Transcript International Interdependence

International
Interdependence
Objectives
• Students will explain the role of resources on
economic interdependence
• Students will discuss the role of technology and how
it has impacted trade and communication
• Students will evaluate the pros and cons of
globalization.
What is Economic
Interdependence
• Each person is
dependent on others for
certain things
• Countries must specialize
in what they can
produce affordably
o Example
• US produces agricultural
products such as wheat,
cotton, corn, beef, chicken
• Countries trade for other
items - too expensive to
produce everything
people need
What is Economic
Interdependence
• Countries trade for
items that can be
produced cheaper
elsewhere
o Example
• US imports household
goods such as clothing,
furniture, and appliances
What is Economic
Interdependence
• Countries trade for
items that they cannot
produce due to a lack
of resources
o Example
• US imports oil and other
products where they
cannot produce enough
to meet demand
What is Economic
Interdependence
• Examples of Economic
Interdependence
o North America
• Produces
o Agricultural products
o Aircraft
o Computer
components
What is Economic
Interdependence
• Examples of Economic
Interdependence
o Latin American
• Produces
o Fruits and vegetables
o Coffee
What is Economic
Interdependence
• Examples of Economic
Interdependence
o Europe
• Produces
o Machinery
o Automobiles
o Pharmaceuticals
What is Economic
Interdependence
• Examples of Economic
Interdependence
o Middle East/North Africa
• Produces
o Oil
What is Economic
Interdependence
• Examples of Economic
Interdependence
o Sub-Saharan Africa
• Produces
o Gold
o Diamonds
o Minerals
What is Economic
Interdependence
• Examples of Economic
Interdependence
o Japan
• Produces
o Transport equipment
o Electronics
What is Economic
Interdependence
• Examples of Economic
Interdependence
o China
• Produces
o Manufactured
consumer goods
What is Economic
Interdependence
• What is Economic
Interdependence
•
All these parts of the world must
trade to get what they need
Impact of Technology on Trade
and Communications
• Advancements in
transportation
o Road
o Early ocean
o Modern transportation systems
Impact of Technology on Trade
and Communications
• Advancements in
communication
o Land and sea
o Telegraph/telephone
o Modern communication
systems
Transportation Costs
• Historically,
transportation costs
have declined over
time
o Silk road
• Most important trade route
for 4,000 years
• Cost – very expensive
• Time – took years for goods
to be transported between
China and Europe
• Trading silk, gold, textiles
Transportation Costs
• Early ocean trade
o Cost – declines, but still
expensive
• Resulted in indentured
servants who worked off
their transportation to the
US
o Time – a few months instead of
years
Transportation Costs
• Modern transportation
o Rail, sea, truck, and aircraft
transport
o Cost – relatively inexpensive
since more goods can be
carried at once
o Time – a few days or a few
hours
Transportation Costs
• Result – a dramatic
increase in global trade
Modern Transportation
• Intermodal freight
transportation
revolutionized modern
shipping
o Intermodal containers
introduced in 1956
• Utilize multiple methods of
transport
o Ships, railcars, trucks
o Reduced costs and increased
transport of goods
• Specially designed cranes
made it easy to move
containers on and off ships,
railcars, and trucks
Information Technology and
Communications
• Land and sea
o Ideas, inventions, technology carried by hand
• Early telegraph and telephone – beginnings of
telecommunications
o Time reduced
o Electricity used to increase speed of communication
• Modern communications and IT systems
o Introduction of computer technology and the Internet
o Transmission time reduced
• From minutes to seconds to fractions of seconds
o Costs continued to decline because of increased use and competition
Modern Information
Technology
• 1976 – lasers and fiber
optics revolutionize
communications
o Pulses of light carried long
distances along optical glass
fibers
• First transatlantic cable laid
in 1988
• Today, technology used for
Internet, cell phones, fax,
television
Modern Information
Technology
• Impact
o Greatly increased capacity, especially for international communications
o Extremely fast – almost instantaneous
• Information superhighway
o Easier to do business around the world
What is Globalization
• Goods, ideas, and
technology spread
around the world at
breakneck speeds
o Globalization – the rapid travel
of ideas, culture, goods, and
information across national
borders
• Examples
o Some of the same
goods and stores are
found around the
world
• Teens play the same
games, watch the same
televisions
What is Globalization
• Most of these elements
originate in the US and
Western Europe
o Westernization of culture
Interdependence and
Globalization
• Economic interdependence and globalization go
together
o World is increasingly connected
• Information transmitted instantaneously
• Easy and inexpensive to ship goods around the world
• Easy to do business around the world
o People around the world buy the same shoes, eat the same foods, and
watch the same TV shows
Pros of Globalization
• Creation of a global
village
o More cooperation
o Solve global problems together
o Reduced risk of war and
conflict
• Creation of a global
marketplace
o More options for countries and
businesses
o Increased prosperity
Pros of Globalization
• Increased availability of goods and services
o More choices for consumers
o Countries can affordably transport their goods to all who are willing to
purchase them
• Democratization of the world
o Increased freedom of speech and information
o More equality, especially for women
Cons of Globalization
• Loss of jobs in some
sectors
o If it is cheaper for a job to be
done cheaper elsewhere, it
probably will be
• Undesirable elements
will spread more
quickly
o Disease
o Terrorism
o Drugs and weapons
Cons of Globalization
• Increasing power of corporations
o Do not have checks on their power in the same way governments do
o May exploit weaker countries
• Loss of cultural diversity
o Countries, regions, and cities lose their uniqueness
Questions
Fiber optics is an example of a revolution in __________
technology.
A.
B.
C.
D.
intermodal
transportation
communications
Westernized
Questions
Fiber optics is an example of a revolution in __________
technology.
A.
B.
C.
D.
intermodal
transportation
communications
Westernized
Questions
When countries lose their unique qualities as globalization
takes place, it is best described as a loss of __________
A.
B.
C.
D.
Westernization
cultural diversity
communication
interdependence
Questions
When countries lose their unique qualities as globalization
takes place, it is best described as a loss of __________
A.
B.
C.
D.
Westernization
cultural diversity
communication
interdependence
Questions
Westernization is best described as the process of cultures
being influenced by __________.
A.
B.
C.
D.
increased technology
economic interdependence
cultural diversity
European and American cultures
Questions
Westernization is best described as the process of cultures
being influenced by __________.
A.
B.
C.
D.
increased technology
economic interdependence
cultural diversity
European and American cultures
Questions
The United States depends on importing oil because it
__________.
A.
B.
C.
D.
specializes in creating it themselves
does not produce enough to meet its own demands
can produce it cheaply
cannot import it cheaply
Questions
The United States depends on importing oil because it
__________.
A.
B.
C.
D.
specializes in creating it themselves
does not produce enough to meet its own demands
can produce it cheaply
cannot import it cheaply
Questions
The time it takes to transport goods has __________ over
time, causing trade to __________.
A.
B.
C.
D.
increased . . . decrease
decreased . . . decrease
decreased . . . increase
increased . . . increase
Questions
The time it takes to transport goods has __________ over
time, causing trade to __________.
A.
B.
C.
D.
increased . . . decrease
decreased . . . decrease
decreased . . . increase
increased . . . increase
Questions
Which of the following issues is a negative consequence of
globalization?
A.
B.
C.
D.
increased availability of goods and services
democratization of the world
the creation of a global village
the loss of cultural diversity
Questions
Which of the following issues is a negative consequence of
globalization?
A.
B.
C.
D.
increased availability of goods and services
democratization of the world
the creation of a global village
the loss of cultural diversity