Globalization I - The Upside: Crash Course World History #41

Summary

In this penultimate episode of Crash Course World History, John Green explores the concept of globalization, its impact on history, and the reasons for studying it. He uses a t-shirt as a metaphor to illustrate the interconnectedness and complexity of the global economy, discussing how multinational corporations, cheap travel, and reduced tariffs have shaped trade. Green also touches on the cultural and economic effects of globalization, such as the spread of American culture and the benefits and drawbacks it brings to different societies. The episode invites viewers to consider the profound changes brought about by globalization and the importance of understanding history to navigate our rapidly evolving world.

Takeaways

• 🌐 **Globalization Overview**: The video discusses globalization as a cultural and economic phenomenon, focusing on trade and its impact on history and society.
• 🎓 **Studying History**: We study history not just for academic success, but to understand the complex global systems that affect our lives, such as the one represented by a simple t-shirt.
• 💡 **Global Trade Dynamics**: The scale of global trade has increased due to multinational corporations, cheaper and safer travel and shipping, and decreased tariffs and regulations.
• 📈 **Economic Interdependence**: Global economic interdependence is growing, with countries increasingly relying on each other for goods and services.
• 🏭 **Manufacturing Shift**: Manufacturing jobs have moved from high-wage to lower-wage countries, impacting local economies but also providing opportunities in developing nations.
• 🌱 **Agricultural Subsidies**: The U.S. government's subsidies for cotton production affect the global market, making American cotton cheaper and influencing where production occurs.
• 🌍 **Cultural Blending**: Globalization has led to a blending of cultures, with increased migration and the spread of cultural products like music, movies, and food.
• 📊 **Economic Growth**: Global capitalism has contributed to increased worldwide economic output and has helped millions of people out of poverty.
• 💰 **Remittances Impact**: Money sent home by workers abroad (remittances) has become a significant driver of economic growth in developing countries.
• 🏗️ **Industrialization and Migration**: Industrialization in wealthy countries attracts workers from developing nations, leading to significant population shifts and cultural exchange.
• 🌿 **Environmental Concerns**: The video hints at the negative environmental impact of globalization, suggesting it's a topic for further discussion.
• 👨‍👩‍👧 **Social Dislocation**: The shift of manufacturing jobs abroad has social implications, affecting families and communities in high-wage countries.

Q & A

What is the main topic discussed in the penultimate episode of Crash Course World History?

The main topic discussed in the penultimate episode is globalization and its various aspects, including its cultural, economic, and historical implications.

Why does John Green suggest that studying history is important beyond just getting good grades and a good job?

John Green suggests that studying history is important to understand the interconnectedness of the world, such as how the t-shirt one wears is a result of global economic forces, and to understand the broader implications of our actions and ambitions.

What are the three main reasons John Green provides for the increase in the scale of global trade?

The three main reasons are: 1) Multinational corporations have global reach and increasing power, 2) Travel and shipping are cheaper and safer, and 3) Governments have decreased tariffs and regulations on international trade.

How does the U.S. government's subsidy of cotton production affect the global cotton market?

The U.S. government's subsidy of cotton production makes American cotton cheaper than cotton from other countries like Brazil or India, which has historically given the U.S. a competitive advantage in cotton exports. However, this trend is changing as other countries increase their cotton exports and the U.S. moves away from its cotton subsidies.

What is the significance of the t-shirt in the episode as a symbol of globalization?

The t-shirt is used as a symbol of globalization because it contains cotton that may be grown in the U.S. but is spun and woven in lower-wage countries, and then printed and sold in developed countries. This process illustrates the interconnectedness and complexity of global trade.

Why is the printing and retail side of t-shirt production more expensive than the shipping across oceans?

The printing and retail side of t-shirt production is more expensive due to the costs associated with design, branding, and the actual printing process, rather than the transportation of the physical goods.

What role do multinational corporations play in the current state of global trade?

