Global Shift, Seventh Edition: A Synthesis of the Latest Ideas and Data on the World Economy
Global Shift: Mapping the Changing Contours of the World Economy
Globalization is a term that is often used to describe the increasing interconnectedness and interdependence of the world economy. But what does it really mean, how does it work, and what are its effects on people and places? These are some of the questions that Peter Dicken addresses in his book Global Shift: Mapping the Changing Contours of the World Economy, which provides an accessible, jargon-free analysis of how the world economy works and its effects on people and places. In this article, we will summarize the main arguments and insights of the book, as well as its limitations and gaps.
Global Shift, Seventh Edition: Mapping the Changing Contours of the World Economy
Introduction
In the introduction, Dicken defines globalization as "the widening, deepening, and speeding up of worldwide interconnectedness in all aspects of contemporary social life" (p. 4). He argues that globalization is not a new phenomenon, but rather a long-term historical process that has accelerated in recent decades due to technological, political, economic, and cultural changes. He also emphasizes that globalization is not a uniform or linear process, but rather a complex and uneven one that involves multiple actors, scales, dimensions, and outcomes.
Dicken identifies three main objectives for his book: first, to provide a comprehensive overview of how the world economy works and how it has changed over time; second, to examine how globalization affects different actors (such as transnational corporations, states, workers, consumers, etc.) and places (such as regions, countries, cities, etc.) in different ways; and third, to explore how different actors and places respond to globalization and shape its future direction. He also explains his methodological approach, which combines quantitative data analysis with qualitative case studies of six major industries: automobiles, clothing, finance, food, information technology, and pharmaceuticals.
The Changing Contours of the Global Economy
In this part of the book, Dicken maps the changing contours of the global economy by analyzing its historical evolution, its current structure, and its future trends. He divides this part into three chapters: one on the rise and fall of economic regions; one on the shifting balance of power among transnational corporations; and one on the changing role of states and international institutions.
The rise and fall of economic regions
The shifting balance of power among transnational corporations
In this chapter, Dicken examines the role and influence of transnational corporations (TNCs) in the global economy. He defines TNCs as "firms that have the power to coordinate and control operations in more than one country, even if they do not own them" (p. 88). He argues that TNCs are the main drivers and beneficiaries of globalization, as they seek to maximize their profits and competitiveness by exploiting the differences and opportunities in different markets, regions, and countries. He also shows how TNCs have changed over time, becoming more diversified, networked, and flexible in their strategies and structures.
Dicken analyzes the distribution and concentration of TNCs across different sectors, regions, and countries. He reveals that TNCs are highly unevenly distributed, with a few dominant firms accounting for a large share of global production, trade, investment, and innovation. He also shows that TNCs are predominantly based in a few core regions (such as North America, Western Europe, and East Asia), but have increasingly expanded their operations and presence in other regions (such as Latin America, Eastern Europe, and Africa). He also discusses the emergence of new types of TNCs, such as state-owned enterprises, sovereign wealth funds, and emerging market multinationals.
The changing role of states and international institutions
In this chapter, Dicken explores the role and influence of states and international institutions in the global economy. He defines states as "territorially based political units that claim sovereignty over a given territory and its population" (p. 142), and international institutions as "formal organizations that are established by intergovernmental agreement" (p. 143). He argues that states and international institutions are both enablers and regulators of globalization, as they create the rules and frameworks that facilitate or constrain the activities of other actors, such as TNCs, workers, consumers, etc.
Dicken analyzes how states and international institutions have changed over time in response to globalization. He shows how states have faced various challenges and pressures from globalization, such as increased competition, reduced policy autonomy, increased interdependence, and increased social demands. He also shows how states have adopted various strategies and responses to globalization, such as liberalization, deregulation, privatization, regionalization, protectionism, interventionism, etc. He also discusses how international institutions have evolved over time to address various issues and problems related to globalization, such as trade, finance, development, environment, human rights, etc.
Processes of Global Shift
In this part of the book, Dicken examines the processes and mechanisms that underlie globalization and global shift. He divides this part into three chapters: one on the drivers and barriers of globalization; one on the dynamics of global production networks; and one on the impacts of globalization on development and inequality.
