Geo Factsheet: Are We in an Era of De-Globalisation? (2020/21) PDF

Geo Factsheet................................ www.curriculum-press.co.uk # 417 Are We in an Era of De-Globalisation? Introduction...

Geo Factsheet................................ www.curriculum-press.co.uk # 417 Are We in an Era of De-Globalisation? Introduction Figure 1 Countries of the European Union There are many ways of defining the term ‘globalisation’. However, in simple terms, we can think about it as ‘the increasing inter- connectedness of people and places in an ever-shrinking world’. Globalisation is caused by numerous factors. Many A-level exam boards require you to study some of these factors including: the development of technology (including ICT and transport technology), the expansion of financial systems, changes in security arrangements and trade agreements. These factors work independently, or in many cases, together to encourage globalisation. This Geo Factsheet suggests that in the last few years, there have been indications such as decreases in the volume of trade, that globalisation in some areas is actually in decline and that a process of de-globalisation is occurring. A number of groups are against globalisation, for a whole array of reasons, it is precisely because of these negatives that some de- globalisation has occurred. For your exam preparation you are required to develop a critique of globalisation which assesses its advantages and disadvantages, environmentally, socio- economically and culturally. This Geo Factsheet will discuss a number of situations and events that themselves suggest that the world, or indeed parts Advantages of EU and Disadvantages of EU of it, are involved in a process of de-globalisation with more nationalistic and self-sufficiency eras developing. Advantages of EU Membership Brexit Although the UK contributed around £13.1 billion to the annual EU budget, some £4.5 billion a year found its On the 23rd of June 2016, the UK held a referendum on membership way back to the UK through EU spending (e.g. Regional of the European Union (EU). 51.89% of the population voted to Fund) making the country a net contributor of around leave, whilst 48.11% voted to remain. The voter turnout was 72% £8.5 billion. However, there were also other positive, of the population which is judged to be a very significant voter financial gains in areas such as trade and investment turnout. Following this vote, it has taken a very long time for the from companies as a result of EU membership. UK actually to leave the EU. There have been many debates since the referendum about the form of exit that the UK should The EU operates as a single market. In such a situation, imports and exports between countries are free from take, including discussions on the details of what, if any, deal tariffs (taxes) and other barriers such as extensive the UK will have with the EU. At the time that this Factsheet was border checks. Furthermore, the UK has been able to written, Boris Johnson had held a general election on the 12th benefit from free trade deals that the EU has with other December 2019 which saw 365 Conservative MPs returned, countries such as Canada and Japan. For people in giving him a sizeable majority of 80 seats. This allowed Johnson favour of remaining in the EU, trade is a particularly to get legislation through Parliament leading to the UK leaving the important point as the Office for National Statistics EU on January 31st, 2020. Existing arrangements will continue (ONS) figures show that in the period 2006–18, 45% to until 31st January 2021 leaving twelve months to negotiate a new 55% of the UK’s exports went to the EU. relationship regarding trade and other matters. The global crisis caused by the Covid-19 pandemic may delay this agreement, but As a result of being in the EU, many companies invested to date the UK Government are determined it will not do so. in London to gain access to the EU. For example, US banks. Some questioned whether this would continue At this stage, it may be worth noting what the claimed advantages following Brexit. and disadvantages of Brexit are. See the following tables. © Curriculum Press 2020 Geo Factsheets, 2020/21 Series, Issue 1 of 3, September 2020. ISSN: 1351-5136 1 Geo Factsheet 417 - Are We in an Era of De-Globalisation? President Trump – America First As a result of EU membership, people in the UK were free to live and work across the EU (freedom of movement Figure 2 President Trump for workers). This had many advantages for businesses operating in the UK, especially hotel and catering, care homes and agriculture. The EU began to have a major world influence in global governance with some observers describing it as a ‘super-power’. People in favour of remaining in the EU claimed that continued membership of the EU would allow for greater cooperation with European countries