1. A GLOBALIZED WORLD
Globalization:
the development of an integrated
global economy marked by free trade
and the opening of cheaper labor
markets
http://www.one.org/us/2014/03/13/8-maps-
that-will-change-the-way-you-look-at-africa/
2. INTERDEPENDENT GLOBAL ECONOMY
Developed: Developing:
Interdependent: what happens in one part of the
world has an effect on other areas
•Countries work together for the benefit of all
•Dependent on
agriculture, low standard
of living
•Lack of technology
•Modern agriculture,
industry, technology,
educational system
3. A GLOBALIZED WORLD
1. What are the costs to Gus for opening his factory?
Investment in equipment
Supplies (thread, cotton, tags, silkscreen, gas, trucks, tags)
Land
Taxes on Land
Labor Costs
Advertising
Shipping/transporting
Gus is an entrepreneur who lives in Great Britain, an industrialized country
with strict labor laws. He decides to invest in an underwear factory where he
will sell goods within his country.
4. A GLOBALIZED WORLD
2. Who will actually pay for those added costs? How
will that hurt Gus?
The Consumer
Higher prices =
Decrease consumer demand
Gus is an entrepreneur who lives in Great Britain, an industrialized country
with strict labor laws. He decides to invest in an underwear factory where he
will sell goods within his country.
5. A GLOBALIZED WORLD
3. What are some ways Gus could make more profit
from his underwear?
Cheaper materials
Cheaper wages
Decrease taxes
Smaller piece of land
Buy from different suppliers
Lessen advertising
What is the problem with most of these
solutions???
Gus is an entrepreneur who lives in Great Britain, an developed country with
strict labor laws. He decides to invest in an underwear factory where he will
sell goods within his country.
6. A GLOBALIZED WORLD
4. What are the benefits to Gus?
Cheaper materials
Cheaper wages
Decrease taxes
Cheap land
Less Expensive suppliers
More money for advertising
Gus decides to close his underwear factory in
his developed country and reopen it in a
developing country.
7. A GLOBALIZED WORLD
5. What are the positive effects of this move?
Cheaper consumer goods
More profit for Gus
Increase jobs better standard of living in developing
country
Expansion of new ideas
Better technology
“ ” medicine
Gus decides to close his underwear factory in
his developed country and reopen it in a
developing country.
8. A GLOBALIZED WORLD
6. What are the negative
effects?
Loss of jobs in developed country
Increase pollution and
environmental problems
Loss of tradition
Low wages, poor working conditions
Spread of disease
Gus decides to close his underwear factory in
his developed country and reopen it in a
developing country.
9. A GLOBALIZED WORLD
7. Does the developing country want Gus’ business?
Why or why not?
YES!
Business with better their economy strengthen the
government
Gus decides to close his underwear factory in
his developed country and reopen it in a
developing country.
10. A GLOBALIZED WORLD
8. What will the developing country do to
( ) Gus’ business?
Loosen labor laws
Lesson taxes on imports and exports
Decrease taxes
Gus decides to close his underwear factory in
his developed country and reopen it in a
developing country.
attract OR prevent
11. ECONOMIC ORGANIZATIONS
European Union (EU) North Atlantic Free Trade
Agreement (NAFTA)
Organization of American States
(OAS)
Association of Southeast Asian
Nations (ASEAN)
Expanded trade in Europe
by ending tariffs
Common currency,
education and immigration
laws
Lower trade barriers between
Canada, USA and Mexico
Encourage foreign investment
Formed in WESTERN
HEMISPHERE to solve
problems together (human
rights, poverty, terrorism, illegal
drugs, corruption)
East Asia countries coordinates
trade & agriculture
Example of regional cooperation
12. GLOBAL PROBLEMS: ENVIRONMENTAL ISSUES
Pollution:
contamination of the environment, including air,
water, and soil
Acid Rain:
rains falls through air that is contaminated by
pollution
Global Warming:
gradual rise in the temperature of the earth
(Greenhouse Effect)
Deforestation:
destruction of forests
Desertification:
change of arable (useable) land into desert land
(example: Sahara Desert in Africa)
Nuclear proliferation:
spread of nuclear energy/weapons (example:
Chernobyl, India & Pakistan, North Korea, Iran)
13. GLOBAL PROBLEMS: TERRORISM
The use of violence, usually against
civilians, to gain revenge or
achieve political goals (used by
groups without military power)
Recent Examples:
9/11 attacks (conflict between
extreme traditionalists and western
societies)
Black Hand, ISIS, Taliban, IRA,
Boka Haram
14. GLOBAL PROBLEMS: POVERTY
Result of urbanization and overpopulation (lack of food
and resources)
Shantytowns
15. GLOBAL PROBLEMS: HEALTH/MEDICINE
People living longer: infant mortality rates , quality of
life
Antibiotics
Vaccines
Transplants
Laser surgery
Challenges:
Genetic Engineering
New Epidemics: AIDS, SARS
Gap between developed and developing countries
16. MODERN GLOBAL REVOLUTIONS
Green Revolution
**INCREASING THE FOOD
SUPPLY**
Irrigation
Machinery
Fertilizer & Pesticides
New foods
Positive: food production;
develops new food products
Negative: depends on rainfall;
costly chemicals; small farmers
lose job
Computer Revolution
(Information revolution)
**GREAT INCREASE IN THE USE
OF COMPUTERS**
Internet; Social Media
Literacy
Positive: creates new jobs; links
people, businesses, nations;
makes more information available
Negative: expensive (only some
people can afford it); widens gap
between global North and South
17. AFRICA TODAY
African countries gained independence after WWII
Dependent on Europe for imports/manufactured goods
Obstacles to progress:
Population and poverty
Political problems
Economic dependence (on West)
Land and climate
Economic policies
Ethnic tension & Nationalism
Rwandan genocide, Darfur
18. LATIN AMERICA TODAY
Cash-crop economies unstable; dependent
on West
Argentina – democracy
Nicaragua – Sandinistas & Contras
Mexico – gap between rich & poor, social
classes, population and poverty, urban
growth
OAS (Organization of American States)
NAFTA (North American Free Trade
Agreement)
