II Explosion of flows, base for globalization :

A. Intense commercial flows Sources to use : Map from international trade, 2006, based on WTO report.

Questions : 1. Why does the organization of international trade show a division in the world ? 2. Using the map, shade (nuancer) your previous answer ? 3. Which continent is in the fringe of this trade ? Thanks to you, why ? Conclusion from the map :

B. Increasing human mobility Case study : The Americano-Mexican border, an example of cooperation created by Globalization.

Sources to use. : Map of migratory flows on the world in 2006, Photo from Alex Webb about border crossers in Texas in 1989, map a cross border area, Magnard Tle Euro, Text Usa and Mexico in front of migration process : the Economist, map of tourist flows in the world in 2005.

Source 2: Brownsville (Texas). 1989. Border crossers on bridge over Rio Grande. Alex Webb/Magnum photo agency

Source 1: International migrations in 2006

Source 3

Source 4: The USA and Mexico at last start to deal with the people who illegally head North across their shared border. Now George Bush and Vicente Fox, the president of Mexico, want to face up to this issue. Last month a committee charged with drawing up ideas about trade and immigration for a September meeting between the two presidents revealed it was considering an amnesty for Mexicans illegally in America: in effect, granting them legal residence at s stroke. Mr. Bush has duly backtracked a little. To modify the anti-immigrationnists, he says he is not thinking a blanket amnesty for all Mexican illegally in his country, just the grant of residence rights to those who have already spent some time working there. Citizens of other countries will be considered, too, although Mexico remains “at the forefront” of the discussion. But on the whole the White House is happy with the idea of an amnesty, not least because it has wrongfooted the Democrats, who like to see themselves as the pro-immigrant party. An amnesty certainly has much to recommend it, and not just to the United States. For years, Mexico has treated those of its citizens who trek northwards as traitors, shameful evidence of their country’s poverty and its inability to crate enough work for its people. About 300 Mexicans perished last year trying to cross the 2,200 mile border, many of them dying of thirst in the desert which lies along much to it.

The Economist, August 4th 2001.

Source 6: International tourist flows in 2005.

Questions : 1. Define the various kinds of flows between the USA and Mexico. 2. Characterize the out-migration and the in-migration basins. 3. Which are the reasons of migration and the aspects of migration between the USA and Mexico think to use your knowledge) ?

Source 5: Maquiladoras in Mexico There are over one million Mexicans working in over 3,000 maquiladoras manufacturing or export assembly plants in northern Mexico, producing parts and products for the United States. Mexican labor is inexpensive and courtesy of NAFTA (the North American Free Trade Agreement), taxes and custom fees are almost nonexistent, which benefit the profits of corporations. Most of these maquiladoras lie within a short drive of the U.S.-Mexico border. Maquiladoras are owned by U.S., Japanese, and European countries and some could be considered "sweatshops" composed of young women working for as little as 50 cents an hour, for up to ten hours a day, six days a week. However, in recent years, NAFTA has started to pay off somewhat – some maquiladoras are improving conditions for their workers, along with wages. Some skilled workers in garment maquiladoras are paid as much as $1-$2 an hour and work in modern, air-conditioned […] Maquiladoras are quite prevalent in Mexican cities such as Tijuana, Ciudad Juarez, and Matamoros that lie directly across the border from the interstate highway-connected U.S. cities of San Diego (California), El Paso (Texas), and Brownsville (Texas), respectively. Maquiladoras originated in Mexico in the 1960s along the U.S. border. In the early to mid-1990s, there were approximately 2,000 maquiladoras with 500,000 workers. In just a few years, the number of plants has almost doubled and the number of workers has more than doubled. Maquiladoras primarily produce electronic equipment, clothing, plastics, furniture, appliances, and auto parts and today eighty percent of the good produced in Mexico are shipped to the United States. Ninety percent of the goods produced at maquiladoras are shipped north to the United States. While some of the companies that own the maquiladoras have been increasing their workers' standards, most employees work without even knowledge of unions (a single official government union is the only one allowed) and some work up to 75 hours a week. Some maquiladoras are responsible for significant industrial pollution and environmental damage to the northern Mexico region. Competition from China has weakened the allure of maquiladoras in recent years and some report that more than 500 plants have closed since the beginning of the decade, causing a loss of several hundred thousand jobs. China is bolstering its status as the world's cheap assembly export location.

Matt Rosenberg, Geographer, University of California.

4. How do the USA have an impact on Mexican life and economy and which are the potential of such an area ? 5. Using source 1, generalize the informations about migrations between the USA and Mexico to the world ?

