ECONOMIC INTERDEPENDENCE MAURY HIGH SCHOOL HONORS WORLD STUDIES II MAURY HIGH SCHOOL HONORS WORLD STUDIES II

First Question Using your knowledge of vocabulary, what do you think ECONOMIC INTERDEPENDENCE means?

Economic Interdependence Definition: the dependence of countries on one another for: Goods Resources Knowledge Labor Definition: the dependence of countries on one another for: Goods Resources Knowledge Labor

Globalization Economic Interdependence is a major effect of globalization Definition: the increasing integration of economies and societies around the world Economic Interdependence is a major effect of globalization Definition: the increasing integration of economies and societies around the world

Role of Technology Improvements in transportation – Faster shipping = more profit Instant communication (WWW, Cellular, , etc.) – Stay in touch with customers, suppliers, operations Improvements in transportation – Faster shipping = more profit Instant communication (WWW, Cellular, , etc.) – Stay in touch with customers, suppliers, operations

Multinational Corporations Definition: a company with operations in more than one country – Sell goods in other countries AND have offices and factories (employees!) there as well Definition: a company with operations in more than one country – Sell goods in other countries AND have offices and factories (employees!) there as well

Question Question: What effect might multinational corporations have in the countries in which they operate? Create jobs Seek to influence politics in their best interests Question: What effect might multinational corporations have in the countries in which they operate? Create jobs Seek to influence politics in their best interests

Regional Integration Definition: Nations with common regional interests often work together to improve themselves politically, economically, and socially

Examples of Regional Integration European Union – Began as European Economic Community in 1958 – Evolved to include policy areas (e.g., development, environment, etc.) – Renamed European Union in 1993 – 27 nations belong European Union – Began as European Economic Community in 1958 – Evolved to include policy areas (e.g., development, environment, etc.) – Renamed European Union in 1993 – 27 nations belong

Examples of Regional Integration QUESTION: How does economic interdependence promote peace? Other ex’s: African Union, Association of Southeast Asian Nations, etc. QUESTION: How does economic interdependence promote peace? Other ex’s: African Union, Association of Southeast Asian Nations, etc.

Trade agreements Definition: nations forming regional alliances to promote: trade and meet common needs Definition: nations forming regional alliances to promote: trade and meet common needs

North American Free Trade Agreement (NAFTA) links Canada, the U.S., and Mexico – promotes free trade by eliminating tariffs

World Trade Organization (WTO) GOAL: To help producers of goods and services, exporters, and importers conduct their business – Forum for trade negotiations – Handling trade disputes – Monitoring national trade policies – Technical assistance and training for developing countries – Cooperation with other international organizations GOAL: To help producers of goods and services, exporters, and importers conduct their business – Forum for trade negotiations – Handling trade disputes – Monitoring national trade policies – Technical assistance and training for developing countries – Cooperation with other international organizations

International Organizations What do you already know about the United Nations? Nearly every nation in the world belongs to the UN, which plays a variety of roles around the world What do you already know about the United Nations? Nearly every nation in the world belongs to the UN, which plays a variety of roles around the world

United Nations List some responsibilities/roles of the UN. These include keeping the peace, fighting disease, promoting education and economic development, and providing aid to people in need. List some responsibilities/roles of the UN. These include keeping the peace, fighting disease, promoting education and economic development, and providing aid to people in need.

International Monetary Fund (IMF) IMF is an org. of 188 countries working to: – foster global monetary cooperation – secure financial stability – facilitate international trade – promote high employment and sustainable economic growth – and reduce poverty around the world. IMF is an org. of 188 countries working to: – foster global monetary cooperation – secure financial stability – facilitate international trade – promote high employment and sustainable economic growth – and reduce poverty around the world.

Final Question How is economic interdependence changing the world? How has globalization and economic interdependence reduced the importance of boundaries between countries? How is economic interdependence changing the world? How has globalization and economic interdependence reduced the importance of boundaries between countries?