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Todays World Section 1

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Preview

Starting Points Map: World Per Capita GDP

Main Idea / Reading Focus Economic Interdependence

Global Trade

Quick Facts: Major Trade Organizations and Agreements

Cultural Exchange

Trade and Globalization

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Reading Focus

How does economic interdependence affect countries around

the world?

What are some patterns and effects of global trade?

How does globalization lead to cultural exchange?

Main IdeaTrade and culture link economies and lives around the world.

Trade and Globalization

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At the beginning of the twenty-first century, the world was divided overa number of political, cultural, and economic issues.

Despite divisions, countries tied

together like never before Globalization is force behind

closer relationships

Process in which trade,

culture link countries

Improvements intransportation, communication

make global trade easier

Globalization

Major effect of global trade,

increased economicinterdependence

Relationship among countries

in which they depend on

each other for resources,

goods, services

Occurs because countries

vary in goods, services they

provide, need

Interdependence

Economic Interdependence

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Economy Goods, services nation provides and needs depend on level of economic

development in that country

Countries grouped in two categories: developed, developing

Developing

Less productive economies, lower standard of living; Guatemala, Philippines

People in these countries lack adequate education, health care

Poorest, least-developed countries located mostly in Africa, southern Asia

Developed

Industrialized nations have strong economies, high standards of living

20 percent of worlds nations wealthy, powerful like Japan, United States

Have access to good health care, education, technology

Developed and Developing Countries

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Growth and Outsourcing

Multinational Corporations

Increasing interdependence and dramatic growth ofmultinational

corporationslarge companies operating in multiple countries

Benefits to companies

Outsourcinghaving work done elsewhere to cut costs, increase

production

Manufacturing facilities in developing countries, where materials, labor

relatively inexpensive

Outsourcing

Advocates say: creates jobs and wealth in developing countries

Critics say: fails to improve standard of living, outsourcing causes job

loss in companys home country

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Oil Prices

All countries depend on oil for energy; rise in prices felt around world

Developed countries like United States faced with higher costs

Poor nations in Africa could not afford to import, faced shortages

Rise in oil prices led to increased demand for alternative energy

sources, attempts to reduce consumption

Global Economic Ties

Certain events, actions can affect economies of many nations

Global interdependence particularly evident in times of uncertainty

Early 2000s, price of crude oil rose dramatically

Factors: rising world demand, concern over available supply

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Summarize

How does economic interdependence affectthe world?

Answer(s): helps to provide jobs in developingcountries, increases production and decreases

cost for multinational companies

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Globalization often leads to or promotes free trade, the exchange of goodsamong nations without trade barriers such as tariffs. This can lead to

consumers purchasing higher-quality goods at lower prices.

Many of these groupswork to promote,

regulate free trade

1948, General

Agreement on Tariffs

and Trade (GATT)

Worked to limit trade

barriers, settle

disputes

InternationalTrade

Organizations

1995, GATT replacedby World TradeOrganization (WTO)

Monitors nationaltrade policies

Organization of

Petroleum ExportingCountries (OPEC)works to control oilproduction, price

GATT, WTO, OPEC

Regional trade blocspromote free trade,

deal with economic

issues of neighboring

nations

European Union

(EU), North AmericanFree Trade

Agreement (NAFTA),

others

RegionalTrade

Global Trade

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Opponents argue process

benefits wealthy developed

nations at expense of

developing nations

Free trade encourages

practices that exploit workers,

destroy environment

Some promote fair trade, like

fair trade coffee movement

guaranteeing fair prices to

coffee bean farmers

Anti-Globalization

Global trade has clear benefits

Developing countries can

provide new, valuable markets

for goods, services produced bydeveloped countries

Technology, services, money

from developed nations can

improve public services, raise

standard of living of developing

countries

Benefits

Effects of Global Trade

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Find the Main Idea

How does global trade affect the world?

Answer(s): can provide opportunities for

developing countries; opponents believe global

trade exploits developing nations, supportersbelieve it provides for the production and sale of

high-quality, low cost goods

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Culture Globalization; countries linked

through trade andculture

Modern transportation,

communication allow faster

exchanges of ideas, customs

Spreadof Traits

Globalization leads to cultural

diffusion, spread of culture traits

from one region to another

Work, travel, permanent moves all

play part

Popular Culture

Globalization leads to changes in

popular culture

Culture traits: food, sports, music

common within group of people

Mass Media

Television, movies, music most

powerful methods of cultural

diffusion

Satellite news and Internet also

ways of exchanging images, ideas

Cultural Exchange

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Negative Effects Some believe changes largely negative

Mass media, advertising encourage growth of consumerism, preoccupation

with buying consumer goods

WorldCommunity

Globalization linking people together through economics, culture

Challenge to preserve valuable traditional cultures while providing

enrichment from other places in world

Media

Opponents say market shaped by media and advertising, not actual needs

Worry that globalization creating common world culture, allowing traditional

cultures to lose uniqueness

Effects of Cultural Changes

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Summarize

How is cultural exchange a part ofglobalization?

Answer(s): leads to cultural diffusion, more travelto other countries for work or vacation, exotic

goods from other countries available

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