GLOBALIZATION & TRADE

GLOBALIZATION… Globalization is how countries are coming together as one big global economy, making it easier to buy and sell across countries

Globalization: positive impacts Improved living conditions Increased understanding of different cultures More jobs (mostly for developing countries) Cheaper goods

Globalization: negative impacts Outsourcing jobs destruction of the environment neglect of human rights More wealth inequality

Child Labour Can children work? What is Child Labour? Children under the age of 12 that are working Worst forms of child labour enslaved, prostituted, trafficked, exposed to dangerous work. Can children work? “ does it negatively affect their health and education??”

Globalization Video: https://www.youtube.com/watch?v=JJ0nFD19eT8

Trade Terminology Trade – the exchange/trade of goods or services between countries. Imports – goods or services brought into a country from another country. Exports – goods or services sent out from a country to another country. Balance of trade – the difference between the value of the goods and services that a country exports and the value of the goods and services that it imports

Trade surplus – when a country’s exports exceed/more than its imports. Positive balance: export/sell more than import/buy Canada has an trade surplus with USA of about $49,657,000,000 (in 2014) Trade deficit – when a country’s imports exceed its exports. Negative balance: import/buy more than export/sell Canada has an trade deficit with China of about $15,000,000,000 (in 2014) Tariff – tax charged on goods imported to Canada (to protect Canadian industries) Commodities – goods that are traded. (eg. Wheat, wood, paper, cars, oil…)

Statistics for 2014 (in millions, CAD)

Canada’s Trade balance (USD) Canada reported a trade surplus until 2009 when the country’s trade balance went negative for the first time in recent history. Its deficit was ignited at the height of the global recession, and the value of exports decreased significantly at that time. It is only now showing signs of a recovery. Meanwhile, while imports decreased during the recession as well, they bounced back faster than exports.

Top 10 export products during 2017: Mineral fuels including oil: US$84.6 billion (20.1% of total exports) Vehicles: $62.3 billion (14.8%) Machinery including computers: $32.4 billion (7.7%) Gems, precious metals: $18.6 billion (4.4%) Wood: $14.1 billion (3.3%) Electrical machinery, equipment: $13 billion (3.1%) Plastics, plastic articles: $12.6 billion (3%) Aluminum: $9.8 billion (2.3%) Aircraft, spacecraft: $9.7 billion (2.3%) Oil seeds: $7.9 billion (1.9%)

International Trade Organizations Description World Trade Organization Established in 1995 Enforces international rules for trade. North American Free Trade Agreement Established 1994 free trade agreement between Canada, USA, Mexico. No extra fees/taxes on imported goods between these countries (for products made in these 3 countries)

Fair Trade Kenyan coffee, Indian textiles, Mexican ceramics, Ghanaian cocao, Sri Lankan tea… (type of country/level of development?) …but do the workers get a fair price for their goods, and what are their working conditions like?

“Fair Trade: Improving Lives” (2:04 min) https://www.youtube.com/watch?v=4tvLHDxv4B4 “Tipping the Balance: What is Fair Trade?” (5 min) https://www.youtube.com/watch?v=AAnc2zQ8evk

Fair Trade For most workers, wages are low, there is no job security, and working conditions are often unhealthy and unsafe. Fair trade means that the goods you are buying have been produced in a fair and humane way. fair wage Humane work conditions