Today’s World UEQ: How are people working together to protect the environment while supporting the needs of businesses and economies?

Sections Trade and Globalization Social Challenges Threats to World Security Environment and Technology

TIMELINE ( ) September 11 th, 2001: Terrorists hijack four passenger airplanes and attack the United States. January 2002: The euro becomes the common currency for most of Western Europe.

TIMELINE (2003) February 2003: Ethnic conflicts begins in the Darfur region of western Sudan. March 2003: U.S. led coalition invades Iraq to remove Saddam Hussein from power. April 2003: Scientists with the Human Genome Project announce they have mapped the human genetic code.

TIMELINE ( ) December 2004: A tsunami strikes Southeast Asia, killing more than 225,000 people. August 2005: South Korean scientists announce the first successful cloning of a dog.

TIMELINE ( ) August 2005: Hurricane Katrina hits New Orleans and the Gulf Coast of the United States. March 2006: CAFTA, a free trade agreement between the United States and several Caribbean countries, goes into effect.

Trade and Globalization LEQ How do trade and culture link economies and lives around the world? VOCABULARY Globalization Interdependence Multinational corporations Outsourcing Free trade Popular culture Cultural diffusion

Globalization The process in which trade and culture link together countries around the world. – Improvements in transportation and communication have made global trade much easier

Trade and Globalization Focus Questions How does economic interdependence affect countries around the world? What are some patterns and effects of global trade? How does globalization lead to cultural exchange?

Characteristics of a Global Economy Rapidly changing New methods of transportation and communication continue to bring nations closer together Anticipation: Explain potential reasons for the vast regional and economic differences on the following map.

World GDP MDC LDC

Developing Countries Two main categories: developed and developing DEVELOPED: Usually means that the country is industrialized, wealthy, healthy, educated, and technologically advanced (approx 20%) DEVELOPING: Usually means less productive, lower standard of living, lacking education and nonexistent healthcare (mostly in Africa and southern Asia)

International Trade Organizations Did someone say, “skit?”

Urbanization People are moving to cities for better jobs. World’s fastest-growing cities are located in developing countries.

Economic Interdependence At the opening of the 21 st century, the world was divided politically, economically, and culturally. Conversely, the world is also more closely tied than ever before in history. Globalization Developing Countries Multinational Corporations Global Economic Ties

Is this proof of a global economy? Think ~ Pair ~ Share

Global Trade Free Trade: The exchange of goods among nations without trade barriers. Producers can sell to more markets Consumers may purchase a greater variety of higher quality goods and/or services at lower prices

Interdependence A relationship among countries where they depend on each other for resources, goods and services.

Multinational Corporations Large companies that operate in multiple countries. Explains some of the dramatic growth and interdependence *German company *Adolf “Adi” Dassler *Reebok, Ashworth, Rockport, *Puma *Sweatshops in Java *Fired 33 workers who went on strike for better pay

Outsourcing The practice of having work done elsewhere to cut costs or to increase production. Example: Multinational corporations build manufacturing facilities in developing countries, where materials and labor are relatively inexpensive.

Global Economic Ties If the United States gets sick, the rest of the world catches a cold. EXAMPLE: Rising oil prices in the early 2000s. Crude oil prices nearly tripled in a two year time period due to the increasing demand from China and India. The rise in prices was felt globally.

Regional Trade Trade Bloc: a group that promotes free trade to deal with economic issues among neighboring nations. Anticipate: Which trade bloc is the largest one?

Regional Trade Blocs EU NAFTA ASEAN – Association of Southeast Asian Nations SADC – Southern African Development Community

CAFTA Nations Throughout the 1970s and into the 1980s, every DR-CAFTA country except Costa Rica was ruled by a dictator, was in a state of civil conflict, or both. These countries suffered from great political instability. Their economies focused inward, and protectionist policies perpetuated widespread poverty.

Think ~ Pair ~ Share: Advancing free trade is one of the best foreign policy tools to help the U.S. economy. How could that policy also improve homeland security?

Why would people feel this way about CAFTA?

Agree or Disagree? Why or why not? As living standards rise and people enjoy better lives, their interest in preserving these benefits also increases. Because they have more to lose from a crisis, they strive to preserve peace and stability. As a result, the likelihood of civil conflict decreases. At the same time, the improved domestic situation reduces the incentives to leave home in search of a better life elsewhere. Therefore, they are less likely to emigrate illegally to other, more prosperous countries like the United States.

Opponents of Globalization Process benefits the wealthy developed nations at the expense of the poor countries. Free trade exploits workers Destroys the environment Protests have happened at the WTO the IMF and the World Bank Promote fair trade

Fair Trade

Word Bank for Crossword WTOsubsidy transportationfree trade economic growthpremium profitsgross domestic product environmentalTrade bloc livingliving standard multinational corporationsubsidies outsourcingpoverty importexport