globalization

A couple of years ago, Lisa posted about the ubiquity of McDonald’s in the U.S., highlighting a map that showed the distance from the nearest McDonald’s. As a follow-up to that, Data Pointed posted a map that illustrates the unevenness of its market dominance across the country. If we plot the markets dominated by the top 8 hamburger-based chains (in terms of sales), we see that though McDonald’s is the single largest burger chain in most of the U.S. (all the black territory), other chains outsell McDonald’s in many markets, with the Sonic-dominated Southern Plains the most obvious:

In fact, there are relatively few places where McDonald’s has an outright majority of the market share; in most areas, the combined sales of its 7 largest competitors are more than McDonald’s:

This illustrates the importance of the ubiquity shown in the map Lisa originally posted. McDonald’s might like to truly dominate every market; it ideally would probably like to have a monopoly on them. But it doesn’t have to in order to successful and to exert incredible market power. It doesn’t need to control every individual market in order to exert enormous influence on the fast food industry, from setting the standard for labor practices to influencing which varieties of potatoes farmers grow for the french fry market. The “be everywhere” model allows it to win the larger burger chain war, even if it loses some regional market battles.

It is Easter Sunday. How about other places on the globe such as Japan? Christians are less than 1% of the population of Japan.  Yet, because of globalization, geographic locations plays less and less of a role in defining culture.  Many people around the world now consume the same food, clothing, music, movies, and technology.

Global corporations play a role in transmitting culture from place to place.  Recently, American corporations in Japan have been trying to popularize and commercialize Easter.  Disney’s theme park in Tokyo, for example, has promoted Easter with the Disney Easter Wonderland since 2010:

Likewise, beginning last year, Baskin Robbins has been promoting the holiday.  This year they have a month-long Wonderful Easter Campaign:

It will be very interesting to see how Easter becomes part of Japanese culture.  When the Japanese adopted Valentine’s day, for example, they added their own twist.  Women are expected to give chocolate to men; men are supposed to return the favor by giving candy to women on March 14th, White Day.  I would not be surprised to find that Easter becomes popular in Japan, but celebrated with a twist – a Japanese flavor.

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Sangyoub Park is an assistant professor of sociology at Washburn University, where he teaches Social Demography, Generations in the U.S. and Sociology of East Asia. His research interests include social capital, demographic trends, and post-Generation Y.

In an earlier post we reviewed research by epidemiologists Richard Wilkinson and Kate Pickett showing that income inequality contributes to a whole host of negative outcomes, including higher rates of mental illness, drug use, obesity, infant death, imprisonment, and interpersonal trust.

In the six-minute video below, Kate Pickett talks about how more equal societies are kinder to each other, give more in foreign aid, are less status-conscious, consume less, and even recycle more.  Based on this, she argues that reducing inequality within societies is a good strategy towards addressing climate change.

How to increase equality? It turns out there are lots of options.

See Dr. Pickett making similar arguments as to why raising the average national income in developed countries doesn’t make people happier or enable them to live longer, why unequal societies are more violent, and how status inequality increases stress.

And see more about income inequality and national well-being at Equality Trust.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Amid accusations of racism, the European Union (EU) has withdrawn a two-minute video designed to raise awareness about “Neighbourhood Policy,” an approach to establishing “deeper relations” with neighboring state the need for unity among EU nations and acceptance of candidate states hoping to enter.  In the video, sent to us by Claire P., the EU is personified by a white woman, who is facing attacks from all sides.

Bruno Waterfield, writing for the Telegraph, describes the scene:

First the EU heroine… is menaced by a Chinese Kung Fu master. Then a second threat appears as a urbaned practitioner of Kalaripayattu, a southern Indian martial art, levitates towards her brandishing a scimitar.

UPDATE: Reader Katrin says the video was about increasing integration and cooperation of states and the European Commission’s enlargement policy, not about the “neighborhood” policy as reported by the Telegraph:,

It was for greater unity of existing EU member states (which is why the video is entitled “Growing Together”) and candidates for membership (which is why it says “the more we are the stronger we are”) in order to show a united front to the rising powers China, India and Brazil. It was intended to portray that if the EU acts united, then China, India and Brazil will be willing to engage with the EU constructively…Current candidates of accession are e.g. Iceland, Macedonia, Montenegro, Turkey and Serbia. Enlargement and unity as a tool for greater power when facing rising economies was the intended message of the clip, not the ENP.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

In his book, Great American City, sociologist Robert Sampson argues that, while the effects of macro factors like poverty and political neglect on individual lives are well-documented, other local mechanisms matter too.  It’s important, then, to think about the constitution of neighborhoods.

