Unit 3 Review – to what extent should contemporary society respond to the legacies of historical globalization? Chapters 10 – 14

1. What events led to the development of economic globalization? Establishment of New International Monetary Fund Creation of the World Bank and the International monetary fund The expansion of the free market economy at the end of the Cold War The impact of new technologies on the movement of money around the world.

2. What is the link between freer trade and economic globalization 2. What is the link between freer trade and economic globalization? -the end of the Cold War in 1989 was another driving force behind economic globalization. The struggle between capitalists and communist countries. -Economic globalization allowed for the concept of the free market economy to be embraced. - perspective: during the Cold War, there were only three major trading blocs: North America, Western Europe, and Japan. By the year 2000, an additional 3 billion people were participating in the global market economy. - FTA and NAFTA have created the largest free trade area in the world.

Do Trading blocs contribute to Sustainable Prosperity for all? Many countries try to seek better trade arrangements by joining large trading blocs. In many South American countries, the richest 20 per cent of the population owns more than 60 per cent of the wealth. The poorest 20 per cent of the population owns less than 5 per cent of the wealth. Many South American countries hope that by joining South American trading blocs, they will be able to increase investment in their countries and improve economic stability.

4. Opportunities & Challenges for Canada Trade Liberalization – reducing barriers to trade. Foreign Investment in Canada – economic nationalism. 1960s and 70s, public concern grew about the level of foreign ownership and investment in oil and gas, mining, and manufacturing. Deregulation involves opening an industry to more competition by removing gov’t regulations. One method of deregulation is privatization – the sale of gov’t owned industries and services to private businesses. Outsourcing occurs when one company hires another company to fulfill certain tasks in production resulting in job loss at home. When a local plant or industry closes down because the company that owns it has decided to move its operations overseas, Canadians find themselves out of work – unemployment.

How does the global community attempt to resolve resource development and environmental issues? -for thousands of years, ppl met their needs by developing and consuming resources found locally. Resource development is now affected by economic pressure to meet the needs of huge global markets. -while the demand for oil and gas grows, the supply of these resources is limited. When a barrel of oil is burned, it is gone forever and in time, the supply of fossil fuels will run out, along with the water supply. The oil sands development will help with meeting the demand for oil long term. -Environmental Legislation has been created to keep protect the environment while looking out for sustainable development. Environmental Laws in Canada can prevent a company from dumping waste into freshwater lake.

What does sustainability mean for people, the economy and the environment? -ppl who believe in stewardship (maintaining sustainability in a globalizing world) feel a responsibility to protect and tend to the earth to keep it healthy for future generations. -with the environment, sustainability means living in a world where feeding ppl does not necessitate polluting the environment. Where transporting ppl and goods does not mean polluting our air and changing climate. Where heating our homes does not require vast amounts of polluting fossil fuels. -with economy, is “to help governments achieve sustainable economic growth....while maintaining financial stability. Equality of opportunity for all nations developed or developing.