Globalisation and regionalisation

GLOBALISATION AND REGONIALISATION

Examen écrit à la fin du semestre, une question de cours et rédaction intro, dvlpt, conclusion en développant 20points (50% sur le contenu + 50% sur l’anglais)

Denier cours le 11/12

OUTLINE

Intro: What is globalization?

A) The Westernization of the world

B) The expansion of market

C) Money

D) The dangers of globalization

E) Globalization does not mean globalism

I. Reshaping the world to build globalization on American vision

1. An historical background

1. International trade
2. The case of the commonwealth

1. Since 1945 deregulation, the American plan

1. The GATT, the world Bank, the IMF
2. The OECD
3. WTO

1. In 1997, the coming of China in the world market (the competition of the low-cost countries, relocations in China and unemployment in the western countries)

1. The Silk Road
2. From Nixon in 1972 to Bill Clinton in 2001: the opening of the word by the Americans the Chinese economy
3. China Today

II. Major trade agreements and regionalization

1. The EU: 28 countries soon to become 27

1) History

2) The EU signed European free trade agreement with the third world

B) The African, Caribbean and Pacific EU development cooperation

1) The Yaoundé Agreement in Cameroun 1969- 1974

2) The Lomé Convention 1975 in Togo with 9 European countries and 46 developing countries

3) The Cotonou from 2000 to 2020 in Benin with 15 EU countries and 78 developing countries

C) The EU and other developed nations

1) The EU and Canada (The CETA) 2017- ?

2) The EU and Japan 2017-?

D) African, Latin American and Asian Free trade agreements

1) African free trade zone (26 nations) 2015

2) the ASEAN 1967 10 countries

3) GAFTA = Greater Arab Free trade Area 18 countries 1st one: 1957-2nd: 1998

4) MERCOSUR: 5five countries in 1991

III. Globalization, deglobalization and regionalization

1. Globalization a great success but

1. Relocations and their consequences
2. Unemployment and deindustrialization
3. Counterfeiting  

1. The USA a global power attracted by deglobalization

1. The NAFTA between USA Mexico and Canada
2. The USA pooled out of the TPP Trans-pacific-partnership in 2017
3. Called away from the Trans-Atlantic-Trade-Investment-Partnership in 2017

1. Brexit (all the British goods that will be sell in European Countries might be affected by 50% tariffs)

1. EU Tariffs
2. EU and non-EU citizens in Britain will have to get a “settlement status”
3. Renogociations of trade agreements
4. Global cities and city localism

Conclusion:

A) Competition needs fair trade, so no dumping

B) Financial crises can be seen as a danger for the world

C) Jobs vs relocations: the competition of low wages

Intro: What is globalization?

Globalization is the building of a free trade world with fewer and fewer regulation and tariffs, which means that even today we don’t have globalization, we are working towards globalization. At the end, we won’t have tariffs and today we have tariffs, we are working towards. Globalization can be opposed to international market which abide by laws and respect borders. The goal is to abolish the borders for trades but today, we are moving away from international law/trade going to globalization, but each nation today has border and we have free trade zones (like the EU: no borders for trade between the 28 countries).

Global companies do not pay attention to borders and expand all over the world looking for cheap labor, and small investments costs. Globalization was made possible because on one hand we allowed low-cost countries to sell their products here with dumping and on the other hand, the global companies could relocate and use low-cost working forces. If the low-cost countries, were paid the same salary has the developed country, there would not be globalization. If we pay tariff, on low-cost goods, there would not be globalizations, that means globalization is an unfair competition. The low-cost economies use the research and development of a developed economy. They make the products in their home country and then sell the products the developed economies which has invented the products (ex: Iphone). So, it is the complete opposite of what François Quesnay (French economist who describe the economic circle: for 300 years, one country invented a product and sold it to the same country = close product), Adam Smith or Keynes said. Recently, we have introduced something different. We have separated invention, production and consumption. We don’t have economic circuit anymore. Another important thing is also the new technology, the new technologies allow services to be sent away. The consumer is in one country and the services are produce in another.

Globalization is a goal that doesn’t exist yet completely but it is the building of a free trade world without borders, within fewer and fewer tariff. Globalization is, indeed, a work in progress. Globalization can be opposed to international trades. Globalization has completely destroyed the idea of the economic circle. With globalization you have invention is developed countries, you have building in low-cost countries and we have consumption in the western economies where the good have been invented. But this system creates unemployment in the western world, while it creates wealth in China for example.

So that’s the situation we are facing now, maybe China will once invent a completely new good. But for now, they produce we buy. The money goes one way, it is no longer in circle.

Globalization has been setup by America. America has opened the door to China, it goes back to 1997. The arrival of Chinese good in the western world only happened 22 years.

1. The Westernization of the world

Each culture has a very different way of considering time. The westernization of the worlds was able to happen because of the discovering of the land but also because of the industrialization. With the industrialization, we have in the world big improvements on food production. For millenaries and millenaries in the world, the population ate what they produce. There was a natural balance between the number of people living in a given land and the production of food. Now, we have unbalanced situation with exportations and importations. The situation has completely changed due to the trade of food.

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