Chapter 2 Identity And The Forces Of Globalization - Mr. Flynn At MAC

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TO WHAT EXTENT SHOULD WE EMBRACE GLOBALIZATION?Chapter 2Identity and the Forcesof GlobalizationFigure 2-1 Forces like trade,transportation, communicationtechnology, and international media haveincreased the pace of globalization andchanged what you buy, watch, and read,how you communicate, where you go,and how you get there. These changeshave shaped — and been shaped by —people’s individual and collective identity.

C HAP T E R IS S UETo what extent do identity and the forcesof globalization shape each other?YOU WON’T FIND the word “glocal” in dictionaries. At least, not yet.But enter this word in an Internet search engine, and you will gethundreds of thousands of hits.What might this one example of a word that is widely used butdoes not yet appear in dictionaries tell you about the pace of changesparked by the forces of globalization? “Glocal” combines the words“global” and “local” to create a new word that expresses how theglobal and the local are related. It sums up the idea that things thathappen at a global level, such as international trade, affect thingsthat happen at a local level, such as what you buy in local stores —and vice versa. In other words, the globalizing world shapes youreveryday life and your everyday life shapes the globalizing world.Examine the photographs on the previous page. Each shows aforce that links the global and the local. What forces do you think the photographs show? How do you think each connects the global and the local? How do these connections affect your everyday life, yourrelationships with family and friends, and your views on globaland local events — your identity?LOOKING AHEADKEY TERMStransnational corporationmedia concentrationmedia convergenceeconomies of odationassimilationcultural revitalization‹‹‹‹‹‹In this chapter, you will explore answers to the following questions: What are some forces of globalization?HEAD affected by some economic, political, environmental, LOOKINGHow isAidentityandsocialdimensions of globalization?In How do some forces of globalization present challenges to identity? WHow do some forces of globalization provide opportunities to affirmand promote identity?PointMyof View on GlobalizationLook back at the notes you recorded at thebeginning of Chapter 1. Have your understandingsof globalization changed since then? Use wordsor images — or both — to explain how. Date yourideas and add them to the notebook, learning log,portfolio, or computer file you are keeping as youprogress through this course.43

WHAT ARE SOME FORCES OF GLOBALIZATION?Figure 2-2 Creating soapstonesculptures is a traditional Inuit art.This carving, titled Bird Creature, wascreated in 1990 by Inuit artist KiawakAshoona, who lives near Cape Dorset,Nunavut. How do carvings like this linkthe identity of today’s Inuit with theirheritage?Did you eat a banana or an orange for breakfast today? Did you season youreggs with pepper? Spread peanut butter on your toast? If you did any ofthese things, you were taking part in the same exchange of goods that hasconnected people around the world for thousands of years.Bananas, oranges, and pepper do not grow in Canada. And thougha small number of farmers in southern Ontario grow peanuts, they donot produce nearly enough to supply the demand across the country.Yet Canadians can enjoy these foods — and many others — because ofinternational trade.International trade is a major globalizing force — a power that promoteschange. But trade is not the only globalizing force at work in the world.Transportation, communication technology, and the media have all speededup the pace at which the world’s people are becoming interconnected andinterdependent. How do you think this growing interconnectedness andinterdependence affects your individual and collective identity?Trade as a Globalizing ForcePeople have always reached out to others to obtain things they cannot growor make themselves. In North America, for example, some areas of theEastern Arctic are rich in soapstone, a soft rock that can be easily carved.At the same time, wood is scarce. So the Inuit of the Eastern Arctic reachedout to other Aboriginal groups, such as theJames Bay Cree, who lived farther south, wherewood was more plentiful. The Inuit traded theirsoapstone for wood.In the same way as the Inuit connected withnearby peoples through the exchange of goods,people who live in different parts of the worldhave connected with one another through tradefor thousands of years. People trade with oneanother to obtain goods and services that are not available in their own region better quality or less expensive different from goods produced at homeFigure 2-3 During summer, when theweather is warmer, many Inuit oncelived in tents like this, photographedin 1915. This photograph also showsone way the Inuit used wood. Whatother uses might the Inuit have had forwood? Why would they have prizedwood so highly? Does this reflect Inuitlives today?44Trade goods may be anything from naturalresources, such as lumber and oil, to clothing,car parts, agricultural products, and stocks andbonds. Goods may be imported into a country from other countries — orexported out of a country to other countries.Except in a small area of southern Ontario, for example, the Canadianclimate is unsuitable for growing peanuts. So Canadian supermarketsimport peanuts grown in the United States and other countries, such asChina. At the same time, Canada is rich in oil, which is exported to theUnited States and other countries.To what extent should globalization shape identity? MHR

