2. Globalization and Trade
Chapter 33 Section 1

3. 1. Economic Interdependence
Globalization
Definition: globalization is the process in which trade and culture link together countries around the world.
One major effect of global trade is the increased economic interdependence among the world’s countries.

4. Give one example of economic interdependence in our world today

5. 3. Economic interdependence occurs because countries vary greatly in the types of goods and services they need and can provide.

6. Characteristics of Developed Countries Industrialized Strong economies
B. Developed and Developing Countries
Characteristics of Developed Countries
Industrialized
Strong economies
High standard of living
Characteristics of Developing Countries
Low standard of living
Less industrialized
Inadequate health care
Poor education
Other characteristics for some nations
Lack of political and social stability
On going war
Conflict

7. Definition: large companies that operate in multiple countries
C. Multinational Corporations
Definition: large companies that operate in multiple countries
Examples:

8. iii. Benefit to multinational corporations is outsourcing
iii. Benefit to multinational corporations is outsourcing. Outsourcing is beneficial because they create jobs and improve the standard of living in the developing countries where they operate.
iv. A potential problem is that they do not always improve the standard of living in some countries and they contribute to job loss in the company’s home country.

9. d. Global economic ties
One effect of economic interdependence is that certain events or actions can affect the economies of many nations.
Example:

10. 2. Global Trade
Definition of Free Trade is the exchange of goods among nations without trade barriers such as tariffs (taxes).
International Trade Organizations
Exist to help promote and regulate free trade
Examples:
World Trade Organization (WTO): consists of 150 countries which monitors national trade policies and helps resolve trade disputes.
Organization of Petroleum Exporting Countries: (OPEC): it is a group of oil-rich nations, who work to control the production and price of oil
Give me three names of countries who belong to OPEC

11. c. Regional Trade
Many countries belong to at least one regional trade bloc, or group, which they form to promote free trade and to deal with economic issues with neighboring nations.
Examples:
European Union (EU): largest regional trade bloc. It has member countries.
NAFTA: North American Free Trade Agreement. This agreement is between Canada, the United States and Mexico.

12. D. Effects of Global Trade
Read the section in your book and identify two benefits and two consequences to global trade. (page. 994)
Also identify and explain the Fair Trade movement.

13. 3. Cultural exchange Cultural traits spread
Globalization leads to changes in popular culture:
Definition: popular culture refers to cultural traits such as food, sports and music, that are common within a group of people.
Globalization is also causing cultural diffusion
Definition: cultural diffusion is the spread of culture traits from one region to another.
How do we see this trend in our own city?
Methods of cultural diffusion include the following:
Television, movies, music and other forms are mass media are the most powerful methods of cultural diffusion. Travel also helps with cultural diffusion.

14. Effects of Globalization
Read the section in your book and provide examples and also explain how cultural diffusion can be negative.
Also identify the biggest challenge presented by globalization.
This section is on page 995.