The Horn of Africa
The tragedy of the decade?
In 1984, 1 million people died. When a big famine struck Somalia in Africa (1984), people starved in masses. Help from richer countries only arrived after greatly publicizing the (then) current situation through NGOs and television. The UN, who has set the goal to eradicate poverty worldwide, provided aid in form of nutrition and procurement methods through the UN World Food Program (WFP). Sadly, the Horn of Africa still remains today under extreme poverty as a hunger zone. The WFP mentioned that the current drought is the worst so far, and 17.5 million people are likely to face starvation. High food prices, several attacks on workers by jihadists and assassinations combine with the drought and tense up the situation. Helpers and aid workers have improved the situation and starving, but the doctors operating in the national clinics even report children dying of side effect of malnutrition such as diarrhea. Lastly, even the worlds financial crisis is creating turmoil in Africa due to missing funds, and if nothing is done soon the situation will collapse entirely.
Oct 30th 2008 NAIROBI
From The Economist print edition
Millions of people in dire need of help
http://www.economist.com/world/mideast-africa/displaystory.cfm?story_id=12517047>
11/25/08
Yoghurt and Cucumbers?
Poverty all around the world is and will always be a problem. Certain authors have now written books about special initiatives, either personal or external, that were introduced to defeat poverty.
One of these is Mr. Yunus, the founder of Grameen Bank and Nobel Prize winner of 2006, who suggest the concept of "social business". The Danone chief executive (multinational) and he have created a business in Bangladesh which creates yoghurt with nutrients and other food for the poor. This social business is, according to Yunus, a new concept to help eradicate poverty and redeem capitalism. The two distinguishing features are that the poor are willing to pay for the products and the profits are directly reinvested in the enterprise. Mr. Yunus also sees great potential in this system, but the article's author argues that this form of enterprise is hardly new. He implies that the poor may be fed with this system, but won’t get out of poverty.
A way that is more efficient is Paul Polak's, the author of "out of Poverty" and founder of International Development Enterprise. He suggests that the way for the poor to get out of their farming equilibrium, in which they remain poor, is to teach them to set aside part of their crops for the dry season, when they'll achieve higher prices for it. Polak's system also allows the poor access to irrigation, markets and fertilizers. With this system, he supposedly ensures the poor a brighter future, since if you teach a man to fish, he'll be fed for life.
Melissa John
Feb 21st 2008
From The Economist print edition
http://www.economist.com/books/displaystory.cfm?story_id=10717813
One of these is Mr. Yunus, the founder of Grameen Bank and Nobel Prize winner of 2006, who suggest the concept of "social business". The Danone chief executive (multinational) and he have created a business in Bangladesh which creates yoghurt with nutrients and other food for the poor. This social business is, according to Yunus, a new concept to help eradicate poverty and redeem capitalism. The two distinguishing features are that the poor are willing to pay for the products and the profits are directly reinvested in the enterprise. Mr. Yunus also sees great potential in this system, but the article's author argues that this form of enterprise is hardly new. He implies that the poor may be fed with this system, but won’t get out of poverty.
A way that is more efficient is Paul Polak's, the author of "out of Poverty" and founder of International Development Enterprise. He suggests that the way for the poor to get out of their farming equilibrium, in which they remain poor, is to teach them to set aside part of their crops for the dry season, when they'll achieve higher prices for it. Polak's system also allows the poor access to irrigation, markets and fertilizers. With this system, he supposedly ensures the poor a brighter future, since if you teach a man to fish, he'll be fed for life.
Melissa John
Feb 21st 2008
From The Economist print edition
http://www.economist.com/books/displaystory.cfm?story_id=10717813
11/12/08
Coca Cola Presentation - Cited Articles
Articles
Blanding, Michael. "The Case Against Coca Cola." Nation 5/1/2006 p13-17. 3 Nov 2008
The Coca Cola Company in a very different light: at least compared to other written works, this article is a sheer protest movement against Coke and its actions. All the secrets and negative aspects of the Coca Cola Corporation are combined in this article. The corporation is accused of sponsoring death squads to assassinate union activists, charges of pollution and poor workplace standards are also held against them. The author shows obvious bias, since he doesn’t even see a need to mention the positive side of Coke, but instead confronts the reader with every failure and mistake Coke ever made. Therefore the article, also due to its bias, presents great examples of Cokes disadvantages and is a very useful source.