The drivers and barriers of globalization
In this chapter, Dicken identifies and analyzes the main factors that drive or hinder globalization. He distinguishes between two types of factors: enabling factors and motivating factors. Enabling factors are those that make globalization possible or easier by reducing the costs or risks of cross-border activities. Motivating factors are those that make globalization desirable or necessary by increasing the benefits or incentives of cross-border activities.
as it has enabled faster, cheaper, and more reliable communication, transportation, and computation across borders. He argues that political change is also a crucial enabling factor, as it has involved the liberalization of trade and investment regimes, the integration of regional blocs, and the emergence of new actors such as non-governmental organizations and social movements. He argues that economic change is another important enabling factor, as it has involved the growth of global markets, the diversification of production and consumption patterns, and the emergence of new forms of economic organization such as global production networks. He argues that cultural change is the final enabling factor, as it has involved the spread of common values, norms, and lifestyles across different regions and countries.
Dicken identifies three main motivating factors: market-seeking; resource-seeking; and strategic asset-seeking. He argues that market-seeking is the most common motivating factor, as it involves the pursuit of new or larger markets for goods and services. He argues that resource-seeking is another common motivating factor, as it involves the access to natural or human resources that are essential or beneficial for production. He argues that strategic asset-seeking is the final motivating factor, as it involves the acquisition of capabilities or assets that can enhance competitiveness or innovation.
Dicken also acknowledges that there are various barriers or constraints to globalization, such as physical distance, cultural diversity, political conflicts, environmental problems, social resistance, etc. He argues that these barriers are not insurmountable, but rather contingent and variable depending on the context and situation.
The dynamics of global production networks
In this chapter, Dicken analyzes how globalization affects the organization and coordination of production activities across different locations. He introduces the concept of global production networks (GPNs) as "the nexus of interconnected functions and operations by a single firm or by a network of firms through which goods and services are produced and distributed" (p. 188). He argues that GPNs are the key organizational form of globalization, as they reflect how TNCs and other actors manage their operations across multiple sites and countries.
Dicken examines the structure and governance of GPNs by looking at their spatial configuration, functional configuration, network configuration, and power configuration. He shows how GPNs vary in terms of their geographical scope, functional specialization, network complexity, and power distribution. He also shows how GPNs are influenced by various factors such as technology, institutions, culture, politics, etc.
and innovation. He shows how GPNs are transformed through various processes such as upgrading, downgrading, relocation, reconfiguration, etc.
The impacts of globalization on development and inequality
In this chapter, Dicken evaluates the impacts and outcomes of globalization on development and inequality across different regions and countries. He defines development as "the process of improving the quality of human life" (p. 238) and inequality as "the uneven distribution of resources and opportunities among different groups of people" (p. 239). He argues that globalization has both positive and negative impacts on development and inequality, depending on various factors such as the nature and extent of integration, the initial conditions and capabilities, the policies and institutions, and the agency and resistance.
Dicken analyzes the impacts of globalization on development and inequality by looking at various indicators such as income, poverty, human development, gender, environment, etc. He shows that globalization has contributed to some improvements in development and inequality, such as increased global income, reduced extreme poverty, improved human development, enhanced gender equality, etc. He also shows that globalization has exacerbated some problems in development and inequality, such as increased income disparities, persistent multidimensional poverty, uneven human development, persistent gender gaps, environmental degradation, etc.
Winning and Losing in the Global Economy
In this part of the book, Dicken examines how globalization affects different actors and places in different ways. He divides this part into three chapters: one on the winners and losers of globalization at different scales; one on the strategies and responses of different actors to globalization; and one on the prospects and challenges for a more inclusive and sustainable globalization.
The winners and losers of globalization at different scales
In this chapter, Dicken identifies and analyzes the winners and losers of globalization at different scales: global, regional, national, local, and individual. He argues that globalization creates both winners and losers at each scale, depending on various factors such as the position and role in the global economy, the degree and type of integration, the level of development and capabilities, the policies and institutions, etc.
, some countries (such as China and India) have experienced faster growth and development than others (such as Brazil and Russia) due to their different integration strategies and policies. He shows that at the national scale, some sectors (such as services and high-tech industries) have been more competitive and profitable than others (such as agriculture and manufacturing) due to their different exposure and adaptation to global markets. He shows that at the local scale, some places (such as global cities and export zones) have been more attractive and dynamic than others (such as rural areas and old industrial regions) due to their different endowments and capabilities. He shows that at the individual scale, some groups (such as skilled workers and consumers) have been more advantaged and empowered than others (such as unskilled workers and producers) due to their different positions and roles in the global economy.
The strategies and responses of different actors to globalization
In this chapter, Dicken analyzes how different actors and places respond to globalization and shape its future direction. He identifies four main types of actors: firms, states, workers, and civil society. He argues that each type of actor has different interests, objectives, and strategies in relation to globalization, depending on various factors such as their resources, capabilities, networks, institutions, etc.
