GLOBAL SYSTEMS. Understanding GLOBALIZATION in the 21 st century. Introduction - 1

Transcription

1 GLOBAL SYSTEMS Understanding GLOBALIZATION in the 21 st century Introduction - 1

2 Four questions What is globalization? What are the E-systems of globalization? Who are the stakeholders? Who oversees the process of globalization? Introduction - 2

3 What is globalization? Globalization describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and execution. globalisation is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. (Wikipedia, Jan 2010) Introduction - 3

4 Globalization keys Globalization an ongoing process economies, societies, and cultures more integrated world network of communication and execution Introduction - 4

5 Globalization in history Globalization is not a new process ~ 100 AD: who / where? ~ : who / where? ~ : who / where? ~ 2000s: who / where? Introduction - 5

6 ~ 100 AD: Globalization by conquest and trade Introduction - 6

7 ~ 1800: Globalization by colonization and trade The British Empire over the period 1700 to 1900 Introduction - 7

8 ~ 2011: Globalization by negotiation and trade NAFTA regional trade European Common Market - high degree of economic integration China and the US strong economic interactions Internet operates globally Global supply chains operate without attack (mostly) Introduction - 8

9 What are the E-systems of globalization? ECONOMICS ENGINEERING ENVIRONMENT Introduction - 9

10 The roles of the E-systems ECONOMICS Driver Enabler ENGINEERING Constrainer ENVIRONMENT Introduction - 10

11 Who are the stakeholders in globalization? Individuals - as consumers, workers, savers/investors, and citizens. Corporations - as local, national, and global economic organizations. Governments - as regulators of trade and finance, enforcers of social values and national interests, and wealth re-distributors. Voluntary groups as helpers (samaritans) and as exploiters (criminals). Introduction - 11

12 Global corporations are VERY important stakeholders Top Global Corp by revenue (US$Bn): Wal-Mart $486 (2017) If Wal-Mart was a country it would rank #24, between Sweden and Poland. (2017) In 2009 the top 100 global economic entities included 56 countries and 44 companies. In 2009 the top private company - Cargill - ranked #99. Introduction - 12

13 Who oversees the process of globalization? The United Nations? International Technical Societies? Groups linked by the WWW? A critical group of world leaders? A critical group of financiers? Who speaks for the environment? Introduction - 13

14 The fourth major E system in globalization: Equity ECONOMICS Driver ENGINEERING Enabler ENVIRONMENT Constrainer EQUITY Controller Introduction - 14

15 Equity: Socio-political systems and social justice Cultural values can trump economics Cultural values can trump engineering / science views Politics can get mixed with economics for better or worse China is an interesting experiment. Cultural change comes very hard For example, can the US change from a consumption-driven economy to a more sustainable one? Introduction - 15

16 As YOU see it now... Globalization is The E systems are Other takeaways are Introduction - 16

17 Let s discuss the 3 E-systems ECONOMICS Driver ENGINEERING Enabler ENVIRONMENT Constrainer Introduction - 17

18 Economic systems Economics is the DRIVER. Not much globally significant activity occurs unless economic forces push in that direction. International trade International finance International business Introduction - 18

19 Economic Systems International trade Trade agreements can stimulate trade. Tariff barriers usually restrict trade. International finance Investments move at internet speed. Government and sovereign funds, individual funds, and IMF all are in play. International business Driven by access to growing markets. Goals are different from governments. Introduction - 19

20 Out-sourcing / in-sourcing? The Tata group (Mumbai, India) handles customer service calls for several US firms. They have outsourced some of their work to a firm in Ohio on behalf of a US client who was willing to pay a premium for operators knowledgeable about America geography. Now that s globalization at work! Introduction - 20

21 Engineered systems Engineering is the ENABLER. Engineering turns plans into action and determines energy and economic efficiencies. o Energy o Water o Food o Communication o Urbanization Introduction - 21

22 Engineered Systems Energy: Global demand is skyrocketing - can renewables do the job? Water: Is there enough in the right places? Is it clean enough? Food: How high on the food chain can nine billion people eat? Communication: Use of the www is cheap but is the information secure and reliable? Urbanization: How will we get around? Introduction - 22

23 Renewable energy development China Builds High Wall to Guard Energy Industry When the United States top energy and commerce officials arrive in China on Tuesday, they will land in the middle of a building storm over China s protectionist tactics to become the world s leader in renewable energy. (NYT July 2009) Introduction - 23

24 Communication development Google argues with Chinese government about censorship policy If Google leaves China, the country will suddenly become even more dependent on its main homegrown search engine, Baidu.com. And while that is likely to benefit the Chinese company in the near term, analysts say, it could bode poorly for the long-term development of the Internet in China. (NYT January 2010) See Why Google Quit China posted at site. Introduction - 24

25 The Environment The environment is a CONSTRAINER of our activities. When our earth s environment gets pushed too hard it pushes back. o Spaceship Earth is our only home o We must think globally about the environment o Sustainability is a sensible target Introduction - 25

26 Impact equation IMPACT = P * C * T IMPACT of human activities on our planet. PEOPLE still increasing globally! CONSUMPTION rising expectations of better life globally! TECHNOLOGY more efficient; more sophisticated than ever before, for better and worse Introduction - 26

27 The People factor in IMPACT 0 AD 0.2 Bn Bn Bn Bn Bn Bn China 1.3 Bn India 1.2 Bn (2010 data) Introduction - 27

28 IMPACT of global beef production C is amount of beef consumed per person per year globally. T is amount of water needed to produce the beef using current technology. YEAR P 7.0 Bn 9.0 Bn C 37 kg/pers-yr 52 kg/pers-yr T 15 K-ltr/kg T2? Introduction - 28

29 IMPACT of global beef production YEAR P 7.0 Bn 9.0 Bn C 37 kg/pers-yr 52 kg/pers-yr T 15 K-ltr/kg T2? Find T2 to keep IMPACT constant. I1 = (7.0*10^6)*(37)*(15) = 3885 *10^6 K-ltr/yr I2 = (9.0*10^6)*(52)*(T2) = 3885 *10^6 K-ltr/yr Thus T2 = 8.3 K-ltr/kg Introduction - 29

30 IMPACT of global beef production YEAR Change P 7.0 Bn % C 37 kg/p-yr % T 15 K-ltr/kg % How likely is it that we can figure out how to cut water needs in beef production by a factor of 2 globally in 40 years? Introduction - 30

31 Can better Engineering solve our problems? Can better engineering maintain our energy systems? Can better engineering maintain supply chains involving dangerous cargo? Can better engineering maintain the purity of our water? Introduction - 31

32 Maintain our energy systems? Note the mechanical, electrical and structural issues. Introduction - 32

33 Maintain supply chains involving dangerous cargo? Control engineers out of control? Introduction - 33

34 Maintain the purity of our water? Perhaps by electrocution? Introduction - 34

35 What are YOUR takeaways today? Introduction - 35

36 Questions? Introduction - 36