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This chapter explores the intricate relationship between trade and globalization, detailing how countries become interdependent for resources, goods, and services. It outlines the distinctions between developed and developing nations, the rise of multinational corporations, and the impact of outsourcing. Key economic principles such as free trade and international agreements like the WTO are examined. The chapter also highlights social challenges, including poverty and human rights issues, alongside the environmental implications of globalization. Ultimately, it emphasizes the complexities of cultural exchange and the need for sustainable development.
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Today’s World Chapter 33
Trade and Globalization • Globalization: the process in which trade and culture link together countries around the world • Interdependence is a relationship among countries in which they depend on one another for resources, goods, and services • Developed nations are industrialized with strong economies and a high standard of living, about 20% nations are considered • Developing nations have less productive economies and a lower standard of living
Multinational corporations: large companies that operate in several nations • Outsourcing is shifting jobs to developing world because of lower costs of production • Free trade is the exchange of goods among nations without trade barriers such as tariffs • International Trade Organizations- General Agreement on Trade and Tariffs (GATT), 1948 • World Trade Organization replaced in 1995, 150 nations
Regional Trade • Organization of Oil Exporting Countries, OPEC • European Union-25 nations • North American Free Trade Agreement-NAFTA • Association of Southeast Asian Nations-ASEAN • Group of 8- major industrial nations
Effects of Global Trade • Valuable new markets for goods…trade jobs • Environmental legislation…shifts pollution • Workers wages…free trade goods • Cultural exchange…popular culture and cultural diffusion • McDonaldization and destruction of culture
Social Challenges • 1948 UN Declaration of Human Rights • Question: Could genocide happen again? • Rwanda-Tutsi and Hutu ethnic groups close to 1 million killed, 2 million refugees, 1994 • Darfur region of Sudan 2006, rebel forces and government supported Janjaweed fighters • NGO- Non Governmental Organizations work to provide services or to promote certain public policies…International Red Cross
Poverty-more than 20% world’s population live on less than $1 a day, no access to health care or education • Famine, war, disease • First World too • SARS, AIDS epidemics of diseases that now spread world wide almost immediately • Natural disasters like tsunamis…environmental refugees • Migration and push pull factors-push to leave your homeland and pull people to a new place • Urbanization and blight
World Security • Terrorism-unlawful use or threat of violence to cause fear and to advance political, religious, or ideological grounds, intentionally targeting civilians • Regional issues Israel-Hezbollah state supported, Britain-Irish Republican Army • 9/11 al Queda • Weapons of Mass Destruction-chemical, biological, nuclear weapons that cause enormous amounts of damage and kill indiscriminately • Sanctions-policies to discourage development
Environment and Technology • Sustainable development is that which does not permanently damage resources-balance need to develop with environmental protections • Fossil fuel use vs. renewable energy source • Deforestation and rain forest damage, desertification in Sahel region • Species loss • Pollution and waste disposal • Global warming
Science and Technology • Space exploration-spin offs • Information Age-cell phones, computers, computers…2006 US 69% internet access, Africa 4% • Medicine – treatments, cloning • Genetic engineering-modify plant or animal, green revolution the ongoing effort to develop new types of wheat, rice, and other crops to meet food needs • Biotechnology- mix of science and corporations