Globalization increased economic interdependence between nations after World War 2 through the creation of international organizations like the World Bank and IMF. While globalization has increased world GDP and trade, it has also contributed to growing inequality between rich and poor nations. Some nations and corporations now have more wealth than many countries. Globalization impacts many aspects of modern life but also creates challenges around issues like child labor, outsourcing of jobs, environmental degradation, and cultural homogenization. Different groups respond in various ways to the effects of increasing global connections and integration of world economies and societies.

1. The Modern Era
Globalization

2. Colonialism left new nations
“Underdeveloped.”
This table shows how shares of world Gross Domestic
Product changed between 1870 and 1998.
Date India China Africa Japan Western
Europe and
U.S.
1870 12.2 17.2 3.6 2.3 42.5
1913 7.6 8.9 2.7 2.6 52.6
1950 4.2 4.5 3.6 3.0 53.6
1973 3.1 4.6 3.3 7.7 47.7
1998 5.0 11.5 3.1 7.7 42.5
What might we learn from this table about patterns
of economic development in the world?

3. In the 1960s, as the colonized people gained
independence, the world-wide split between the
North –rich industrial nations—and the South –
poor “third world” nations—grew wider.

4. How did Western leaders try to
restore world trade after World War
II?
In 1944:
Created the World Bank.
Established the
International Monetary
Fund.
Established stable
currency exchange rates.
Ushered in global
economic cooperation.
Eventually led to Free
Market Capitalism
However, these agreements
did not include the Soviet
bloc nations

5. Post WWII, move towards Free Trade
In theory, free world trade encourages
greater economic specialization, more
productivity, and greater wealth.
Efficient use of world
resources
Tariffs (trade taxes) are eliminated.
Businesses can move where
make more profits.
More jobs are created.
People have more money
And each country
can concentrate
on what it does
best.

6. In the 1990s, Globalization now
embraced the majority of the
world’s economies.
U.S., the major world power, became the chief
advocate of free market capitalism for the global
system.
What is
Globalization?

7. Increasing global
connections
Faster communication
and transportation
Rapid growth of worldwide
social relationships.
Swift and free flow of
money, goods, people, &
ideas across national borders
Globalization

8. billions
7
6
5
4
3
2
1
1803 - 124 yrs 1927- 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986 – 13 yrs
The time it takes to add one
billion people grows shorter.
World population has been
rapidly increasing.
Wow!
More than
6
billion
people
now alive.

9. Life
expectancy
is rising,
but it varies
world wide.
Country Average Life
Expectancy
Sweden 79.2
France 78
United
States
71.1
Bangladesh 62.8
Botswana 40.1
Zimbabwe 39.2
Average life
expectancy
for the world
is 70 years.

10. Speed of
travel has
increased
dramatically.
World wide
communication
is almost
instant
1981
1977
1957
1982
Look at this antique
computer. It doesn’t
even have a hard
drive!
1962

11. The computer has been changing
billions of lives.
Where are the
books I ordered?
I’m applying
to college.
IT Engineer
seeks house..
We’re catching
up with the U.S.
economy.
Will you be my
E-pal?
I raised my
campaign funds via
the internet.

12. But what
does
globalization
have to do
with me?
Jeans
from
Malaysia
Backpack
from
China
Shirt
from
Mexico
Cap from
Bangladesh
Video game
from Japan
Sneakers from
IndonesiaSoccer ball
from
Pakistan

13. Expanding
technology
makes
possible a
cornucopia of
new products
for us
New technologies allow humans to
control nature like never before

14. More goods are being produced,
bought, and sold worldwide
than ever before.
What
shall I buy
next?

15. Globalization also spreads ideas
and values.

16. Democratic ideas have spread to
more countries than ever before.
India
Korea
Japan
Taiwan
Malaysia
Qatar
Mali
Brazil
South
Africa

17. But globalization
brings high human
costs.
Although the world’s people are producing more than
47 trillion dollars in wealth, these riches are not
distributed equally.

18. 20% get most of the wealth.
The U.S. owns 11 trillion dollars of
this wealth.
2 billion of the world’s people live
on less than $2 a day.
Peasants are forced to leave the
land as money and wage
economies spread.
Workers without education and skills
are often left behind.
The growing gap between the rich
and the poor continues to increase.