Coca-Cola Company, The." Encyclopedia Britannica. 2008. Encyclopedia Britannica Online School Edition. 3 Nov. 2008
The article on the Coca Cola Corporation is a great summary of facts. By combining history with present, it shows a brief review on Coke’s business, its origin, and the brand name. The article seems purely factual and informative, but by taking a closer look, it only praises Coke in advertising and branding, but doesn’t mention the negative side of Coke. For instance, it talks about the cocaine that used to be in Coca Cola, but doesn’t mention the problems that came along with it. All the negative aspects are quickly called to attention, but the subject immediately changes back to the advantages and successes of Coke. Nevertheless, the site proves to be a thorough article for general background knowledge on the Coca Cola Corporation.
Madden, Normandy. "CROSSING BORDERS BY BUILDING RELATIONSHIPS." Advertising Age 79.38 (13 Oct. 2008): 32-32. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 5 Nov. 2008
The interview in this article is not only interesting, but also amusing. It reveals the opening of new markets in Asia for Coca Cola and their expansion and new innovations on the Asian market. Coca-Cola's group marketing director-Pacific Group Darren Marshall interviews Ad Age Asia Editor Normandy Madden about Coke’s influence in the Olympics in Beijing, its branding strategy and how Asian markets improves Cokes business due to better and faster work, and less development cost. Madden also praises Coke’s success with newly developed products in Asia and admits failures that were brought along by certain Coke products. The article is hugely biased, since Marshall works for Coca Cola and therefore formulated the questions in his favor. The negative aspects or failures of Coke are mentioned; however there are no more than 2-3 sentences on a 3 paged article. Regardless of this, the article is up to date and very interesting, especially when the new Coke products are introduced.
Munson, Anita. "Coca-Cola Executive Defends Globalization Based on His Experience." 16 November 2000 3 Nov 2008
We want to become THE non-alcoholic beverage supplier for consumers worldwide! Sentences like this one are part of an article that is centered on Carl Ware, the executive vice president of public affairs and administration of the Coca Cola Corporation. He discusses goals and globalization in relation to Coca Cola and the world. In Ware’s speech, he proclaims that Coke is an “engine of growth and development”, that Coke has opened job opportunities worldwide, and that it gives the people what they want. This source, although informative, discusses Coca Cola from the company’s point of view, how Coke views themselves and their “problems and goals”. The bias in the source, however, does not limit the articles value, since the information given addresses many aspects of the Coke corp.
"Q & A: Coke's green future." Drug Store News 30.13 (20 Oct. 2008): 37-37. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 4 Nov. 2008
At first, the site seems unrelated to coca cola, but after taking a careful look, there is a question- answer bank at one side of the article. In this interview, the questions are asked by Drug Store News, and are answered by the director of the Coca Cola packaging platform Scott Vitter. He informs the public about the future of Coca Cola and their actions to be more environmental, to create a “green element” in their production. Unlike in the past, the environmental factor of a corporation plays an important role in the present and future, so Vitter. He emphasizes the success of the major reduction in plastic usage of Coke bottles, and introduces Cokes five- year plan, which aims at recycling PET bottles. The entire interview is one sided, firstly since Scott Vitter is a “Coke man”, and secondly since not one question is directed at the negative aspects of Coca Colas environmental situation. Still, the enthusiasm about the “green Coke movement” firmly leaps off the page, and the interview gives solid information about Coke and its environmental success, as well as its environmental goals for the future.
