Globalism Chapter 22.2

Globalization – a world without walls The expansion of global linkages, the organization of social life on a global scale, and the growth of a global consciousness; the consolidation of world society

Anti-globalization movement Critical of the globalization of corporate capitalism Afraid of: Multinational corporations having unregulated political power Companies maximize the profit at the expense of work safety conditions and standards Call for: Democratic representation Advancement of human rights Fair trade and sustainable development

outsourcing Obtain a good or service from an outside or foreign supplier, especially in place of an internal source

Education and globalization

Multi-national corporation Countries that own or control production or service facilities in one or more countries other than the home country

World bank Offers loans, advice, and an array of resources to more than 100 developing countries for capital programs

International monetary fund Promotes international financial stability and monetary cooperation Goals: Seeks to facilitate international trade Promote high employment Sustainable economic growth Reduce poverty around the world Differences between the World Bank and IMF: Bank – development institution IMF – cooperative institution that seeks to maintain an orderly system of payments and receipts between nations

The group of 8 (G8) Forum for the gov’ts of a group of eight leading industrialized countries Started in 1975 that brought together France, West Germany, Italy, Japan, the UK, and the US Canada was later included Last…Russia EU is represented within the G8 but cannot host or chair summits

Brics nations Brazil, Russia, India, China, and South Africa Designed to counter the power of the G8 nations Five largest emerging national economies

World trade organization Deals with the global rules of trade between nations Designed to liberalize international trade Helps to increase globalization Works against protectionism

Free-trade zones Geographic area where goods may be landed, handled, manufactured, or reconfigured, and re- exported without the interventions of the customs authorities Organized around major seaports, international airports, and national frontiers EU, NAFTA

Eu – loans to piigs Economic and political partnership between 28 European countries Started with the European Economic Community (EEC) in 1958 Evolved into an organization that looks at policy as well as economic aid Including human rights violations 1993 – the name changed to the European Union (EU) PIIGS (Portugal, Ireland, Italy, Greece, and Spain) Struggling countries

Non-governmental organizations Organization that is neither part of a government nor a conventional for-profit business

Environmental economics Different than ecological economics: Ecological – emphasizes the economy as a subsystem of the ecosystem with its focus on PRESERVING natural capital Environmental – concerned with environmental issues and their affect on economics Sustainability – practice of trying to more modestly provide for people while balancing the ecological and environmental costs