Social Studies 10-1 Unit 3 Presentation PDF

Social Studies 10-1 Unit 3: Economic Globalization To what extent does globalization contribute to sustainable prosperity for all people? What is Economic Globalization? Movement of goods and services around the world Increasing interdependence of world economies What is Economic Glo...

Social Studies 10-1 Unit 3: Economic Globalization To what extent does globalization contribute to sustainable prosperity for all people? What is Economic Globalization? Movement of goods and services around the world Increasing interdependence of world economies What is Economic Globalization? What goods are produced in other countries that are available in Canada? Aspects of Economic Globalization A good force or bad? Global interdependence does not benefit everyone equally and has created problems for many. Our world is more interdependent than ever; this may be a good thing because it promotes peaceful resolution to problems Globalizing trends can cause an exclusion of an entire industry or country, which is problematic.  Factors that affect a global economy - Famine - Natural disasters - Changes in investors’ confidence - War - Economic uncertainty - Government economic policies - Price changes for non-renewable energy Multinational Corporations Companies that operate in more than two countries; often larger (and more powerful) than national governments Instability in the marketplace?- Problems in one country may affect others because of the independence of manufactured goods Foundations of Contemporary Globalization Guiding Question: What events in the 20th century shaped globalization? How did 20th Century World Events Shape Contemporary Globalization? World War One (1914 to 1918) Pitted major empires against each other Triple Alliance- Germany, Austria-Hungary, Italy Triple Entente- Britain, France, Russia How did 20th Century World Events Shape Contemporary Globalization? World War One (1914 to 1918) War to end all wars- Total War- all nations allocated every resource to winning the war How did 20th Century World Events Shape Contemporary Globalization? The Horrors of War 15 million soldiers killed Quick victory was expected by all powers- but it soon turned into a long drawn-out conflict (stalemates) Canadian Soldiers “over the How did 20th Century World Events Shape Contemporary Globalization? Economic Costs of War Large portions of Europe were destroyed Russia dealing with a civil war (rise of communism) Allied European (Britain, France and Russia) nations forced to borrow money; largely from the US International trade brought to a standstill; manufacturing in Europe dropped drastically  The Peace- The Treaty of Versailles, 1919 The peace treaty was supposed to create a lasting peace and solve global conflicts Woodrow Wilson (US President)- Fourteen Points for Peace Self-determination- all ethnic groups should determine their own fate Countries under imperial control demanded separation- Canada had her own representation at the peace signing Reparations- money paid by the defeated powers, such as Germany, to the victors Germany was punished- lost territory in Europe, areas occupied by the allies, lost all colonies, and had to accept sole responsibility for the war Effect of the war on Canada Casualties- 66,000 died; many times more wounded Very expensive- “temporary” taxation methods introduced to fund the war (income tax) Women demand better representation- had worked in the factories because men were needed to fight The Russian Revolution In 1914, the Russian Empire ruled 150 million people of 100 different ethnic backgrounds Economy was the worst of all major empires in Europe; could not handle the strains of the war The Russian Revolution Huge number of war dead- 4 million Czar Nicholas II- overthrown by communists; civil war broke out In 1922- the communists secure power  Roaring Twenties Europe was recovering. USA was thriving! 1920’s in the West was a period of rapid economic growth and social change- known as the “Roaring Twenties” Explosion of the stock market/ market crash Explosion of the stock market/ market crash New York Stock Market goes down (Tuesday, October 29th) Caused a panic; people try to sell stock, driving prices down Led to a market crash Started a chain reaction across the world Government Response Governments across the world implemented tariffs (tax) in an attempt to encourage national industry International trade dries up, causing further problems The Depression in Canada Unemployment rises to 26.6% Exports fall by 50% Prairies- grain prices fell; suffered a severe drought World War II (1939 to 1945) Depression in Europe allowed extremist leaders to come to power Benito Mussolini- Italy Adolf Hitler- Germany Felt wronged by the peace treaties signed in 1919 Hitler Convinced that Germany should control the world as the “master race” Began expanding Germany’s borders in Europe Britain and France followed a policy of appeasement which meant giving Hitler what he wanted to avoid war Germany then invades Poland - Britain and France forced to intervene Canada declares war against Germany shortly after World War II Estimated dead- 60 million (civilians and military) The Soviet Union (USSR) The first communist state Joseph Stalin was leader during WWII He attempted to modernize Russia with his 5-Year Plans – he wanted to make the Soviet Union an industrial powerhouse. Joseph Stalin- secured rule in 1929- ruled as an absolute dictator Hitler decided to invade anyways - Operation Barbarossa Stalin and his Red army resisted and were eventually victorious at the Battle of Stalingrad