"THE BEVERAGE WORLD 100." Beverage World 127.10 (15 Oct. 2008): 40-64. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 5 Nov. 2008
This source, although it has only little written information about Coke, says a lot. In the article, the ratings of the 100 most successful beverage companies worldwide based on sales in 2007 are displayed. Coca Cola Company (the marketer) is on place 2, and Coca Cola Enterprise (the bottler) is 3rd out of 100 companies. Not only does this show how wealthy Coke is, but also how successful on a global scale. Their total sales equal about 50 million dollars just in the year of 2007, Coke Company selling 28-, and Coke Enterprise 20-million dollars. The article manipulates the reader slightly, due to the division of Corporations in multiple categories. Coke, for instance, is split up into 2 subcategories, to create less competition under the 100 beverage companies. The source seems quite reliable though, and definitely helps in research about Cokes worldwide success.
Thomas, Mark. "I am shocked when, at a conference on corporate responsibility, the man from McDonald's standing next to me starts criticising Coca-Cola on ethical grounds." New Statesman” Volume 133, issue 46895/2/2004 3 Nov 2008
Fanta is a drink that Coca Cola GmbH originally created for the Nazis. Facts like this one are only the beginning to this article. Starting with a conference of major world corporations on the subject of globalization, author Mark Thomas gives the reader a deep insight into the world problems of Coca Cola, such as charges due to child obesity, water depletion at a plant in Kerala, south India, and the sponsoring of certain sports events. Accusations, like Coca Cola bottlers in Columbia hiring paramilitaries to kill, torture and kidnap trade unionists of the Coke bottling plant, are openly laid out by Thomas. All this information is told to Thomas through an ex-McDonalds man, making the scene very ironic: McDonalds is criticizes Coke on ethical grounds! Mark Thomas is not against globalization, but the article reveals that he has a strong opinion against certain actions of world corporations, especially considering Human Rights. Nonetheless, the article is a fine source that reveals all the problems and negative aspects and actions of the Coca Cola Corp.
Books
Barber, Benjamin B.. CONSUMED: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole.. 2006.
This book talks about consumerism and brands, and coca cola is mentioned on pages 185-187. It describes the value of the brand name Coke and how popular it is. Coke markets their products and sell a lifestyle instead of just a bottle with liquid very well, in certain ways, and the book emphasizes on that. Barber also explains how the taste of the Coke isn’t the most important for the consumer, but that the most significant part of Coca Cola is the company’s image. This book is actually quite factual, but Barber expresses in his information a slight bias against the masses who fall for the “branding” and consume everything without even realizing it. This book however gives a small insight into Cokes “image”.
Blanding, Michael. Nation. New York: Nation Company, L. P.,
(see first article on first page of bibliography)
Mazlish, Chandler. Leviathans. Cambridge New York: 2005.
Having a worldwide business is very important. Mazlish shortly discusses Cokes branding in the world, and how the corporation is establishing markets abroad as well as at home. The sentences about Coca Cola a very few, so there doesn’t seem to be any direct bias, but he seems to have an ironic tone when talking about Coke getting famous due to it mixing well with alcoholic beverages such as Bacardi. The book doesn’t give deep insights into the world of Coke, but it explains Cokes worldwide “net” of businesses well.
Websites
"Coca Cola Company." The Coca Cola System. December 31 2006. Coca Cola. 3 Nov 2008 <>.
Rewards and praises are shown on this site. It offers a list of all the awards and prizes won by Coke worldwide, due to outstanding work and achievements. Polarization is the key to this site since it is the Coke homepage, nothing wrong, negative or problematic is documented here, but only the positive and advantageous side of Coke is pictured. The Coca Cola world is presented on numerous pages, sparkly and splendid, without any of the charges or accusations held against the company. But regardless of this bias, the site shows that Coke has won prizes due to their great work in philanthropy, social responsibility and leadership.
Fernando, Udara. "Coca-Cola." A Stanford Project- Students For Informed Career Decisions 21 May 2000 5 Nov 2008.
With a structured layout, this website explores many different aspects of the Coca-Cola Corporation. Additional to facts and figures about the company’s earnings, sales and leaders, it also highlights the positive and negative aspects of the corporation prior to the year of 2000. The site focuses mainly on Cokes bad relations with the environment and labor, which the author, a Stanford student, obviously found most important and relevant. Despite this bias, the information on Cokes numerous achievements in the area of education and philanthropy are equally interesting. Although the contrasting actions of Coke’s achievements and failures are presented with a bias from the author, the site presents relevant information in an understandable manner.