Transnational corporations and international tradeYou probably recognize the logos on this page. Allthree are symbols that represent familiar “Canadian”companies — but none is now owned by Canadians.The Hudson’s Bay Company, North America’s oldestcorporation, was sold to American billionaire JerryZucker in 2006. Zellers, which was founded during theGreat Depression of the 1930s and later bought by theBay, went to Zucker in the same sale. Tim Hortons wasfounded by and named for Tim Horton, a Stanley Cup–winning Toronto Maple Leaf defenceman in the 1960s.This company was sold to the American fast-food chainWendy’s International in 1995. Where do you think thedecisions about running these companies are now made?Figure 2-4 These commercial logos are probably familiar toA business like Wendy’s is a transnationalmost Canadians, and all three companies were Canadian-ownedcorporation — also called a multinational corporation. at one time. They are now owned by American companies. Doesit matter that so many “Canadian” businesses are owned byA transnational corporation is a company that is basedAmerican corporations?in one country while developing and manufacturing itsproducts, or delivering its goods and services, in morethan one country. Transnationals such as Wendy’s, Wal-Mart, Nike,Coca-Cola, McDonald’s, Microsoft, Dole, Del Monte, and DaishowaCHECKBACKprovide goods and services to Canadians and other people around theYou read about the Japaneseworld every day.company Daishowa PaperManufacturing in Chapter 1This means that when you buy a donut at Tim Hortons or a bananawhen you learned about theat your neighbourhood supermarket, you are participating in the globalstruggle of the Lubicon Creeeconomy. How is this so?to affirm their identity.Transnationals and globalizationTransnational corporations play an important role in the globalizationprocess. Companies like McDonald’s, Coca-Cola, and Nike sell fastFYIfood, soft drinks, and shoes around the world. In many countries,Of the world’s top 500 transnationalcorporations based on total revenues, 170they provide training and jobs for people who might not otherwiseare in the United States, 70 in Japan, 38 inhave work.Britain, 38 in France, 35 in Germany, and 14But critics of transnationals say that the jobs are often “McJobs”:in Canada.low-level positions that require little skill and provide few opportunitiesto advance. Critics also argue that the profits earned by transnationals,such as Daishowa Paper Manufacturing of Japan and Coca-Cola of theUnited States, go to the country where the company has its headquarters.The profits do not benefit the people ofthe country where the goods are actuallyob,”made or sold.word “McJnot coin theddieddatanerIplelYFan AccDouglas CouIf you ran a transnational corporation,X: Tales foradian author, Generationokang pokesslboof91Although Cant19bime, thislar in hisnawhat do you think your three most importantpudpoanitucts (e.g.,bresadd’prhe mc” to its odMcDonale“My asthixefonprayegoals would be? Rate these goals in order ofate Dictionaradding thCulture. A plster’s Collegireby’s habit offoyan-Wpitmamunricorterened in Mfun at thlit tle oppofiimportance. With a partner or group, discussesdeidisov”probd“McJill anMcMuffin).ires lit tle skthe goals you identified. Are your lists andjob that requginay-pw“a lot.”ratings the same or different? What mightadvancemenaccount for the similarities and differences?MHR To what extent do identity and the forces of globalization shape each other?45