USSR largely responsible for liberating Eastern Europe Created problems in a post world-war world because the two emerging superpowers (the USA and USSR had completely opposed ideologies)  Canada and WWII 45,000 Canadians died, 54,000 wounded More balanced war- Canada built up army, air force and navy and developed new industries (automotive, aero, ship building) Ended the Depression- government spending skyrocketed and women again took over Bretton Woods Agreement 44 Allied countries meet in Bretton Woods, New Hampshire, USA in 1944 Purpose was to discuss a post war economic agreement Bretton Woods Agreement Established a system of rules, institutions and procedures for the postwar global economy Effectively established a new international monetary system to promote international trade and regulate currency (money) among Western countries Bretton Woods Agreement Support countries where the people want to choose their own government (democratic) Encourage international trade Protect small countries from larger ones Make sure the world’s oceans are free - international waters This created the United Nations (UN) Bretton Woods Agreement led to the creation many International Organizations The World Bank The International Monetary Fund (IMF) General Agreement on Tariffs and Trade (GATT) (later became the World Trade Organization or WTO) Bretton Woods Agreement led to the creation many International Organizations The World Bank and the International Monetary Fund (IMF) Pg 228, Figure 9-17 Hoped to create rules which would support international trade; provided loans to countries in financial difficulty Supporters argue they have brought peace and prosperity Critics argue they have too much control and influence; to get loans, countries must meet certain political and economic conditions  General Agreement on Tariffs and Trade (GATT) Signed in 1947- established rules governing trade, especially by removing tariffs and other barriers to trade Led in 1995 to the World Trade Organization (WTO) which almost all countries in the world currently belong Group of 8 (G8) An informal group of eight major industrialized countries Canada, France, Germany, Italy, Japan, Russia, United Kingdom, United States Is not an institution like the World Trade Organization or the United Nations but does play an important role in global government because it is able to influence official global institutions Collectively, the G8 have nearly 50 percent of the vote in the World Bank and the International Monetary Fund The welfare State John Maynard Keynes Promoted government intervention in the economy in order to prevent future economic crisis Suggested government had to protect the economic well-being of a country Capitalism Friedrich Hayek Disagreed with Keynes Promoted the idea that government should not be involved in the economies of countries The economy is managed best by individuals and private businesses Capitalism Milton Friedman Moving towards a market economy- little government intervention In tough times, individuals should not rely on the government Need to learn to adapt to the changes in the market and in the demand for their goods and services Market forces will naturally guide the economy Summary: What events in the 20th century shaped globalization? Expanding Economic Globalization  Trade Liberalization Reducing trade barriers so that goods and services can move around the world easily. Expanding Economic Globalization Technology plays an important role in the expansion of global trade. A typical consumer product is designed, developed, manufactured, and assembled by a host of companies, which may be located practically anywhere in the world. Governments encourage foreign products and investment to enter their country. In exchange, businesses and industries in their country have the opportunity to sell goods in international markets. The North American Free Trade Agreement (NAFTA) Started as a free trade agreement between Canada and the United States that was later expanded to include Mexico Came into force on January 1st, 1994 Most economists would suggest NAFTA has been beneficial to all countries involved but critics suggest it is harmful and surrenders too much sovereignty  The EU Free trade among its members was one of the EU's founding principles, and it is committed to opening up world trade as well. Chocolate Documentary https://drive.google.com/drive/folders/1KyyQ8Nlh7FMv 2laK2CPwmejLdEjwHRuV https://drive.google.com/drive/folders/1KyyQ8Nlh7FMv 2laK2CPwmejLdEjwHRuV https://drive.google.com/drive/folders/1KyyQ8Nlh7FMv 2laK2CPwmejLdEjwHRuV https://drive.google.com/drive/folders/1KyyQ8Nlh7FMv 2laK2CPwmejLdEjwHRuV Transportation Containerization – the transporting of goods in standard-shipping containers. Containers are shipped along clearly defined routes to large terminals at strategic locations around the world. Delivery system – goods will be delivered directly to factory floors and even to the homes of customers. Technology and Media Technology and media have impacted the way businesses and individuals sell and advertise their products. E-Commerce Electronic Commerce- allows consumers to purchase goods without being limited to going to a store Dramatically increase form of trade Limited to those who have access to technology (i.e. in developed nations) Developing countries lack the infrastructure to participate Sometimes the access is available, but national governments wish to limit access to information services on the internet (i.e. China) Transnational Corporations Operates in two (or more often called a multinational) countries