1. Warm Up See Ms. Nall See Ms. Nall 16 more days!!!!!!! 16 more days!!!!!!!

2. Globalization

3. Objective Explain the basic concepts of trade Explain the basic concepts of trade Summarize how nations specialize and become interdependent through trade Summarize how nations specialize and become interdependent through trade Explain the impact of government policies on international trade. Explain the impact of government policies on international trade.

4. Vocabulary Migration-big groups of people moving from one place to another. Migration-big groups of people moving from one place to another. Comparative Advantage – the ability of a country to produce a good at a lower opportunity cost than another country can. Comparative Advantage – the ability of a country to produce a good at a lower opportunity cost than another country can. Globalization- people and countries working together despite barriers. Globalization- people and countries working together despite barriers. Unfavorable balance of trade- When a nation imports more than it exports. Unfavorable balance of trade- When a nation imports more than it exports.

5. Vocabulary Favorable Balance of Trade - When a country exports (sells goods) more than it imports (buys goods) Favorable Balance of Trade - When a country exports (sells goods) more than it imports (buys goods)

6. Vocabulary Tariff- A tax on an imported good Tariff- A tax on an imported good Quota- A limit on the amount of imported goods Quota- A limit on the amount of imported goods **These protect domestic businesses!** Embargo- when a group of nations refuse to trade with a selected country Embargo- when a group of nations refuse to trade with a selected country

7. Vocabulary Out-sourcing- when companies move jobs from one place to another to cut costs. Out-sourcing- when companies move jobs from one place to another to cut costs.

8. Vocabulary Dividends- money stockholders periodically get from improving stocks. Dividends- money stockholders periodically get from improving stocks. Capital gains/loss- the money stockholder make or lose when they sell their stocks. Capital gains/loss- the money stockholder make or lose when they sell their stocks. Deregulation- when the government lifts restrictions on businesses Deregulation- when the government lifts restrictions on businesses

9. Protectionism A policy of trade restrictions to help domestic businesses A policy of trade restrictions to help domestic businesses Examples Examples –Tariff –Quota –Immigration restrictions

10. Impact protectionist policies Embargos, tariffs & quotas create barriers to international trade and globalization. Embargos, tariffs & quotas create barriers to international trade and globalization.

11. Global Organizations NAFTA Ended trade restrictions between Mexico, U.S. & Canada Ended trade restrictions between Mexico, U.S. & CanadaWTO Oversees international trade and trade rules Oversees international trade and trade rules

12. Global Organizations EU Ended trade barriers between most European nations Ended trade barriers between most European nationsIMF Helps build the economy of poor/ developing nations Helps build the economy of poor/ developing nations

13. Global Organizations World Bank Provides financial assistance to developing nations Provides financial assistance to developing nations United Nations Maintain international peace and cooperation Maintain international peace and cooperation

14. Impact of NAFTA Created an unfavorable balance of trade in the U.S. Created an unfavorable balance of trade in the U.S.

16. Closure What effect do the limited labor and environmental regulations of foreign countries have on the economy of the United States? What effect do the limited labor and environmental regulations of foreign countries have on the economy of the United States? How are the interests of free trade and protectionism resolved in the global economy? How are the interests of free trade and protectionism resolved in the global economy?

17. Economic Indicators GDP- All that is produced within a country in one year. Per Capita GDP- how much every person on average produced GDP/population=per capita GDP

19. Economic Indicators CPI- measures inflation/deflation rates. Unemployment rate- percentage of people without a job

20. Stock Market: Overall value of company stocks.

21. Rust/Frost Belt- people are leaving this area Sun Belt- people moving to this area for jobs Silicon Valley- center of technology research Research Triangle- research center with many colleges

22. Declining textile and furniture Companies have out-sourced jobs to China and Mexico and downsized (shrunk). Companies have out-sourced jobs to China and Mexico and downsized (shrunk).

