UAMG 3053 UAMG 3053 Communication Communication

TechnologyTechnologyWeek 10Week 10

Global CapitalismGlobal Capitalism

Introduction - GlobalizationIntroduction - Globalization

The terms “globalization”, “globalize”, and The terms “globalization”, “globalize”, and “globalizing” started in 1960“globalizing” started in 1960

The EconomistThe Economist reported Italy’s reported Italy’s ‘globalised’ quota for imports of cars has ‘globalised’ quota for imports of cars has increasedincreased

Globalization is a staggered (spread out) Globalization is a staggered (spread out) conceptconcept

Intro Globalization …Intro Globalization …

Direct consequence of the expansion of Direct consequence of the expansion of European cultures across the planet via European cultures across the planet via settlement, colonization, and cultural settlement, colonization, and cultural replication replication

The world entered “The world entered “the age of global the age of global civilization” after the end of European civilization” after the end of European dominance.dominance.

Intro Globalization …Intro Globalization …

““Global civilization” includes the Global civilization” includes the formation of formation of European UnionEuropean Union, the rise of , the rise of Japan as an industrial power, and Japan as an industrial power, and emerging and testy confrontation emerging and testy confrontation between rich and poor nations between rich and poor nations

The Internet is poised to narrow the gulf The Internet is poised to narrow the gulf that separates rich nations from poor that separates rich nations from poor even further in the decade to comeeven further in the decade to come

Globalization from 1870 to Globalization from 1870 to 19141914

1)1) Development of transportation and Development of transportation and communication networkscommunication networks - physically - physically linked different parts of the world – linked different parts of the world – railroad, shipping, and the telegraph railroad, shipping, and the telegraph

2)2) Rapid growth of tradeRapid growth of trade - pattern of - pattern of dependency between the industrialized dependency between the industrialized countries and the rest countries and the rest

3)3) Huge flow of capitalHuge flow of capital (assets) from (assets) from Western direct investmentWestern direct investment

Definition of Definition of GlobalizationGlobalization

Globalization is “a concept refers both to Globalization is “a concept refers both to the the compressioncompression of the world and the of the world and the intensificationintensification of consciousness of the of consciousness of the world …both concrete global world …both concrete global interdependenceinterdependence and consciousness of and consciousness of the global whole” (Water, quoting the global whole” (Water, quoting Robertson, 2000, p. 4)Robertson, 2000, p. 4)

Intro Globalization…Intro Globalization…

InterdependenceInterdependence – between national – between national systems by trade, economic, militarysystems by trade, economic, military

Social compressionSocial compression Intensification of global consciousnessIntensification of global consciousness – –

local happenings are shaped by events local happenings are shaped by events occurring many miles away and vice occurring many miles away and vice versaversa

Definition of Global Definition of Global CapitalismCapitalism

Globalization - meaning the rise of market Globalization - meaning the rise of market capitalism around the world – business capitalism around the world – business across borderacross border

A process driven by economic forcesA process driven by economic forces Reorganization of production, international Reorganization of production, international

trade, and integrated of financial marketstrade, and integrated of financial markets Has undeniably contributed to America's Has undeniably contributed to America's

New Economy boom. e.g., McDonald’s, New Economy boom. e.g., McDonald’s, MicrosoftMicrosoft

CapitalismCapitalism The vehicle of economic internationalization The vehicle of economic internationalization

– financial markets, commodities, – financial markets, commodities, contractualized labour, alienable propertycontractualized labour, alienable property

In Marx theory, capitalist seeks to transect In Marx theory, capitalist seeks to transect national boundaries extending national boundaries extending transportation and communication unto the transportation and communication unto the furthest reaches of the planet, restlessly furthest reaches of the planet, restlessly seeking to expand markets throughout the seeking to expand markets throughout the world and to appropriate ever greater world and to appropriate ever greater tranches of labour powertranches of labour power

Global capitalism…Global capitalism…

Global capitalism was pushed by leaps Global capitalism was pushed by leaps (increase and jump) in (increase and jump) in technologytechnology, the , the failure of socialism, and East Asia's failure of socialism, and East Asia's miraculous successmiraculous success

Multinationals have contributed to labor, Multinationals have contributed to labor, environmental, and human-rights abuses environmental, and human-rights abuses as they pursue profit around the globeas they pursue profit around the globe

Inequality in Global Inequality in Global CapitalismCapitalism

Profit the rich and harm the poorProfit the rich and harm the poor Unequal development - two extremes of Unequal development - two extremes of

global capitalismglobal capitalism1. The economies of East Asia have 1. The economies of East Asia have achieved rapid growthachieved rapid growth2. There has been little overall progress 2. There has been little overall progress in much of the rest of the developing in much of the rest of the developing world world

McDonaldizationMcDonaldization Describes the McDonalds Corporation;Describes the McDonalds Corporation; And any corporation that employs the And any corporation that employs the

standard practice of making a product standard practice of making a product efficiently and predictablyefficiently and predictably

To maximize profits in a global To maximize profits in a global marketplace, cultural products must be marketplace, cultural products must be standardized - McDonaldizationstandardized - McDonaldization

From fast food, childcare, healthcare, From fast food, childcare, healthcare, computer technology productioncomputer technology production

McDonaldizationMcDonaldization

George Ritzer – to describe a sociological George Ritzer – to describe a sociological phenomenonphenomenon

The process of rationalization – substitution The process of rationalization – substitution of logically consistent rules for traditional of logically consistent rules for traditional rulesrules

Modern Western world becoming more and Modern Western world becoming more and more rational – “efficient, predictability, more rational – “efficient, predictability, calculability” as human work are replaced by calculability” as human work are replaced by machinesmachines