Multinational corporations play a significant role in global trade by having a global reach and increasing power, which contributes to the widespread economic interdependence experienced in today's world.

How has globalization impacted the manufacturing of consumer goods?

Globalization has led to former non-industrialized parts of the world manufacturing consumer goods primarily for foreign markets, with products like t-shirts and computers being manufactured in countries like China and then imported to other countries.

What is the significance of remittances in the context of globalization and economic growth?

Remittances, or money sent home by people working abroad, are a significant driver of economic growth in the developing world, with some countries like Tajikistan receiving remittances that account for a large percentage of their GDP.

How does John Green describe the paradox of globalized culture?

John Green describes the paradox of globalized culture as a situation where, on one hand, there is increasing Americanization and a loss of cultural diversity, but on the other hand, individuals have greater access to diverse cultural experiences than ever before.

What are some of the potential negative side effects of globalization mentioned in the script?

Some potential negative side effects of globalization mentioned include negative impacts on families, environmental damage, and the possibility that globalization could contribute to serious global challenges, such as the end of the human species.

How does the script suggest that studying history can help us understand the changes brought about by globalization?

The script suggests that studying history helps us understand the radical changes brought about by globalization, allowing us to remember both the gains and losses in our progress, and to contextualize our current situation within a broader historical framework.

Outlines

00:00

🌏 Globalization and Its Impact on World History

John Green introduces the topic of globalization in this penultimate episode of Crash Course World History. He discusses the cultural phenomenon of globalization, reflected in contemporary art, population migration, and linguistic changes, with a focus on trade. Green uses a t-shirt as a metaphor to explain the interconnectedness and efficiency of the global economy, highlighting how multinational corporations, cheap travel, and reduced tariffs have increased the scale of international trade. He also touches on the role of governments, particularly the U.S. government's subsidies on cotton production, and how this has influenced global trade patterns. Green emphasizes the importance of understanding the historical context behind everyday objects and the reasons we study history, suggesting that the study of history can provide insight into the complex dynamics of globalization.

05:04

🍪 The Paradox of Global Consumption and Cultural Blending

In this segment, Green addresses the paradox of global capitalism, symbolized by the Cookie Monster's insatiable appetite for cookies despite not having a stomach. This serves as a metaphor for contemporary consumption patterns, where despite the lack of need, consumption continues. Green acknowledges the positive impacts of globalization, such as increased worldwide economic output and the rise of 600 million people out of poverty according to the World Bank. However, he also warns of the potential negative consequences, including the strain on families, environmental degradation, and even the possibility of existential threats to humanity. The summary also touches on the ease of migration due to cheaper air travel and improved communication technologies, leading to cultural blending and the paradoxical nature of a globalized culture that is both increasingly homogenized and diverse.

10:08

📚 The Historical Significance of Globalization and Future Outlook

Green concludes the episode by emphasizing the importance of studying history to understand the radical changes brought about by globalization. He points out the unprecedented advancements in technology, healthcare, and agriculture that have led to a significant increase in human lifespan and population. The 'green revolution' of the 1950s, marked by the use of chemical fertilizers, is highlighted as a key factor in increased crop yields. Green encourages viewers to reflect on both the gains and losses incurred through these changes. The episode ends with a teaser for the next week's discussion on the less celebrated aspects of globalization, inviting viewers to consider the complex and sometimes dangerous implications of our interconnected world.

Keywords

💡Globalization

Globalization refers to the process of increased interconnectedness and interdependence among countries, facilitated by advances in communication, transportation, and trade. In the video, it is the central theme, with the t-shirt serving as a metaphor for the global economy's efficiency, surplus, hyperconnectedness, and sustainability issues. The script discusses how globalization has reshaped trade, cultural exchange, and economic opportunities worldwide.

