Globalization and Economic Impacts PDF

To what extent does globalization contribute to sustainable prosperity for all people? General Outcome #3  Economic Globalization: The spread of trade, transportation and communication systems around the world in the interests of promoting worldwide commerce ...

To what extent does globalization contribute to sustainable prosperity for all people? General Outcome #3  Economic Globalization: The spread of trade, transportation and communication systems around the world in the interests of promoting worldwide commerce Updated Numbers: According to stats Can, 22% of Alberta Agriculture Sector Alberta’s GDP is made up of 2022 Exports were valued at Mining, Quarrying and Oil and $16.1 Billion Gas GDP-Gross Domestic Product total monetary value of all final goods and services produced (and sold on the market) within a country 2023 Alberta’s GDP was $344.1 Billion  1.War 2.Economic Uncertainty: Caused by collapse of major industry, depletion of natural resources, political change 3.Famine 4.Gov’t Economic Policies: Tariffs, Trade Regulations Factors that Affect the Global Economy This Photo by Unkno wn Author is licensed under CC BY-ND  5) Price change for non-renewable energy: Oil and Natural Gas 6) Investor’s confidence 7) Natural Disasters This Photo by Unkno wn Author is licensed under CC BY The World Bank and the International Monetary Fund *Both WB & IMF were mapped out at the Bretton Woods Meetings (Held in New Hampshire, USA) *Bretton Woods Conference was funded by the newly made United Nations *Held in July 1944 *Conference hoped to agree on rules regarding international trade and to avoid another world war VENN DIAGRAM Let’s Create Left Circle Title: World Bank (Seven Points) 1.Head of Bank (appt by US Gov’t) 2.Owned by Gov’t of its Goals: 1.To lend money to help war-torn countries rebuild 2.To speed up industrialization 3.To help countries develop their natural resources 4.To negotiate long-term loans 5.To increase growth in developing countries Right Circle Title: International Monetary Fund (IMF) 1.Head is nominated by E.U. 2.More Money = More Votes Goals: 1.To set international exchange rates 2.Economic stability and promote foreign trade 3.Provide emergency short-term loans 4.To promote good governance  Middle Circle Title: BOTH WB & IMF 1.H.Q. in Washington, D.C. 2.189 Member Countries 3.Established by international treaty to help countries in economic trouble 4.Under the control of the UN Goals: 1.To help countries get back to financial stability 2.To govern international trade and finance G7 (1974) G20 (1999) *Heads of State meet annually  Economic Globalization TimeLine *Groups-Please put the events in order MODERN GLOBALIZATION *North/South divide *15% of world’s people control 85% of the world's wealth *now the rise of China and India as major economic players WORLD WAR I “War to End all Wars” GREAT DEPRESSION *‘Dirty Thirties *Economic Crisis in Europe *Germany hyperinflation RISE OF DICTATORSHIP *Mussolini, Hitler, Stalin all rise to power in Europe *Political exploitation of terrible post- WWI conditions *Treaty of Versailles ROARING TWENTIES *Boom times in Canada and the US *Economic crisis in Europe *German hyperinflation UNITED NATIONS *Goal of Collective Security *Rebuilding of war-torn countries *Help with decolonization END OF THE COLD WAR *Berlin Wall comes down *collapse of the Soviet Union *Capitalism prevails over communism GROUP OF 7(8) *the G7(8)-strongest political economic nations meet annually to set global policy WORLD WAR II *Massive devastation to Europe and Russia, Japan *Post-war prosperity in Canada, USA BRETTON WOODS CONFERENCE *Institutions to guide global economy and rebuilding *GATT/WTO, IMF, World Bank FREE TRADE *Free trading blocs set up *European Union *NAFTA North Atlantic Treaty Organization  1 WORLD WAR I “War to End all Wars” 2 ROARING TWENTIES *1920s Boom times in Canada and the US Correct *Economic crisis in Europe *German hyperinflation 3 GREAT DEPRESSION *1930s ‘Dirty Thirties *Economic Crisis in Order: Europe *Germany hyperinflation 4 RISE OF DICTATORSHIP *Mussolini, Hitler, Stalin all rise to power in Europe *Political exploitation of terrible post-WWI conditions *Treaty of Versailles 5 WORLD WAR II *Massive devastation to Europe and Russia, Japan *Post war prosperity in Canada, USA 6 BRETTON WOODS CONFERENCE 1944 *Institutions to guide global economy and rebuilding *GATT/WTO, IMF, World Bank 7 UNITED NATIONS 1945 *Goal of Collective Security *Rebuilding of war torn countries *Help with decolonization 8 GROUP OF 7(8) *Born in 1975-76 the G7(8)-strongest political economic nations meet annually to set global policy 9 END OF THE COLD WAR *1989 Berlin Wall comes down *1992 collapse of the Soviet Union *Capitalism prevails over communism 10 FREE TRADE 1990s *Free trading blocs set up *European Union *NAFTA North Atlantic Treaty Organization 11 MODERN GLOBALIZATION *North/South divide *15% of world’s people control 85% of the world's wealth *now the rise of China and India as major economic players World Trade Organization 1995 Goal: Increase international (WTO) WTOExplained trade by lowering trade barriers Ensures terms of trade agreement are followed  Trade Liberalization: To expand globalization and trade goods and services Free Trade: When two countries agree to eliminate all tariffs and taxes In theory, free trade is reciprocal Business can sell their goods or services in another country Creates jobs, reduces cost to consumer This Photo by Unkno wn Author is licensed under CC BY-SA-NC Sweatshops a factory or workshop, especially in the clothing industry, where manual workers are employed at very low wages for long hours and under poor conditions. 