4.2.5 Global Economies
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4.2.5 Global Economies
What are the origins of contemporary economic globalization?
Global Economies: The previous lesson explained that production and consumption of goods has been a global issue for centuries. People sell their labour, their resources, and their products to other people and to corporations in other nations.
Because of technology, our global economic connections have increased dramatically in recent years, leading to many changes in society.
Urbanization is the movement of people from rural areas to cities. It began during the Industrial Revolution when workers began working in factories in cities rather than producing goods in their homes, on farms, and in small villages.
In those cities, people find either prosperity or poverty. A potter's son who leaves his family's small pottery business in a village in India could be in desperate poverty with no place to live, no running water, no toilets or sanitation facilities, and little food. Or, the son of the potter could earn more in a month than his father earned in a year. He could own what his father never dreamed of owning, things such as a motorcycle, a house, or a van.
Today, urbanization is occurring at a fast pace due to globalization.
This movement of villagers into cities is happening all over the world.
Imagine the changes that accompany urbanization. You might be affected by it right now. Perhaps your family moved to Canada for a better life. Perhaps your mom lost her job in a small shop when a big box store came to town. Maybe you have had to move from Newfoundland to Alberta so your parents could get jobs.
For many people, globalization has led to drastic changes in their ways of life. For people in rural areas in the developing world, those changes are even more dramatic.
Think of the life of a potter from India. Not only is his job to make clay pots using centuries old traditions, but everyone in his family and his caste are makers of pots. His skills were learned from his dad who learned it from his dad who learned it from his dad.... His wife is the daughter of a potter's wife who was the daughter of a potter's wife who was the daughter of a potter's wife.... and he looks forward to the day when he can teach his son to be a potter and eventually make pots so he can care for his parents in their old age.
But one day, a merchant comes into the village selling metal pots from China. They are lighter, stronger, and more durable. People buy his pots instead of those of the local potters. Suddenly, the potter is out of work... and has lost his a way of life.
Often, a person is damaged financially and hurt emotionally when he or she cannot get a job and earn an income. What a person does to make a living can influence what other people think. Our social status can affect how we think about ourselves.
Urbanization is the movement of people from rural areas to cities. It began during the Industrial Revolution when workers began working in factories in cities rather than producing goods in their homes, on farms, and in small villages.
In those cities, people find either prosperity or poverty. A potter's son who leaves his family's small pottery business in a village in India could be in desperate poverty with no place to live, no running water, no toilets or sanitation facilities, and little food. Or, the son of the potter could earn more in a month than his father earned in a year. He could own what his father never dreamed of owning, things such as a motorcycle, a house, or a van.
Today, urbanization is occurring at a fast pace due to globalization.
This movement of villagers into cities is happening all over the world.
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In 2000, there were 371 cities with more than 1 million people. In 2018, that number had grown to 548 cities.
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The world's largest city is Mumbai, India, with a population of 17 million people — that is half the number of people in Canada located in one urban area!
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More than half of the people in the world live in cities.
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Alberta is the most rapidly urbanizing province in Canada.
(Source: United Nations)
Imagine the changes that accompany urbanization. You might be affected by it right now. Perhaps your family moved to Canada for a better life. Perhaps your mom lost her job in a small shop when a big box store came to town. Maybe you have had to move from Newfoundland to Alberta so your parents could get jobs.
For many people, globalization has led to drastic changes in their ways of life. For people in rural areas in the developing world, those changes are even more dramatic.
Think of the life of a potter from India. Not only is his job to make clay pots using centuries old traditions, but everyone in his family and his caste are makers of pots. His skills were learned from his dad who learned it from his dad who learned it from his dad.... His wife is the daughter of a potter's wife who was the daughter of a potter's wife who was the daughter of a potter's wife.... and he looks forward to the day when he can teach his son to be a potter and eventually make pots so he can care for his parents in their old age.
But one day, a merchant comes into the village selling metal pots from China. They are lighter, stronger, and more durable. People buy his pots instead of those of the local potters. Suddenly, the potter is out of work... and has lost his a way of life.
The potter's labour is no longer of value. The demand for his pots is gone and he cannot drop his prices low enough to compete. Dropping the price of his pots to $0.30 when he used to sell them for $3 will not provide a living income. His son will not
take up the occupation of his ancestors. The potter must find new work. He must move from the village and try to find work in the city.
Similar to Evan's pop business by the Commonwealth Stadium, lowering the price to balance demand results eventually in a failed business venture in that location. When a family is involved, that failure most often results in re-location and perhaps in the selling of labour rather than the selling of goods.
Similar to Evan's pop business by the Commonwealth Stadium, lowering the price to balance demand results eventually in a failed business venture in that location. When a family is involved, that failure most often results in re-location and perhaps in the selling of labour rather than the selling of goods.
| Watch the movie Slumdog Millionaire to see one perspective of the effect of urbanization in India. |
Often, a person is damaged financially and hurt emotionally when he or she cannot get a job and earn an income. What a person does to make a living can influence what other people think. Our social status can affect how we think about ourselves.