Transportation as a Globalizing ForceVOICES Just as the computer revolutionizedthe flow of information, the shippingcontainer revolutionized the flow ofgoods. As generic as the 1’s and 0’sof computer code, a container canhold just about anything, from coffeebeans to cellphone components. Bysharply cutting costs and enhancingreliability, container-based shippingenormously increased the volumeof international trade and madecomplex supply chains possible.— Virginia Postrel, Americancultural commentatorFigure 2-5 When the Emma Maerskwas launched, it was the biggestcontainer ship ever built. Nearly aslong as four Canadian football fieldsand wider than the Panama Canal, thisfloating giant can carry up to 11 00020-foot (6.1 m) containers. Thecontainers are transferred to trucks,trains, and even planes, which carrythem to local markets. How mightthe availability of larger volumes ofimported goods affect your buyingdecisions — and your individual andcollective identity?46Transportation is essential for trade. Over the millennia, various forms oftransportation — people, camels, draft horses, carts, ships, trains, trucks,and planes — have been used to move products to market, the place wherethey are sold.Today, products can be moved farther and faster than ever before.About 40 per cent of the world’s trade goods are shipped in containers: largemetal shipping boxes built in standard sizes so they can be sealed, thentransferred easily from one form of transport, such as a ship, to another,such as a truck or train. At any time, about 18 million containers aremoving across the world’s seas and oceans.Containers revolutionized the shipping industry when they wereintroduced in the late 1950s. Until then, stevedores — people who loadand unload ships — usually moved crates and cartons piece by piece ontoships. Twenty stevedores could load about 20 tonnes in an hour.Goods are now loaded into containers. Cranes then hoist the containerson and off specially designed ships such as the Emma Maersk, shown in thephotograph. In a few minutes, a crew of 10 can load 40 tonnes of goodsonto a container ship.Containers made it much cheaper and faster to ship goods over longdistances. It also made shipping more reliable because it is easier to keeptrack of one large container than many smaller crates and cartons. It is alsoharder to steal goods from a sealed container. How do you think cheaper,faster, and more reliable transportation affects the price of goods? Howmight this affect your identity as a consumer?The container revolution of the last half of the 20th century speededup the globalizing process. “Low transport costs help make it economicallysensible for a factory in China to produce Barbie dolls with Japanese hair,Taiwanese plastics and American colorants, and ship them off to eager girlsall over the world,” wrote Marc Levinson in The Box: How the ShippingContainer Made the World Smaller and the World Economy Bigger. As a result,containers are sometimes called the building blocks of the global village.Other transportation changes, such as the development of passenger jetsafter World War II, also meant that people could move around the worldmuch more quickly and easily. This development also increased the pace ofglobalization. How do you think travel might have done this?How does the subtitle ofMarc Levinson’s book capturethe importance of containers tothe globalizing process? On atwo-column chart, list peoplewho might have benefited — andthose who might have suffered —because of the container revolution.Discuss your ideas with a partner,then revise your chart to reflectchanges that resulted from thisdiscussion.To what extent should globalization shape identity? MHR

Communication Technology as a Globalizing ForceJust as containers revolutionized the way goods are transported, so thecomputer revolutionized the way information flows. The development ofcomputers took a big leap forward during World War II, but these earlymachines were huge, complex, and very expensive to build. They could beoperated only by highly trained experts, and only businesses, governments,and the military could afford to run them. This began to change whenthe first personal computers — computers that were simple enough forindividuals to buy and use — appeared in the late 1970s.Since then, advances in digital technology, which involves changingdata into numerical digits that can be processed by a computer, haveallowed these machines to become cheaper, smaller, more powerful, andeven easier to operate. The digital technologies that sparked advances incomputers also paved the way for the development of other devices, such ascellphones, MP3 players, and digital cameras.CHECKFORWARDYou will read more aboutcommunication technologyand globalization in Chapter 3.The Internet and the World Wide WebPer CentNumber (in millions)The Internet is a network that connects millions of personal computers aroundthe world. But when the Internet was first created, it was slow and awkward toFYIuse. This changed when the World Wide Web developed in the 1990s.Canadian James Gosling played anThe Web is a system of Internet servers that support specially formattedimpor tant role in the development of theWorld Wide Web. As a teenager in Calgar y,documents that can be linked to other documents — and to graphic, audio,Gosling was fascinated by computers andand video files. This new tool made accessing the Internet much easier, andeven wrote software for the University ofmore and more people started going online.Calgar y’s physics depar tment. As an adult,Because of the World Wide Web, a business can now go online to seekhe went to work for Sun Microsystems, aCalifornia company. There, he invented theout a supplier, who might be anywhere in the world. The business canJava programming language, which is usedthen remain online to view pictures of the product, request and compareon the World Wide Web.prices, place an order, and receive notice of when to expect delivery. And thegrowing popularity of portable wireless devices, such as cellphones, laptopcomputers, and personal digital assistants, or PDAs, means that the peopleinvolved in the transaction could be sitting in an office — or they could beat home, in a coffee shop, or in a park kilometres away from the office.Examine the bar graphs on this page. What trends do the statistics reveal?Do you think the trends shown on the graphs will change in the future?Check the Internet to seeFigure 2-7 Growth in Numberwhether changes haveof Web Sites on the Internetalready occurred. DoesFigure 2-6 Percentage of Canadianaccess to the Internet and120Households with Internet Accessthe World Wide Web100 million80100affect your understanding70of the world today? How?61%8060How do you think the5060changes you predicted42.3%50 million40might affect your4030individual and collective2020 million20identity in the future?7.4%10Explain the reasons for00your predictions.199620002005200020042006Source: Statistics CanadaSource: NetcraftMHR To what extent do identity and the forces of globalization shape each other?47