Process of Process of McDonaldizationMcDonaldization

Any task can (should) be rationalizedAny task can (should) be rationalized Takes a task and breaks it down into Takes a task and breaks it down into

smaller taskssmaller tasks Find the SINGLE most efficient way to Find the SINGLE most efficient way to

complete the broken down smallest taskscomplete the broken down smallest tasks

Four Dimensions of Four Dimensions of McDonaldizationMcDonaldization

1. Efficiency1. Efficiency Optimum method of completing a taskOptimum method of completing a task Rational determination of the best mode of Rational determination of the best mode of

productionproduction Individuality is not allowedIndividuality is not allowed2. Calculability2. Calculability Assessment of outcomes based on Assessment of outcomes based on

quantifiable criteriaquantifiable criteria Quantity over qualityQuantity over quality Selling “Big Mac” not “Good Mac”Selling “Big Mac” not “Good Mac”

Four Dimensions of McD…Four Dimensions of McD…3. Predictability3. Predictability Production process is organized to Production process is organized to

guarantee uniformity of product and guarantee uniformity of product and standardized outcomesstandardized outcomes

4. Control4. Control Substitution of more predictable non-Substitution of more predictable non-

human labor for human laborhuman labor for human labor

Conclusion of McD…ionConclusion of McD…ion

As more companies around the world take As more companies around the world take on the characteristics of McDonaldization on the characteristics of McDonaldization system, the consumers have little choice system, the consumers have little choice but to frequent these business, as fewer but to frequent these business, as fewer and fewer options are readily availableand fewer options are readily available

McDonaldization is an infection to other McDonaldization is an infection to other countriescountries

Many businesses feel that in order to be Many businesses feel that in order to be successful they must adhere this guidelinessuccessful they must adhere this guidelines

How Web- Advertising How Web- Advertising worksworks

The rapid increase in the number of The rapid increase in the number of people who can access the Internet, people who can access the Internet, especially in US and Europe, has especially in US and Europe, has resulted in similarity strong increase in resulted in similarity strong increase in the amount of money spent on online the amount of money spent on online advertising.advertising.

Internet AdvertisingInternet Advertising Distinguish between three broad kinds of Distinguish between three broad kinds of

advertising on the Web: they are:advertising on the Web: they are:

1.1. Placed ads (including banners, Rich Media Placed ads (including banners, Rich Media ads, pop-ups, animated cursors)ads, pop-ups, animated cursors)

2.2. Sponsored elements within sites; andSponsored elements within sites; and

3.3. Company marketing sites. ( product catalogs Company marketing sites. ( product catalogs with order forms) However, sales sites and with order forms) However, sales sites and sales banners should be considered in a sales banners should be considered in a direct marketing context rather than in an direct marketing context rather than in an advertising context.advertising context.

Does Internet Advertising works?Does Internet Advertising works?

According to the reviews based on According to the reviews based on research done on the impact of online research done on the impact of online advertising, shows that advertising on the advertising, shows that advertising on the Internet can be very effective and Internet can be very effective and

works best if it is part of a coordinated works best if it is part of a coordinated campaign that includes traditional media.campaign that includes traditional media.

The research has shown that Internet The research has shown that Internet advertising can advertising can

increase sales, increase sales, enhance the image of the brand, enhance the image of the brand, effect the consumers’ attitudes towards effect the consumers’ attitudes towards

the product, and the product, and it can impact new information about it can impact new information about

products and brands.products and brands.

Reaching the right audience is keyReaching the right audience is key

Tutorial Questions Week Tutorial Questions Week 1111

1.1. (a) What is McDonaldization?(a) What is McDonaldization?

(b) Is globalization a cause of (b) Is globalization a cause of McDonaldization?McDonaldization?

(c) What are suggestions from Ritzer to fight (c) What are suggestions from Ritzer to fight McDonaldization?McDonaldization?

2. Do you agree that Internet Advertising works 2. Do you agree that Internet Advertising works best if it is part of a coordinated campaign best if it is part of a coordinated campaign that includes other traditional media? Why?that includes other traditional media? Why?

ReferencesReferences

Duresky, S. (2005). McDonald’s: Selling cages Duresky, S. (2005). McDonald’s: Selling cages masquerading as the American dream. Retrieved on masquerading as the American dream. Retrieved on March 23, 2005 from March 23, 2005 from http://student.fortlewis.edu/smduresky/268project/homhttp://student.fortlewis.edu/smduresky/268project/home.htme.htm

Engardio, P. (2000). Global capitalism:Engardio, P. (2000). Global capitalism:Can it be made to work better?. Retrieved on 21 Can it be made to work better?. Retrieved on 21 March, 2005 from March, 2005 from http://www.businessweek.com/2000/00_45/b3706001.http://www.businessweek.com/2000/00_45/b3706001.htmhtm

Hogg, C. (1999). Pornography and the Internet in the Hogg, C. (1999). Pornography and the Internet in the United States. Retrieved on March 22, 2005 from United States. Retrieved on March 22, 2005 from http://www.slais.ubc.ca/courses/libr500/fall1999/www_http://www.slais.ubc.ca/courses/libr500/fall1999/www_presentations/c_hogg/default.htmpresentations/c_hogg/default.htm

ReferencesReferencesThurlow, C., Lengel, L., & Tomic, A. (2004). Thurlow, C., Lengel, L., & Tomic, A. (2004).

Computer Mediated Communication: Social Computer Mediated Communication: Social interaction and the internet. interaction and the internet. London: Sage.London: Sage.

Water, M. (2001). Water, M. (2001). GlobalizationGlobalization. New York: . New York: Routledge.Routledge.