Large increase of Trans or Multinational companies because of the liberalization (the removal or reduction) of trade rules Increase profits by centralizing production and selling to a variety of different markets Over half from five countries: The US, Japan, France, Britain, and Germany The Influence of TNC’s Transnationals dominate key parts of the economy Control most of the world’s energy and extract most of its mineral resources. An estimated 85% of the world’s grain supply is controlled by only 6 companies. The ability of transnationals to move their operations around the world means that governments must compete to attract their business. Some governments use strategies like reducing taxes, selling natural resources at low prices, and adopting policies that translations will find helpful Transnationals are exceptionally powerful and, in some cases, actually have more decision making power than the government. Transnationals and poverty reduction: One way to reduce poverty in developing countries is to invest in business and infrastructure, such as power grids and transportation facilities. In the past, money for this would come through foreign aid by governments of wealthy nations, but now, the money comes from private companies. Today, 75% of investment in developing countries comes from the private sector, especially TNC’s. Some countries have massively benefitted from this (India and South Korea), but others have not. Smaller countries have a hard time attracting private investors and even when they do, poverty remains a persistent problem. 1-800 India  30 min 1-800 India (Part 1)  30 min 1-800 India (Part 2) Anti-Globalization Movement  A social movement that is critical of economic globalization  Referred to as the global justice movement  Supporters feel transnational corporations have too much influence and are negatively affecting wages, the environment, work conditions and national sovereignty Anti-Globalization Movement Supporters feel multinational corporations have too much influence and are negatively affecting wages, the environment, work conditions and national sovereignty Talisman Energy- A Canadian Transnational Energy producer- Oil and natural gas Actively explores the world for energy reserves Focuses in Western Canada and the North Sea Talisman Energy- A Canadian Transnational Criticized for supporting the Sudanese government because it wanted to develop oil reserves in the Sudan The Sudanese government is accused of genocidal acts against ethnic minorities Talisman Energy- A Canadian Transnational Criticized for supporting the Sudanese government because it wanted to develop oil reserves in the Sudan Pressure from Non- Governmental Organizations forced Talisman to sell its Sudanese operation Talisman Energy- A Canadian Transnational Criticized for supporting the Sudanese government because it wanted to develop oil reserves in the Sudan Talisman was acquired by Repsol (a Spanish global energy company) in 2015 Political and Economic Challenges and Opportunities of Globalization Guiding Question: What are the challenges and opportunities of globalization? What Political and Economic Challenges and Opportunities are Associated with Globalization? The increasing globalized world and the speed of communication means concerns in other countries are affecting us more and more (and quicker) Increasingly, governments are taking a “hands off” approach to economic management “Capitalism” Trade Liberalization Another way to encourage economic growth is through trade liberalization Trade liberalization or free trade is trade between countries with relatively few restrictions Barriers to free trade include- tariffs (taxes), quotas, regulations, standards The North American Free Trade Agreement (NAFTA) is an example of trade liberalization  Economic Growth and Sustainable Prosperity Economic competition is increasing with in the globalized world Economic growth is the increasing a country’s Gross Domestic Product (GDP) increase year-to-year Economic Growth and Sustainable Prosperity Gross Domestic Product (GDP) - the total value of goods produced and services provided in a country during one year Privatization  Governments may decide to increase economic growth through privatization  Privatization is when a publicly run business is sold to a private company Governments are often viewed as a poor business operator – can easily mismanage money  Pros: - Lower taxes because many social services are no longer provided by the government - Increased competition from privatization improves the quality of goods and services and leads to lower prices - Promotes self-interest, and entrepreneurial spirit  Cons: - Private companies are driven by profit, which can actually increase the cost of a service - Government social services meet the needs of all citizens, not just those who can afford it (e.g. Health care) - Promotes greed and a bigger disparity gap between rich and poor Vs Privatization Often increases the services provided Criticized as more expensive because a profit must be generated Monopolization often an issue- should important industries be controlled by large multinational corporations? Privatizing Water 1 billion people in the world do not have access to clean water Currently, about 1.8 million children die every year due to the diseases cause by unclean drinking water and poor sanitation. Should clean water be a basic human right? Currently, some of the world’s poorest countries are paying some of the highest prices for water. The UN believes water should not be a commodity as it is critical to human survival. Foreign