THE IMPACT OF INTERNATIONAL TRADE

Changes in Communication Before cell phones and the Internet, governments could control their country’s access to information, now the control is more in the hands of the people (democracy of information) This has created a feeling of a smaller world, global village Increased the importance of the knowledge economy “The World is Flat” It has also created an “on-demand” where people expect to find solutions to problems immediately Call centers for customer complaints go 24 hours On-line banking is 24 hours Computers can share information around the world in an instant

Changes in Transportation Improvements in transportation allow goods to be rapidly distributed (e.g. food) Containerization: the invention of a standard size for container shipping allows a product to be packed, loaded onto a ship, then transferred onto a train or transport truck with limited disruption Hidden costs: goods may be cheaper to ship, but there has been an increased cost to our environment; 1/5 of global carbon emissions comes from the transportation of goods Solution: “buy local, buy fresh” Provides jobs to Canadians Promotes good health Helps the environment Hellmans - http://www.youtube.com/watch?v=Z6YhXnnYbNA&feature=PlayList&p=D809CFC8CA13C3F4&playnext=1&playnext_from=PL&index=5

United Nations Global Compact TNC: Some TNC’s are richer and more powerful than some nations In 2002, 200 top corporations have 1/3 of the world’s economic activity Many of the wealthiest TNC have their headquarters in more developed countries 1999: creation of the Global Compact requires TNC to abolish child labor and reduce greenhouse gas emissions pressures TNCs to consider working conditions and sustainable development concern: no enforcement less than 1% of the companies who agree to this are American increases costs = less competitive

Trade liberalization The increasing emphasis on promoting free trade NAFTA Does free trade really create a level playing field? (Luckiest Nut)

What is the World Bank’s attitude towards free trade? What are the pros and cons to farm subsidies? What is the difference between free trade and fair trade?

Foreign Investment Pros and cons to foreign investment Pros Cons Encourages the advancement of economic development Creates positive relationships between the countries Shares R & D between countries Profits are taken out of the country and sent back to headquarters During times of economic stress, those industries dependant on foreign investment are at a greater risk

Power of transnational corporations General Motors has more money than Thailand, Norway, Saudi Arabia, South Africa, Greece… These may be old statistics, but they make a good point

GDP(*not per capita)

Population

http://slaveryfootprint.org/