"The Coca Cola Company." Wikipedia. 31 October 2008. Wikipedia. 3 Nov 2008.
Although the site is Wikipedia, it is very useful. The site shows not only a brief history of Coke, it also lists its products and mentions criticism and charges held against the corporation. The meaning and focus of “bottlers” is explained in the site, which are various companies that hold Coke franchise, and produce the drink from the syrup the Coke Corp distributes to them. The criticism against Coke revolves around discrimination, unionists’ repression and relations to the Middle East and US foreign policy. The site is biased to a point since it talks about criticism against Coke, but not about any of its advantages or success. On the other hand, the various links in the bibliography were very useful.
Blanding, Michael. "The Case Against Coca Cola." Nation 5/1/2006 p13-17. 3 Nov 2008
The Coca Cola Company in a very different light: at least compared to other written works, this article is a sheer protest movement against Coke and its actions. All the secrets and negative aspects of the Coca Cola Corporation are combined in this article. The corporation is accused of sponsoring death squads to assassinate union activists, charges of pollution and poor workplace standards are also held against them. The author shows obvious bias, since he doesn’t even see a need to mention the positive side of Coke, but instead confronts the reader with every failure and mistake Coke ever made. Therefore the article, also due to its bias, presents great examples of Cokes disadvantages and is a very useful source.
Coca-Cola Company, The." Encyclopedia Britannica. 2008. Encyclopedia Britannica Online School Edition. 3 Nov. 2008
The article on the Coca Cola Corporation is a great summary of facts. By combining history with present, it shows a brief review on Coke’s business, its origin, and the brand name. The article seems purely factual and informative, but by taking a closer look, it only praises Coke in advertising and branding, but doesn’t mention the negative side of Coke. For instance, it talks about the cocaine that used to be in Coca Cola, but doesn’t mention the problems that came along with it. All the negative aspects are quickly called to attention, but the subject immediately changes back to the advantages and successes of Coke. Nevertheless, the site proves to be a thorough article for general background knowledge on the Coca Cola Corporation.
Madden, Normandy. "CROSSING BORDERS BY BUILDING RELATIONSHIPS." Advertising Age 79.38 (13 Oct. 2008): 32-32. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 5 Nov. 2008
The interview in this article is not only interesting, but also amusing. It reveals the opening of new markets in Asia for Coca Cola and their expansion and new innovations on the Asian market. Coca-Cola's group marketing director-Pacific Group Darren Marshall interviews Ad Age Asia Editor Normandy Madden about Coke’s influence in the Olympics in Beijing, its branding strategy and how Asian markets improves Cokes business due to better and faster work, and less development cost. Madden also praises Coke’s success with newly developed products in Asia and admits failures that were brought along by certain Coke products. The article is hugely biased, since Marshall works for Coca Cola and therefore formulated the questions in his favor. The negative aspects or failures of Coke are mentioned; however there are no more than 2-3 sentences on a 3 paged article. Regardless of this, the article is up to date and very interesting, especially when the new Coke products are introduced.
Munson, Anita. "Coca-Cola Executive Defends Globalization Based on His Experience." 16 November 2000 3 Nov 2008
We want to become THE non-alcoholic beverage supplier for consumers worldwide! Sentences like this one are part of an article that is centered on Carl Ware, the executive vice president of public affairs and administration of the Coca Cola Corporation. He discusses goals and globalization in relation to Coca Cola and the world. In Ware’s speech, he proclaims that Coke is an “engine of growth and development”, that Coke has opened job opportunities worldwide, and that it gives the people what they want. This source, although informative, discusses Coca Cola from the company’s point of view, how Coke views themselves and their “problems and goals”. The bias in the source, however, does not limit the articles value, since the information given addresses many aspects of the Coke corp.