💡Cultural Phenomenon

A cultural phenomenon is a widespread cultural activity or trend that reflects the shared values, beliefs, or practices of a society or the world at large. The video touches on how globalization is a cultural phenomenon evident in contemporary artwork, population migration, and linguistic changes, illustrating the blending of cultures and the spread of cultural elements across borders.

💡Economic Interdependence

Economic interdependence is a situation where countries rely on each other for trade and economic stability. The script mentions that the scale of trade has increased dramatically, symbolized by the 'international felt melange,' pointing to the widespread reliance on one another for goods and services in the global economy.

💡Multinational Corporations

Multinational corporations are large companies that operate in multiple countries simultaneously. They are highlighted in the script as having a global reach and increasing power, which is a driving force behind the scale and nature of modern trade, contributing to the complexity of the global economy.

💡Free Trade

Free trade is the idea of minimizing government tariffs, quotas, and regulations on trade to encourage international commerce. The video critiques the concept of 'free trade' by pointing out that while it's called free, there are still barriers and costs, such as the premium tier for BBC America in the cable package. It also discusses how governments play a role in international trade through subsidies and regulations.

💡Subsidies

Subsidies are financial incentives or payments made by a government to encourage or protect a domestic industry. In the context of the video, American cotton is cheaper because of government subsidies, which makes it more competitive in the global market, although this is changing as other countries increase their cotton exports.

💡Cultural Blending

Cultural blending refers to the mixing of cultural elements from different societies, often as a result of globalization. The script talks about how globalization leads to cultural diversity through the exchange of traditions, art, music, and food, but also points out the paradox of increasing cultural homogenization, such as the spread of American culture and the decline in language diversity.

💡Remittances

Remittances are money transfers sent by migrant workers to their home countries. The video explains that remittances are a significant driver of economic growth in developing countries, with an example given that in Tajikistan, remittances make up 35% of the GDP, highlighting the economic impact of migration.

💡Industrialized and Non-industrialized Countries

The terms 'industrialized' and 'non-industrialized' refer to the level of a country's industrial development. The script discusses how the manufacturing of consumer goods has shifted from industrialized countries to non-industrialized ones, which has implications for job markets, economic growth, and global trade dynamics.

💡Global Capitalism

Global capitalism is the worldwide economic system driven by private capital and the pursuit of profit, which has been facilitated by globalization. The video acknowledges that while global capitalism has led to increased worldwide economic output and lifted many people out of poverty, it also has negative consequences, such as job losses in high-wage countries and potential environmental harm.

💡Cultural Diversity

Cultural diversity refers to the variety of cultural expressions, traditions, and ideas within a society or globally. The script contrasts the decline in cultural diversity, such as fewer languages being spoken, with the increased access individuals have to a wide array of cultural experiences, such as global music, films, and sports.

Highlights

Globalization is a cultural phenomenon reflected in contemporary artwork, population migration, and linguistic changes.

The scale of global trade has increased due to multinational corporations, cheaper and safer travel and shipping, and decreased tariffs and regulations.

US government subsidies make American cotton cheaper, influencing global cotton trade dynamics.

Cotton spinning and weaving occur in lower wage countries due to the lack of US subsidies for industrial production.

Most t-shirts are sent to Europe or the US for screen printing before being sold.

Contemporary global trade is largely unregulated by international institutions and national governments.

Academic economists have successfully argued for governmental deregulation to promote growth.

Nations have been pressured into free trade by larger economies, leading to lowered tariffs and privatization.

The impact of decreased regulations on developing economies is a subject of debate.

Global capitalism has increased worldwide economic output and provided opportunities for many.

Manufacturing jobs moving from high wage to lower wage countries have allowed more people to live better lives.

Globalization has side effects, including potential negative impacts on families, the environment, and possibly even human survival.

People are moving more than ever due to cheaper air travel, easier communication, and better economic opportunities.

Cultural blending is a result of globalization, with some seeing culture as increasingly Americanized.

Despite perceived Americanization, individual access to diverse cultural experiences has never been greater.