C. Financial flows, heart of Globalization : There are a lot of financial flows in the Globalization and they are the heart of it. The financial market became really global thanks to the creation of a system of communication which connects financial centers 24 hours a day. The deregulation allows banks and funds of pensions and investment to orchestrate the mobility of the capital beyond their borders, the best profit-seeking for their investments as a goal. The financial and speculative logic dominates the globalization but flows are moving essentially between the MEDCs. III Actors of globalization :

A. The TNC’s

Source 1: Purchasing and manufacturing globally: Toyota Toyota is the second largest car manufacturer and is expected to overtake General Motors by 2008. The firm was founded in Japan in 1933. The first Toyota car made outside Japan was manufactured in Brazil in 1959. In 2005, Toyota plants were located in 26 countries and vehicles sold in over 170 countries. “Toyota Boshoku’s1 development, procurement2 and production systems are aligned to client needs worldwide, with no times or geographical limitations. Our systems are built around our global strategy, making us a world class automotive interior system supplier3 and filter manufacturer. We satisfy the strategic needs of automotive manufacturers, and we do it on time. Motivated partly by the need for cost effectiveness4, many manufacturers have built factories overseas and are buying parts and manufacturing products locally. […]It is very important that a global manufacturer understand the cultures of the countries it operates in. Toyota Boshoku now has a network of more than 50 overseas bases, and an overseas staff of more than 10,000. Our Japanese staff posted overseas impart5 their skills and knowledge of quality control and business management to local personnel, and this creates greater opportunities for success when developing new projects. In addition, this interaction with local staff gives the Japanese staff the international management skills and advanced engineering know-how6 they will need in the future.

“Purchasing and manufacturing globally”, www.toyota-boshoku.co.jp, about Toyota Boshoku, Global strategy. 1Toyota’s main car parts manufacturer 2 approvisionnement 3 un fournisseur 4 efficacité 5 communiquer, transmettre 6 le savoir-faire

Source 2: The new division of Labour and its repercussions Electrolux, the world's leading domestic appliance1 maker, has put 27 plants2 on an "at risk" list as it speeds up moves to switch production to low-cost countries to maintain its global competitiveness. Its factory at Spennymoor in County Durham, which employs 600 people and makes conventional cookers, is among plants in Australia, the US and western Europe that will be reviewed as the group moves more of its manufacturing to eastern Europe, Mexico and Asia. Almost half the plants on the list could be closed between now and 2008 as part of a 10bn Swedish crown (£750m) rationalisation, according to Electrolux. "It is the consumers who are doing this to us. They are not willing to pay extra for products produced in specific countries. We need to move production to other countries to be competitive," said a spokesman. The review of production sites is part of a radical restructuring of the Swedish group which includes spinning off its outdoor products business, which makes lawn mowers and chain saws under the Flymo and Husqvarna labels, into a separately listed company. Electrolux is also cancelling its listing on the US Nasdaq exchange because the bulk of trading in its shares takes place in Stockholm and London. Last year Electrolux announced a series of plant closures in the US, Australia, France and Denmark as it struggled with increased costs and competition. Yesterday's announcement marks an acceleration in the group's programme of shifting manufacturing to low-cost locations. "If you compare Sweden to Hungary, salaries are around one tenth in Hungary. If you go to Asia the figure is even lower," the spokesman said. He added that a number of factors would determine which of its factories would be earmarked3 for closure. "It's about profitability, flexibility, competition, a whole range of things." Electrolux employs 72,000 people, including 11,000 in the outdoor products business. Yesterday it declined to comment on how many jobs might be lost. "We don't have that kind of information. It depends on how big or small the relocated factories are and we will have to hire more people in other countries." […]

Mark Milner, “Electrolux could pull plug on 27 western factories”, The Guardian, February 16th, 2005. 1 appareil ménager, appareil 2 usine 3 être réservé à, destine à

Question: 1. Where are the center of commands of TNCs and their leading markets? 2. From what does the TNCs find their force and their competitivity?

B. The International Organization There are two types: - some have an economic, financial and commercial vocation. They concern at first the relations between MEDCs and fix the rules of globalization. Their headquarters are thus in MEDCs which rule these organizations:

o WTO (World Trade Organization in Geneva)

o The OECD (Organization of cooperation and economic developments in Paris) o the IMF (International Monetary Fund in Washington) created further to the agreements of Bretton Woods o The World Bank in Washington

These organizations contribute to the broadcasting of the liberal standards: opening towards the outside, the privatizations, cancellation of subsidies on the absolutely essential products, liberalization of the sectors of health, education, culture (WTO). - others try to make up globalization with the development of LEDCs and are more favorable to a rule of globalization. They are certain agencies of the UNO as UNESCO, the World Health Organization (WHO), the International Labour Organization (ILO), …

C. States, in and facing Globalization States are not always the victims of globalization and are not powerless in front of this phenomenon. At first, it is them who allowed, from the 1970s, liberalization of the market. Moreover, MEDCs as the United States imposed this liberalization to the weaker States. The State remains a central actor: according to his size and his power, he ensures the defense of his interests, the collective needs of his population and his companies. It makes the national space more or less attractive by its budgetary choices, its laws, and its policies of land settlement. They are active actors of this globalization as far as they are engaged in a fierce competition to attract the transnational firms, sources of jobs and investments. However, in this competition, all are not equal. Globalization organizes States into a hierarchy.