"Q & A: Coke's green future." Drug Store News 30.13 (20 Oct. 2008): 37-37. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 4 Nov. 2008
At first, the site seems unrelated to coca cola, but after taking a careful look, there is a question- answer bank at one side of the article. In this interview, the questions are asked by Drug Store News, and are answered by the director of the Coca Cola packaging platform Scott Vitter. He informs the public about the future of Coca Cola and their actions to be more environmental, to create a “green element” in their production. Unlike in the past, the environmental factor of a corporation plays an important role in the present and future, so Vitter. He emphasizes the success of the major reduction in plastic usage of Coke bottles, and introduces Cokes five- year plan, which aims at recycling PET bottles. The entire interview is one sided, firstly since Scott Vitter is a “Coke man”, and secondly since not one question is directed at the negative aspects of Coca Colas environmental situation. Still, the enthusiasm about the “green Coke movement” firmly leaps off the page, and the interview gives solid information about Coke and its environmental success, as well as its environmental goals for the future.
"THE BEVERAGE WORLD 100." Beverage World 127.10 (15 Oct. 2008): 40-64. Advanced Placement Source. EBSCO. [Library name], [City], [State abbreviation]. 5 Nov. 2008
This source, although it has only little written information about Coke, says a lot. In the article, the ratings of the 100 most successful beverage companies worldwide based on sales in 2007 are displayed. Coca Cola Company (the marketer) is on place 2, and Coca Cola Enterprise (the bottler) is 3rd out of 100 companies. Not only does this show how wealthy Coke is, but also how successful on a global scale. Their total sales equal about 50 million dollars just in the year of 2007, Coke Company selling 28-, and Coke Enterprise 20-million dollars. The article manipulates the reader slightly, due to the division of Corporations in multiple categories. Coke, for instance, is split up into 2 subcategories, to create less competition under the 100 beverage companies. The source seems quite reliable though, and definitely helps in research about Cokes worldwide success.
Thomas, Mark. "I am shocked when, at a conference on corporate responsibility, the man from McDonald's standing next to me starts criticising Coca-Cola on ethical grounds." New Statesman” Volume 133, issue 46895/2/2004 3 Nov 2008
Fanta is a drink that Coca Cola GmbH originally created for the Nazis. Facts like this one are only the beginning to this article. Starting with a conference of major world corporations on the subject of globalization, author Mark Thomas gives the reader a deep insight into the world problems of Coca Cola, such as charges due to child obesity, water depletion at a plant in Kerala, south India, and the sponsoring of certain sports events. Accusations, like Coca Cola bottlers in Columbia hiring paramilitaries to kill, torture and kidnap trade unionists of the Coke bottling plant, are openly laid out by Thomas. All this information is told to Thomas through an ex-McDonalds man, making the scene very ironic: McDonalds is criticizes Coke on ethical grounds! Mark Thomas is not against globalization, but the article reveals that he has a strong opinion against certain actions of world corporations, especially considering Human Rights. Nonetheless, the article is a fine source that reveals all the problems and negative aspects and actions of the Coca Cola Corp.
Books
Barber, Benjamin B.. CONSUMED: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole.. 2006.
This book talks about consumerism and brands, and coca cola is mentioned on pages 185-187. It describes the value of the brand name Coke and how popular it is. Coke markets their products and sell a lifestyle instead of just a bottle with liquid very well, in certain ways, and the book emphasizes on that. Barber also explains how the taste of the Coke isn’t the most important for the consumer, but that the most significant part of Coca Cola is the company’s image. This book is actually quite factual, but Barber expresses in his information a slight bias against the masses who fall for the “branding” and consume everything without even realizing it. This book however gives a small insight into Cokes “image”.
Blanding, Michael. Nation. New York: Nation Company, L. P.,
(see first article on first page of bibliography)
Mazlish, Chandler. Leviathans. Cambridge New York: 2005.
Having a worldwide business is very important. Mazlish shortly discusses Cokes branding in the world, and how the corporation is establishing markets abroad as well as at home. The sentences about Coca Cola a very few, so there doesn’t seem to be any direct bias, but he seems to have an ironic tone when talking about Coke getting famous due to it mixing well with alcoholic beverages such as Bacardi. The book doesn’t give deep insights into the world of Coke, but it explains Cokes worldwide “net” of businesses well.
