3 1. Economic Interdependence GlobalizationDefinition: globalization is the process in which trade and culture link together countries around the world.One major effect of global trade is the increased economic interdependence among the world’s countries.
4 Give one example of economic interdependence in our world today
5 3. Economic interdependence occurs because countries vary greatly in the types of goods and services they need and can provide.
6 Characteristics of Developed Countries Industrialized Strong economies B. Developed and Developing CountriesCharacteristics of Developed CountriesIndustrializedStrong economiesHigh standard of livingCharacteristics of Developing CountriesLow standard of livingLess industrializedInadequate health carePoor educationOther characteristics for some nationsLack of political and social stabilityOn going warConflict
7 Definition: large companies that operate in multiple countries C. Multinational CorporationsDefinition: large companies that operate in multiple countriesExamples:
8 iii. Benefit to multinational corporations is outsourcing iii. Benefit to multinational corporations is outsourcing. Outsourcing is beneficial because they create jobs and improve the standard of living in the developing countries where they operate.iv. A potential problem is that they do not always improve the standard of living in some countries and they contribute to job loss in the company’s home country.
9 d. Global economic tiesOne effect of economic interdependence is that certain events or actions can affect the economies of many nations.Example:
10 2. Global TradeDefinition of Free Trade is the exchange of goods among nations without trade barriers such as tariffs (taxes).International Trade OrganizationsExist to help promote and regulate free tradeExamples:World Trade Organization (WTO): consists of 150 countries which monitors national trade policies and helps resolve trade disputes.Organization of Petroleum Exporting Countries: (OPEC): it is a group of oil-rich nations, who work to control the production and price of oilGive me three names of countries who belong to OPEC
11 c. Regional TradeMany countries belong to at least one regional trade bloc, or group, which they form to promote free trade and to deal with economic issues with neighboring nations.Examples:European Union (EU): largest regional trade bloc. It has member countries.NAFTA: North American Free Trade Agreement. This agreement is between Canada, the United States and Mexico.
12 D. Effects of Global Trade Read the section in your book and identify two benefits and two consequences to global trade. (page. 994)Also identify and explain the Fair Trade movement.
13 3. Cultural exchange Cultural traits spread Globalization leads to changes in popular culture:Definition: popular culture refers to cultural traits such as food, sports and music, that are common within a group of people.Globalization is also causing cultural diffusionDefinition: cultural diffusion is the spread of culture traits from one region to another.How do we see this trend in our own city?Methods of cultural diffusion include the following:Television, movies, music and other forms are mass media are the most powerful methods of cultural diffusion. Travel also helps with cultural diffusion.
14 Effects of Globalization Read the section in your book and provide examples and also explain how cultural diffusion can be negative.Also identify the biggest challenge presented by globalization.This section is on page 995.