1. THE IMPACT OF INTERNATIONAL TRADE

2. 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

3. 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 -

4. 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

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

7. 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?

8. 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

9. 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

13. GDP(*not per capita)

14. Population