Unit 5 Part 1:The 21st Century Global Economy Standard 2.19 , 3.1.6

Bellwork Think back to a trip/experience you had outside of the U.S. Did those countries have popular products or services that you would find in America as well? Explain

I see I think I wonder

Essential Question / Objective What impact is globalization having on the U.S. economy?

What is globalization? Globalization: the movement toward a more integrated and global economy. This will increase the interconnectedness of different peoples. Increase in trade Exchange of different ideas and cultures (music, movies, religions) https://www.youtube.com/watch?v=xPD477FuqtY

From Wiki Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.

Talk, Turn, and Discuss According to this video, how are countries coming closer together? Skill Predict: Why do you think such a big part of Kuwait’s population is foreign born? Using your existing knowledge, are you in favor of countries becoming closer and more reliant on each other? Explain your position

Impact of Globalization 1. Outsourcing: moving production overseas to places like India or China Companies gain a comparative advantage in paying their works less than U.S https://www.youtube.com/watch?v=j_ndI900evc

Talk, Turn, and Discuss Why did many metro Detroiters make the choice NOT to attend college in the 1960’s and 1970’s? From 1979 to 2009 how many manufacturing jobs were lost in the USA? Think of one really good question to ask after watching this video

Impact of Globalization 2. Multinational Corporations: companies with facilities/buildings in many countries https://www.youtube.com/watch?v=DhHHmUd6xfo

Talk and Turn How can having corporations like McDonalds overseas be a bad thing? Explain Explain 2 things you learned after watching the video

Lets play some games! How globalized are you?! How do you visualize the world? http://www.sporcle.com/games/g/corplogos https://geoguessr.com/ END

30 Days Outsourcing Video Complete the Evidence and Interpretation assignment as you watch the video Be prepared to answer an essential question at the conclusion

Impact of Globalization 3. Trade Agreements: an agreement between one or more countries about investments and trade decisions

What is NAFTA? NAFTA (North American Free Trade Agreement): agreement in 1994 to reduce and gradually eliminate tariffs between Canada, Mexico, and the United States Increase free trade! Tariffs are taxes on imported/exported goods

NAFTA Good: Reduce taxes and other regulations Stimulate more economic growth Lower-cost good available for everyone Competition will lead to higher quality goods Bad: Higher paying American jobs would be lost to Mexico (business can lower cost of production) All types of workers would be displaced be have to be retrained for “global” needs

What is NAFTA? http://www.cnn.com/videos/cnnmoney/2016/08/02/nafta-explained-cnnmoney.cnn/video/playlists/money-and-politics/ https://www.youtube.com/watch?v=XdDft8d0YVA http://www.cnn.com/videos/tv/2016/07/10/exp-gps-epn-nafta-web-extra.cnn

Trans Pacific Partnership Free Trade agreement between 12 countries below primarily from Asian in origin: Has yet to be approved by US Congress due to controversies from NAFTA etc.

Objective Objective: I can describe the role of trade agreements on increasing globalization Language Objective: I can read, discuss, and speak about trade agreements within the text using claim, evidence, and reasoning HW: NAFTA Current Events Article

NAFTA Current Events Reading Individually read the current events article and talk to the text using our previous strategies Look at the sentence starters for questioning/predicting if you need a way to start Clearly annotate the claim, evidence, and reasoning of the author If you run into roadblocks or confusion while reading consult our reading strategies list Once you are finished answer this question via writing in 1 paragraph Should NAFTA be re-negotiated or modified? Explain

What are multinational corporations? Do Now Explain outsourcing What are multinational corporations?

Impact of Globalization 4. Horizontal Integration / Supply Chaining: when a company absorbs and takes over other competitors. The decision is usually mutual as they save resources by merging their strengths. If left unchecked this would usually form a monopoly

Recap: Impact of Globalization What impact is globalization having on the U.S. economy? The Good… Advances in technology and communication Lower prices for consumers People from across the world have access to quality goods The Bad… Income inequality and job loss Civil unrest / wars Intense competition (could be good)

Essential Question What impact do transitional economies have on the global and U.S. economies?

Transitional Economies Transitional Economy: an economy which is changing from a command economy to a free-market economy Examples include: India & China

Transitional Economies Their impact includes… 1. Increasing demand but also competition for scarce resources (ex: oil, water) 2. Providing new markets for goods that are produced here in the U.S. https://www.youtube.com/watch?v=SndgtT5rO7w

Transitional Economies Their Impact continued… 3. Making the global market more competitive for U.S companies 4. Employment is increasing in transitional economies, decreasing in others…

Case Study: China’s Transitional Economy https://www.youtube.com/watch?v=trs_udhjWqc Vice News: Chinese Economic Boom Turns to Bust? How is China currently transitioning? If China has economic troubles what does that mean for the U.S.A? 2-3 sentence summary