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Globalization

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					   Globalization
EQ: How does globalization
   encourage economic
    interdependence?
       Comparative Advantage
•   Which country can make a good
    cheaper.
•   In the following example, who has
    the comparative advantage?
        Comparative Advantage
   Minimum Wage
    – United States $7.25
    – China $2.00
   Regulations on Producers
    – United States EPA, OSHA, many more
    – China Few if any
   Corporate Taxes
    – United States 35-39%
    – China 25%
   Small Business Taxes
    – United States 15-34%
    – China 20%
Favorable v. Unfavorable Balance
             of Trade
 Imports v. Exports
 United States Balance of Trade
          Imports     Exports
  – China    296,402   65,576
  – France   34,034    26,522
  – Japan     95,949   51,179
  – Mexico   176,537   128,997
  – EU       281,319   220,776
          Protective Tariffs
 Based on what we have learned
 about Comparative Advantages and
 prices other countries can charge
 while still making a profit, why does
 the U.S. Government have to place
 Protective Tariffs on imports?
                 Exchange Rate
   What the U.S. Dollar is worth compared to
    currency of other countries.
   $1 =
    –   Chinese Yuan $6.82
    –   Mexican Peso $12.32
    –   Euro $0.75
    –   Canadian Dollar $1.00
    –   Japanese Yen $91.99
    –   British Pound $0.66
   What do these exchange rates mean for
    American tourists to these countries or American
    companies who sell goods to these countries?
           Price Comparison
 Price   Comparison
       Types of Countries
 Developed

 Developing

 Undeveloped
World Map
     International Organizations
 EU
 NAFTA

 WTO

 IMF

 World Bank



   For each one, determine what it stands for
    and tell what it does and why it was
    formed.

				
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posted:4/25/2013
language:English
pages:10