Todays World Section 1 Todays World Section 1

Today’s World Section 1

Today’s World Section 1 Trade and Globalization Preview • Starting Points Map: World Per Capita GDP • Main Idea / Reading Focus • Economic Interdependence • Global Trade • Quick Facts: Major Trade Organizations and Agreements • Cultural Exchange

Today’s World Click the icon to play Listen to History audio. Click the icon below to connect to the Interactive Maps. Section 1

Section 1 Today’s World Trade and Globalization Main Idea Trade and culture link economies and lives around the world. Reading Focus • How does economic interdependence affect countries around the world? • What are some patterns and effects of global trade? • How does globalization lead to cultural exchange?

Today’s World Section 1 Economic Interdependence At the beginning of the twenty-first century, the world was divided over a number of political, cultural, and economic issues. Globalization • Despite divisions, countries tied together like never before • Globalization is force behind closer relationships – Process in which trade, culture link countries – Improvements in transportation, communication make global trade easier Interdependence • Major effect of global trade, increased economic interdependence – Relationship among countries in which they depend on each other for resources, goods, services – Occurs because countries vary in goods, services they provide, need

Today’s World Section 1 Developed and Developing Countries Economy • Goods, services nation provides and needs depend on level of economic development in that country • Countries grouped in two categories: developed, developing Developed • Industrialized nations have strong economies, high standards of living • 20 percent of world’s nations wealthy, powerful like Japan, United States • Have access to good health care, education, technology Developing • Less productive economies, lower standard of living; Guatemala, Philippines • People in these countries lack adequate education, health care • Poorest, least-developed countries located mostly in Africa, southern Asia

Section 1 Today’s World Growth and Outsourcing Multinational Corporations • Increasing interdependence and dramatic growth of multinational corporations—large companies operating in multiple countries • Benefits to companies – Outsourcing—having work done elsewhere to cut costs, increase production – Manufacturing facilities in developing countries, where materials, labor relatively inexpensive • Outsourcing – Advocates say: creates jobs and wealth in developing countries – Critics say: fails to improve standard of living, outsourcing causes job loss in company’s home country

Today’s World Section 1 Global Economic Ties • Certain events, actions can affect economies of many nations • Global interdependence particularly evident in times of uncertainty – Early 2000 s, price of crude oil rose dramatically – Factors: rising world demand, concern over available supply Oil Prices • All countries depend on oil for energy; rise in prices felt around world • Developed countries like United States faced with higher costs • Poor nations in Africa could not afford to import, faced shortages • Rise in oil prices led to increased demand for alternative energy sources, attempts to reduce consumption

Section 1 Today’s World Summarize How does economic interdependence affect the world? Answer(s): helps to provide jobs in developing countries, increases production and decreases cost for multinational companies

Section 1 Today’s World Global Trade Globalization often leads to or promotes free trade, the exchange of goods among nations without trade barriers such as tariffs. This can lead to consumers purchasing higher-quality goods at lower prices. International Trade Organizations GATT, WTO, OPEC Regional Trade • Many of these groups work to promote, regulate free trade • 1995, GATT replaced by World Trade Organization (WTO) • 1948, General Agreement on Tariffs and Trade (GATT) • Monitors national trade policies • Regional trade blocs promote free trade, deal with economic issues of neighboring nations • Worked to limit trade barriers, settle disputes • Organization of Petroleum Exporting Countries (OPEC) works to control oil production, price • European Union (EU), North American Free Trade Agreement (NAFTA), others

Today’s World Section 1

Section 1 Today’s World Effects of Global Trade Benefits • Global trade has clear benefits • Developing countries can provide new, valuable markets for goods, services produced by developed countries • Technology, services, money from developed nations can improve public services, raise standard of living of developing countries Anti-Globalization • Opponents argue process benefits wealthy developed nations at expense of developing nations • Free trade encourages practices that exploit workers, destroy environment • Some promote fair trade, like fair trade coffee movement guaranteeing fair prices to coffee bean farmers

Section 1 Today’s World Find the Main Idea How does global trade affect the world? Answer(s): can provide opportunities for developing countries; opponents believe global trade exploits developing nations, supporters believe it provides for the production and sale of high-quality, low cost goods

Section 1 Today’s World Cultural Exchange Culture Popular Culture • Globalization; countries linked through trade and culture • Globalization leads to changes in popular culture • Modern transportation, communication allow faster exchanges of ideas, customs • Culture traits: food, sports, music common within group of people Spread of Traits Mass Media • Globalization leads to cultural diffusion, spread of culture traits from one region to another • Television, movies, music most powerful methods of cultural diffusion • Work, travel, permanent moves all play part • Satellite news and Internet also ways of exchanging images, ideas

Today’s World Section 1 Effects of Cultural Changes Negative Effects • Some believe changes largely negative • Mass media, advertising encourage growth of consumerism, preoccupation with buying consumer goods Media • Opponents say market shaped by media and advertising, not actual needs • Worry that globalization creating common world culture, allowing traditional cultures to lose uniqueness World Community • Globalization linking people together through economics, culture • Challenge to preserve valuable traditional cultures while providing enrichment from other places in world

Section 1 Today’s World Summarize How is cultural exchange a part of globalization? Answer(s): leads to cultural diffusion, more travel to other countries for work or vacation, exotic goods from other countries available