1. The characteristics of the Global economy
Objective 7.10

2. Key Questions: What are the basic characteristics of the Global economy?
Objective 7.10

3. is the buying and selling of goods & services among all nations
GLOBAL ECONOMY
is the buying and selling of
goods & services
among all nations

4. Why do we have a Global economy?
countries are dependent on each other for resources & goods/services.
This has created global cooperation & nations all around the world exchange with one another

6. Why do we have a Global economy?
There are 3 factors economists use to explain today’s global economy:
1-Specialization
2-Interdependence
3-Technology

7. SPECIALIZATION
Nations specialize in the production of certain goods, services or resources

8. example: Arab countries – oil Costa Rica – bananas Japan - technology
SPECIALIZATION
example:
Arab countries – oil
Costa Rica – bananas
Japan - technology

10. is the reliance of countries on one another for
INTERDEPENDENCE
is the reliance of countries
on one another for
products, services, resources

11. INTERDEPENDENCE
Imports-The goods/services and resources brought into the US from other countries

12. INTERDEPENDENCE
Exports-The goods/services and resources traded to other countries from the US

15. Role of Technology
New technology is responsible for the huge growth of the global economy

16. Role of Technology Increases the flow of information
Connects nations separated by distance
Makes international business easier
Makes production faster and easier

18. Example: Internet, cell phones, satellite, airplanes, computers
TECHNOLOGY
Example:
Internet, cell phones, satellite, airplanes, computers

19. of international trade
Obj. 7.11
Assess the
costs and benefits
of international trade
KQ- what are the + and – of the global economy?

20. BRAINSTORM! What do you think are the +\- of international trade

21. Benefits (Advantages) of international trade

22. BENEFITS (Advantages)
Each country is able to get goods and services they may not be able to produce

23. BENEFITS (Advantages)
Goods and services
can be bought
at a lower prices

24. BENEFITS (Advantages)
Goods and services
produced in the U.S. can be sold to consumers in other countries

25. BENEFITS (Advantages)

26. BENEFITS (Advantages)
A wider variety of goods is available to each country

27. BENEFITS (Advantages)
Specialization promotes efficiency and economic growth in all markets

28. COSTS (Disadvantages) of international trade

29. COSTS (Disadvantages)
Increased competition among producers world wide could hurt U.S. producers’ profits

30. COSTS (Disadvantages)
Loss of jobs
G/S may be cheaper to produce in other countries, increasing profits for companies
Companies decide to outsource U.S. jobs

31. COSTS (Disadvantages)
Relocation of companies
Cheaper labor and production causes U.S. producers to relocate factories

32. Is global trade more beneficial or costly to the US economy?
People argue that the global economy hurts the US economy by taking jobs away from American workers.
Others say that global trade helps by providing goods/services we cannot produce in the U.S. and allows for cheaper prices.
What do you think?
Is global trade more beneficial or costly to the US economy?