.15F

See World Trade Organization Map

What do you guys know about the World Economy? Take a look at what you are wearing, how you got to school, what you are eating…………how is that tied to the world economy? How important is the world economy?

The economies of individual nations are interdependent. what does this mean?

The economy of the United States depends on resources and markets around the world for the production and sale of goods and services. How important is this system, how long has it been around?

Total world production is greater when nations specialize in the production of those products that they can produce most efficiently. What are some advantages and disadvantages (vulnerabilities) to this rule?

Let’s take a closer look at the United States United States businesses have become multinational in their quest for productive resources, markets, and profits. United States firms may move factories to other countries to reduce costs (off-shoring).

Outsourcing Advances in technology allow U.S. businesses to get skilled work, such as engineering and accounting, done by people who remain in their home countries (i.e., to outsource this work). This increases the supply of workers and holds wages and costs of production down. Immigration brings workers into the country and increases the supply of labor.

As foreign countries develop and grow, they demand more products and natural resources, such as oil, pushing up prices.

Trade Deficit When the United States imports more goods and services than it exports, the difference is the trade deficit.

Major Trading Partners – Begin specialization activity Canada, Mexico, the European Union, China, and Japan are the major trading partners of the United States.

Top Growing Economies Top 25 economies by What do you notice about these economies? (BRICS) Brazil, Russia, India, China and South Africa.

Top 5 points on World Economy

Zero in on China’s Status in the World Economy

Shanghai

China, a fast growing economy Tom Solman Financial Times, overtaking U.S.

Read financial times article on China’s economy

China’s military intentions and the rise of China the-us-manage-chinas-rise-peacefully/ the-us-manage-chinas-rise-peacefully/

China Passes the U.S. as an Economic Power, Discuss What does this shift in global power mean to you as a student living in the United States? How do you think China’s appetite for resources to continue to fuel it’s large economy might infringe on the United States quest for similar resources. Compare and contrast the United Kingdom’s transfer of world economic power to the United States in 1872 compared to the United States transfer of world economic power in Could this situation create a rivalry. Would this effect U.S. military forces based in Asia?