19. Some big
multinational
corporations
have more
wealth than
many nations.
Ranking GDP/value added $trillion
1 United States 9.9
2 Japan 4.7
7 China 1.23
$billion
40 Malaysia 89.7
41 Colombia 81.3
42 Philippines 74.7
43 Chile 70.5
44 Wal-Mart Stores 67.7
45 Pakistan 61.6
46 Peru 53.5
47 Algeria 53.3
48 Exxon 57.6
49 Czech Republic 50.8
50 New Zealand 50
51 Bangladesh 47.1
52
United Arab
Emirates 46.5
53 General Motors 46.2
54 Hungary 45.6
55 Ford Motor 45.1
56 Mitsubishi 44.3
57 Mitsui 41.3
58 Nigeria 41.1
59 Citigroup 39.1
60 Itachu 38.4
Gross Domestic
Product (GDP)
of Selected
Countries and
Corporations
2002
Corporations in bold face

20. In poor countries child labor is
widespread. Some 212 million children of
ages 5-14 are working instead of going to
school.
These young
girls work 12
hours a day, 6
days a week,
earning $2-3 per
week.
Most child labor
involves
high energy work.

21. Outsourcing is increasing.
In 2003, U.S. lost 234,000 information techn jobs.
An estimated 14 million more jobs may move
overseas.
But U.S. loss is a gain for India, China, Ireland,
Korea and other nations
Narayana Murthy (right) and his
Infosys Information Technology
complex in Bangalore, India.

22. Keep business away:
 Strong labor unions
 High wages
 Environment
protection laws and
 Unstable
governments
Manufacturing and capital flows
to the areas of the world where
they can make the most profits.
.

23. The speed of globalization results in environmental
problems from
over-cutting forests.
burning fossil fuels.
producing more industrial and consumer waste.

24. Growing threats to the
environment affect all people

25. Lots of people question
globalization.
.
Hollywood
is ruining
our
children.
Globalization
is forcing my
child to work.
Free trade
is destroying
us farmers.
Industrial
countries are
leaving us out
of Globalization.
Development
is destroying
our rain forest.
We have 50
million people
living in poverty.

26. Globalization involves
contradictions.
Profitable industry but widening gap
between rich and poor?
Lots of cultural pluralism but people
becoming “homogenized?” (losing
culture, becoming the same)
Increasing interdependence but small
communities banding more tightly
together?
Huge wealth in industrialized nations
but great poverty in other countries?
You mean
it’s not
good for
everyone?

27. Some people
believe that
globalization is
“cultural
imperialism”.
Can you interpret how
this cartoon depicts the
idea of “cultural
imperialism?”

28. Some:
 wholeheartedly
embrace it.
 seek to maintain their
traditions
 fight for more economic
fairness.
 turn to religion.
 turn violent
 try to manage it for
greater human good.
People respond to globalization
differently.
A house in Figuig, an oasis
in Morocco on the edge of the
Sahara Desert. This family
reaches out to the world through
its satellite dish.

29. Terrorism has ushered in a new
global threat.
Modern military strategies
and weapons are often
ineffective against suicide
attacks.
 Terrorists communicate and
spread their ideologies using
cell phones and the Internet.
Terrorist groups may have
cells in many nations.

30. In 2002, the United States
government adopted policies of
massive military intervention as part
of a war on terror.
2002 – U.S. forces invaded Afghanistan to topple the
government of the Taliban, which was cooperating with
international terrorists.
2003 – U.S. forces invaded Iraq to overthrow the government
of Saddam Hussein. The U.S. accused him of supporting
terrorism.
Are we entering a new era of
international relations?

31. In this new era will the U.S. act as
democratic leader, the supreme world
power, as an empire?
 owns about one fourth of
the world’s wealth.
working to create
democratic institutions in
Afghanistan, Iraq, and other
countries.
 has military force equal to
the next 20 countries
combined.
striving to be a model of
democracy for the world.
 maintains 725 military
bases, valued at $118 billion,
with 254,000 military
personnel in 153 nations.
Do these
factors help us
answer the
question?

32. Your decisions and actions will
help shape the future.
Will we cooperate to
fight terrorism and
work to ensure that
all people live in
dignity? How these
issues turn out is
really up to us.
One person can make a
difference.