Globalization and Trade Chapter 33 Section 1

1. Economic Interdependence Globalization Definition: globalization is the process in which trade and culture link together countries around the world. One major effect of global trade is the increased economic interdependence among the world’s countries.

Give one example of economic interdependence in our world today

3. Economic interdependence occurs because countries vary greatly in the types of goods and services they need and can provide.

Characteristics of Developed Countries Industrialized Strong economies B. Developed and Developing Countries Characteristics of Developed Countries Industrialized Strong economies High standard of living Characteristics of Developing Countries Low standard of living Less industrialized Inadequate health care Poor education Other characteristics for some nations Lack of political and social stability On going war Conflict

Definition: large companies that operate in multiple countries C. Multinational Corporations Definition: large companies that operate in multiple countries Examples:

iii. Benefit to multinational corporations is outsourcing iii. Benefit to multinational corporations is outsourcing. Outsourcing is beneficial because they create jobs and improve the standard of living in the developing countries where they operate. iv. A potential problem is that they do not always improve the standard of living in some countries and they contribute to job loss in the company’s home country.

d. Global economic ties One effect of economic interdependence is that certain events or actions can affect the economies of many nations. Example:

2. Global Trade Definition of Free Trade is the exchange of goods among nations without trade barriers such as tariffs (taxes). International Trade Organizations Exist to help promote and regulate free trade Examples: World Trade Organization (WTO): consists of 150 countries which monitors national trade policies and helps resolve trade disputes. Organization of Petroleum Exporting Countries: (OPEC): it is a group of oil-rich nations, who work to control the production and price of oil Give me three names of countries who belong to OPEC

c. Regional Trade Many countries belong to at least one regional trade bloc, or group, which they form to promote free trade and to deal with economic issues with neighboring nations. Examples: European Union (EU): largest regional trade bloc. It has 25+ member countries. NAFTA: North American Free Trade Agreement. This agreement is between Canada, the United States and Mexico.

D. Effects of Global Trade Read the section in your book and identify two benefits and two consequences to global trade. (page. 994) Also identify and explain the Fair Trade movement.

3. Cultural exchange Cultural traits spread Globalization leads to changes in popular culture: Definition: popular culture refers to cultural traits such as food, sports and music, that are common within a group of people. Globalization is also causing cultural diffusion Definition: cultural diffusion is the spread of culture traits from one region to another. How do we see this trend in our own city? Methods of cultural diffusion include the following: Television, movies, music and other forms are mass media are the most powerful methods of cultural diffusion. Travel also helps with cultural diffusion.

Effects of Globalization Read the section in your book and provide examples and also explain how cultural diffusion can be negative. Also identify the biggest challenge presented by globalization. This section is on page 995.