Along these lines, he argues, even if a community is economically- and socially-marginalized, an existing neighborhood organizations can make a big difference.  He takes natural disasters as a case study.  A neighborhood organization can spread the news of an impending disaster, establish leadership, and organize assistance before, during, and after a crisis.  In this way, Sampson brings together micro, meso, and macro forces shaping the impact of disaster.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

In an interesting example of cultural borrowing/appropriation sent in by Catherine H., the Korean all-girl pop band T-ara imitates stereotypes of American Indians in their music video for their (strangely catchy) song, YaYaYa.

It’s difficult (for me) to know how these stereotypes of native North Americans “work” in Korea. It appears to mean something to Koreans, otherwise why use the imagery and narratives, but what? And how should Americans who oppose the stereotyping (and erasing of modern) Native Americans talk about this “borrowing”?

To get some perspective, I turned to James Turnbull.  Turnbull is behind the blog, The Grand Narrative, where he writes about Korean Sociology through the prism of pop culture.  This is what he had to say:

First, please note that T-Ara’s Yayaya is actually just one of several recent Korean music videos that have used Native-American imagery, and by no means the most offensive at that. For a list, see here, which points out that Indian Boy by MC Mong is much more problematic.

Second, so many Korean groups are being formed these days – over 30 new girl-groups in 2011 alone – that their management companies (most well-known Korean groups are completely “manufactured”) are in a constant battle to gain media attention for them. One way to do so is to regularly come up with new “concepts” for the group, of which a “cute” one incorporating Native-American imagery is just one possibility of many.

But thirdly and most importantly, it is no exaggeration to say that Korea is one of the least politically-correct societies out there, particularly in the ways in which non-Koreans are represented in popular-culture.

Often, this is completely innocent, most Koreans being ignorant of the connotations of Blackface for instance, or the passions Nazi imagery arouses in Western countries, to the extent that both are regularly found in popular culture and advertising. Indeed, I was especially struck once by reading of university students performing in Blackface at a festival because they thought Black audiences would like it, and would appreciate the interest in “their culture”. As the person who saw this wrote, this was not “offensive” per se, but it was certainly shocking.

Alternatively however, the ignorance can be willing. For example, last year the the Korean Overseas Information Service (KOIS) part of the Ministry of Culture, Sports and Tourism, produced an expensive “Visit Korea” ad which played on the likes of CNN and BBC World and so on, but which relied so heavily on patronizing stereotypes of non-Koreans that it would likely have put off more potential tourists than attracted them. Non-Koreans in the KOIS were consulted in the making however, and did warn the producers of this, but unfortunately their advice was rejected, either because a) Korean advertisers are notorious for producing things that would appeal primarily to Koreans, despite the actual target audience, and/or b) it didn’t jibe with the advertisers’ perceptions of non-Koreans and their wants or needs. (Both are persistent problems with Korean tourism advertisements.)

Finally, for the source of those perceptions, consider Korea’s extremely exclusionary “bloodline”-based nationalism andextremely homogenous population (less than 3% of Korea’s population are “foreign residents”, a third of which are ethnic Koreans from China). Consequently, Korean society is really only just beginning to grapple with the concept of multiculturalism, albeit with much urgency because of the sudden huge influx of brides from Southeast Asia in the last decade or so, with the populations of many rural communities close to becoming a third or even half non-ethnic Korean. Certainly, a great deal of progress has been made in integrating them and acknowledging what their cultures have to offer, but when Korean school textbooks extolled the virtues of being an ethnically homogenous society until as recently as 2006 (and see here for how Blacks and native-Americans were portrayed in school picture dictionaries at that time), then I’m sure you can appreciate that much still remains to be done to prevent prejudice against them, especially in how non-Koreans and cultures are portrayed in the media.

Which to be fair, nobody outside of Korea was at all concerned with until K-pop became popular!

Thank you, James!

We’re happy to hear your thoughts in the comment threads. The video:

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

For the last week of December, we’re re-posting some of our favorite posts from 2011.

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The US economy faces a number of challenges—among them a lack of job creation and an ever-growing trade deficit. Many policy-makers believe that encouraging business innovation is the best response to these particular challenges. Sounds plausible but experience suggests otherwise.

The best example of why simply encouraging business innovation is not the answer for our employment and trade problems is Apple and its iPhone.

The iPhone was introduced in 2007 and has been incredible successful.  U.S. sales soared from 3 million units in 2007 to over 11 million in 2009.  Global sales topped 25 million in 2009.

While the iPhone is designed and marketed by Apple, almost all the phone’s components are produced by foreign companies operating outside the United States.  These components are then shipped to China where Foxconn, a Taiwanese company, oversees their assembly and their export to the United States and other countries.  As a result, the iPhone generates few jobs in the United States.

