Aim: What are some patterns and effects of global trade? Do Now: Current Events Presentations Why do nations trade with each other? Homework: Continue working on Current Event Presentations – refer to schedule

Why do nations trade with each other? Do Now: Why do nations trade with each other? -to gain access to new and different markets where products and goods can be sold -to gain access to new and cheaper labor forces -to gain access to new and different items that can be bought

International Trade Organizations 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. 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 International Trade Organizations 1995, GATT replaced by World Trade Organization (WTO) Monitors national trade policies Organization of Petroleum Exporting Countries (OPEC) works to control oil production, price GATT, WTO, OPEC Regional trade blocks promote free trade, deal with economic issues of neighboring nations European Union (EU), North American Free Trade Agreement (NAFTA), others Regional Trade

Effects of Global Trade Global trade has clear benefits Developing countries can provide new, valuable markets for goods, services produced by developed countries Technology, services, money from developed nations can improve public services, raise standard of living of developing countries Benefits Opponents argue process benefits wealthy developed nations at expense of developing nations Free trade encourages practices that exploit workers, destroy environment Some promote fair trade, like fair trade coffee movement guaranteeing fair prices to coffee bean farmers Anti-Globalization

How does global trade affect the world? Apply Your Knowledge 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

Political Cartoons

Cultural Exchange Culture Globalization; countries linked through trade and culture Modern transportation, communication allow faster exchanges of ideas, customs Popular Culture 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

What type of positive impact would Globalization have on Culture? Apply Your Knowledge What type of positive impact would Globalization have on Culture? What type of negative impact would Globalization have on Culture?

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

How is cultural exchange a part of globalization? Apply Your Knowledge 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