Chapter 28.1 Global Developments

Global Interdependence Global Interdependence means that people and nations worldwide depend on one another for many goods and services. It also means that what happens in one nation or region affects what happens in others. Global Interdependence means that people and nations worldwide depend on one another for many goods and services. It also means that what happens in one nation or region affects what happens in others. The U.S. must import ½ the oil we use, so we must maintain good relations with oil-producing countries. The U.S. also imports many of the minerals needed for industry (tin, bauxite, ect). The U.S. must import ½ the oil we use, so we must maintain good relations with oil-producing countries. The U.S. also imports many of the minerals needed for industry (tin, bauxite, ect).

continued Other countries depend on the U.S. for computers, aircraft and other high-tech products. Poorer countries look to the U.S. for food, medicine and arms. Other countries depend on the U.S. for computers, aircraft and other high-tech products. Poorer countries look to the U.S. for food, medicine and arms. Trade includes both competition to sell products and cooperation to make trade beneficial to everyone. Trade includes both competition to sell products and cooperation to make trade beneficial to everyone.

continued World markets offer profit opportunities for businesses and lower prices and wider variety for consumers. However, global competition can force weak companies out of the business, hurting some national economies and costing workers their jobs. World markets offer profit opportunities for businesses and lower prices and wider variety for consumers. However, global competition can force weak companies out of the business, hurting some national economies and costing workers their jobs.

continued Protectionism is a nation’s policy to protect its industries from foreign competition by imposing tariffs. This policy can harm other countries. It may cause price increases and trade wars, in which nations set up ever greater trade barriers. Protectionism is a nation’s policy to protect its industries from foreign competition by imposing tariffs. This policy can harm other countries. It may cause price increases and trade wars, in which nations set up ever greater trade barriers.

continued Many countries now support free trade. NAFTA will gradually abolish all trade barriers between the U.S., Mexico and Canada. The WTO will work to reduce tariffs and eliminate quotas among more than 150 nations. Many countries now support free trade. NAFTA will gradually abolish all trade barriers between the U.S., Mexico and Canada. The WTO will work to reduce tariffs and eliminate quotas among more than 150 nations.

Global Problems and American Interests There is a growing inequality between the rich developed countries and the poor less-developed countries. As this occurs, conflicts grow. There is a growing inequality between the rich developed countries and the poor less-developed countries. As this occurs, conflicts grow.

continued Developed countries, such as the U.S., Japan, Germany, Canada, Britain and France, have highly developed business and industry. Their citizens are relatively well educated and healthy. They produce most of the world’s manufactured goods and consume much of the world’s natural resources, enjoying a high standard of living. Developed countries, such as the U.S., Japan, Germany, Canada, Britain and France, have highly developed business and industry. Their citizens are relatively well educated and healthy. They produce most of the world’s manufactured goods and consume much of the world’s natural resources, enjoying a high standard of living.

continued Many citizens of less developed nations live in the shadow of death from starvation or disease. These countries are called developing countries because they are trying to develop industrial economies. Many citizens of less developed nations live in the shadow of death from starvation or disease. These countries are called developing countries because they are trying to develop industrial economies. Some developing countries are very poor. They have few resources and cannot produce enough food to feed their people. They manufacture few products and have high levels of unemployment and disease. Some developing countries are very poor. They have few resources and cannot produce enough food to feed their people. They manufacture few products and have high levels of unemployment and disease.

continued Other developing nations have valuable natural resources. Saudi Arabia and Iraq have oil. Columbia grows coffee. They have little industry, though, and lack the health and educational facilities to develop their human resources. Other developing nations have valuable natural resources. Saudi Arabia and Iraq have oil. Columbia grows coffee. They have little industry, though, and lack the health and educational facilities to develop their human resources. Most developed nations are located in the Northern Hemisphere. Most developing nations are in the Southern Hemisphere. This is called the “North-South conflict”. Most developed nations are located in the Northern Hemisphere. Most developing nations are in the Southern Hemisphere. This is called the “North-South conflict”.

continued Developed and developing nations need each other. Richer nations sell products to and obtain raw materials from poorer nations. Poorer nations need food, technology and money from richer nations. Developed and developing nations need each other. Richer nations sell products to and obtain raw materials from poorer nations. Poorer nations need food, technology and money from richer nations. Many industrial nations try to help developing nations. They give financial and technical aid. Businesses build factories in poor countries, providing jobs and training. Many industrial nations try to help developing nations. They give financial and technical aid. Businesses build factories in poor countries, providing jobs and training.

continued Foreign aid poses questions. Should the U.S. increase aid or encourage poorer countries to get help from private investors? Should we favor nations that support our policies? Should we give less foreign aid and spend more on problems at home? Foreign aid poses questions. Should the U.S. increase aid or encourage poorer countries to get help from private investors? Should we favor nations that support our policies? Should we give less foreign aid and spend more on problems at home?

continued Destruction of the environment is another global problem. Industries and vehicles release poisonous metals into the air and water. Oil spills pollute the oceans and beaches, killing sea birds and fish. Destruction of the environment is another global problem. Industries and vehicles release poisonous metals into the air and water. Oil spills pollute the oceans and beaches, killing sea birds and fish.

continued Coal-burning factories release sulfur dioxide gas into the air, where it mixes with water vapor and later falls to the earth as acid rain. Acid rain created with gases from U.S. factories falls in Canada, damaging forests and killing fish in lakes. Coal-burning factories release sulfur dioxide gas into the air, where it mixes with water vapor and later falls to the earth as acid rain. Acid rain created with gases from U.S. factories falls in Canada, damaging forests and killing fish in lakes.

continued The world must work together to save the environment. One way is conservation – limiting the use of polluting resources. Conserving gasoline cuts polluting gases. Conserving forests protects wildlife and leaves more trees to absorb carbon dioxide. The world must work together to save the environment. One way is conservation – limiting the use of polluting resources. Conserving gasoline cuts polluting gases. Conserving forests protects wildlife and leaves more trees to absorb carbon dioxide.

continued Some opponents argue that conservation slows economic growth. Supporters argue that not conserving may provide short-term gains but long-term problems. Some opponents argue that conservation slows economic growth. Supporters argue that not conserving may provide short-term gains but long-term problems. Poor nations believe antipollution regulations unfairly slow their economic growth. Developed nations polluted freely while becoming rich, but now won’t allow poor nations to do the same. Poor nations believe antipollution regulations unfairly slow their economic growth. Developed nations polluted freely while becoming rich, but now won’t allow poor nations to do the same.