Globalization The trend toward great interconnectedness of the world’s financial, economic, technological, political, cultural, sociological, ecological, and geographical systems. Bretton Woods in 1944 where 44 nations attended a conference to stabilize world currencies, and establish credit for international trade. Paved way for a close-knit global economy and global financial system (World Bank, IMF, and WTO) Trade Organizations Trade organizations Groups established to help with the free flow of goods and services. They may be global in scope or national organizations created by individual governments to help domestic companies expand into international markets. Trade Organizations World Trade Organization (WTO) An international organization established in 1995 (which now has over 150 member countries) that promotes trade liberalization throughout the world. The main purposes of the WTO are: To act as a forum for negotiations To provide a set of rules that have been negotiated and signed by the governments of member countries To offer a forum for dispute settlement 6 Trade Organizations The World Bank An organization with 186 member countries that provides monetary and technical support for developing countries. Provides loans and grants to assist with education, health, infrastructure, farming, environmental issues, resource management, and other economic concerns. Helps poor countries move beyond conflict Provides loans and grants to poor countries with issues Helps these countries get proper infrastructure Canada and other countries donate to the WB Some say many countries suffered because of the rules it makes for taking loans They take advantage of the countries they loan to, so that when they’re working well, they’ll be advantageous to the countries in the WB Trade Organizations International Monetary Fund (IMF) An organization that tracks economic trends, analyzes countries’ financial performances, warns governments of potential financial problems provides expertise to governments, and provides a forum for discussion Purpose of IMF: promote financial stability, prevent and solve economic crises, encourage growth, and assuage poverty. Encouraging countries to adopt responsible economic policies Lending money to emerging and developing countries Providing technical training in areas such as banking regulations and exchange rate policies Economically Cross –border movement of goods, services, technology and capital Process of increasing economic integration Emergence of global marketplace Viewed as either positive or negative depending on your paradigm Current trends leads to developed economies integrating with developed or undeveloped economies Direct foreign investment, reduction in trade barriers, and immigration Culturally Transmission of ideas, meanings, and values around the world to extend and intensify social relations Tied together with the added process of commod ...