1. 7 th Grade Social Studies Harold E. Winkler Middle School Globalization

2. Globalization – the world coming together in a single market where communication and trade increases economic and social progress. Nations trade with one another to obtain goods and services they themselves cannot produce efficiently. This leads to an interdependent world, where all countries depend, or rely on each other. What is Globalization?? 4:18

3.   Countries cannot produce everything they need.   2005, 10% of all goods produced in the U.S. were exported. - sold to other countries   The U.S. imports more than they export.   Is that a problem?? Why Nations Trade

4.   Specialization: producing a product better or cheaper than anyone else.   Can lead to overproduction or a surplus of goods.   What is the solution??   Some countries have advantages of natural resources or knowledge. - Ex: Saudi Arabia (oil) - Ex: U.S. (technology & weapons) Why Nations Trade

5. Top Oil Producing Countries in the World The United States produces a lot of oil. Why do we need more? What makes this country so “oil thirsty”? How can this graph explain the relationship with other countries?

6. Goal for most countries = Free Trade 1) European Union (EU) = established in 2002, consisting of 28 European countries. 2) North American Free Trade Agreement (NAFTA) = established in 1994 consisting of 3 North American countries. 3) World Trade Organization (WTO) = established in 1995 to set trade regulations (rules) for all participating countries. Trade Agreements

7. European Union

8. NAFTA

9. World Trade Organization

10.  A group of 13 countries that control the supply and price of oil around the world.  Why is OPEC important to the global economy?  How can OPEC cause conflict in the global economy? The Organization of the Petroleum Exporting Countries (OPEC)