1. Chapter 23 Section 4 An Interdependent World

2. Globalism The idea that the world is becoming more linked and interdependent is called globalism. Americans who support international trade believe it helps U.S. businesses sell goods abroad. They also think importing low- cost goods keeps inflation and interest rates low. Opponents of a global economy warned that participation by the United States would cause manufacturing jobs to move to nations where wages were low.

3. NAFTA One means of increasing international trade was to create regional trade pacts. In the 1990s, trade pacts increased international trade. The North American Free Trade Agreement (NAFTA) joined Canada, the United States, and Mexico in a free-trade zone.

4. European Union (EU) In 1993 the European Union (EU) was created to promote economic and political cooperation among the many European nations. The EU set up the euro, common money used by member nations.

5. APEC The Asia Pacific Economic Cooperation (APEC) set up a Pacific trade community.

6. WTO The World Trade Organization (WTO) promoted world trade and involves some 120 countries. It helped form trade agreements and settled trade disputes. American supporters of the WTO cited benefits for U.S. consumers, including cheaper imports, new markets, and copyright protection for the American entertainment industry.

7. China and U.S. Market China, with its huge population, offered vast potential as a market for American goods and today China plays a big part in world trade. In 2000 a U.S. bill gave China permanent normal trade relation status, despite union concerns that inexpensive Chinese goods would flood the U.S. market.

8. Environment The rise of a global economy also increased awareness of global environmental issues. In the 1980s, scientists found out that chemicals called chlorofluorocarbons (CFCs) could break down ozone in Earths atmosphere.

9. Ozone Ozone is a gas that protects life on Earth from the ultraviolet rays of the sun. CFCs were used in air conditioners and refrigerators. In the late 1980s, scientists found a large hole in the ozone layer above Antarctica. Many people wanted to stop the manufacture of CFCs.

10. Phasing out CFCs In 1987, 23 nations agreed to phase out the production of chlorofluorocarbons (CFCs) and other chemicals that could weaken the ozone layer.

11. Global Warming In the early 1990s, scientists found evidence of global warming. This is an increase in average world temperatures over time. This rise in temperature could lead to more droughts and other types of extreme weather. Many experts believe that carbon dioxide emissions from factories and power plants cause global warming.

12. Other side of global warming The global warming issue is controversial because the cost of controlling emissions would fall on industries. These costs would eventually be passed on to consumers. Developing nations that are beginning to industrialize would be hurt the most.

13. Kyoto Protocol In 1997 thirty-eight nations and the EU signed the Kyoto Protocol. The nations promised to reduce emissions, though very few nations put this into effect.

14. U.S. opposed to Kyoto Protocol President Clinton did not present the Kyoto Protocol to the Senate because most senators opposed it. In 2001 President George W. Bush withdrew the United States from the treaty. He believed that it had flaws.