Globalization

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					Why is globalization so controversial?
Good morning!
 If you were absent on Friday, you need to
  make arrangements to take the Unit 4
  Exam before or after school ASAP.
 Computers are on. Begin taking the pre-
  test for International Trade – International
  Pretest (password: international)
 After the pre-test, Vocabulary words:
  absolute & comparative:
    ○ Find synonym for each
    ○ Find anonym for each
    ○ Create an analogy for each
Good morning!
 Make arrangements for your makeup
  test before or after school ASAP!
 Project assignments will be given today.
 We’ll complete reader’s theatre.
What is globalization?
   No one answer.
What is Globalization?
   Process of increasing the connectivity &
    interdependence of world markets and
    businesses.
What’s driving globalization?
   Technological advances that make it
    easier for people to:
     Communicate
     Travel
     Do business internationally.
 The Internet
 Advances in telecommunications
Globalization
   As economies become more connected
    to other economies, they have increased
    opportunity but also increased
    competition.
Because of Globalization we have
 Powerful pro-globalization groups
 Powerful anti-globalization groups
 One of more powerful pro-globalization
  groups: World Trade Organization
  (WTO)
WTO Protests: Seattle, 1999
   Who?
   Union organizers,
    environmentalists,
    animal rights activists,
    and senior citizens
    protested during WTO
    meeting.
WTO Protests: Seattle, 1999
                 Protesters
                  attempted to shut
                  down WTO meeting
                  by blocking major
                  roads, breaking
                  windows of
                  businesses,
                  engaging police
WTO Protests: Seattle, 1999
   Why?
   Protestors believed
    WTO policies
    promoted greater
    free trade:
   were bad for
    environment
   Increased world
    poverty
   Only made large
    corporations wealthy
WTO Protests: Seattle, 1999
                 Supporters believed:
                   WTO policies
                    promoting free trade
                    improves living
                    standards worldwide
                   Better living
                    standards lead to
                    increased human
                    rights, literacy rates
                    and even life
                    expectancies
More names for the two opposing
groups:
   Protectionists
     Want trade barriers to protect domestic
     industries.
   Free Traders
     Favor fewer and even no trade restrictions
     to encourage free trade (international trade)
National Defense
   Protectionists Argue
     Country might become so specialized that it
      would be too dependent on other countries.
     Dependency might keep us from getting
      supplies in time of war.
     Some small countries (Israel & South Africa)
      are loading up on arms just in case this
      happens.)
National Defense
   Free Traders argue
     Admit national security is a valid concern
     Must consider that supply would be smaller
      without free trade.
     Might argue over which industries are critical
      to national defense.
Infant Industries
   Protectionists
     New or emerging industries (infant
      industries) must be protected to gain
      strength and experience before competing
      globally.
     Trade barriers would give infant industries
      time to develop.
Infant Industries
   Free Traders
     Will go along with infant industries argument
      as long as trade barriers are eventually
      removed.
     When companies get protection they seldom
      want to give it up.
Protect Domestic Jobs
   Protectionists
     Tariffs and quotas protect domestic jobs from
      cheap foreign labor.
     Makes it easier for people to work in
      communities they grew up on.
   Free Traders
     Believe it is best not to interfere.
     Protecting jobs keeps industries from being
      efficient with resources.
     Believe pressure should be put on threatened
      industries to modernize & improve.
Protect Domestic Jobs
   Free Traders
     Believe if prices get too high people will find
      substitute goods & jobs will still be lost even
      though they are protected.
     Believe profit loss system is a major feature
      of American economy that helps weed out
      inefficient businesses.
Keeping the Money at Home
   Protectionists
     Will keep American money in US.
   Free Traders
     Believe American dollars spent abroad will
     eventually come back.
      ○ Example – US buying Japanese made cars.
       Japanese in turn buy soybeans, cotton,
       airplanes, etc.
Helping the Balance of Payments
   Balance of Payments
     Difference between the money a country
     pays out to, and receives from, other nations
     when it engages in international trade.
   Protectionists:
     Argue restrictions on imports help balance of
     payments by restricting amount of imports.
   Free Traders:
     Argue dollars return to US to stimulate
     employment in other industries.

				
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posted:10/7/2011
language:English
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