Two economists, in an Asian Development Bank working paper, examined the iPhone 3G production process in some detail.  The table below, taken from their study, highlights the main suppliers and the costs of the components they produce for a single phone.  Most of the components are supplied by Japanese, South Korean and German firms, although there are also some U.S. suppliers (although who knows where they actually produce their compnents).

The total component cost of an iPhone in 2009 was $172.46.    Workers in China assemble the iPhone, but because their wages are low the assembly cost per phone (labeled manufacturing costs in the table below) is quite small, only $6.50 a phone.  The total production cost per phone is $178.96.

Because the iPhone is assembled in China all sales in the U.S. mean an increase in Chinese exports (even though the phone is largely composed of inputs produced outside of China) and an increase in U.S. imports.  In 2009, China exported more than $2 billion worth of iPhones to the United States.  Thus, the iPhone, because of the Apple’s production strategy, also adds to the U.S. trade deficit.

Apple is not alone in embracing China as its production base.  China is now the world’s largest exporter of manufactured goods. And, as the chart below shows, the share of Chinese exports that are labled high technology is growing.  This trend has encouraged many analysts to claim that the U.S. is now locked in fierce economic competition with China.

However, as we see next, more than 80% of China’s high technology exports are actually produced by foreign companies operating in China.  Moreover, these foreign companies have significantly increased their control over this production.  In 2002 foreign owned firms that were 100% foreign owned (which means that they had no Chinese partner) accounted for only 55% of Chinese high technology exports.  In 2009 they accounted for 68%.

Why do so many transnational corporations choose to locate production in China?  The answer is obvious: profits. Apple again serves as a good example.  The table below, taken from the Asian Development Bank working paper cited above, shows Apple’s profit-margin on the iPhone.  In 2009 it was a whopping big 64%.

Struck by the size of Apple’s profit-margin, the authors of the Asian Development working paper considered whether the iPhone could reasonably be made in the United States.  As they note:

The role of the PRC in the production chain of iPhones is primarily the assembly of all parts and components into the final product for re-shipment abroad. The skills and equipment required for the assembly are very basic and there is no doubt that American workers and firms are capable of assembling iPhones in the US. If all iPhones were assembled in the US, the US$1.9 billion trade deficit in iPhone trade with PRC would not exist. Moreover, 11.4 million units of iPhone sold in the non-US market in 2009 would add US$5.7 billion to US exports.

For the sake of discussion, they assumed that assembly line wages in the U.S. are ten times higher than in China.   Given that Chinese production workers earn roughly $1 an hour, that is not an unreasonable assumption.  The higher wages would mean that the total assembly cost per phone would rsie to $65 and the total manufacturing cost would approach $238.  If Apple continued to sell the iPhone for $500, the company would still earn a very respectable 50% profit margin.

Moreover, as the authors point out:

In this hypothetical scenario, iPhones, the high-tech product invented by the U.S. company, would contribute to U.S. exports and the reduction of the U.S. trade deficit, not only with the PRC, but also with the rest of world. More importantly, Apple created jobs for U.S. low skilled workers; those who could not be the software engineers needed by Apple. Giving up a small portion of profits and sharing them with low skilled U.S. workers by Apple would be a more effective way [than depreciation of the exchange rate] to reduce the U.S. trade deficit and create jobs in the United States.

Of course, shifting production to the United States would mean that Apple would earn less money and there is little reason to believe that the company is prepared to sacrifice its profits for the good of the country.  If we want to tackle our employment and trade problems were are going to have to do more than promote more attractive conditions for business.

For the last week of December, we’re re-posting some of our favorite posts from 2011. Originally cross-posted at Scientopia.

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I came across this fascinating poster advertising tea at The Coffee Bean in Irvine, CA.  The ad features tea leaves balled up into small tea “pearls” and spilled into a person’s palm (text and analysis below):

Text:

Three minutes to fragrant perfection.

It takes a full day to hand-roll 17 ounces of our Jasmine Dragon Pearl Green Tea.  But in just three minutes you can watch these aromatic pearls unfurl gracefully into one of the world’s most soothing and delicious teas.

This ad suggests that others’ toil should enhance one’s experience of pleasure.  The fact that it takes a significant amount of human labor to “hand-roll” tea leaves into balls — an action that is in no way asserted to change the taste of the tea — is supposed to make the tea more appealing and not less.  We are supposed to enjoy not just the visual, but the fact that others worked hard to produce it for us.  A whole day of their labor for just three minutes of curly goodness.

This is a rather stunning value pervading U.S. culture.  Luxury may be defined not only as pleasure, or as the consumption of the scarce, but as the “unfurling” of others’ hard work.  What could be more luxurious than the casual-and-fleeting enjoyment of the hard-and-long labor of others?

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.