Transcript ch33_sec1
Today’s World Section 1
Today’s World Section 1
Trade and Globalization
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• Starting Points Map: World Per Capita GDP
• Quick Facts: Major Trade Organizations and Agreements
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Section 1
Today’s World Section 1
Trade and Globalization
Main Idea
Trade and culture link economies and lives around the world.
Reading Focus
• How does economic interdependence affect countries around the world?
• What are some patterns and effects of global trade?
• How does globalization lead to cultural exchange?
Today’s World Section 1
Economic Interdependence
At the beginning of the twenty-first century, the world was divided over a number of political, cultural, and economic issues.
Globalization
• Despite divisions, countries tied together like never before •
Globalization
is force behind closer relationships – Process in which trade, culture link countries – Improvements in transportation, communication make global trade easier
Interdependence
• Major effect of global trade, increased economic
interdependence
– Relationship among countries in which they depend on each other for resources, goods, services – Occurs because countries vary in goods, services they provide, need
Today’s World Section 1
Developed and Developing Countries
Economy
• Goods, services nation provides and needs depend on level of economic development in that country • Countries grouped in two categories: developed, developing
Developed
• Industrialized nations have strong economies, high standards of living • 20 percent of world’s nations wealthy, powerful like Japan, United States • Have access to good health care, education, technology
Developing
• Less productive economies, lower standard of living; Guatemala, Philippines • People in these countries lack adequate education, health care • Poorest, least-developed countries located mostly in Africa, southern Asia
Today’s World
Growth and Outsourcing
Section 1 Multinational Corporations
• Increasing interdependence and dramatic growth of
multinational corporations
—large companies operating in multiple countries • Benefits to companies –
Outsourcing
production —having work done elsewhere to cut costs, increase – Manufacturing facilities in developing countries, where materials, labor relatively inexpensive • Outsourcing – Advocates say: creates jobs and wealth in developing countries – Critics say: fails to improve standard of living, outsourcing causes job loss in company’s home country
Today’s World Section 1 Global Economic Ties
• Certain events, actions can affect economies of many nations • Global interdependence particularly evident in times of uncertainty – Early 2000s, price of crude oil rose dramatically – Factors: rising world demand, concern over available supply
Oil Prices
• All countries depend on oil for energy; rise in prices felt around world • Developed countries like United States faced with higher costs • Poor nations in Africa could not afford to import, faced shortages • Rise in oil prices led to increased demand for alternative energy sources, attempts to reduce consumption
Today’s World Section 1
Summarize
How does economic interdependence affect the world?
Answer(s):
helps to provide jobs in developing countries, increases production and decreases cost for multinational companies
Today’s World Section 1
Global Trade
Globalization often leads to or promotes
free trade
, the exchange of goods among nations without trade barriers such as tariffs. This can lead to consumers purchasing higher-quality goods at lower prices.
International Trade Organizations
• Many of these groups work to promote, regulate free trade • 1948, General Agreement on Tariffs and Trade (GATT) • Worked to limit trade barriers, settle disputes
GATT, WTO, OPEC
• 1995, GATT replaced by World Trade Organization (WTO) • Monitors national trade policies • Organization of Petroleum Exporting Countries (OPEC) works to control oil production, price
Regional Trade
• Regional trade blocs promote free trade, deal with economic issues of neighboring nations • European Union (EU), North American Free Trade Agreement (NAFTA), others
Today’s World Section 1
Today’s World Section 1
Effects of Global Trade
Benefits Anti-Globalization
• Global trade has clear benefits • Developing countries can provide new, valuable markets for goods, services produced by developed countries • Opponents argue process benefits wealthy developed nations at expense of developing nations • Free trade encourages practices that exploit workers, destroy environment • Technology, services, money from developed nations can improve public services, raise standard of living of developing countries • Some promote fair trade, like fair trade coffee movement guaranteeing fair prices to coffee bean farmers
Today’s World Section 1
Find the Main Idea
How does global trade affect the world?
Answer(s):
can provide opportunities for developing countries; opponents believe global trade exploits developing nations, supporters believe it provides for the production and sale of high-quality, low cost goods
Today’s World Section 1
Culture
Cultural Exchange
Popular Culture
• Globalization; countries linked through trade
and
culture • Modern transportation, communication allow faster exchanges of ideas, customs • Globalization leads to changes in
popular culture
• Culture traits: food, sports, music common within group of people
Spread of Traits
• Globalization leads to
cultural diffusion
, spread of culture traits from one region to another • Work, travel, permanent moves all play part
Mass Media
• Television, movies, music most powerful methods of cultural diffusion • Satellite news and Internet also ways of exchanging images, ideas
Today’s World Section 1
Effects of Cultural Changes
Negative Effects
• Some believe changes largely negative • Mass media, advertising encourage growth of consumerism, preoccupation with buying consumer goods
Media
• Opponents say market shaped by media and advertising, not actual needs • Worry that globalization creating common world culture, allowing traditional cultures to lose uniqueness
World Community
• Globalization linking people together through economics, culture • Challenge to preserve valuable traditional cultures while providing enrichment from other places in world
Today’s World Section 1
Summarize
How is cultural exchange a part of globalization?
Answer(s):
leads to cultural diffusion, more travel to other countries for work or vacation, exotic goods from other countries available