Knowledge Connections Definition Picture Term Vocabulary 

Essential Question How has the world become globally interdependent?

What is interdependence? INTERDEPENDENCE Nations relying upon one another ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC) created Organization made up of mostly oil rich Middle Eastern nations

What does OPEC do? Today, twelve nations belong to OPEC and those nations control the price of oil in the world Venezuela Iran Iraq Kuwait Qatar Saudi Arabia United Arab Emirates Indonesia Algeria Angola Libya Nigeria

What power does OPEC have? 1973 – OPEC uses its power to put an EMBARGO on oil to the US and Israel during the Yom Kippur War Stopping the sale of items to certain nations Oil fell into short supply Gas prices skyrocketed

How is the world connected economically? The oil crisis of 1973 made people aware of the GLOBAL ECONOMY A worldwide marketplace where nations buy and sell goods This has given rise to MULTINATIONAL CORPORATIONS Companies that have their headquarters in their home country, but they have business locations all over the world

What are the goals of a global economy? The global economy has made trade relations more important than ever… Goals: Balance of trade Export > Import Create regional trade markets Find nations with similar goals

What are some economic alliances? Examples of Economic Alliances: European Union (EU) North American Free Trade Agreement (NAFTA) Association of Southeast Asian Nations (ASEAN) World Trade Organization (WTO)

What is the European Union? European Union Established in 1992 aka the European Economic Community (before 1992) The European Union has a common bank and a common currency called the EURO As of 2007, 27 nations belong to the EU

What is NAFTA? NAFTA Established in 1994 North American Free Trade Agreement Members: United States Canada Mexico ∆ Removes all barriers to trade between these nations ∆ Between 1993 and 2000, US exports to Canada and Mexico rose 104%

What is ASEAN? ASEAN Association of Southeast Asian Nations Established 1967 ASEAN has helped many Asian nations become trading giants and have a powerful impact on the global economy Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam

What is WTO? WTO World Trade Organization Established in 1995 √ Made up of 150 nations Goals: Negotiate trade agreements Settle trade disputes The World Trade Organization is the only global organization that deals with the rules of international trade

Essential Question How has the world become globally interdependent?

World Becomes Globally Interdependent