Globalization

What is globalization? Globalization- national economies, politics, cultures, and societies become integrated with other nations around the world. Interdependence- dependence of countries on each other for goods, resources, and labor from other parts of the world.

What does Globalization look like? Multinational corporations- branches and goods sold across the world. Outsourcing- sending work to developing world to save money or increase efficiency.

What could be a negative effect of having all of the worlds economies interconnected?

Oil Look at the graph on page 637. Who is the largest producer of oil? Who is the largest consumer?

WTO World Trade Organization – Sets up global rules for trade between countries.

Pros and Cons of Globalization Pros More, low cost goods. Standard of living is raised in developing countries. Intermixing cultures. Opens new markets to sell goods too. Cons Poor countries get exploited. “specialization” Damages environment Loss of jobs in developed countries. Countries tied together economically.