Websites
"Coca Cola Company." The Coca Cola System. December 31 2006. Coca Cola. 3 Nov 2008 <>.
Rewards and praises are shown on this site. It offers a list of all the awards and prizes won by Coke worldwide, due to outstanding work and achievements. Polarization is the key to this site since it is the Coke homepage, nothing wrong, negative or problematic is documented here, but only the positive and advantageous side of Coke is pictured. The Coca Cola world is presented on numerous pages, sparkly and splendid, without any of the charges or accusations held against the company. But regardless of this bias, the site shows that Coke has won prizes due to their great work in philanthropy, social responsibility and leadership.
Fernando, Udara. "Coca-Cola." A Stanford Project- Students For Informed Career Decisions 21 May 2000 5 Nov 2008
With a structured layout, this website explores many different aspects of the Coca-Cola Corporation. Additional to facts and figures about the company’s earnings, sales and leaders, it also highlights the positive and negative aspects of the corporation prior to the year of 2000. The site focuses mainly on Cokes bad relations with the environment and labor, which the author, a Stanford student, obviously found most important and relevant. Despite this bias, the information on Cokes numerous achievements in the area of education and philanthropy are equally interesting. Although the contrasting actions of Coke’s achievements and failures are presented with a bias from the author, the site presents relevant information in an understandable manner.
"The Coca Cola Company." Wikipedia. 31 October 2008. Wikipedia. 3 Nov 2008
Although the site is Wikipedia, it is very useful. The site shows not only a brief history of Coke, it also lists its products and mentions criticism and charges held against the corporation. The meaning and focus of “bottlers” is explained in the site, which are various companies that hold Coke franchise, and produce the drink from the syrup the Coke Corp distributes to them. The criticism against Coke revolves around discrimination, unionists’ repression and relations to the Middle East and US foreign policy. The site is biased to a point since it talks about criticism against Coke, but not about any of its advantages or success. On the other hand, the various links in the bibliography were very useful.
11/2/08
Measuring Poverty
"You cant solve a problem until you can measure it." This statement by Senator Daniel Patrick Moynihan is the basis of the federal poverty measure in New York. New Yorks major Michael Bloomberg has suggested an alternative for measuring poverty, which doesn’t measure the income based on food spending, but also on shelter, utilities, and clothing. This measurement is more exact since the average household spending on housing has increased to 30%, while the spending on food has decreased from 1/3 to 1/8 of the household spending. With this new measurement, the poverty line in New York has decreased, although the amount of working poor has increased. New York's boldness has been praised and has inspired Congress and other states to follow New York's poverty measurement.
The Big Apple gets poorer
Jul 17th 2008 NEW YORK
From The Economist print edition
The federal definition of poverty is challenged by local government
The Big Apple gets poorer
Jul 17th 2008 NEW YORK
From The Economist print edition
The federal definition of poverty is challenged by local government
10/21/08
Poverty and Economy
Poverty and Economy
Kiyoshi is Japanese and has been homeless for six years. He and hundreds of others in Tokyo live on the street and earn less than 10 dollars per day. Due to the financial collapse that occurred in the 1990s, many people lost their jobs and live in parks or tents in the middle of the city. Japans situation is an important example of how financial crisis can destroy a country and how difficult it is to recover from it.
The loose lending that occurred in 1990 was followed by collapse of property and shared prices. The banks started to go bust and only the 400 dollars that were spend on a governmental bail-out helped the economy to stabilize in 2003. Although the economy started to recover, the situation in Japan had changed. The income inequality increased, the long term jobs were replaced by part time jobs and the street crime spread. In the year of 2003, 25,000 homeless were counted, and although the government tried to build temporary houses, this only caused more problems. Today, Japan is in a better economic situation, but Kyoshi is still homeless, and so are many others.
