1. Global Interdependence and Issues

2.  Global interdependence means that people and nations rely on one another for goods and services.  People around the world exchange what they have or make for things they do not have.  Developed nations usually buy raw materials and local products such as certain food items from developing nations.  Developing nations buy things like technology and medicine from developed countries.

3.  Global trade occurs because nations have different needs, comparative advantages, and resources.  The United States is both a large exporter and a large importer.  The U.S. sells wheat, corn, computer software, aircraft, machinery, and medical equipment to other nations as well as entertainment such as movies, music, and video games.  We depend on other countries for things like oil and also for goods that can be produced cheaper elsewhere.

4.  Global interdependence has increased trade and led to prosperity in many parts of the world, but it can cause problems too.  Companies may decide to move factories to other countries with lower labor costs which can result in a loss of jobs.  However, the companies that do stay and pay higher wages and cost of business suffer as well.  To prevent this, some countries create trade barriers such as tariffs, but these may hurt consumers as well by raising prices.  When one country responds to another country’s trade barriers with barriers of their own, a trade war can result.  The result is higher prices and fewer choices for everyone.

5.  A major challenge in the world today is the growing economic inequality among nations.  Developing nations are making some progress, but many of them are not growing fast enough to catch up.  Some lack natural resources or have unskilled workers.  Some struggle with political unrest or have poor schools.  Many face serious health problems such as a lack of clean water or high rates of infectious diseases.

6.  Modern life offers many comforts, but they can come at a cost to the environment.  Chemicals released by factories and cars pollute the air and water.  Most experts believe that burning coal and oil is causing dangerous changes in Earth’s climate.  Deforestation, the mass removal of trees, causes flooding, leads to mudslides, and lessons the amount of carbon dioxide that trees absorb.  The process of switching to other sources can be costly, and many poor nations believe that taking steps to curb pollution will slow their economic growth.  One solution may be conservation, carefully using resources and limiting the harmful effects of human activity.

7.  Immigration is a challenge that comes with an interdependent world.  Differences among religious and ethnic groups as well as economic concerns can intensify bad feelings.  Ethnic groups: those with a common national, cultural, or racial background  Many counties also suffer from war, conflict, or terrorism.  Terrorism: the use of violence to make people afraid and to force people to behave in a certain way.  In addition, millions of refugees have been driven from their homes by famine, conflicts or natural disasters.  Meeting these challenges requires cooperation among nations