1. International trade and poverty-fighting organizations

2. What is Globalization?
The increased flow of trade, people, investment, technology, culture and ideas among countries.

3. “The relevant market today is planet earth”
--Thomas Friedman
Hans Rosling shows 200 years of growth

4. Causes of economic growth?
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Globalization #10
Increase in productivity through investment in
land, labor or capital—including human and physical
Low tariffs that encourage international trade
Countries by highest percentage GDP growth

5. Obstacles to Economic Development?
Rapid population growth
A declining population
Political instability and government seizure of private property
High tax rates
Low savings rate

6. Low Savings Rate
Banks get the money they loan from people who have savings accounts at the bank
Less-developed countries have low savings rates because the people are too poor to save
They can only afford the necessities of life
Thus, banks can not make loans for capital investments
Farmers can’t buy tractors
Businesses can’t improve their technology

7. Vicious Cycle of Poverty
Less-developed countries are poor because they cannot save
Without savings they cannot buy capital goods
But they cannot save and buy capital goods because they are poor

8. International organizations designed to promote economic growth

9. Promote economic growth via trade
NAFTA EU
WTO

10. NAFTA Basics Established 1994 3 member countries EOC study guide
Globalization #5

11. north American free trade agreement, NAFTA
Eliminated trade barriers between US, Canada, and Mexico
Signed by President Bill Clinton in 1994
Overall value of intra-North American trade has more than tripled since the agreement's inception
EOC study guide
Globalization #5

12. European Union Basics Began in 1945 Today 28 member countries
EOC study guide
Globalization #6

13. European Union, EU
Creates free-trade zones that reduce or eliminate trade barriers
Created a single currency, Euro, introduced 1 January 1999
Great Britain is currently attempting to exit the EU Brexit
EOC study guide
Globalization #6

14. World Trade Organization Basics
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Globalization #8
World Trade Organization Basics
Replaced GATT
162 member countries
Geneva, Switzerland

15. World trade organization, wto
Negotiates new trade agreements
Resolves trade disputes
From the average tariff in the US dropped from 59% to 5%
EOC study guide
Globalization #8

17. ARGUMENTS AGAINST WTO
Prioritizes trade and commercial considerations over all other values
Refuses to ban imports of goods made with child labor
Hurts developing countries
The WTO hurts the Third World. WTO rules force Third World countries to open their markets to rich country multinationals, and abandon efforts to protect infant domestic industries. In agriculture, the opening to foreign imports, soon to be imposed on developing countries, will catalyze a massive social dislocation of many millions of rural people.

18. World Trade Organization Criticism:
It opens products to the world market and goods go to those who are willing to pay the most for them.

19. Another criticism of free trade:
Smaller, poorer countries become dependent upon trade with richer, larger nations in trade agreements and working class jobs are displaced

20. organizations working to raise the standard of living in majority countries
World Bank
International Monetary Fund (IMF)

21. World Bank Basics Part of the United Nations Created 1944
EOC study guide
Globalization #9
Part of the United Nations
Created 1944
188 member countries
Headquarters in Washington, DC

22. World Bank Provide low-interest loans and grants for
EOC study guide
Globalization #9
Set two goals for the world to achieve by 2030:
End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%
Promote shared prosperity by fostering the income growth of the bottom 40% for every country
Provide low-interest loans and grants for
Education
Health
Infrastructure
Agriculture

25. IMF basics: Part of the United Nations Created 1944
EOC study guide
Globalization #7
Part of the United Nations
Created 1944
188 member countries

26. International Monetary Fund (IMF)
Primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other
How?
Maintain an orderly system of payments and receipts between nations
Ensure the stability of exchange rates
Facilitate international trade
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Globalization #7 cont

29. Biggest IMF borrowers (3/13/15): Portugal, Greece, Ireland, Ukraine