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Title: Globalisation

Perspectives on Globalisation
  • Cultural
  • Political
  • Economic

  • A bi-product of economic globalisation?
  • Uni-linear flows?
  • Television
  • Cinema
  • Music
  • Publishing

  • CNN International reaches nearly 150 million
    television households in 212 countries and
    territories - more viewers than all other cable
    news services combined.
  • Baywatch is distributed to 140 countries on six
    continents and translated into 33 languages. It
    has an estimated viewership of one billion

  • Neighbours - attracts a global audience of more
    than 120 million viewers each day, consistently
    ranking as a top-ten favourite. Neighbours has
    now been sold to over 40 broadcasters and
    screened in over 60 countries worldwide from
    Australia to Zimbabwe. Recent new territories
    taking the show include Croatia and China.

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The Global Economy
  • Recent discussion of the world economy has so
    emphasised the complete globalisation of economic
    relations that there is little questioning of the
    existence of a truly global economy.
  • The idea of a global economy key image is that
    of a borderless world. I.e. stress on
    increasing transnational macroeconomic links
    amongst the triad economies (US, EU and Pacific

The Global Economy
  • Recent developments
  • cheap, powerful computing communications
  • falling barriers to FDI and capital raising
  • global spread of a consumerist ideologies
  • Do these turn large companies into world players?

The Global Economy
  • Concept of global companies (TNCs) differ from
    older concept of the multinational (MNC).
  • MNCs - dominant parent companies and their
    foreign offspring fighting competitors in
    overseas markets.
  • But MNC remained national in terms of key
    aspects of its functioning and governance.
  • TNCs, by contrast have broken free of the bounds
    of nationality.

The Global Economy
  • TNCs are still rare
  • Nonetheless many organisations adopting a global
    rationale in management and marketing
  • Stress on strategic networking where coordination
    of a single face is achieved by independent
    companies working together.

The globalisation of trade
  • Expanding trade in manufactured and
    semi-manufactured goods among OECD members - a
    clear indictor of the progress of global economy

The globalisation of trade
  • 1950 1975 volume of world trade expands by 500
    against an increase in global output (same
    period) of 220. Western OECD members account for
    80 of this trade by the 1990s.
  • 1970s sees NICs (Hong Kong, Taiwan and S. Korea)
    raise manufactures exports from 35 to 59 of
  • 1963 1981 looking a t the Third World, the
    volume of manufactures exports doubled from 27
    to 47.

The globalisation of trade
  • These figures subsume a critical fact of global
    economy life - a drift from domestic sourcing of
    production to the widespread use of non-domestic
    outsourcing as a means of reducing costs
  • Not only material goods but services and human
    skills as well.

The globalisation of production
  • Classic dependency theory assumes an
    international division of labour
  • core countries producing manufactured goods for
    domestic consumption and export
  • peripheral economies trading in primary
    productions from the extractive industries and

The globalisation of production
  • Post 70s oil crisis capitalist production
    re-organised - much manufacturing capacity moved
    to the 3rd world. Made possible by
  • Multilateral institutions (IMF, WorldBank, OECD)
    facilitate/support foreign investment
  • Greater capital mobility (spate of lending by
    financial institutions in 70s 80s to LDCs World
    directly and to investors looking for a quick
    profit in the periphery or vulnerable states.)
  • Advances in transportation and communication,
    reducing organisational/technical costs
    associated with relocation

The globalisation of finance
  • Changes in money/capital markets since the 1970s
    - the most unequivocal indicator of the
    globalisation of economic affairs.
  • Daily volume of foreign exchange trading is 100s
    of times the value of traded goods
  • So much so that financial flows are increasingly
    separate from trade in manufactures and services
    - almost constituting a separate global economy

The globalisation of finance
  • Technological innovations in computer software
    have made communications between traders a
    routine and speedy affair.
  • Factors contributing to the globalisation of
  • Floating of currency exchange rates in the 1970s
    (the Bretton Woods Failure)
  • Deregulation of financial markets by national
    governments in the 1980s

The globalisation of finance
  • Relaxation of rules introduced much liquidity
    into world trade but also greater volatility and
    insecurity into the world economy.
  • Why?

The globalisation of finance
  • Because the rationality of financial markets,
    which are geared to short-term profit
    considerations and very sensitive to variations
    in national policies, makes it more difficult for
    national governments to carry through measures
    like tax increase, interests rate changes or
    social welfare measures.
  • Barrie Axford, The Global System

The globalisation of finance
  • Thus the development of a globalised economy in
    financial markets has a direct political
  • Challenging the position of the nation-state as
    the prime mover in domestic politics and policy
    and as the major player in international affairs.

The globalisation of technology
  • The increasing powers of computers, softtware and
    communications technology have all served to
    compress the world.
  • Flows of money, goods and services are all
    accelerated by the various technologies in use

The globalisation of technology
  • The global opportunities afforded by such
    technologies demand global players
  • News International
  • Viacom
  • MCA
  • Sony
  • Disney
  • AOL Time Warner

The AOL-Time Warner Merger
  • Jan 10 2000 - AOL/TW announce a strategic merger
    of equals, creating a company with an all-stock
    valuation of 350 billion and with revenues of
    30 billion.

The AOL-Time Warner Merger
  • By merging the world's leading Internet and
    media companies, AOL Time Warner will be uniquely
    positioned to speed the development of the
    interactive medium and the growth of all its
    businesses. The new company will provide an
    important new broadband distribution platform
    for America Online's
    interactive services and drive subscriber growth
    through cross-marketing with Time Warner's
    pre-eminent brands.

