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 ...

1. 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.

2. 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
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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

3. 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

4. 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 commodity exchange
Increased cross-cultural contacts, however is leading to the loss
of uniqueness of isolated communities
Think about the different foods that can be found in north
America, Europe and East Asia
How does McDonalds combat the different cultures in markets
they enter with their own culture?
Think about Muslim countries
Think about certain butchering practices in certain cultures
Politically
Creation of international trade agreements and economic unions
NAFTA, EU, ASEAN are some examples where countries part
of the intergovernmental organizations benefit from trading
goods/services, technology, culture.
But with every benefit, there is a drawback.
Jobs, price, infant industries, etc.
Association of Southeast Asian Nations
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The European Union
A trade agreement signed in 1993 that now encompasses
twenty-seven countries in Europe
It has its own flag, anthem, and currency

5. Formed to remove many obstacles between movement through
small EU countries
The agreement eliminates protectionism and allows all
governments to purchase goods from each other
Purpose is to promote:
Peace
Economic growth
Government co-operation
Strong bonds between people
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NAFTA
North America Free Trade Agreement
When the US and Canada originally signed a trade agreement,
American jobs in the automobile industry, and others, moved
north of the border
When Mexico joined, the jobs that once left the US to Canada,
now left Canada an went to Mexico
Reason why is because labour is cheaper
Also companies where given more power and able to sue or take
to court national provincial/state governments
Trade Agreements
Advantages of NAFTA
Has helped create higher paying jobs in education, engineering,

6. and banking sectors in Canada
Allows freer flow of goods and services across North America,
providing better access to raw materials, talent, capital, and
technology
Trade has tripled between the three members since NAFTA’s
inception
Disadvantages of NAFTA
Manufacturing jobs have been lost to Mexico, where labour
costs are lower
Without tariffs, many Mexican farmers could not compete and
lost their livelihoods
Canadian companies sold to foreign investors
Globalization and International Trade
Positive effects of
globalization
Outsourcing
Lower prices
Improved human rights
Increased productivity
Innovation
Better jobs
Increased capital flow
Negative effects of
globalization
Lost Canadian jobs
Fear of job loss
Loss of Canadian productivity
Exploitation of cheap labour
Increased pollution
Unhealthy products
Spread of disease
Increase in the income gap
Influence of multinational corporations (MNCs) on governments

7. International Events
An event that has the ability to shock or affect more than the
surrounding area, both directly and indirectly
Natural disasters
Earthquakes, tsunamis, hurricanes, etc.
How do natural disasters affect the Canadian economy?
What do Canadians do when they hear of a natural disaster
affects a region?
Canadian government and Canadians send relief donations
Potential imports from regions affected by natural disasters
Wars
World War I, World War II, Cold War, etc.
How has Canada's response to these wars affect the Canadian
economy?
Government increases spending to fund war
Production of war machines and armaments increases
Terrorism
What has Canada done in light of the current issues with
terrorism?
Domestically?
Globally?

8. Free trade vs fair trade
Free trade
Investopedia defines Free Trade as:
The economic policy of not discriminating against imports from
and exports to foreign jurisdictions. Buyers and sellers from
separate economies may voluntarily trade without the domestic
government applying tariffs, quotas, subsidies or prohibitions
on their goods and services.
Features of Free Trade
Trading of goods without taxes or other trade barriers
Trading services
Unregulated access to markets and market information
Trade agreements
Trade quotas - A government-imposed limit on the amount of
product that can be imported in a certain period of time.
2
Free trade
Opposition
Destroy infant industries in developing countries
Long-run economic development
Income inequality
Environmental degradation
Supporting child labour and sweat shops
Impacts domestically
Produces economic growth
Jobs are loss to developing countries, or outsourcing of jobs
Production moved to developing countries
Impacts globally

9. Working conditions are very poor, along with wages
Competition for contracts often lower the wage to be paid
Sweatshops - Factories in underdeveloped and developing
countries in which employees work in unsafe environments, are
treated unfairly, and have no chance to address those
conditions.
Often employs children age 14
Paid very little with overtime pay cheated
Workers cannot take sick days, breaks, and work 12 hours a day
Hot environments and untrained workers make for dangerous
work environments
Outsourcing: refers to using outside resources to perform
activities
3
Fair trade
Is a social movement whose stated goal is to help producers in
developing countries achieve better trading conditions and to
promote sustainability
Includes commodities and goods such as handicrafts, coffee,
cocoa, wine, chocolate, textiles, diamonds and gold
Effects on growers
Benefits farmers in the global south
Growers are able to understand fair trade
Increases the wage of growers certified under fair trade
practices
However, many growers are unaware about fair trade and its
benefits
Positive effect on their lives and communities.
- Purpose of fair trade is to provide a fair and honest deal
between all members of the supply chain

10. - Guarantees that the prices paid for products are adequate to
cover the costs of sustainable production
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Fair trade
Social premiums where producers or producer-groups decide
how their earnings is spent
Socioeconomic development
Privately invest in public goods lacking from infrastructure and
government spending
Environmental initiatives, public schools, and water projects
Trade Agreements
The North American Free Trade Agreement (NAFTA)
Launched in January 1994 between Canada, the United States,
and Mexico
Created world’s largest free trade area
Sets rules surrounding movement of goods, services, and
investments across North America
Eliminates tariffs and other trade barriers, and promotes fair
competition
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Ten Thousand Villages
Has retail stores that sell fair trade products throughout Canada
and the Unites States
Sources handicrafts from artisans in underdeveloped countries

11. and sells their products to consumers, ensuring that goods have
been ethically purchased and created using sustainable
resources
Prices are mutually agreed by Ten Thousand Villages and the
artisans, and 50% is paid to the artisan when the order is placed
and the remaining when the order is filled