1. An Interdependent World
Chapters 26 and 27

2. An Interdependent World
Globalization/Global Interdependence- nations depend on each other for goods/services
United Nations (UN)- organization formed after WWII by 50 countries
The UN has 191 nation members and is headquartered in New York City
Purpose of the UN:
Maintain international peace
Develop friendly relations among nations
Promote justice and cooperation
among nations
Seek solutions to global problems

3. An Interdependent World
Parts of the UN:
International Court of Justice (World Court)- 15 judges that decide disputes between countries
Security Council- 15
nation members that work
to maintain international
peace and security
General Assembly-
members from all 191
countries that work

4. An Interdependent World
UN Universal Declaration of Human Rights (1948):
All humans are born equal with dignity and rights
Gives freedom of movement and asylum (flee for safety)
Gives rights to marry, have a family and own property
Gives rights to security, work, and receive equal pay
Gives right to a standard of living for health and well being
Sanctions- economic measures issued by major countries to convince other countries to end oppression

5. Trade

6. Trade No country can produce everything it needs
Therefore we must trade
Export- goods/services sold to another country (go out)
Import- goods/services purchased from another country (come in)
Comparative Advantage- a country’s ability to produce goods/services cheaper than other countries
Ex. Asia pays workers less so they can produce electronics cheaper. Most of our electronics are from Asia

9. Balance of Trade
Balance of Trade- difference between the value of a nation’s exports and imports
Trade Surplus- value of a nation’s exports exceed that value of its imports
Ex. A country’s exports $100 billion and imports $50 billion, so trade surplus is $50 billion
Trade Deficit- value of a nation’s imports exceeds the value of its exports
Ex. A country’s exports $70 billion and imports $120 billion, so trade deficit is -$50 billion

10. Trade Barriers
Many people buy things made in another country because they are cheaper
This means our country loses money
So the government imposes tariffs and quotas
Tariff- tax on imported goods (to make it as expensive/more expensive than American goods so you buy American goods)
Quota- limit on the amount of a good imported

11. Trade Agreements Free Trade- No restrictions on trade among countries
European Union (EU, 1993)- organization that allows European countries to trade without restrictions
North American Free Trade Agreement (NAFTA, 1994)- agreement to allow Canada, USA, and Mexico to trade without restrictions
World Trade Organization (WTO,
Switzerland)- oversees and settles
disputes in trade among nations

12. Trade Barriers vs. Free Trade
Arguments for Trade Barriers
Helps American businesses
Keeps Americans employed
Keeps our money in America
Arguments for Free Trade
Increased competition means better products
Increased competition means lower prices