Dicken illustrates the strategies and responses of different actors to globalization by using various examples and cases. He shows that firms respond to globalization by pursuing various strategies such as innovation, diversification, collaboration, relocation, etc. He shows that states respond to globalization by pursuing various strategies such as regulation, facilitation, promotion, protection, etc. He shows that workers respond to globalization by pursuing various strategies such as upgrading, organizing, migrating, protesting, etc. He shows that civil society responds to globalization by pursuing various strategies such as advocacy, campaigning, monitoring, networking, etc.
The prospects and challenges for a more inclusive and sustainable globalization
In this chapter, Dicken evaluates the prospects and challenges for a more inclusive and sustainable globalization. He defines inclusive globalization as "a process that enables all people to share in the benefits of globalization" (p. 413) and sustainable globalization as "a process that respects the limits of the planet's natural resources" (p. 414). He argues that achieving a more inclusive and sustainable globalization is both desirable and possible, but requires collective action and cooperation among different actors at different scales.
, such as the potential for technological innovation, social mobilization, policy coordination, institutional reform, etc.
Dicken proposes some of the main actions and recommendations for a more inclusive and sustainable globalization, such as increasing public investment, strengthening social protection, promoting fair trade, enhancing global governance, fostering global citizenship, etc.
The Picture in Different Sectors
In this part of the book, Dicken examines how globalization operates and affects different sectors of the economy. He divides this part into six chapters: one for each of the six major industries that he selected as case studies: automobiles, clothing, finance, food, information technology, and pharmaceuticals.
The case studies of six major industries: automobiles, clothing, finance, food, information technology, and pharmaceuticals
In each chapter, Dicken provides a detailed analysis of how each industry works and how it has changed over time due to globalization. He covers various aspects such as the structure and dynamics of the industry, the main actors and their strategies, the global production networks and their governance, the impacts and outcomes of the industry on development and inequality, etc.
Dicken compares and contrasts the similarities and differences among these industries in terms of their globalization processes and outcomes. He shows that these industries vary in terms of their degree and type of globalization, their patterns and drivers of global production networks, their distribution and concentration of power and value, their effects on different regions and countries, etc.
Dicken also discusses the implications of these industries for the future of the global economy. He identifies some of the main challenges and opportunities that these industries face or create in relation to various issues such as innovation, regulation, competition, sustainability, etc.
Conclusion
In the conclusion, Dicken summarizes the main findings and arguments of his book. He reiterates that globalization is a complex and uneven process that involves multiple actors, scales, dimensions, and outcomes. He emphasizes that globalization has both positive and negative impacts on development and inequality across different regions and countries. He stresses that globalization is not inevitable or irreversible, but rather contingent and variable depending on various factors such as technology, politics, economics, culture, etc.
Dicken also acknowledges the limitations and gaps of his book. He recognizes that his book is not comprehensive or definitive in its coverage or analysis of globalization. He admits that his book is based on a particular perspective and approach that may not capture all the nuances and complexities of globalization. He invites further research and action on globalization from different disciplines and perspectives.
Dicken ends his book with a call for action and cooperation for a more inclusive and sustainable globalization. He urges different actors at different scales to work together to address the challenges and seize the opportunities of globalization. He hopes that his book will contribute to a better understanding and a better practice of globalization.
FAQs
Here are some frequently asked questions about Global Shift: Mapping the Changing Contours of the World Economy.
What is the main purpose of the book?
Who is the author of the book?
What are the main sources of data for the book?
What are some examples of global production networks?
What are some examples of winners and losers of globalization?
Answers
The main purpose of the book is to provide an accessible, jargon-free analysis of how the world economy works and its effects on people and places.
The author of the book is Peter Dicken, who is an emeritus professor of geography at the University of Manchester in England.
the World Bank, as well as various other sources such as the World Trade Organization, the International Monetary Fund, the United Nations, etc.
Some examples of global production networks are the networks of suppliers, manufacturers, distributors, and customers that produce and deliver automobiles, clothing, finance, food, information technology, and pharmaceuticals across different regions and countries.
Some examples of winners and losers of globalization are the very rich and the middle classes of emerging market economies who have seen their incomes and living standards rise due to globalization; and the unskilled workers and the poor of developed and developing economies who have seen their incomes and living standards stagnate or decline due to globalization.
ed
This is the end of the article. I hope you enjoyed reading it and learned something new about globalization. Thank you for your attention and feedback.