The Media as a Globalizing ForceCHECKFORWARDYou will learn more aboutthe media as a globalizing forcethat affects identity inChapter 3.IdeasWhen the World Wide Web developed, individuals, businesses,governments, and organizations began to understand its potential as aninteractive communication tool that could be used to broadcast — andgather — information. People now go online to do things like banking,shopping, taking courses, conducting research, playing games, blogging,communicating with friends and online acquaintances, listening to music,and watching videos.Newspapers, for example, began to publish online editions that peoplecould read on their home computers. If you want to read about the Chinesegovernment’s response to a world event, for example, you can check theonline edition of the People’s Daily, which publishes versions in Chinese,English, French, Arabic, and other languages. Readers can even e-mailcomments that are published on the paper’s web site. How might the abilityto read about events in a newspaper from another country, as well as thecomments of other readers, affect your understanding of an issue?How are the ideas expressed by the word “glocal” reflected in your identity?The students responding to this question are Marie, a Francophonestudent from Medicine Hat; Deven, who was born in India but is nowa Canadian who lives in Calgary; and Gord, a member of the BeaverFirst Nation near High Level.MarieDevenYour Turn48GordHow would you respond to the question Marie, Deven, and Gord areanswering? Do you think globalization shapes you more — or less —than you shape globalization? Explain the reasons for your judgment.To what extent should globalization shape identity? MHR

Digital technology also allows signals to be sent to communicationsatellites in space, then bounced back to receivers on Earth. This is thetechnology that enabled people around the world to gather at the same timein front of TV sets to watch live satellite transmissions of the 2006 WorldCup soccer games. It also enables news organizations such as the BBC,CNN, Al-Jazeera, and the CBC to broadcast their programs around theworld. What news programs do you watch or listen to? Do these choiceshelp shape an aspect of your identity? If so, how?CHECKBACKYou read about satellitetransmissions of World Cupgames in Chapter 1.Media concentration and convergenceSince the 1980s, two trends — media concentration and mediaconvergence — have changed the way newspapers, television, and cableservices operate. “Concentration” refers to a trend that concentrates ownershipof newspapers and other media in the hands of a few large corporations.“Convergence” refers to the use of electronic technology to integrate mediasuch as newspapers, books, TV, and the Internet. It enables print andbroadcast media to work together to develop stories and create content fortheir web sites. These two trends, concentration and convergence, havebecome stronger since the Web became a force in communications.In Canada, for example, CTVglobemedia now owns The Globeand Mail, Canada’s biggest national newspaper, as well as CTV, thecountry’s biggest privately owned TV network. Through these properties,CTVglobemedia also owns Report on Business Television, TSN, radiostations, and other media.CanWest Global Communications, which owns the Global TelevisionNetwork, also owns a chain of newspapers that include the EdmontonJournal and the Calgary Herald, as well as a controlling interest in AllianceAtlantis Communications, Canada’s biggest entertainment company. AndQuebecor, a huge Québec-based printing company, added to its holdings bybuying another newspaper chain that includes the Edmonton Sun and theCalgary Sun.Critics of media concentration and convergence believe that these trendsencourage the news media to reduce the number of reporters and other staffthey employ. They also believe that concentration and convergence reducethe diversity of voices in Canada and around the world. How might areduction in the diversity of media voices affect your identity? Would theseeffects be positive or negative? Why?VOICES Thirty years ago, when I startedworking [in the media], 40 per centof English and 50 per cent of Frenchlanguage daily newspapers inCanada were independently owned.Today, 96 per cent of those papersare in chains; that means they areowned by corporations. CanWestGlobal owns 50 per cent [of those].Only three daily newspapers inCanada — the Winnipeg Free Press,the White Horse Star, and Montréal’sLe Devoir — are privately owned.— Dave McLauchlin, CBC Radiojournalist, in 2003.REFLECT AND RESPONDCreate a T-chart like the one shown.In the first column, identify threeglobalizing forces and how theyshape your identity. In the secondcolumn, briefly explain how youridentity shapes each force. Anexample is filled in for you. When youfinish, compare your chart with thatof a partner. Work together to addtwo more items to your charts.GLOBALIZING FORCES AND MY IDENTITYShape My IdentityAre Shaped by My IdentityInternational trade means thereis a wider selection of goods inlocal stores for me to choosefrom — and what I choose tobuy is part of my identity.What I buy in local storesaffects demand for products, andthis influences the products thatare traded internationally.MHR To what extent do identity and the forces of globalization shape each other?49