Globalization has led to radical changes in human life, including increased life expectancy and technological advancements.

Studying history helps us understand the changes brought by globalization and remember what has been gained and lost.

Transcripts

Hi, I’m John Green. This is Crash Course World History and today is the penultimate

episode of Crash Course. We’re gonna talk about globalization.

This was going to be the last episode, but I just can’t quit you, World Historians.

So, today we’re going to talk about globalization, and in doing so, we’re going to talk about

why we study history at all.

Ooh ooh, Mr. Green!

Yes, Me from the Past?

We study history to get a good grade to go to a good college to get a good job --

--so you can make more money than you would otherwise make and be a slightly

larger cog among the seven billion gears that turn the planet’s economic engine, right?

And that’s fine, but if that’s why you really study history, then you need to understand

all the ways that the t-shirt you’re wearing is both the cause and result of your ambition.

This t-shirt contains the global economy: its efficiency, its massive surplus, its hyperconnectedness,

and its unsustainability. This t-shirt tells one story of globalization. So let’s follow it.

[Theme Music]

So, globalization is a cultural phenomenon. It’s reflected in contemporary artwork and

population migration and linguistic changes, but we’re going to focus, as we so often

have during Crash Course, on trade.

So the world today, as symbolized by our international felt melange, experiences widespread global

economic interdependence. Now, of course economic interdependence and the accompanying cultural

borrowing are nothing new. You’ll remember that we found trade documents from the Indus

Valley civilization all the way in Mesopotamia.

But for a few reasons, the scale of this trade has increased dramatically:

1. Multinational corporations have global reach and increasing power.

2. Travel and shipping are cheap and safe. It took about two months to cross the Atlantic

in 1800. Today it takes about five hours by plane, and less than a week by ship.

3. Governments have decreased tariffs and regulations on international trade, leading

to what is sometimes called euphemistically ”free trade.” To which I say, if this

trade is so free, how come BBC America is in the premium tier of my cable package?

To understand the role that governments play in international trade, let’s look again

at this t-shirt. This t-shirt, like most t-shirts made in the world, contains 100% American

cotton. And that’s not because the U.S. makes the best cotton or the most efficient

cotton, it’s because the U.S. government subsidizes cotton production. And that’s

what makes this cotton cheaper than cotton of similar quality from Brazil or India. But

in the last 30 years, the US’s share of cotton exports has gone down as Brazil, India,

and Africa’s cotton exports go up. And that trend will likely continue as the US moves

away from its expensive cotton subsidies. In fact, these days it’s already possible

to find t-shirts with Brazilian, Indian, or Ugandan cotton, or a mixture of cottons from all around the world.

But because the American government doesn’t subsidize industry in the way it does agricultural

production, the actual spinning and weaving of the cotton takes place in lower wage countries:

Mexico, Guatemala, Vietnam, China, India, China, China, sometimes even China. And then the

finished shirts, called blanks, are usually sent to Europe or the United States for screen printing, and then sold.

You would think the most expensive part of this process is the part where we ship this

across the Pacific Ocean, turn it into this, and then ship it back across the Pacific Ocean,

but you’d be wrong. Wholesale t-shirt blanks can cost as little as $3; the expense is in

the printing, the retail side of things, and paying the designer at Thought Bubble who

was tasked with the difficult job of creating a Mongol who is at once cute and terrifying.

So contemporary global trade is pretty anarchic and unregulated, at least by international

institutions and national governments. Much of this has to do with academic economists,

mostly in the U.S. and Europe who have argued with great success that governmental regulation

diminishes prosperity by limiting growth. Now, some nations-- in Latin America, the

Caribbean, and Africa-- haven’t been particularly keen to pursue free trade but they’ve been

bullied into it by larger economies with whom they desperately need to trade.

