Lecture6 - Part III: 1989-2007 - "Globalization"...

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Part III: 1989-2007 - “Globalization” Triumph of Economic Liberalism Neo-Liberalism or the “Washington Consensus” 1. Fiscal rectitude: governments cut expenditures and/or raise taxes to maintain a budget surplus 2. Free trade: the removal of trade barriers: tariffs, subsidies 3. Privatization: the sale of public-owned enterprises, goods, and services to the private sector 4. Undistorted market prices: governments refrain from policies that alter market prices 5. Export-led development: as opposed to ISI Definition: Globalization 1. Set of processes in which capital, technology, people, goods and information move across the existing map of political borders → Societies become more interdependent 2. Compression of time and space resulting from: a. Decrease in the costs of transportation, communication, and production (technological innovations) b. Changes in formal rules that govern these flows across borders (conscious decisions by individuals, firms, state governments, and transnational organizations) Technology enables greater interconnection, but the process is dependent on political will. The New International Division of Labor • NIDL: Shift of economic activities from the developed world to the developing world. • Primarily light industrial activities, but increasingly heavier Industries and service jobs • “footloose industry” - Why, because of cheaper wage rates. The Nike Model of Production:
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This note was uploaded on 04/18/2008 for the course GEOG 203 taught by Professor Ianfeinhandler during the Spring '08 term at Sonoma.

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Lecture6 - Part III: 1989-2007 - "Globalization"...

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