will say it; Starbucks IS NOT globalization. Examining the collective definition of globalization I have decided that Starbucks is not in the globalization driver seat, but simply on the bus.

My other friend McDonalds is in the driver seat. I think there are clear distinctions between a MNC and globalization. While we frequently cite Starbucks it is just a product of globalization not an innovator. McDonalds is completely different. While it may not be globalization it is defining globalization and reshaping it through its business strategy and its effects on society. In the Wall Street Journal last week McDonalds showed up with an article about its operations China. Beef is a status symbol in China and McDonald’s is using its burgers to affect society and culture. Even more controversial but more related to globalization is the use of sexually provocative advertising. McDonalds is changing the world and introducing European and American ideas into a foreign environment. This is globalization in a way that I don’t see a tall cafe latte.

I think it is important to recognize the distinct characteristics between companies the process of globalization.

Picadily Circus

DSCN4346

Originally uploaded by katie_bre.

katie_bre

This picture says to me GLOBALIZATION.  If you are scratching your head this is Picadily Circus in London.  While beautiful buildings and familar doubledecker buses of London crisscross the city, the circus serves as a center of modern culture surrounded by own of London’s most cultured districts.  Theaters, resturants, and high end shopping go hand in hand with multinational corporations trying to win over your shopping dollars.  With so many people from all over the globe it is a symbol of some of the world’s most recoinizable symbols.

Power of Flickr

USS Theodore Roosevelt

My father served on the TR spending almost a year at sea in her.  Military might is a factor of globalization

Monroe Hall

Monroe Hall

Originally uploaded by orioles29.

Beautiful Monroe Hall at UMW. My academic home for the next four years.

Insourcing

While much has been made about the outsourcing phenomenon in our country why has insourcing gone unnoticed. News sources and editorial in our country criticize companies for sending jobs overseas yet little is said of the companies that are sending their manufacturing jobs back to American workers. Several companies including Toyta, Hyundai, have invested billions in manufacturing their cars in this country. Massive plants provide thousands with jobs and these companies are forced to advertise with their own money while news sources seemingly only criticize American companies for going overseas. With other advanced countries now outsourcing to us jobs isn’t globalization proving to be a good thing.

While this help boost our economy it also give the overseas cooperation good standing in America. You can now buy American and buy a Toyotya?!

Schism or Continuation? A Look a the EU and its Impact on Globalization

NAFTA. EU. OPEC.

These names probably mean plenty to anyone who pays attention to international politics. Today’s world is not only connected through the information superhighway and various technologies but politically and economically. Examine the idea of partnerships and alliances. Detrimental or beneficial that’s an individual decision, but no matter the consequence they exist. While the possibility of a Worldwide Nation or State is quite improbably the basis of this is that the world will eventually become much closer. While I personally don’t think it will ever reach this extreme I would like to discuss in detail the European Union.

The EU love it or hate it is an interesting occurrence politically but I will boldly make the case that it is globalization. Perhaps Macroglobalization? While culturally and economically the people of the EU are very different, a relatively stable and cooperative union has created an interesting variable in the globalization process. Today predominant European currency exists. While it could be argued that all hard capital, in particular the dollar, was already global currency, it shows the changes that globalization has created in the past 20 years. While tariffs and trade agreements have been around for along time they are at their peak right now. While each state still controls its internal affairs the European community now wields powerful influence especially over other states in the union. While much of the world has created a dynamic flow of goods and as capitalism prevails the EU seems to actually be reverting or confirming the nations of Europe in a their various socialist agendas.

I think that capitalism is an important component of globalization. It is not only the inter-connectivity but the idea and desire of what others have that drives us. While that may sound like greed it’s not. America does not have the pyramids or castles, so tourism is simply a desire to experience culture. The capitalistic drive is fading in Europe…

Although I would argue that the EU is a product of Globalism I would also look at it as an extreme step or perhaps a step backwards away from Globaization. Has Globalization come full circle? I argued that globalism originated from colonial powers and empires and their desires of wealth, expansion, and the hopes of being culturally influential. In 200 years the colonies have moved on and the empires have broken. Perhaps the EU is the next at European cultural and economic domination. While they will never become supreme with nations such as China the US and Japan driving the global economy, they have a chance of greatly affecting the next century of globalization and economic evolution.

