Globalization

What is a global society? Globalization refers to the process by which one society becomes integrated with other nations around the world. Globalization refers to the process by which one society becomes integrated with other nations around the world. A global society is possible because of how interdependent our world is. A global society is possible because of how interdependent our world is. We are increasingly interdependent because of: We are increasingly interdependent because of: Transportation and communication Transportation and communication Spread of democracy Spread of democracy Rise of free trade Rise of free trade Outsourcing – sending work to the developing world Outsourcing – sending work to the developing world

QW How would our society be different without oil? How would our society be different without oil?

Natural Resources Oil plays a huge role in in an interdependent world. Oil plays a huge role in in an interdependent world. First world countries dependent on oil. First world countries dependent on oil.

QW Why is it important to be a part of a global society?

What alliances work toward global security? United Nations, NATO

North Atlantic Treaty Organization

What is free trade? Trade without restrictions (like taxes, tariffs, regulations, etc.)

NAFTA North American Free Trade Agreement Began January 1, 1994 Canada, Mexico, and U.S. Facilitates trade between member nations

European Union (EU) Established in 1993 by the Maastricht Treaty Established in 1993 by the Maastricht Treaty 27 member nations 27 member nations 500 million citizens 500 million citizens Produces 30% of the world’s GDP Produces 30% of the world’s GDP Freedom of movement of people, goods, services and capital Freedom of movement of people, goods, services and capital Common policies throughout member states Common policies throughout member states

Economic InstitutionPurpose World Bank International Monetary Fund (IMF) General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO)

Economic InstitutionPurpose World BankOffers loans and advice to developing nations International Monetary Fund (IMF) General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO)

Economic InstitutionPurpose World BankOffers loans and advice to developing nations International Monetary Fund (IMF) Promotes international monetary cooperation and encourages global economic growth. Also monitors economic development and provides advice to developing nations. General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO)

Economic InstitutionPurpose World BankOffers loans and advice to developing nations International Monetary Fund (IMF) Promote international monetary cooperation and encourages global economic growth. Also monitors economic development and provides advice to developing nations. General Agreement on Tariffs and Trade (GATT) Signed in 1947 to expand world trade and reduce tariffs. World Trade Organization (WTO)

Economic InstitutionPurpose World BankOffers loans and advice to developing nations International Monetary Fund (IMF) Promote international monetary cooperation and encourages global economic growth. Also monitors economic development and provides advice to developing nations. General Agreement on Tariffs and Trade (GATT) Signed in 1947 to expand world trade and reduce tariffs. World Trade Organization (WTO) To set up global rules to ensure that trade flows as smoothly and freely as possible.

World Bank building in Washington, D.C. Members of the IMF

What are problems with global trade? Outsourcing exploits poorer populations. Outsourcing exploits poorer populations. Nations that try to meet international demands may start specializing (focusing only on high- value commodities). Nations that try to meet international demands may start specializing (focusing only on high- value commodities).

QW How does global trade benefit the world? How does global trade benefit the world?

What are benefits to global trade? 1. Variety in goods and services 1. Variety in goods and services 2. Competition ensures low prices 2. Competition ensures low prices 3. People are exposed to new ideas, technology, and communications 3. People are exposed to new ideas, technology, and communications 4. Profits can be used to improve citizens’ lives 4. Profits can be used to improve citizens’ lives 5. Nations involved tend to be more democratic 5. Nations involved tend to be more democratic