The AOL-Time Warner Merger - Instant Synergy
  • and programming will be
    featured prominently on various America Online
  • AOL members will have access to a wide range of
    Time Warner promotional music clips from Time
    Warner's unparalleled selection of popular
  • Time Warner and AOL MovieFone will participate in
    online-offline cross-promotion of Time Warner
    movies and related content, including live

The AOL-Time Warner Merger - Instant Synergy
  • Broadband CNN news content was to be distributed
    on AOL Plus, the rich media content offering
    designed for AOL members connecting via
  • Warner Bros. retail stores will promote the AOL
    service, (e.g in-store distribution of AOL
  • Time Warner will include AOL disks in promotional
    mailings and product shipments.

The AOL-Time Warner Merger
  • "This strategic combination with AOL accelerates
    the digital transformation of Time Warner by
    giving our creative and content businesses the
    widest possible canvas. The digital revolution
    has already begun to create unprecedented and
    instantaneous access to
    every form of media and to unleash immense
    possibilities for economic growth, human
    understanding and creative expression. AOL Time
    Warner will lead this transformation, improving
    the lives of consumers worldwide.
  • Gerald Levin, CEO AOL Time Warner

The News Corporation Limited Worldwide
  • Filmed Entertainment
  • United States
  • Fox Filmed Entertainment
  • Twentieth Century Fox
  • Fox 2000
  • Fox Searchlight
  • Fox Animation Studios
  • Twentieth Century Fox Home Entertainment
  • Twentieth Century Fox Licensing and
  • Fox Interactive
  • Twentieth Century Fox Television
  • Australia
  • Fox Studios Australia

The News Corporation Limited Worldwide
  • Newspapers
  • United States
  • New York Post
  • United Kingdom
  • The Times
  • The Sunday Times
  • The Sun
  • News of the World
  • Australasia
  • National
  • The Australian
  • The Weekend Australian (plus 100 regional

The News Corporation Limited Worldwide
  • Magazines and Inserts
  • United States
  • TV Guide plus 7 others
  • Canada
  • News Canada Marketing plus 2 others
  • United Kingdom
  • The Times Educational Supplement
  • The Times Higher Education Supplement
  • The Times Literary Supplement
  • Australasia
  • Pacific Islands Monthly

The News Corporation Limited Worldwide
  • Book Publishing
  • United States
  • United Kingdom Europe
  • Australasia
  • HarperCollins Publishers

The News Corporation Limited Worldwide
  • Other Operations
  • United States
  • News America New Media
  • Los Angeles Dodgers
  • Los Angeles Kings (40 option)
  • Los Angeles Lakers (9.8 option)
  • Plus a variey of telecoms, cable service provider
    etc. companies worldwide.

The globalisation of technology
  • The products of the transglobal culture industry
    already circulate to mass audiences creating
    political fears about cultural imperialism .
  • However arguably new technology will permit a
    growth in localism, access to the particular
    rather than exclusively the universal

  • The creation of the modern global system is often
    understood in terms of capitalism and
  • Capitalism - Supremacy of the free market,
    commodity production for profit, free (but
    propertyless) wage labour
  • Industrialism - the process whereby raw materials
    are converted into commodities via machinery or
    other powers sources. Industrialism includes many
    aspects of domestic life (transport systems,
    urbanisation, travel and communications)

  • Post WWII - shift from
  • organised capitalism (production, consumption,
    money and labour circulating nationally) to
  • disorganised capitalism (where these circuits
    become global in scope).

  • This shift has meant
  • transformations in the design of production
  • changing organisation/meaning of work and
  • an explosion of consumption in both mass and
    specialised markets.

The Knowledge Economy
  • The most obvious characteristic of late 20th
    century global economy/market was (is) the
    extent of its transformation by ICTs.

The Knowledge Economy
  • To say this is not just to point to the impact of
    new tech upon production systems but to see the
    informatisation of the world economy as
  • changing the condition for national policies
  • facilitating the globalisation of local social
  • changing the emphasis of production in advanced
    capitalist societies from material goods to
    information processing activities

The Knowledge Economy
  • Thus the core states have become service
  • Thus the new global economic champions, (e.g.
    Microsoft) tend to be in the knowledge based

The Knowledge Economy
  • Thus traditional sources of comparative advantage
    - technology, labour, land and money - count for
    less against the new factors of computer-driven
    scientific innovation - the transferable skills
    of knowledge workers.
  • Thus intelligence is the new form of property and
    the basis for wealth creation

The Knowledge Economy
  • Changes in Production
  • Shift from Fordism to Postfordism(or flexible
  • Systems of standardised mass production have
    given way to flexible, customised production and
    from vertically integrated, large-scale
    bureaucratic organisations to vertical
    disintegration, flatter organisation structures
    and both personal and strategic networking within
    and between economic units.

The Knowledge Economy
  • Labour is no longer a major competitive asset in
    the knowledge economy
  • Many organisations now export discrete job
    functions. Instead of keeping a pool of labour
    within the organisation these are imported
    (freelancers) as necessary.
  • Thus the costs of unproductive time passes from
    the business to the workers

The Knowledge Economy
  • In their most extreme form then postmodernism
    businesses are not just lean - they are
    organisationless or virtual organisations
  • Shifting clusters of skills and project teams are
    held together by
  • relatively few core workers who define the
    organisational identity and goals
  • routine use of advanced communications technology

The Knowledge Economy
  • Lash and Urry point to a global, post-capitalist
    economy based on reflexive accumulation
  • knowledge and information and central to economic
  • consumption is increasingly tailored to niche
    markets (here communications technology and
    automated productions systems reduce the gap
    between producers and consumers)

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