Today the EU and protectionist policies keep products and manufacturing at home. While this often provides jobs it comes at the price of inflated value. This coupled with high wages demanded by the European due to the dramatic rise of social spending. Since the governments take care of their citizens the opportunity costs of working is often outweighed by welfare benefits. With the costs of goods soaring the only way to even sell goods is to monopolize the market with high priced European goods. This is done not just through tariffs and duties but not just between say the US and France. Instead of “closing the market” the EU has actually opened instead a market but a limited market place. While I don’t have the economics background to truly analyze this greatly I am concerned. Protecting companies with large amounts of government subsidy is detrimental to the world market at the price of a chance for European gain or at least in hopes of not slipping in status. For example only two major companies produce large fleets of passenger airliners. Boeing and the Airbus company. The economic playing field is completely distorted. With the backings of perhaps some of the worlds top economies (Germany, France, UK) any time the Airbus corporation is in trouble they can count on staying afloat. While this can be true in America as well (i.e. airlines stay afloat through bankruptcy) it will never happen at European levels.

The airline industry is at a critical period in its history. With high fuel prices but a steadily increasing demand someone will have to build airplanes. Competition is what leads to quality products. Competition is under attack from the EU. While it may take decades to play out Eu policies may very well become a gold standard in other developed regions but this is again unlikely…

I would be curious for your feed back about the pros/cons of groups and agreements that our affecting the global market…

Check out future posts in “continenalism” the official EU discussion
To Be Continued…

Through Opening Eyes

So globalization is everywhere, literally and metaphorically. Ok. Fine. After just a single week of classes in my little corner of the world in Fredricksburg, VA I have taken part in discussions in four of my five classes. The subject is “hot” in academia but the term Globalization remains just a definition, and a weak one at best. In World Regional Geography the text book covers the idea of globalization as a happening event affecting everyone through a shrinking world and Multinational Corporations.

The word and the ideas are tossed around every where from TV advertisements to News stories locally to internationally. As I ponder just the concept I am starting to believe that globalization means something different to just about everyone depending on their geographic, political, and economic situation. I’m certain that that list of factors in determining personal outlook on the topic will expand the class progresses. I am taking it all in stride and trying to wipe away any preconceived notions; start with a clean slate, free of opinion. The best way to evaluate whether my preconceived notions stick with me throughout the semester and beyond or not is by stating my opinions and “understanding” of globalization is by stating them up front and comparing them to my opinions in a much later post.

MY TAKE

Globalization is both a continuation of centuries old movement towards a greater world “unity,” as well as an accelerating and ongoing cultural, political, and economic phenomenon. Overall I believe that globalization is good for the world. I believe that with globalization come many negative aspects of life today, but for the majority of people the globalization has had and will continue to have a positive impact on their lives.

The Blog in Action

First thoughts about the FSEM100J… the blog is an example of globalization in action. The world can easily come together through the internet and the blog specfically. Sharing ideas and information plays a massive role in our everyday lives. Information and goods that used to take months to travel the globe have given way to an age where things that are not instanteneous are overnight. The more we dechiper about foregin cultures the more we can embraces or shun other lifestyles. As civilization (primarily Europe) left the middle ages and began to move towards enlightenment globalization was already underway; the spice trade being jsut one example. Simply put with the ability to sample the tastes of another culture Europe wanted it. Today even in societies striken by poverty, Americn symbols such as Coca-cola are dominate fixtures. While wealthier countries and people get the best of other cultures without some of the sacrifices someone else may face; globalization in fact helps many who would otherwise be destitute. In Thomas Friedman’s “The World is Flat” he gives a detailed account about the oppurtunities and benifits afforded to the people in countries like India. While the educated masses of India are earning better pay and benifits than there parents straight out of school they are also lowering the opperating costs of American and European corporations freeing up capitol for inovation and better benifits for their own people. This practice has been named “outsorcing” or at least thats how I interupt the process. While many consider it the evil that faces the American nation, I sincerly believe its good economics and a result of an American workforce that refuses to make itself marketible. While there are many other factors such as coruption on the part of business (ENRON ANYONE???) that can ruin outsorcing and globalization in some instances, overall it is an important and the vast majority benifits in the global scheme. Long term the affects of globalization and a deminishing manufactoring sector could put America at risk (i.e. the inability to manufacture military equipment at the rate possible in WWII) but the current innovation level of American technologies are actually putting us in a better position (Do more with less therefore the ability to mass produce deminishes.) Back to the blog side of things though. The information availible to the masses not only brings us together but can improve our lives. What if someone reading this a blog for FSEM100J decided they could tap a vast African workforce and was able triple the income per capita of a village, city, or even nation, all the while cutting the cost of a good or service in New York or London by 50%. Not only would that good be avalible for less other companies would be forced to compete or be inovative and either way the consumer prospers. While the jury is still out on the depth and understanding of globalization from the surface globalization seems to be extremly benifical.