1. WHAT IS GLOBALIZATION? WHY IS IT HAPPENING? HOW DOES IT IMPACT US AND THE WORLD?

2. GLOBALIZATION DEFINED: an ongoing process by which regional economies, societies, and cultures have become integrated through a globe- spanning network of exchange and trade Occurs thanks to the interconnectedness of the modern global economy Globalization forces our culture to interact and deal with others

6. SUPPLY CHAINS DEFINED: the connections that link all parties involved in the production and sale of a product Supply chains begin and end with the consumer (you)! First a consumer DEMANDS, or wants a product Then a long “chain” of people work to SUPPLY create it It ends with the consumer ends by purchasing it at a certain PRICE Example?

9. Why is globalization happening so quickly now? ECONOMIC REASONS: –New forms of technology allow gigantic flows of capital and other technologies Transnational corporations (TNCs) International economic institutions

10. Bretton Woods Conference 1944 44 Nations agreed to revise trade practices 3 new int’l economic organizations –IMF: International Monetary Fund –World Bank –GATT: General Agreement on Tariffs and Trade later to be the World Trade organization (WTO)

11. Bretton Woods lasted for over 30 years –“the golden age of controlled capitalism –Ended by conservative politics embrace of “neo-liberalism” Market is self-regulating Survival of the fittest (Herbert Spencer) Rejected Keynesian models of state intervention Validated by the fall of communism

12. Transnational Corporations (TNCs) GM, Walmart, Exxon, Mitsubishi, Siemens, etc 42 of the world’s top economies are corporations powerful players the influence the economic, political and social welfare of many nations

13. International Economic Institutions –IMF, World Bank, WTO –Began as means of loans to developing nations –Now more interested in integrating and deregulating markets around the world

14. Problems with Globalization Lowering of labor standards Ecological degradation Growing indebtedness of the Global South to the North –Loans tied to laws –Interest payments now exceed aid received ($355 Billion interest v. $80 Billion in aid)