They want to control flows of people, goods, capital
They are a source of tension
Defence
Preserving culture
How open should borders be ?
We want to trade with other countries
Globalization
Increasing flows in the golden period of globalization (1980 - 2008)
BUT TENSIONS
Economic cost
Issues with illegal migration
Political cost/tensions
Environmental cost
Cooperation, Tension, Barriers
Global cooperation
International organisations
Ex : UN, WTO, IMF, World Bank
Signatories to international treaties
International AID
Trading blocs
Ex : EU, NAFTA
Keywords :
Cooperation
Participation in international organisations
Signatories to international treaties
International AID
Trading blocs
Immigration
Military alliances, sharing of security information
SDG 17 : Sharing of technology
Diffusion of wealth from core to periphery
Internet access
Global scale, flows of goods
Cooperation
WTO promoting free trade
Free trade
Trying to get rid of tariffs
Trading blocks (USMCA)
Free trade agreements
TNCs and Global Supply Networds
Offshoring, outsourcing, acquisitions and joint ventures
Tension
Protectionism
Tariffs for imports, subsidies for home production
Trade wars
Quotas
Sanctions
Reshoring by TNCs
Bringing back production to the home country
Ex : Apple
Nationalisation of companies
Regional impact on jobs
Supply chain issues leading to more flexible less complex regional production networks
Disruptions
2008 Financial crisis
US China Trade war
Covid-19
Pandemic travel restrictions
Climate change carbon targets
Political disruptions (Maritime choke points, Suez canal, Panama canal, Strait of Hormuz)
Barriers to trade
To protect domestic jobs
To improve a trade deficit
To protect “infant industries”
Protection from “dumping”
To earn more revenues
Global MNOs and International Cooperation
WTO (Goods)
IMF (Capital)
NATO (Defence)
COP Agreements (Environment)
USMCA (Economic)
Came out of NAFTA
US, Mexico, Canada
Free trade agreement
1994
2018 : Trump renegotiated it
EU (Political and economic union)
Impact of USMCA changes for NAFTA
Supporting Mexican workers’ employment rights with greater sue of collective bargaining to increase Mexican wages
By 2023, around 40-45% of car parts must be made by workers earning at least $16 per hour
75% of car parts must be made in North America
70% of steel and aluminium must be sourced from North America
Regional Borders
Goods
Trade increasing within N America due to simpler more flexible supply networks to reduce risk. Also USMCA and free trade contrasted with US China trade war
People
Need to control flow of people, Political, key election issue
USMCA and NAFTA
Information
Technology such as biometric passports, fingerprinting, face recognition technology, drones for surveillance
Capital
Issues with money laundering, tax evasion, corruption
Remittances from Mexican workers in USA to Mexico
Capital flows, Remittances
A lot of money is sent back to Mexico
2019 : $36 billion
2020 : $40 billion
Flows of people
Cooperation
International Migration
Waevs of immigration throughout US History Push/pull factors
Low income jobs filled
Changing ethnic demographics
Regional migration (Periphery to core)
Regional and city variations
Diasporas
Cultural hybridity (37% NY workers are foreigners)
Tensions
Digital divide between urban and rural areas
Differences in regional connection speeds
Tensions between countries over data protection
Regional flows in North America
Cooperation
USMCA
NAFTA
Tensions
US China trade war
Flows at the borders
The flows of people at the mexican border is higher than the canadian border
The flows of goods at the canadian border is higher than the mexican border
Maquiladora development in Mexico
Factories that are foreign owned byt employ local labour
Many US companies have low cost assembly plants in Mexico
Since 1989, more than 1 million jobs have been created
Case example Fender
Offshoring from US to Mexico began in 1980
Accelerated after 1994 and NAFTA
As US could import materials tarrif free
Low cost assembly lines, low wages
Could compete with Asian imports
Local flows of goods from Mexico to USA
80% of Mexican exports go to USA
50% of Mexican imports come from USA
2019 : $614 billion of trade
Issues with illegal flows
Illegal migration
The flow of illegal border crosser goes in both directions
Since around the time Donald Trump was elected, the number of illegal border crossers has been increasing
Global cooperation tensions and barriers, power of the USA
Political persuasion
Participation in global organisations, WHO
Cooperation on Green energy and climate change
Capital flows, international AID, FDI, and remittances
The SDGs and global partnerships
Global brands and globalization
Language, media, education
Hard Power
Military power, NATO
Sanctions
Tariffs
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