This document provides examples of interconnectedness and interdependence in globalization across several topics: multinational corporations and their large economic power; measures of economic activity like GDP and changes over time; international trade agreements like NAFTA and OPEC setting oil prices; worldwide stock market crashes and oil crises affecting many nations; debt and poverty issues especially in the global south; the shift to more women in the workforce; privatization policies promoted by organizations like the World Bank; and the formation of trade alliances like GATT and the WTO to establish global trade rules.

1. Multinational Corporations
Gross Domestic Product (GDP)
The North American Free Trade
Agreement
Association of Southeast Asian
Nations
Organization of the Petroleum
Exporting Countries
Nixon Shock
Worldwide Stock Market Crash
1979 Oil Crisis
The 1980s Oil Glut
Supertankers
World Energy Consumption
Heavily Indebted Poor Countries
Global North – Global South
Newly Industrialized
Countries
First, Second, and Third
World Countries
Foreign Debt by Nation
Change in the U.S. Workforce
Women in the Workforce
Privatization
Forced Privatization
U.S. Exports and Imports
General Agreement on Tariffs
and Trade
The World Trade
Organization

2. On a sheet of notebook paper copy the following table…
Examples of
Interconnectedness and
Interdependence of
Globalization
Facts, people,
organizations, ideas,
statistics, etc… about each
example
Multinational Corporations 4-5 lines of space
GDP 4-5 lines of space
NAFTA 4-5 lines of space
Oil and OPEC 4-5 lines of space
Stock Markets 4-5 lines of space
Debt and Poverty 4-5 lines of space
WTO and Other Trade
Agreements
4-5 lines of space

3. Globalization is a relatively new term used to
describe a very old process.
It is a historical process that began with our
human ancestors moving out of Africa to spread
all over the globe.
In the millennia that have followed, distance has
been largely overcome and human-made barriers
lowered or removed to facilitate the exchange of
goods and ideas.
Propelled by the desire to improve one's life and
helped along by technology, both the
interconnectedness and interdependence have
grown.
This increasing integration of the world or
'globalization' has enriched life but also created
new problems.
What is Globalization?

4. History of Globalization
Globalization is an historical
process that began with the first
movement of people out of
Africa into other parts of the
world.
Traveling short, then longer
distances, migrants, merchants,
and others have always taken
their ideas, customs, and
products into new lands.
The melding, borrowing, and
adaptation of outside influences
can be found in many areas of
human life

5. Multinational Corporations
•A multinational corporation (MNC), also called a transnational
corporation (TNC), is a corporation or enterprise that operates in
more than one country.
•The assets of many MNCs are larger than small nations.

6. Gross Domestic Product (GDP)
World GDP 1995
GDP is the value of all goods and services
produced nationwide.
GDP per capita is the total value of GDP
divided by the total population.

7. The North American Free Trade Agreement
(NAFTA), signed January 1, 1994, is a trade
agreement between the governments of the United
States, Canada, and Mexico. It was negotiated
under the George H. W. Bush administration and
signed by President Bill Clinton.

8. OPEC is a cartel of twelve countries made up of Algeria,
Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, the United Arab Emirates, and Venezuela.
OPEC's mission is to coordinate and unify the petroleum
policies of member countries and ensure the stabilization of
oil markets in order to secure an efficient, economic and
regular supply of petroleum to consumers, a steady income to
producers and a fair return on capital to those investing in the
petroleum industry.
OPEC regulates the price of barrels of oil.
OPEC’s headquarters are in Vienna, Austria.
Organization of the Petroleum Exporting
Countries (OPEC)

9. 1. Algeria 2. Angola 3. Ecuador 4. Iran 5. Iraq 6. Kuwait 7. Libya
8. Nigeria 9. Qatar 10. Saudi Arabia 11. the United Arab Emirates
12. Venezuela
1
2
3
45
67
8
9
10 11
12
OPEC

10. Angola
Libya
Algeria
Iraq
Nigeria
Kuwait
Venezuela
Iran
Saudi Arabia
IndonesiaEcuador
Qatar
United Arab Emirates
OPEC
78%
NON-
OPEC
22%
World Oil Production of OPEC
and Non-OPEC Nations

13. 0
20
40
60
80
100
120
1946
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Nominal Adjusted
World Crude Oil Prices
Note: The price for 2009 is for January only.

14. Nixon Shock
“Nixon Shock” refers to monetary and
political policies of the Nixon presidency which
disrupted the world financial markets.
In 1971, President Richard Nixon removed
the U.S. from the Bretton Woods monetary
system.
He also stopped the exchange of U.S. dollars
for their equivalent in gold.
Nixon’s 1972 visit to China created
uncertainty in all Cold War relations.