Investment Positives of Foreign Investment Foreign investors infuse capital for development that may not otherwise have been available Provides jobs Increases tax base Negatives of Foreign Investment  Foreign control over important industries  Profits do not remain in the country Outsourcing Refers to the movement of factories and production out of countries with high labour costs (generally developed nations) to countries with lower labour costs (generally developing countries) Sweatshops Associated with large transnational companies (TNC’s) that employee low skilled workers who are paid below average wages Sweatshop workers receive few or no benefits and are sometimes physically or sexually harassed on the job Workers are frequently women or children who have few alternatives Often the good produced by sweatshops are sold to  21 min Nike Sweatshops: Behind the Swoosh  3 min The Clothes on Our Backs  Knowledge Economy  One way to encourage economic growth is through investment in the knowledge economy  Includes businesses who do research, education, develop ideas and collect information  Tend to be environmentally friendly  Occur in the developed world; requires an advanced education base Knowledge Economy New technologies like robotics or artificial intelligence are relatively new technology that decrease costs and removes human involvement from dangerous or repetitive tasks Summary: What are the challenges and opportunities of globalization? Guiding question: Is globalization sustainable? Curricular terms introduced: sustainability resource development stewardship spirituality What does Sustainability mean? Sustainability- can be maintained into the future Human impact on the environment What does Sustainability mean? Ecological Footprint- represents the area of the planet (i.e. the resources) required to sustain a group of people 30% of the world’s population consumes 90% of the world’s resources  Ecological Footprint Earth’s resources are not shared equally Scientists use the term ecological footprint to describe the load people impose on nature. An ecological footprint represents the area of the earth’s surface necessary to sustain the level of resources you use and the waste you create. The ecological footprint of an individual or group is a measure of how much biologically productive land and water resources are needed to keep them alive. Canada 7.25 hectares per person Compared to Bangladesh’s footprint, which is 0.6 hectares per person This is problematic because Bangladesh has an exceptionally larger population, lower GDP, life expectancy and greater population density than Canada. Resource Development- Canadian’s Use of Resources 55%- Energy Land (4.00 ha)- forest resources required to absorb excess carbon dioxide generated by Canadians 19%- Crop Land (1.39 ha)- land used to grow food 16%- Forest Land (1.14 ha)- trees required to generate disposable products used by Canadians 5%- Built-up Area (0.37 ha)- land required to build homes and businesses 3%- Pasture Land (0.21 ha)- grazing land used to produce animal based foods 2% (0.14 ha)- Sea Space- area used to create seafood and fish products The Resource Gap  World resources= 1.89 hectares/ person  On average 2.8 hectares/ person is used  Many people have to do without adequate resources; this is called the resource gap  We are using resources that need to be set aside for the future.  At some point, the earth will not be able to sustain the basic necessities needed to support life. The Resource Gap We are using resources that need to be set aside for the future (debt); the difficulty is how to repay debt Stewardship- accepting responsibility for the proper use of resources to ensure a future supply Population Growth World population in 1950- 2.3 billion World population in 2017- 7.6 billion By 2025 the estimated world population will be 9 billion Growth will be most dramatic in developing nations; these countries have the least ability to access resources  5 min World Food Program Spirituality Can profoundly affect people’s values, morals and ways of life People’s relationship to nature is often reflected through spirituality Spirituality One’s outlook on resource development and economic growth can be shaped by spirituality Summary: Is globalization sustainable? The Impact of Actions and Policies Associated with Globalization on the Environment Guiding question: What is the environmental impact of globalization? Shipping and the Environment  Consumes 3% of the world’s fossil fuels  Releases 15% of nitrogen and sulfur dioxide  For ship ballasts, seawater is used; will take in sea animals and becomes toxic in the ships ballast tanks, mixes with other chemicals and metals Ballast often transports unwanted animals into new environments Where Ships Are Built Ship building is very labour intensive Because labour costs lower in Asia; ship building has shifted to there Shipbuilding Heavy Industry Co., Tianjin, Xingang Flags of Convenience Merchant ships are often registered in countries other than where the company is based Canadian Steamship Lines (former Prime Minister Paul Martin’s company)- Most of the ships are registered in other countries, not Canada Flags of Convenience Much lower costs- many countries attract shipping because they have lower labour regulations, taxes and registration fees FOC- Flags of Convenience DWT- Dryweight Tonnage Disposing of Old Ships Old ships need to be disposed of Contain valuable metals that can be recycled Disposing of Old Ships Ship Breaking- the process of breaking apart and old ship for its useful materials Disposing of Old Ships Most