Hi, guys. Welcome back to Global Business Environment. This is module one and it'll be part four of module one in which we continue to try to understand the global business environment by asking the question, what is globalization? Another way to understand it, and we've looked at several different aspects so far, is to look at how interdependent manufacturing and other, processes in business are today. Here's one example. and, and you could probably find others online. This is from, Public Broadcasting System, the United States, PBS. And, there are other examples like this, and, and, that are much more complex. But let's just look at this example to try to understand how inter-related the world is today and, and where everything we use might come from. Here's an example starting in New York City, in Manhattan. An individual named Michael decides to donate some of his clothing to a charity. He drops it off there. And where does it go next? Well, it goes to a recycling factory where the clothing is bundled together and organized and will go to different places across the world, including Asia and Latin America, to Africa different parts of Africa. And the clothing is sorted and, and organized. And I can't tell exactly where that is in the United States, but that occurred also in the United States. And then, it gets on a ship and travels the ocean all the way down to Kenya. And it is headed for second hand clothing an importer of second hand clothing and a warehouse there in Kenya. And this clothing which was donated to this charity is then sold to this importer where he will take it and sell it in other places. Now you might ask, well, why is charity clothing being sold? But the money from the sale supports the charity is how that works. And then in the fourth step of this simple example an individual from a country in Africa called Zambia buys a portion of this used clothing and pays a particular price. He gets on a bus and takes the, the clothing on that bus to a, his own city in Mongu and Zambia and he sells it at an individual market. And the individuals probably have no idea that the clothing came from a some of the clothing might have come from a young man in Manhattan, New York City in the United States a donation. And so, this is all enabled by the, the lower transportation costs that exists. The technology that's involved in the transaction in the transportation itself and in the communication, and in the relationships across borders which for allow for these. If there were major military conflicts, for example, between these nations or continents, then you might not see the interaction, and that's just one aspect of it. the, the fact that these countries allow for business transactions to occur and to happen in the market and to happen across borders also is a very important aspect. And so, very simple example but it helps us identify how complex the world is when we think about other products. And I'm going to show you another one here that is an example of a product being made. And this is Boeing, which is a United States manufacturer of airplanes. And you can see that the parts and the design and the manufacturing and assembly of this product come from all across the world. We see in this map processes occurring in Asia, Europe, Australia. And so it all comes together in the United States in the state of Washington. But it's a very, very complex process. Some of the parts, are sourced from, places like Sweden, and South Korea. There are engineering jobs involved in designing these parts. And so, again, we're trying to understand the complexity of the supply chain process in today's modern world. This type of interaction is only possible when China is part of the World Trade Organization and has embraced certain policies which allow for this type of openness. And the same might be said for any of these other countries. if, if Japan and the United States are at war, again, this type of interaction doesn't occur. And if, if England is involved in a world war the focus isn't on making planes and interacting with the world and specializing in production, it's in perhaps making bombs or other ammunition. And, so, we see that it's a very complex process. You could do the same thing with the manufacturing of a T-shirt, and talk about how it starts, and the cotton is grown in one place and, and the process all the way to the sale of a T-shirt. You could do it with high technology products. But this is the reality of the world we live in. Most products, even ones that seem completely local, are influenced by the forces of globalization, whether through prices of supplies, natural disasters in other places. All types of factors can influences, influence today's global process of production and innovation and design of products and services. And so, it's very important to be aware of that. And that's why we have this separate class to try to understand these complex issues and how the interrelate. We, we have been talking about this all throughout this module and particularly in part four. Next time, we'll look at the specific benefits that may or may not accrue or arrive to certain places in the world and how the developing economies, in particular, have benefited and also struggled with certain aspects of globalization. Thank you very much.