15. From January 1973 to December 1974 the world experienced a
crash of all major stock markets.
The loss was blamed on Nixon Shock, the collapse of the Bretton
Woods agreements, the devaluation of the dollar, and the 1973 oil
crisis (see Middle East section).
In the U.S., the Dow Jones Industrial Average lost 45% of its value.
U.S. growth dropped from 7.2% to NEGATIVE 2.1%.
U.S. inflation rose from 3.4% to 12.3%.
The London Stock exchange fell 73%.
Worldwide Stock Market Crash
0
200
400
600
800
1000
1200
Dow Jones Industrial Average

16. 1979 Oil Crisis
The 1979 oil crisis in the United States was the result of an
oil shortage caused by the Iranian Revolution.
The new Iranian government was initially unable to
maintain oil production. A worldwide panic forced prices to
rise.
Other countries increased production, resulting in an oil
glut.

18. The T1 class double-hulled supertankers, with
extra space between hull and storage tanks,
are replacing single-hulled tankers for safety.
The Hellespont Alhambra supertanker, built in
Korea, can carry approximately 440,000 tons
of crude oil.
The supertanker Knock Nevis, built in Japan in
1979, is the world’s longest ship. At
458.45 meters, it is longer than the Empire
State Building. It is now permanently moored
as a floating production storage and
offloading center in Bahrain. It can carry over
564,00 tons of crude oil.
The largest ships by gross tonnage ever
constructed were four Batillus-class
supertankers built in France in 1976. At 414
meters in length, they could carry over
555,000 tons of crude oil. They have all been
scrapped.
SUPERTANKERS

19. World Energy Consumption

20. OIL, 37.0%
COAL, 25.0%
GAS, 23.0%
N
U
C
LEA
R
,6.0%
B
IO
M
A
SS,4.0%
HYDRO, 3.0%
SOLAR, 0.5%
WIND, 0.3%
World Energy Use

21. Heavily Indebted Poor Countries (HIPC)
Many developing countries have very large debts.
The world-wide recession caused by the oil crisis made many
countries unable to pay their debt.
Debt must be repaid in “hard currency” such as U.S. dollars,
euros, Swiss francs, or Japanese yen.
In 1999, 128 million dollars a day were transferred from the
poorest countries to the richest countries for debt payments.
According to one estimate, at least 7 million children die each
year because of poverty created by national debts.

22. Map of HIPCs
Countries qualifying for full HIPC relief
Countries qualifying for partial HIPC relief
Countries eligible for HIPC relief
(IMF and World Bank designations)

23. Foreign Debt by Nation
All nations have foreign debt. Many of the developed nations
have the largest debts.

24. Global North – Global South
Map of economic disparity
between rich and poor nations
Advanced economies
Emerging and developing economies (not least developed)
Emerging and developing economies (least developed)
- Classifications by the IMF and the UN

25. Newly Industrialized Countries

26. First, Second, and Third World Countries
First World: the United States and its allies.
Second World: the former Soviet Union and its allies.
Third World: Non-aligned and neutral countries.
These terms applied during the Cold War Era.

27. 0
10000
20000
30000
40000
50000
60000
70000
80000
1950 2000
MEN WOMEN
Change in the U.S. Workforce, 1950 to 2000
(numbers in thousands)

28. Women in the Workforce: United States

29. Privatization
•Privatization is the process of transferring ownership of a
public enterprise (postal system, water network, gas
company, etc.) to the private sector.
•The largest privatizations in the UK were British Telecom in
1984 and British Gas in 1986.
•The largest privatization in France was France Telecom in
1998.
British Telecom BT Group
France Telecom now operates worldwide

30. •In 2000, the World Bank forced the Bolivian government to
privatize water services in Cochabamba, Bolivia. Violent public
protest followed.
•“The biggest problem with water is the waste of water through lack
of charging.” —World Bank President James Wolfensohn
•The people forced the government to abandon privatization.
•Aguas del Tunari, a consortium of English, Italian, and American
corporations, sued Bolivia for breach of contract.
•The suit was dropped in 2006 to avoid further violence.
The World Bank and Forced Privatization
Evo Morales,
president of
Bolivia
James
Wolfensohn
Bolivia

31. U.S. Exports
Source: Tradestats Express at export.gov
U.S. Imports

32. The General Agreement on Tariffs and Trade
(GATT) was established in 1947, and remained in
place until 1994 when it was replaced by the
World Trade Organization.
GATT was responsible for regulating trade
between member nations.
General Agreement on Tariffs and Trade
World Trade Alliances

33. •The World Trade Organization (WTO) is an international
organization that oversees international trade and provides a
forum for negotiation and settling disputes.
•The WTO was founded on January 1, 1995 under the
Marrakesh Agreement, replacing the 1947 General Agreement
on Tariffs and Trade.
The World Trade Organization
WTO Members

34. Worldwide WTO Status