to reduce security threats and also allows greater cooperation in times of crisis. Disadvantages of EU Membership Many saw the EU as diminishing the powers of individual sovereign states, in this case, the UK. Being a member of the EU means following EU laws and treaties. Many in favour of Brexit claimed that this meant the UK lost some control over domestic affairs. For Donald Trump became the 45th president of the United States example, under EU law it is illegal to make an employee on the 20th of January 2017. Trump has been one of the most work for an average of more than 48 hours a week. controversial world leaders ever. Since Trump’s election, he has pursued political goals and policies which have had the effect As a result of the free movement of labour mentioned of de-globalisation. Some in the USA trace these policies back above, the UK could not prevent someone from to the financial crisis in 2008. Some have called this crisis ‘peak another EU nation coming to live and work in the UK. globalisation’ with less globalisation happening after this crisis. This resulted in a large amounts of migration and did cause some problems – namely relating to housing and The financial crisis is such a significant event that a whole service provision in pressurised areas such as Boston, Factsheet could be dedicated to it. However, in summary, the Lincolnshire. crisis started in America. Banks were giving out high-risk mortgages and eventually too many people failed to pay the bank Some also claimed that due to the free movement back. This resulted in the bankruptcy of the Lehman Brothers policy, the risk of terrorist attacks was enhanced’. This company. As a result of the highly interconnected banking was because there were fewer checks against people system, the collapse of this American company caused problems entering the country. across the world. Eventually, banks had to be given money by In some cases, people felt that membership of the EU governments in controversial ‘bail out’ schemes which were had benefited the wealthy London population over the funded by taxpayers. rest of the UK. Possibly as a result of this crisis, and other factors, Trump has been engaged in a brand of politics which has sought to Whether you agree or disagree with Brexit, there is no doubt disengage America in some areas of global governance. Trump, that this constitutes a form of de-globalisation. At present, it famous for his use of Twitter, wrote the following on the issue of is unclear how the central issue of trade will be resolved in the trade with China: coming years. However, what is clear is that there will never be the ‘Our country has lost, stupidly, Trillions of Dollars with China over same confidence and stability regarding trade as afforded to EU many years. They have stolen our Intellectual Property at a rate members. This point has been confirmed by businesses who have of Hundreds of Billions of Dollars a year, & they want to continue. been forced to stockpile products and even move aspects of their I won’t let that happen! We don’t need China and frankly, businesses to EU countries in the event of high tariffs on trade. would be far better off without them. (…) Our great American Some have also claimed that if we do enter into some form of companies are hereby ordered to immediately start looking trade relationship with the EU in future, we will be bound to some for an alternative to China, including bringing your companies degree by the rules of EU membership, but have little power or HOME and making your products in the USA’. influence to alter the rules. Furthermore, as the right to freedom of Source: Trump Twitter, 23rd August 2019 movement is almost certain to be removed, with the development of a points based system for all migrants, a significant flow in terms This Tweet refers to an ongoing trade battle between the two of people (one of the central factors in creating globalisation) will largest economies in the world. The above Tweet discusses the be reduced. This will result in less globalisation. People bring with American position, whereas in China there is a feeling that the them ideas, cultures and investment. Returning the other way is a USA is trying to hold back China’s rise as a global power (it must flow of capital in the form of migrant remittances. These flows are also be remembered that the USA has an approximate $419 central to globalisation and without them, we are almost certainly billion trade deficit with China). Essentially, what has happened less globalised. The Economist rather gloomily summed up the is that both the USA and China have imposed tariffs on one situation stating ‘the UK might well find itself a scratchy outsider another’s goods. Trump aims to encourage consumers to buy with somewhat limited access to the single market, almost no American products by making imported goods more