often done in developing countries (lower labour costs; fewer environmental regulations)  5 min Where Ships go to Die Disposing of Old Ships Disposing of old ships is dangerous Contain toxic metals and other materials Environment- material released (ballast) People- workers exposed; many deaths occur from being exposed to toxic material Need for greater responsibility for the disposal of ships Have efforts to Promote Sustainability Been Successful? Paris Agreement, 2015 An agreement within the United Nations Framework Convention on Climate Change (UNFCCC) The agreement attempts to limit global warming to 2⁰C above pre Have efforts to Promote Sustainability Been Successful? Paris Agreement, 2015 195 countries have signed the agreement; 168 have ratified (approved) it Each country plans and reports its own contribution to slow and then stop global warming Have efforts to Promote Sustainability Been Successful? Paris Agreement, 2015 In June 2017, President Donald Trump announced the United States would withdraw from the agreement Climate Change and Sustainable Prosperity Climate change linked to the dramatic increases in the use of fossil fuels Increasing concern as developing nations industrialization (I.e. China and India) Increase could be as much as 10ºC to 15ºC in the next 20 years The people most affected will be those in developing nations Climate change claims are controversial and challenged by many Have efforts to Promote Sustainability Been Successful? Alberta Tar Sands Contain massive energy reserves- 150 to 500 billion barrels of oil Massive energy requirements need to extract oil (electricity, natural gas, oil) Suncor Mine near Fort McMurray Have efforts to Promote Sustainability Been Successful? Alberta Tar Sands Greenhouse gases released Environmental damage to area being mined Suncor Mine near Fort McMurray  6 min Tar Sands/ Oil Sands Have efforts to Promote Sustainability Been Successful? Alternate Energy Sources Development of energy sources which are less damaging (solar, wind, tidal, geothermal power) Very expensive; few incentives to develop (i.e. tax breaks); reliability often an issue Have efforts to Promote Sustainability Been Successful? The Alberta Carbon Tax Provides a financial incentive for families, business and communities to lower emissions A carbon ‘levy’ is charged on all fuels that emit greenhouse gas emissions ($30/ Have efforts to Promote Sustainability Been Successful? The Alberta Carbon Tax Rebates are provided for individuals who earn less that $47,500/ year or families that earn below $95,000/ year Revenue from the carbon levy (which the government expects to raise to $5.4 billion) are invested in renewable energy and green initiatives Have efforts to Promote Sustainability Been Successful? Individual Initiatives Often success is reached by individual action (i.e. putting solar panels in homes) Consumer decisions will decide the future If demand increases for energy friendly devices, industry will respond Summary: What is the environmental impact of globalization? Perspectives on Sustainability and Prosperity in a Globalized World Guiding question: How can sustainable prosperity be achieved? Curricular terms introduced: sustainable prosperity What is Sustainable Prosperity? Future- stewardship of the land and resources to allow future generations an equivalent lifestyle as our own Trade- allow equal access to resources by liberalizing trade (making it easier) and allowing developing nations to develop economically United Nations- uses the term Sustainable Development to incorporate both ideas Sustainable Development- development that meets the needs of the present but also takes into consideration the needs of future generations Sustainable Prosperity and Global Interdependence Can cause difficulties when economic development clash with political or social issues For instance, movement of manufacturing will increase standards of living in other countries, but may reduce standards of living in others Measures of Prosperity- money versus happiness Gross Domestic Product (GDP) describes the value of all the goods and services produced in a country used to measure the size and health of a countries economy income and standard of living tied to GDP; the higher the GDP, the higher the standard of living (some exceptions) includes all people in a country, even those not directly generating resources (such as children) The Human Development Index (HDI)  Uses various factors to determine the quality of life of the population of a country  Includes average life span, access to education, access to healthcare, access to clean water, government corruption, average income, access to safe food  Norway ranks first on HDI and Canada ranks sixth as of 2006.  3 min Canada’s Quality of Other Measures Gross National Happiness (GNH) index developed in Bhutan by King Wangchuk based on Buddhist spiritual values Genuine Progress Index (GPI) measures sustainability, well-being and quality of life concerns like the environment are given more importance What Choices are Associated with Sustainable Prosperity? Prosperity tied to choice; how do individuals, communities and nations decide what is the best path to take? Millennium Development Goals  Eradicate extreme hunger and poverty  Achieve universal primary education  Promote gender equality  Reduce child mortality  Improve maternal health  Combat AIDS/HIV and other diseases  Ensure environmental sustainability Develop a global partnership for development  Raise the standard of living for the poorest people in the world Summary: How can sustainable prosperity be achieved?