GlobalizationGlobalization

What is a global society?What is a global society? GlobalizationGlobalization refers to the process by refers to the process by

which one society becomes integrated with which one society becomes integrated with other nations around the world.other nations around the world.

A A global societyglobal society is possible because of is possible because of how how interdependentinterdependent our world is. our world is.

We are increasingly interdependent We are increasingly interdependent because of: because of: Transportation and communicationTransportation and communication Spread of democracySpread of democracy Rise of free tradeRise of free trade Outsourcing – sending work to the developing Outsourcing – sending work to the developing

worldworld

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How would our society be How would our society be different without oil?different without oil?

Natural ResourcesNatural Resources

Oil plays a huge role in in an Oil plays a huge role in in an interdependent world.interdependent world.

First world countries dependent on First world countries dependent on oil.oil.

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to be a part of a to be a part of a global society?global society?

What alliances What alliances work toward work toward

global security?global security?United Nations, NATOUnited Nations, NATO

North Atlantic Treaty

Organization

What is free What is free trade?trade?

Trade without restrictions Trade without restrictions

(like taxes, tariffs, (like taxes, tariffs, regulations, etc.)regulations, etc.)

NAFTANAFTA

North American North American Free Trade Free Trade AgreementAgreement

Began January 1, Began January 1, 19941994

Canada, Mexico, Canada, Mexico, and U.S.and U.S.

Facilitates trade Facilitates trade between member between member nationsnations

European Union (EU)European Union (EU)

Established in 1993 by Established in 1993 by the Maastricht Treatythe Maastricht Treaty

27 member nations27 member nations 500 million citizens500 million citizens Produces 30% of the Produces 30% of the

world’s GDPworld’s GDP Freedom of movement Freedom of movement

of people, goods, of people, goods, services and capitalservices and capital

Common policies Common policies throughout member throughout member statesstates

Economic Institution Purpose

World Bank

International Monetary Fund (IMF)

General Agreement on Tariffs and Trade (GATT)

World Trade Organization (WTO)

Economic Institution Purpose

World Bank Offers loans and advice to developing nations

International Monetary Fund (IMF)

General Agreement on Tariffs and Trade (GATT)

World Trade Organization (WTO)

Economic Institution Purpose

World Bank Offers loans and advice to developing nations

International Monetary Fund (IMF)

Promotes international monetary cooperation and encourages global economic growth. Also monitors economic development and provides advice to developing nations.

General Agreement on Tariffs and Trade (GATT)

World Trade Organization (WTO)

Economic Institution Purpose

World Bank Offers loans and advice to developing nations

International Monetary Fund (IMF)

Promote international monetary cooperation and encourages global economic growth. Also monitors economic development and provides advice to developing nations.

General Agreement on Tariffs and Trade (GATT)

Signed in 1947 to expand world trade and reduce tariffs.

World Trade Organization (WTO)

Economic Institution Purpose

World Bank Offers loans and advice to developing nations

International Monetary Fund (IMF)

Promote international monetary cooperation and encourages global economic growth. Also monitors economic development and provides advice to developing nations.

General Agreement on Tariffs and Trade (GATT)

Signed in 1947 to expand world trade and reduce tariffs.

World Trade Organization (WTO)

To set up global rules to ensure that trade flows as smoothly and freely as possible.

World Bank building in

Washington, D.C.

Members of the IMF

What are problems with What are problems with global trade?global trade?

Outsourcing exploits poorer Outsourcing exploits poorer populations.populations.

Nations that try to meet Nations that try to meet international demands may start international demands may start specializing (focusing only on high-specializing (focusing only on high-value commodities).value commodities).

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How does global trade How does global trade benefit the world?benefit the world?

What are benefits to What are benefits to global trade?global trade?

1. Variety in goods and services1. Variety in goods and services 2. Competition ensures low prices2. Competition ensures low prices 3. People are exposed to new ideas, 3. People are exposed to new ideas,

technology, and communicationstechnology, and communications 4. Profits can be used to improve 4. Profits can be used to improve

citizens’ livescitizens’ lives 5. Nations involved tend to be more 5. Nations involved tend to be more

democraticdemocratic