expensive influence and few friends’. (a form of protectionism). So far, the US has imposed tariffs on © Curriculum Press 2020 Geo Factsheets, 2020/21 Series, Issue 1 of 3, September 2020. ISSN: 1351-5136 2 Geo Factsheet 417 - Are We in an Era of De-Globalisation? more than $360 bn (£268 bn) of Chinese goods, and China has Figure 4 Starbucks in Seoul, South Korea retaliated with tariffs on more than $110bn of US products. What is interesting about this situation is that the longer this goes on for, the worse it may be for American companies. Many American manufacturing businesses rely on raw materials and components from China. By increasing tariffs, these manufactured products actually become more expensive and so the incentive to buy American produced products diminishes. It is hard to discuss Trump without mentioning climate change. In 2012, Trump claimed that ‘the concept of global warming was created by and for the Chinese in order to make U.S. manufacturing non-competitive’ (Trump Twitter, November 6th 2012). Since taking office, Trump has pursued policies aimed at helping fossil fuel companies and reducing investment in the environment and renewable energy. Famously, in June 2017, Trump announced that the USA would be formally exiting the Paris Climate agreement – the only country in the world to do so. For reference, the Paris agreement, among other aims, sought to keep global temperatures ‘well below’ 2.0°C. This is a clear case cultural homogenisation. Many see this process as a good thing, of de-globalisation and a weakening of international co-operation but there are many who would disagree. In our daily lives, cultural moving forwards. Most recently, Trump has withdrawn the USA globalisation is everywhere you look. From tv programmes from WHO over the row about what he calls the Chinese virus, imported from the USA to the UK, fashion, food, the cars we Covid-19. Therefore, it is clear that Trump has caused some de- drive, to technology. However, for each of these globalising globalisation to occur. Trade is the cornerstone of globalisation forces, there is an emerging scene of de-globalising effects and trade wars represent disconnect here. Furthermore, that rise against cultural globalisation. In the past, the news was withdrawing from highly important international agreements also dominated by a few major media outlets – these media outlets represent de-globalisation as America, following the exit of the then shaped the cultural opinions of millions of people. Paris agreement, is now less interdependent in this area. Now, thanks to technology and the internet, there are many media Trump’s plans are also aimed at diminishing America’s role as ‘the channels and outlets which cater to a vast number of audiences. policeman of the world’ with the withdrawal of American troops Taking the coffee example, as much as Starbucks has grown, in from some areas such as Syria, and engaging in discussions many UK towns, the number of independent coffee shops has about equalising contributions to NATO. also grown. Perhaps, these independent stores represent a form of de-globalisation. Such coffee shops face stiff competition from The rise against cultural globalisation established chains, however, analysis reveals that such shops In less than 50 years, a coffee shop that started in Seattle has are generally more flexible to market trends and can offer a more grown to 20,000 shops across 60 countries (see Figure 3). For personalised local experience for their customers. However, the first time in history, thanks to globalisation, a cappuccino it must be noted that many TNCs have actually adapted their from Starbucks is the same no matter where you drink it. In products and practices to mesh with local culture. This is known geography, we call this phenomena cultural globalisation or as glocalisation. You could research this further by looking at McDonalds in India. Figure 3 Countries that contain Starbucks coffee shops © Curriculum Press 2020 Geo Factsheets, 2020/21 Series, Issue 1 of 3, September 2020. ISSN: 1351-5136 3 Geo Factsheet 417 - Are We in an Era of De-Globalisation? Nevertheless, there is an increasing movement (mainly motivated by fears about climate change) to promote the concept of ‘local Guidelines for Examination Answer produce’ thereby reducing food miles. In the UK movements In order to answer this question successfully, you will such as the development of Transition Towns reflect this. need a clear structure. This will allow for a well-reasoned argument to be put across for both positions. You should The negatives of globalisation start by defining the key terms in the question and providing As mentioned in the introduction, globalisation has both an outline of the essay. It would be useful to outline the positives and negatives. This paragraph considers the idea examples you will use in your