So in the past 30 years, we’ve seen all these emerging markets lowering their tariffs,

getting rid of regulation, and privatizing formerly state-run businesses. And they often

do that to appease the International Monetary Fund, which offers low interest loans to developing

world economies with the motto: Many Strings Attached.

Now, whether these decreased regulations have been a net positive for these developing world

economies is a subject of much debate, and we will wade into it but not until next week.

First, we need to understand more about the nature of this trade. So you’ll remember

from the Industrial Revolution episode that industrial western powers produced most of

the manufactured goods, which were then sold in international markets, but you’ll also

remember that domestic consumption was extremely important. I mean, almost all early Model

T’s were built by Americans, and bought by Americans.

But since the 1960s, and especially today, former non-industrialized parts of the world

had been manufacturing consumer goods-- for domestic markets, yes, but primarily for foreign

ones. This t-shirt, made in China and the Dominican Republic before being imported to

Mexico and then to the United States, is a primary example of what I’m talking about,

but so is the computer that you’re watching me on. Your computer was probably manufactured

in China, but with parts from all over the world, especially Taiwan, Japan and South

Korea.

And this international manufacturing is always finding, like, new markets too. Like, Brazil,

for instance, has a huge technology sector. They make iPads there, actually. Sorry, I’m

trying to play Angry Birds. But, what all these countries have in common is that while

there is a domestic market for things like iPads and t-shirts, the foreign markets are

much, much bigger. Oh, it’s time for the Open Letter?

An open letter to Cookie Monster. But first, let’s see what’s in the secret compartment

today. Oh, it’s a cookie dough flavored Balance Bar. For people who love cookies and

pretending to be healthy.

Dear Cookie Monster, Here’s the thing, man. You don’t have a stomach. That’s why when

you put a cookie in your mouth, it crumbles up and then it just falls out of your mouth.

But here’s what fascinates me, Cookie Monster. I believe you when you say you love cookies.

It doesn’t matter that you can’t actually eat cookies because where you would have a

stomach, you instead have someone’s arm. And that, Cookie Monster, is what makes you

a beautiful symbol for contemporary consumption. You just keep eating. Even though you can’t

eat. Cookie Monster, you are the best and the worst of us.

Best wishes, John Green

So, although die-hard Marxists might still resist this, by 2012 it’s become pretty

obvious that global capitalism has been good for a lot of people. It's certainly increased

worldwide economic output. And while American autoworkers may suffer job loss, moving manufacturing

jobs from high wage to lower wage countries allows a greater number of people to live

better than they did when the First and Second Worlds monopolized manufacturing. And while

I don’t want to conflate correlation and causation, some 600 million people have emerged

from poverty in the last 30 years, at least according to the World Bank’s definition

of poverty, which is living on less than $1.25 a day.

Americans can argue about whether absurdly inexpensive clothes, shoes and televisions

are worth the domestic economic and social dislocation, but for the Vietnamese worker

stitching a pair of sneakers, that job represents an opportunity for a longer, healthier and

more secure life than she would have had if those shoes were made in the U.S.A.

But, before we jump on the celebratory globalization bandwagon, let’s acknowledge that this brave

new world has some side effects. For instance, it maybe hasn’t been so good for families,

it definitely has not been good for the environment, and also there’s a chance that globalization

will spark, like, the end of the human species. But, we’re gonna talk about all that next

week. For today, let’s bring on the bandwagon and ride straight for the Thought Bubble.

So these days, people move more than they ever have. 21% of people living in Canada

were born somewhere else, as was an astonishing 69% of Kuwait’s current population.

Migration has become easier because:

1. Air travel is pretty cheap, especially if you only take a few plane trips in your life, and

2. It’s relatively easy and inexpensive to stay in touch with relatives living far

away thanks to Skype, mobile phones, and inexpensive calling cards. Also

3. Even with increased industrialization in the developing world, economic opportunities

are often much better in wealthy countries. Remittances-- money sent home by people working

abroad-- are now a huge driver of economic growth in the developing world. Like, in Tajikistan,

for instance, remittances are 35% of the country’s total gross domestic product.