23. Some “stuff” we wanted to mention Monopolies in the US are illegal Monopolies in the US are illegal –UNLESS the gov’t allows & regulates them GDP & per capita GDP GDP & per capita GDP –Undeveloped countries have low per captia GDP –Developed countries have high per capita GDP Tax breaks Tax breaks –Use by federal and state gov’ts to lure new business in an area

24. Some “stuff” we wanted to mention Income-money people make Income-money people make –Disposable: extra income used for wants (vacation, movie tickets, eating out) –Discretionary: income used to pay necessities (i.e. food, electric bills, mortgage) Exchange Rate: the price of one nation’s currency compare to another's Exchange Rate: the price of one nation’s currency compare to another's –1USD =.75 EURO –Allows tourists to change forms of money when traveling around the world

25. World Trade Organization Do World Trade Organizations harm the enviornment? Do World Trade Organizations harm the enviornment?

26. World Trade Organization Background Information What is globalization? What is globalization? The term globalization refers to the integration of economies, cultures, and government policies around the world. This integration is nothing new. From the earliest small tribal groups to large modern nation-states, trade and investment between peoples has characterized the world's economy for centuries. The term globalization refers to the integration of economies, cultures, and government policies around the world. This integration is nothing new. From the earliest small tribal groups to large modern nation-states, trade and investment between peoples has characterized the world's economy for centuries.

27. How is pop culture an example of globalization? Popular culture is a good example of globalization. The Internet, along with international media outlets such as MTV and CNN, have sped the globalization of popular culture. Teenagers around the world can watch the same videos, listen to the same music, and wear the same clothing styles. Television audiences around the world can experience the same major news and sporting events. These shared experiences can help foster a sense of global community. Popular culture is a good example of globalization. The Internet, along with international media outlets such as MTV and CNN, have sped the globalization of popular culture. Teenagers around the world can watch the same videos, listen to the same music, and wear the same clothing styles. Television audiences around the world can experience the same major news and sporting events. These shared experiences can help foster a sense of global community.

28. How does globalization affect the world's economy? Large companies can organize production on a worldwide scale. Each step in the manufacturing process is carried out in the most advantageous geographic location. Large companies can organize production on a worldwide scale. Each step in the manufacturing process is carried out in the most advantageous geographic location.

29. For Example…

30. So what's the problem? As globalization proceeds, forces beyond the control of national governments can affect the economic welfare of individual people. For example, an economic crisis in Asia could cause job layoffs in Eastern Europe. Or, workers in one country might lose their jobs when a multinational corporation moves its operations to a country where workers are paid less. Some critics of globalization worry that individual nations have lost control of their own economies. Institutions designed to foster global economic growth and trade, such as the World Trade Organization and the World Bank, have become targets of criticism and protest. Some people believe that these organizations are too powerful and make decisions that have harmful effects on individuals and the environment. To some, global free trade is just an excuse to increase the wealth and power of multinational corporations. As globalization proceeds, forces beyond the control of national governments can affect the economic welfare of individual people. For example, an economic crisis in Asia could cause job layoffs in Eastern Europe. Or, workers in one country might lose their jobs when a multinational corporation moves its operations to a country where workers are paid less. Some critics of globalization worry that individual nations have lost control of their own economies. Institutions designed to foster global economic growth and trade, such as the World Trade Organization and the World Bank, have become targets of criticism and protest. Some people believe that these organizations are too powerful and make decisions that have harmful effects on individuals and the environment. To some, global free trade is just an excuse to increase the wealth and power of multinational corporations.

31. Political Cartoons Imagine you are a political cartoonist working for a newspaper. You are assigned to create a political cartoon that reflects your own view of the WTO's environmental policy. Your cartoon should have a clearly defined message or theme based on your research and expressing your evaluation. Be sure that the cartoon addresses your response to the Focus Question: Is the World Trade Organization misunderstood? Imagine you are a political cartoonist working for a newspaper. You are assigned to create a political cartoon that reflects your own view of the WTO's environmental policy. Your cartoon should have a clearly defined message or theme based on your research and expressing your evaluation. Be sure that the cartoon addresses your response to the Focus Question: Is the World Trade Organization misunderstood?

32. Closure Why do population shifts have a significant impact on the economy both in terms of resources and labor? Why do population shifts have a significant impact on the economy both in terms of resources and labor? How has the United States been affected by the shift from a focus on manufacturing to service? How has the United States been affected by the shift from a focus on manufacturing to service? How do advances in technology influence the choices made by consumers and producers? How do advances in technology influence the choices made by consumers and producers?