1. Globalization

2. How did Western leaders try to restore world trade after World War II? In 1944, Western leaders:  Created the World Bank.  Established the International  Monetary Fund.  Established stable currency exchange rates.  Ushered in a new Global Age of economic cooperation. However, these agreements did not include the Communist bloc nations

3. In theory, free world trade encourages greater economic specialization, more productivity, and greater wealth.  Efficient use of world resources is possible.  Tariffs are eliminated.  Businesses can move where they make more profits.  More jobs are created.  People have more money to spend. And each country can concentrate on what it does best.

4. In the 1980s the U.S. moved to expand free market capitalism within the global system.  Little government interference in the market  Freedom of individual choice  Borderless market economy  Markets as masters over state policies  People should be free to pursue economic self-interest  Consuming goods a major value What is free market capitalis m? However, most nations continued to pursue some forms of economic nationalism

5. In the 1980s China moved toward a free-market system and joined the global economy. China’s Trade surplus balance with U.S. $666.2 billion in the 2004, China’s economy will probably equal that of US. In twenty-five years. China now buys from 1-2 billion dollars of the U.S. debt each day.

6. In 1989, the Berlin Wall came down and the Cold War ended. Eastern European countries broke away from Soviet control. The Soviet Union itself broke into more than a dozen new states. The Berlin Wall was built in August 1961 The Wall was destroyed on November 9, 1989

7. In 1991, India abandoned it’s 44 year-old socialist oriented economy and embraced a the free market system and joined the global economy. With a GDP of 800 billion dollars, India is now the fourth largest world economy after the U.S., China and Japan. India’s growth rate has averaged about 5.8 per cent for the past fifteen years. Major exports include  Clothing  Automobiles  Handicrafts

8. With the collapse In the 1990s, with the integration of many of the states of the former Soviet Union and the entry of China and India, Globalization now embraced the majority of the world’s economies. In the 1980s, the U.S., the major world power, became the chief advocate of free market capitalism for the global system.

9.  Increasing global connectedness through rapid communication and transport.  Rapid intensification of worldwide social relations.  Swift and free flow of capital, people, and ideas across national borders. What is Globalization?

10. billions 7 6 5 4 3 2 1 1803 - 124 yrs 1927- 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986 – 13 yrs The time it takes to add a billion people grows shorter. World population has been rapidly increasing. Wow! More than 6 billionpeople now alive.

11. Life expectancy is rising, but it varies world wide. CountryAverage Life Expectancy Sweden79.2 France78 United States71.1 Bangladesh62.8 Botswana40.1 Zimbabwe39.2 Average life expectancy for the world is 70 years.

12. Speed of travel has increased dramatically. World wide communication is almost instantaneous 1981 1981 1977 1957 1982 Look at this antique computer. It doesn’t even have a hard drive! 1962

13. The computer has been changing billions of lives. Where are the books I ordered? I’m applying to college. IT Engineer seeks househusband.. We’re catching up with the U.S. economy. Will you be my E-pal? I raised my campaign funds via the internet.

14. But what does globalizatio n have to do with me? Jeans from Malaysia Backpack from China Shirt from Mexico Cap from Bangladesh Video game from Japan Sneakers from Indonesia Soccer ball from Pakistan

15. Expanding technology makes possible a cornucopia of new products for us. New technologies allow humans to control nature like never before

16. More goods are being produced, bought, and sold worldwide than ever before. What shall I buy next?

17. Globa lization also spreads ideas and values.

18. Democratic ideas have spread to more countries than ever before.IndiaKoreaJapanTaiwanMalaysiaQatarMaliBrazil South Africa

19. But globalization brings high human costs. Although the world’s people are producing more than 47 trillion dollars in wealth, these riches are not distributed equally.

20.  20% get most of the wealth.  The U.S. owns 11 trillion dollars of this wealth.  2 billion of the world’s people live on less than $2 a day.  Peasants are forced to leave the land as money and wage economies spread.  Workers without education and skills are often left behind. The growing gap between the rich and the poor continues to increase.

22. Some big multinational corporations have more wealth than many nations. Ranking GDP/value added$trillion 1United States9.9 2Japan4.7 $billion 40Malaysia89.7 41Colombia81.3 42Philippines74.7 43Chile70.5 44 Wal-Mart Stores67.7 45Pakistan61.6 46Peru53.5 47Algeria53.3 48Exxon57.6 49Czech Republic50.8 50New Zealand50 51Bangladesh47.1 52 United Arab Emirates46.5 53General Motors46.2 54Hungary45.6 55Ford Motor45.1 56Mitsubishi44.3 57Mitsui41.3 58Nigeria41.1 59Citigroup39.1 60Itachu38.4 Gross Domestic Product (GDP) of Selected Countries and Corporations2002 Corporations in bold face

23. In poor countries child labor is widespread. Some 212 million children of ages 5-14 are working instead of going to school. These young girls work 12 hours a day, 6 days a week, earning $2-3 per week. Most child labor involves high energy work.

24. Outsourcing is increasing. In 2003, the U.S. lost 234,000 information technology jobs. An estimated 14 million more jobs may move overseas. But the U.S. loss is a gain for India, China, Ireland, Korea and other nations Narayana Murthy (right) and his Infosys Information Technology complex in Bangalore, India.

25.  Strong labor unions  High wages  Environment protection laws and  Unstable governments Manufacturing and capital flows to the areas of the world where they can make the most profits. all tend to keep businesses and investment away.

26. The speed of globalization results in more pollution and global warming caused by  over-cutting forests.  burning fossil fuels.  producing more industrial and consumer waste.

27. Growing threats to the environment affect all people Global warming lead to major floods.

28. Lots of people question globalization.. Hollywood is ruining ourchildren. Globalization is forcing my child to work. Free trade is destroying us farmers. Free trade is destroying us farmers. Industrial countries are leaving us out of Globalization. Development is destroying our rain forest. We have 50 million people living in poverty.

29. Some people believe that globalization is “cultural imperialism”. Can you interpret how this cartoon depicts the idea of “cultural imperialism?”

30. Globalization involves paradoxes.  Profitable industry but widening gap between rich and poor?  Lots of cultural pluralism but people becoming “homogenized?”  Increasing interdependence but small communities banding more tightly together?  Huge wealth in industrialized nations but great poverty in other countries? You mean it’s not good for everyone?

31.  Some wholeheartedly embrace it.  Some seek to maintain their traditions in the face of perceived threats.  Some fight for more economic fairness.  Some turn to religion.  Some violently oppose it.  Some try to manage it for the greater human good. People respond to globalization differently. A house in Figuig, an oasis in Morocco on the edge of the Sahara Desert. This family reaches out to the world through its satellite dish.

32. Terrorism has ushered in a new global threat.  Modern military strategies and weapons are often ineffective against suicide attacks.  Terrorists communicate and spread their ideologies using cell phones and the Internet.  Terrorist groups may have cells in many nations.

33. In 2002, the United States government adopted policies of massive military intervention as part of a war on terror. 2002 – U.S. forces invaded Afghanistan to topple the government of the Taliban, which was cooperating with international terrorists. 2003 – U.S. forces invaded Iraq to overthrow the government of Saddam Hussein. The U.S. accused him of supporting terrorism. Are we entering a new era of international relations?

34. Your decisions and actions will help shape the future. Will we cooperate to fight terrorism and work to ensure that all people live in dignity? How these issues turn out is really up to us. One person can make a difference.