essay. that this possible era of de-globalisation is occurring because The first main paragraph should discuss the idea that the more and more people are becoming aware of the negatives of world is indeed going through a process of de-globalisation. globalisation. Some of the well documented negatives include: You should discuss a number of ideas here. The contents job losses in developed countries as jobs are moved to of this Geo Factsheet, plus any wider reading and research developing countries, you have conducted should help you here. You should try increased pollution as a result of greater levels of and use a PEEL structure in your paragraphs (point, explain, transportation and use of technology example and link back to the question). the ability of large companies to influence policies and The next paragraph should examine the idea that the world practices in the countries in which they operate. is not actually going through a process of de-globalisation. An example of this is Apple. Apple has made the news in recent Key ideas to support this position include the increases in years following reports of factory conditions in China where their global trade that have taken place recently, the great flows of famous iPhones are made. In some cases, staff are paid the people that move from country to country each day, as well equivalent of £1.26 an hour and Apple are said to disregard laws as the significant flows of capital that stimulate the global regarding overtime. There have also been reports that staff are economy. It would also be possible to discuss cultural ideas regularly exposed to harmful chemicals. In one instance, over 90% here. of a factory had to be hospitalised following extreme exposure Finally, you should come to a conclusion. The conclusion to sulphur and phosphorous. Such negative media coverage is should provide a solid judgement on whether the world is clearly not good for Apple. However, stories such as this highlight actually going through de-globalisation or not. Ideally, the the problems that globalisation causes. This helps to promote conclusion you draw should be self-evident to the reader, it initiatives, often at grass roots level, that support local industries should not come as a surprise, and you should try and steer over large corporations. Increasingly, the term sustainability is your reader towards this conclusion in the main body of your heard more and more. It has become ‘fashionable’ and such people essay. are more conscious about where their products, and increasingly their food, are being made. Initiatives such as ‘buy local’ represent An alternative structure would be to look at flows associated an alternative to the well-established globalised options. with globalisation, such as migration. Conclusion Further Reading and Research Globalisation is almost certainly going to continue. As some say, ‘we have come too far’ to stop now. We will continue to buy Global systems – A-level Geography Topic Master by Simon Oakes. Published by Hodder Education 2019. products from around the world and we will continue to share information like never before. However, there is uncertainty in the Frequent articles from The Economist, available online, e.g. future. It is clear that there is de-globalisation taking place. The Goodbye Globalisation May 16th, 2020. degree to which the world will become de-globalised is unclear, however, in the case of Brexit, the UK has taken the decision to https://www.theweek.co.uk/brexit-0 de-couple itself from one of the world’s most significant trading https://www.forbes.com/sites/patrickwwatson/2019/09/04/ blocs. This is de-globalisation in its purest form. globalization-hits-a-brick-wall-named- trump/#1abda8277d1b Further Work https://www.binance.vision/economics/the-2008-financial- There are many other examples of de-globalisation. Can you crisis-explained research them? https://www.theguardian.com/us-news/2019/nov/04/ donald-trump-climate-crisis-exit-paris-agreement Examination Question https://www.bbc.com/future/article/20120522-one-world- order You could attempt the following essay title: ‘The world is going through a process of de-globalisation’. To what extent https://www.theinquirer.net/inquirer/news/3024628/apple- do you agree with this statement? (20 marks) factory-conditions-lead-to-90-per-cent-of-workforce-taken- to-hospital The COVID-19 pandemic of 2020 may have fundamentally Acknowledgements: This Geography Factsheet changed the world and people’s visions of what things should be like. There is no doubt that the movement was researched and written by Tom Howell, Head of people, goods and capital will flow less freely in the of Geography at St John’s School, Leatherhead, and immediate future. published in September 2020 by Curriculum Press. © Curriculum Press 2020 Geo Factsheets, 2020/21 Series, Issue 1 of 3, September 2020. ISSN: 1351-5136 4