With all these people moving around the world, it’s not surprising that globalization also

means cultural blending. When people move, they don’t just give up their literary,

culinary, artistic, and musical traditions. Globalized culture is a bit of a paradox,

though, because some people see culture today as increasingly Americanized, right? Like,

FRIENDS is currently broadcast in over 100 countries; you can find Diet Coke for sale

deep in the jungles of Madagascar; the NBA is huge in China. There are fewer languages

spoken today, and probably less cultural diversity.

But on the other hand, an individual’s access to diverse cultural experience has never been

greater. Bollywood movies, Swedish hip hop, Brazilian soap operas, highlights from Congolese

football matches, these are all available to us. Culinary cultural fusion is all the

rage; more novels are translated from languages than ever before, although few are actually

read; and in the surest sign of cultural globalization, football, the world’s game, has finally

reached America, where broadcasts of the greatest collective enterprise humanity has ever known,

Liverpool Football Club, got record ratings in 2012. Thanks, Thought Bubble.

Hey, one last request: Could you put me in a Liverpool jersey? On the pitch at Anfield?

Raising the premier league trophy? WITH STEVEN GERRARD HUGGING ME? YES, JUST LIKE THAT. OH,

THOUGHT BUBBLE I LOVE YOU SO MUCH.

Okay, so this all brings us to how globalization has changed us, and whether it’s for the

better. Assuming you make the minimum wage here in the United States, this t-shirt, purchased

at your friendly neighborhood e-tailer dftba.com, will cost you about three hours’ worth of

work-- and yes, that does include shipping. By the time it arrives at your door, the cotton

within that t-shirt will have traveled by truck, train, ship, possibly even airplane

if you opt for priority shipping. And it will probably have travelled further than Magellan

did during his famous circumnavigation of the globe. You get all that for THREE HOURS

of work; by contrast, a far less comfortable garment several hundred years ago would have

cost you ten times as much work.

But these improvements have been accompanied by change so radical that we struggle to contextualize

it. Like, the human population of our planet over time looks like this. Dang. Like, in

1800, there were a billion human beings on this planet. And that was more than had ever been seen before.

And we live more than twice as long on average as humans did just two centuries ago, largely

due to improved health care for women in childbirth and their infants, but also thanks to antibiotics

and the second agricultural revolution that began in the 1950s, the so-called “green

revolution” that saw increased use of chemical fertilizers lead to dramatically higher crop yields.

Of course, these gains haven’t been evenly distributed around the world, but chances

are if you’re watching this, you A. survived childbirth and B. feel reasonably confident

that your children will as well. That’s a new feeling for humans. And as a parent,

I can assure you, it’s a miracle, and one to be celebrated.

We study history so that we can understand these changes, and so that we can remember

both what we’ve gained and lost in getting to where we are. Next week, our last week,

we’ll look at the many facets of globalization that aren’t causes for celebration. But

for today, let’s just pause to consider how we got from here to here, how the relentless

and unquenchable ambition of humans led to a world where the entire contents of the Library

of Alexandria would fit on my iPhone along with recordings of everything Mozart ever

composed. In such a world, it’s easy to feel that we are big and powerful, maybe even

invincible. It’s easy to feel that... and also dangerous. Thanks for watching. I’ll see you next week.

Crash Course is produced and directed by Stan Muller. Our script supervisor is Meredith

Danko. Associate producer, Danica Johnson. And the show is written by my high school

history teacher, Raoul Meyer, and myself. Our graphics team is Thought Bubble.

Last week’s phrase of the week was “Crush Those Rebels.” If you want to suggest future

phrases of the week or guess at this week’s, you can do so in comments where you can also

ask questions about today’s video that will be answered by our team of historians.

Thanks for watching Crash Course and as we say in my hometown, Don't Forget To Be Awesome.