GLOBALIZATION WHY DO NATIONS TRADE?

 To obtain resources a nation may not produce and/or cannot afford from somewhere else  *** TO BENEFIT IN SOME WAY, SHAPE, OR FORM!!!!!

WHAT IS GLOBALIZATION?  The interdependence of nations for resources, wealth, and economic stability.  Example – The country of Japan has no oil whatsoever. So, they must depend on the United States for that resource.  How does each country benefit?  Japan gets oil, a valuable resource  The United States gets money, also a valuable resource

The WTO: Making globalization easier?  World Trade Organization – formed in 1990  Main goal – to make trade easier between nations (increase globalization)  How?  1. Reduction of tariffs – taxes on imported goods  2. Establish an international court to handle disputes between countries

WTO continued…  3. Encourage free trade amongst member nations (over 150 countries have joined the WTO since it formed in 1990)

Sounds good right?  Controversy surrounding globalizing trade institutions like the WTO  1. Promotes outsourcing of jobs from richer countries to poorer countries  2. Lowers prices for goods  Good for consumers, bad for producers  3. Destroys culture  Increases homogeneity  4. Increases poverty gap  Rich get richer, poor get poorer

Controversy continued…  5. Increases variety of goods/services.  6. Emphasizes profit over the environment  Encourages large corporations to build polluting factories in less-developed countries with lenient environmental laws. WHAT DO YOU THINK? IS THE WTO AND GLOBALIZATION GOOD OR BAD FOR THE COUNTRIES OF THE WORLD?