1. GLOBALIZATION

2.  Process by which countries are becoming more interdependent and interconnected, resulting in the expansion of international cultural, economic, and political activities  Is creating a single global economy and community  Caused by the international exchange of goods, services, cultures, and ideas  Driven by technological advances in communication and transportation networks

7. TRADE  Refers to the exchange of goods and services  Countries have to trade because resources are not spread out evenly and no country produces everything it needs  Ex. petroleum- a resource all countries need.

8. SPECIALIZATION  Refers to focusing production on certain goods/services  Driven by the availability of natural and human resources  Countries specialize in the goods and services in which they have a comparative advantage, meaning they can make them faster, more efficiently, and at the lowest cost

9. SPECIALIZATION  No country is self-sufficient – they cannot produce everything their citizens need  Countries rely on both exports and imports  Exports – products a country makes and sells to another  Imports – products a country buys from another

10. World trade  Trade has existed throughout history  Ex. Silk Road, Triangle trade, etc.  One of the most important was the Columbian Exchange, which was the exchange of goods between the Americas to Europe following the “discovery” of America by Columbus  Referred to as the exchange between the Old World and New World  Old world – Europe  New world - Americas

12. World Trade  Trade is occurring everyday at the international level and is one of the main causes of globalization  Due to the increasing of trade and therefore trade relations, several multi-national organizations have formed in the recent decades  General Agreement on Tariff and Trade (GATT) 1947 - promoted trade and removed trade barriers and aimed to eliminate “favoritism”  Became World Trade Organization (WTO) 1995 - oversees trade agreements amongst 159 member nations and promotes free trade zones, managed under the UN  Free trade zone – geographic area in which tariffs are eliminated

13. World trade  North American Free Trade Association (NAFTA) enacted in 1994, created a FTZ between Canada, the United States, and Mexico  Gave rise to maquiladoras – American owned factories operated in Mexico for cheaper labor, goods are then exported back into the U.S.  European Union serves as a FTZ

14. Outsourcing and Offshoring  Offshoring - Companies move their production to countries where costs are lower  Apple producing and assembling products in China  Outsourcing - Companies hire other companies to do some of their work  Ex. Call centers in India  Can also happen domestically

15. CULTURAL DIFFUSION  The spreading of cultural characteristics and traits across geographic areas  Facilitated by modern telecommunications many of which involve the internet  Dominated particularly by Westernization  The transmission of western ideas, technology, and lifestyles; particularly those of the United States, Europe and Australia to a lesser degree  Creates cultural awareness throughout the globe, while also eroding some unique traits and characteristic of otherwise isolated cultures

16. POP CULTURE  Pop culture – POPular culture; formed by ideas, lifestyles, and cultural patterns that are part of contemporary and mainstream media  Spread has been more rampant since the introduction of social media  Blamed as one of the reasons for the erosion of traditional morals, values, and ethics in many traditional socities

17. ENGLISH AS A LINGUA FRANCA  Lingua franca – a common language adopted by two speakers whose native languages are different  Due to globalization, English has emerged as the world’s leading lingua franca  English is a common second language for many people and the common language used in international business

18. BENEFITS OF GLOBALIZATION  People enjoy goods and services from all over the world  Better connectivity - easier and faster communication  Access to diverse cultures at the fingertips  Advances in technology and medicine spread quickly and can lead to higher standards of living

19. COSTS OF GLOBALIZATION  Offshoring & outsourcing can lead to domestic loss of jobs  Increased pollution and global climate change  Pandemics - diseases spread quickly  Threat of global recession - a financial crisis can spread quickly  Local cultures are losing some of their unique qualities.