Melissa John
The legacy of depression
L-shaped poverty lines
Oct 16th 2008 TOKYO
From The Economist print edition
Pasted from <http://www.economist.com/finance/displaystory.cfm?story_id=12437739>
Kiyoshi is Japanese and has been homeless for six years. He and hundreds of others in Tokyo live on the street and earn less than 10 dollars per day. Due to the financial collapse that occurred in the 1990s, many people lost their jobs and live in parks or tents in the middle of the city. Japans situation is an important example of how financial crisis can destroy a country and how difficult it is to recover from it.
The loose lending that occurred in 1990 was followed by collapse of property and shared prices. The banks started to go bust and only the 400 dollars that were spend on a governmental bail-out helped the economy to stabilize in 2003. Although the economy started to recover, the situation in Japan had changed. The income inequality increased, the long term jobs were replaced by part time jobs and the street crime spread. In the year of 2003, 25,000 homeless were counted, and although the government tried to build temporary houses, this only caused more problems. Today, Japan is in a better economic situation, but Kyoshi is still homeless, and so are many others.
Melissa John
The legacy of depression
L-shaped poverty lines
Oct 16th 2008 TOKYO
From The Economist print edition
Pasted from <http://www.economist.com/finance/displaystory.cfm?story_id=12437739>
10/19/08
One World?
One World?
Globalization hasn’t suddenly appeared in the past 10 years, it has reappeared. Even before WWI there were attempts of globalization, but with WWI and II and the Great Depression, it was only in the 1970s with the collapse of the Bretton Wood system, that determined that fixed exchange rates, that a rebirth of the capital market appeared. Two forces drove the increased flows of goods and money; the improvements in technology, where costs of communication and computing fell rapidly, and liberalization, which, also due to GATT, almost all countries are more open to foreign trade. Suddenly, there is a clear worldwide trend in globalization. As cross-borders flows of trade, national economies become more integrated, there’s an increase in investment and financial capital, and consumers buy more goods. This globalization buzz can be viewed from two sides. The positive view shows the boost in productivity and the rise in living standards. The division of labor between countries is better and firms can exploit bigger economies of scale. Critics argue however that jobs will be destroyed and wages will be pushed down due to the increases competition from developing low-wage countries that they predict for the future. They see a “race to the bottom” in the pressure of businesses to compete. In the end, there is no right or wrong, but there is the big question whether globalization can be reversed a second time.
http://moodle.zis.ch/mod/resource/view.php?id=15411
Globalization hasn’t suddenly appeared in the past 10 years, it has reappeared. Even before WWI there were attempts of globalization, but with WWI and II and the Great Depression, it was only in the 1970s with the collapse of the Bretton Wood system, that determined that fixed exchange rates, that a rebirth of the capital market appeared. Two forces drove the increased flows of goods and money; the improvements in technology, where costs of communication and computing fell rapidly, and liberalization, which, also due to GATT, almost all countries are more open to foreign trade. Suddenly, there is a clear worldwide trend in globalization. As cross-borders flows of trade, national economies become more integrated, there’s an increase in investment and financial capital, and consumers buy more goods. This globalization buzz can be viewed from two sides. The positive view shows the boost in productivity and the rise in living standards. The division of labor between countries is better and firms can exploit bigger economies of scale. Critics argue however that jobs will be destroyed and wages will be pushed down due to the increases competition from developing low-wage countries that they predict for the future. They see a “race to the bottom” in the pressure of businesses to compete. In the end, there is no right or wrong, but there is the big question whether globalization can be reversed a second time.
http://moodle.zis.ch/mod/resource/view.php?id=15411
Globalization Definitions
Definitions of Globalization
Globalization: a movement in which our livelihoods, through businesses and economies, become interdependent. The increasing trade between nations, the growing market for the selling of products, and the cheapest manufacturing of products are all effects of globalization.
Economies of scale: theory that states that it is better to produce at large quantities and sell it all than to sell everything of a smaller quantity of goods. Production should be cheaper and the products should be sold to more customers.
Footprint: Refers to the different countries a company works/is located in to maximize the area and gain economic stability.
Multinational corporations: These are businesses and companies that originated in the 20th century and manufacture and sell in multiple foreign countries. They often develop the products in their native country and then manufacture them in other, mostly Third World, countries where production is cheaper. These corporations exert power over other businesses or even the government, and are viewed as employment opportunities and technology improvers by proponents, while critics see them as exploiters of developing countries and a reason for the losses of many jobs.