5min Video-Fast Fashion Fantastic article regarding collaspe of the Rana Plaza collaspe in 2013 BangladeshFactoryCollapse ThePhoto by PhotoAuthor is licensed under CCYYSA. North American Free trade agreement (NAFTA) US-Mexico-Canada agreement (UMC) Jan 1st 1994 Agreement between Canada U.S.A. Mexico https://www.youtube.com/watch?v=LaMCK- Sec7Y (2min Video by CNN) https://www.cbc.ca/player/play/video/9.6574684 5min Clip regarding 25% tariffs How well do you know IMPORTS and EXPORTS of Mexico, Canada, USA? Canada USA Mexico Exports - partners Exports - partners Exports - partners US 75%, China 4%, Japan 2%, UK 2%, Mexico 1% Canada 16%, Mexico 15%, China 8%, Japan 4%, US 77%, Canada 4%, China 2%, Taiwan 1%, South (2022) UK 4% (2022) Korea 1% (2022) note: top five export partners based on percentage note: top five export partners based on percentage note: top five export partners based on percentage share of exports share of exports share of exports Exports - commodities Exports - commodities Exports - commodities crude petroleum, cars, natural gas, refined refined petroleum, crude petroleum, natural gas, cars, computers, vehicle parts/accessories, crude petroleum, gold (2022) cars, integrated circuits (2022) petroleum, trucks (2022) Imports - partners Imports - partners Imports - partners US 56%, China 11%, Mexico 4%, Germany 3%, China 18%, Canada 14%, Mexico 14%, Germany US 56%, China 17%, Germany 3%, South Korea Japan 2% (2022) 5%, Japan 4% (2022) 3%, Japan 2% (2022) note: top five import partners based on note: top five import partners based on note: top five import partners based on percentage share of imports percentage share of imports percentage share of imports Imports - commodities Imports - commodities Imports - commodities cars, refined petroleum, vehicle crude petroleum, cars, broadcasting equipment, refined petroleum, vehicle parts/accessories, parts/accessories, trucks, crude petroleum (2022) garments, computers (2022) machine parts, integrated circuits, natural gas (2022)  Cash Crops Cash crops are agricultural crops that are planted for the purpose of selling on the market or for export to make profit, as distinguished from crops planted for the purpose of the family. https://www.youtube.com/watch?v=p7MP9fqfd5Y 5min Explanation ThePhoto by PhotoAuthor is licensed under CCYYSA. Test your cash crop knowledge! Brazil Match the Cash Crop to the Country Ghana Senegal Coffee Sudan Bananas Pineapple Honduras Soyabean Mexico Cocoa Ethiopia Cotton Thailand Tomatoes Peanuts  How well do you know your cash crops? Coffee-Ethiopia Pineapple-Thailand Cocoa-Ghana Tomatoes-Mexico Bananas-Honduras Soyabean-Brazil Cotton-Sudan Peanuts-Senegal ThePhoto by PhotoAuthor is licensed under CCYYSA.  Transnational Corporations Transnational corporations reduce costs and increase profits by building factories, service centres, and retail outlets in various countries. They do this to ensure that they have the resources and parts needed to manufacture their products a steady, reliable source of labour markets where they can sell their goods and services 2002 >65,000 TNC TNC Toyota What's the difference? GDP, PPP, GNH GDP: Gross Domestic Product PPP: Purchasing power parities (PPPs) total monetary value of all final goods and are the rates of currency conversion that services produced (and sold on the market) try to equalize the purchasing power of within a country different currencies, by eliminating the differences in price levels between countries GNH: Gross National Happiness https://www.youtube.com/watch?v=e9Wf7TqJMkU Its purpose is to measure how prosperous a country is by focusing on the happiness and well-being of its citizens Happiness is measured using six categories including GDP per capita, social support, and healthy life expectancy, among others.  Let's Research and Compare! Open up D2L Assignment Check out the websites provided (make note of them) and answer the questions.  An economic model of price determination in a market Supply and Demand Supply & Demand 1) If the demand goes up. What happens to supply and what happens to price? 2) If the price goes up. What happens to demand? What happens to supply? 3) Supply goes up. What happens to price? What happens to demand? European Union 1991 Goods, services, money and people can move easily from one country to another Tied countries more closely together and replaced national currencies with the euro 27 members https://www.youtube.com/watch?v=9eufLQ3s ew0 (5.30 Video) https://europa.eu/european-union/index_en Belt and Road Initiative The Belt and Road Initiative (BRI) is a plan by the People's Republic of China to connect Asia, Africa, and Europe through land and maritime networks. Goals: Improving regional integration Increasing trade Stimulating economic growth Facilitating connectivity Enabling unimpeded trade Promoting financial integration Fostering people-to-people bonds The BRI has been met with some concerns, including: Debt sustainability: Some countries have struggled to repay loans. Environmental degradation: Some project areas have experienced environmental degradation. Debt-trap diplomacy: Critics worry that China could use its leverage as a lender to extract concessions, such as on territorial disputes or human rights violations. Harming US economic interests: Some US experts claim that the BRI harms US economic interests by failing to follow international standards and employing corrupt practices.  United Nations Founded in 1945, after WWII 193 member states One place where the world's nations can gather together, discuss common problems and find shared solutions https://www.youtube.com/watch?v=E67ln5yJtyE 2min Brief Video https://www.youtube.com/watch?v=E67ln5yJtyE