HOW IS IDENTITY AFFECTED BY SOMEECONOMIC, POLITICAL, ENVIRONMENTAL,AND SOCIAL DIMENSIONS OF GLOBALIZATION?Figure 2-8 These bananas weremarketed by Chiquita Brands, anAmerican transnational corporationthat is one of the biggest players inthe international banana trade. ThreeAmerican-based transnationals —Chiquita, Dole, and Del Monte —control most of the world’s bananaexports. How might this concentrationof control in the hands of a fewcompanies help or hurt Canadianconsumers?Figure 2-9If you have peeled and eaten a banana this week, you are like many otherCanadians. Canadians eat about three billion bananas a year — about100 bananas a person. After apples, bananas are the most popular fruit inCanada. What factors do you think contribute to this popularity?Unlike apples, bananas do not grow in Canada. Most bananas soldin Europe and North America are imported from developing countriesin Central and South America, where they are a source of controversyfor many reasons. Banana production is one example of the forces ofglobalization at work — and of how the economic, political, environmental,and social dimensions of these forces affect, and are affected by, people’sidentity.Identity and Some Economic Dimensionsof GlobalizationFor many Canadians, price is an important factor in buying decisions —and low prices help explain the popularity of bananas in Canada. Bananasare the cheapest fruit sold in Canadian supermarkets. A kilogram of apples,for example, can cost more than 3, while a kilo of bananas can usually bepurchased for less than 1.50.Many economic factors contribute to the price differenceFrom Ecuador to Canadabetween apples, which are grown in Canada, and bananas,which grow in the tropics and must be shipped at least 5000kilometres before they can be sold in Canadian supermarkets.The following factors help keep banana prices low forCanadian consumers:Banana plantationGrown for 9 monthsPicked, sorted,and transported to packing housePacking houseCleaned, packaged, and transported to port Export portPlaced in sealed container and loadedonto container shipImport portStill in containers, are transferred to trucks fordistribution to supermarket warehousesSupermarket warehouseRipened for 8 to 10 days and shippedto individual stores50 Most bananas sold in Canada are grown on hugeplantations owned or controlled by transnationalcorporations. This enables the transnationals to takeadvantage of economies of scale — savings that comefrom producing, using, and buying things in largequantities.On plantations, banana yields are often high because ofheavy use of chemical fertilizers and pesticides. This meansthat the supply — the number of bananas grown — isoften greater than the demand — the number of bananascustomers order. This leads to reduced prices.The transnationals also reduce their costs by controllingmany of the ships, containers, and warehouses that are partof the banana distribution network. Transnationals can givethemselves a deal and keep the profits in the company.Labour in Central and South America is cheap, and fewworkers are protected by union agreements This keepswages low.To what extent should globalization shape identity? MHR