Conglomerate: corporations which merge with another corporation, their products however are largely unrelated, bringing the corporation growth and profit. This vertical integration emerged in the 1960s and back then was very common among investors whose stock prices then rose.
Merger: Merging is the coming together, fusing of two or more companies. The property is transferred to one corporation, who absorbed the others. There are three different types of mergers; vertical, horizontal and extensional. Vertical mergers combine different businesses, such as a car and a clothing company. Horizontal mergers integrate related businesses such as two beer companies. Extensional mergers bring together two businesses that then go into a new market. From this, a hostile takeover happens, where, against its will, one weaker business is swallows by a stronger one.
Competition: the rivalry between businesses in supply and demand, where businesses compete against one another to supply and gain an economic service. A major theme in competition is monopoly, since monopoly endangers the entire concept of competition.
Monopoly: when on the market one seller exerts power and controls the market by being the only seller of a certain commodity. Oligopoly is a situation in which a few sellers control the market, mostly two or three. This is not uncommon nowadays, whereas there are many attempts to avoid monopoly, since it eradicates a free market and market competition.
Cartel: cartels are national or international groups of sellers and manufacturers who come together to fix prices, divide markets or split profits in order to become stronger and stand a chance against the greater, more powerful corporations on the market. Cartels are mainly forbidden, by the outset of WWII, Germany had many cartels, which were closely watched and controlled by the government. Opponents claim that cartels drive out competition, while supporters say that they are merely a protection for weaker firms.
http://moodle.zis.ch/mod/resource/view.php?id=15410
Globalization: a movement in which our livelihoods, through businesses and economies, become interdependent. The increasing trade between nations, the growing market for the selling of products, and the cheapest manufacturing of products are all effects of globalization.
Economies of scale: theory that states that it is better to produce at large quantities and sell it all than to sell everything of a smaller quantity of goods. Production should be cheaper and the products should be sold to more customers.
Footprint: Refers to the different countries a company works/is located in to maximize the area and gain economic stability.
Multinational corporations: These are businesses and companies that originated in the 20th century and manufacture and sell in multiple foreign countries. They often develop the products in their native country and then manufacture them in other, mostly Third World, countries where production is cheaper. These corporations exert power over other businesses or even the government, and are viewed as employment opportunities and technology improvers by proponents, while critics see them as exploiters of developing countries and a reason for the losses of many jobs.
Conglomerate: corporations which merge with another corporation, their products however are largely unrelated, bringing the corporation growth and profit. This vertical integration emerged in the 1960s and back then was very common among investors whose stock prices then rose.
Merger: Merging is the coming together, fusing of two or more companies. The property is transferred to one corporation, who absorbed the others. There are three different types of mergers; vertical, horizontal and extensional. Vertical mergers combine different businesses, such as a car and a clothing company. Horizontal mergers integrate related businesses such as two beer companies. Extensional mergers bring together two businesses that then go into a new market. From this, a hostile takeover happens, where, against its will, one weaker business is swallows by a stronger one.
Competition: the rivalry between businesses in supply and demand, where businesses compete against one another to supply and gain an economic service. A major theme in competition is monopoly, since monopoly endangers the entire concept of competition.
Monopoly: when on the market one seller exerts power and controls the market by being the only seller of a certain commodity. Oligopoly is a situation in which a few sellers control the market, mostly two or three. This is not uncommon nowadays, whereas there are many attempts to avoid monopoly, since it eradicates a free market and market competition.
Cartel: cartels are national or international groups of sellers and manufacturers who come together to fix prices, divide markets or split profits in order to become stronger and stand a chance against the greater, more powerful corporations on the market. Cartels are mainly forbidden, by the outset of WWII, Germany had many cartels, which were closely watched and controlled by the government. Opponents claim that cartels drive out competition, while supporters say that they are merely a protection for weaker firms.
http://moodle.zis.ch/mod/resource/view.php?id=15410
Subscribe to:
Posts (Atom)