2. Review Three Elements of the Global Economy:
Global system of production
Global system of consumption
Global system of trade (global market)

3. World GDP, Trade, FDI

4. Not Just Any Global Economy…
Capitalist economy, organized around:
Private ownership and private profit
System tooled to maximize private profit for private gain
Compare communist, family, barter economies

5. Inherent globalizing tendencies
Globalize production in order:
To attain the lowest price for natural resources
To attain the lowest price for labor
Globalize consumption:
To bring new products
To new markets

6. Consequences of Global Capitalism
Differentiation of Core and Periphery
Core – concentration of capital ownership
Periphery – concentration of labor, natural resources

7. Export High-Pay Jobs to Periphery

8. Wage Decline in Core (U.S. 73-97)

9. Export Degradation to Periphery

10. More Palm Oil Production, Less Orangutan Habitat

11. Orangutan Orphans