Ecuador, bananas, and the economics of globalizationEcuador exports more bananas than any other country — and isFigure 2-10 Ecuadorthe leading exporter of the bananas that are sold in North Americansupermarkets. If you ate a banana today, chances are that it grew inEcuador. This is because bananas from Ecuador are cheap.Ecuadorean bananas are cheap because the cost of producing them is low.One reason costs are low is that Ecuadorean banana workers are the lowestpaid in Latin America. In 2002, male banana-plantation workers earned about 6.40 Cdn a day. Women were paid even less, and children were sometimes notpaid at all. There was no overtime pay, andfew workers received benefits, such as paidvacations and sick leave.Calculate how much a maleEcuadorean banana-plantation worker whoColombiaspent six days a week on the job wouldmake in a month. (Multiply his weeklyearnings by 4.3, the number of weeks ina month.) The Ecuadorean governmentestimated that a family of four needed atleast 220 (Cdn.) a month to meet basicLosneeds. How did the worker’s monthlyRíosearnings compare with this minimum?EcuadorGuayasAlthough Ecuadorean laws arePacificsupposed to protect workers, these lawsOceanare often ignored. Workers who try toEl Oroform a union to fight for better conditionsare often fired, and their names are putPeruon a blacklist. No one else in the bananaindustry will hire blacklisted workers, sothey have an even harder time earning aliving.In the past few years, the situationBanana Cultivation in Ecuadorhas improved somewhat, but workingHectares in banana cultivation: 150 000conditions are still poor. To survive,Biggest banana-producing areas: Provincesmany Ecuadorean families must put theirof El Oro, Guayas, and Los Ríoschildren to work in the banana fields. AsBananas exported in 2000: 3.6 million tonnesa result, children are either often absentfrom school or do not go to school at all.People directly employed in banana productionand trade: 380 000In 2002, Human Rights Watch, a nonprofit organization that monitors human0250 500rights around the world, interviewed akilometresgroup of 45 child banana workers. Thechildren worked an average of 12 hours a day, and most had started workingwhen they were between the ages of 8 and 13. Less than 40 per cent wereCHECKFORWARDstill in school.You will read more aboutDoes education help people define who they are as individuals andchild labour and globilizationcollectives? Does education help define aspects of your identity? How mightin Chapters 5 and 14.a lack of schooling create a cycle that affects the individual and collectiveidentity of child banana workers in Ecuador?MHR To what extent do identity and the forces of globalization shape each other?51

Identity and Some Political Dimensionsof GlobalizationECTONN ION#B 7E The “banana wars” were an international trade conflict that pitted governments against one another. To learn more about the economic and political dimensions of this conflict, go to this web site and follow the links. WWW %XPLORING'LOBALIZATION CAFigure 2-11 This worker is preparingfor the harvest on a banana plantationin Costa Rica. What might his interestin the “banana wars” have been?52A continuing dispute over bananas shows how economic concerns oftenaffect political decisions — and vice versa.In many Central and South American countries, banana productionis largely controlled by the big three American transnationals: Chiquita,Dole, and Del Monte. But bananas are also grown in Caribbean countries,such as Jamaica and St. Lucia. In these countries, farms are smaller and areoften run as family businesses. These small farms cannot achieve the sameeconomies of scale as huge banana plantations. As a result, their costs arehigher. To make money, they must sell their bananas at higher prices thanthe transnationals.The “banana wars”During the 1990s, European governments agreed to continue extending aneconomic helping hand to former colonies, such as Jamaica and St. Lucia,by giving preferred treatment to bananas imported from these countries.No tariffs — taxes or duties — were placed on these bananas. At the sametime, bananas from other countries were taxed and subjected to other strictimport rules.Few of the banana plantations controlled by the leading transnationalswere in countries that received preferred treatment. As a result, most of thebananas produced by the transnationalswere taxed when they entered Europe.They also had to abide by other strictrules. How would the European policyhave helped small banana farmerscompete against cheaper bananascontrolled by transnational corporations?This situation sparked a tradeconflict that h

TO WHAT EXTENT SHOULD WE EMBRACE GLOBALIZATION? Chapter 2 Identity and the Forces of Globalization Figure 2-1 Forces like trade, transportation, communication technology, and international media have increased the pace of globalization and changed what you buy, watch, and read, how you communicate, where you go, and how you get there.

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