Transcript Globalization

Globalization
Expanding Globalization
WHAT DO YOU BELIEVE IS MEANT BY
EXPANDING GLOBALIZATION?
WHAT CAN BE A FACTOR TO
EXPANDING GLOBALIZATION?
How Do International Agreements
And Organizations Contribute To
Expanding Globalization?
>A factor of expanding globalization is reducing trade barriers so
that goods and services can move around the world easily.
This is called Trade Liberalization.
>In order for liberalization to take place these things must be
removed:
•
•
•
Tariffs
Quotas
Regulations
>When two countries agree to eliminate all tariffs and taxes on
goods and services traded between them, the result is called
Free Trade.
>Creates jobs, uses resources, and reduces the cost of consumer
goods.
Name the widely known, and one of
the earliest developed Free Trade
agreements?
*hint: movie
The World Trade Organization
» The WTO was established in 1995 to
increase international trade by
lowering trade barriers
» Decisions are made by coming to a
Consensus - a general agreement which all the members support.
» The WTO:
» Ensures that the terms of trade agreements are
followed
» Settles trade disputes between governments
» Conducts trade negotiations.
WHAT DO YOU THINK THE WTO
USED TO ENFORCE DECISIONS?
*hint: economic actions
Sanctions
» WTO has the power to enforce
Sanctions - economic actions such as
trade boycott - to enforce decisions
» WTO used this power to resolve
disputes in trade between nations
Example of Dispute in the WTO
» 2002 Canada asked the WTO to rule on
a longstanding dispute with the US over
softwood lumber.
» 2006 WTO finally ruled in Canada’s
favor, removing American tariffs on
Canadian lumber and required the U.S
to repay almost 80% of the more than 5
billion it had collected in tariffs on
lumber imports from Canada
WHAT DO YOU BELIEVE ARE
REASONS THAT PEOPLE OPPOSED
THE WTO?
Opposing the WTO
» There are many that oppose the trade
liberalization that fosters
globalization, targeting the WTO.
» Their point:
» The WTO has too much power. It can force
countries to change their regulations to make
them fit into WTO rules
» The WTO is not democratically accountable.
Hearings on trade disputes are closed to the
public and the media
» The WTO does not care enough about the
problems of developing countries. It has not
forced rich countries to fully open their markets
to products from developing countries.
» The WTO has not done enough about the
environment, child labor, worker’s rights, or
health care
WHAT DO YOU BELIEVE ARE
REASONS PEOPLE SUPPORTED THE
WTO?
Supporting the WTO
» People that supported the WTO
said that the WTO had managed
to raise – and would continue to
raise- living standards around the
world, providing numerous
opportunities for ultimately
everyone.
WHAT IS ONE OF THE BIGGEST FREE
TRADE AGREEMENTS THAT
CANADA IS PART OF RIGHT NOW?
*hint: Most recent member is
Mexico
North American Free Trade
Agreement
» Went into effect 1998
» Expanded to include Mexico in 1994
» Eliminated all trade barriers
between these three countries
» Different opinions arose because this
was the first free trade agreement
between countries with such
different levels of development
WHAT GROUPS DO YOU SUPPOSE
SUPPORTED NAFTA?
WHAT GROUP WERE LIKELEY TO
OPPOSE IT?
WHY?
Changes in Economics
NAFTA
» Canadian exports to Mexico increased
fourfold (1993-2005)
» Canadian exports to U.S rose $359 billion
in 200 from $183 billion in 1994
» Canadian investment in the U.S tripled
» Canadian investment in Mexico rose 200
percent
» Since NAFTA came into effect, the
Canadian Economy has grown an average
of 3.4 a year and 2.5 million new jobs
have been created.
Poll on Public Opinion on weather
they had Won or Lost as a result
of NAFTA
There were definitely positives
and negatives for each country
involved in NAFTA
NAFTA Supporters
NAFTA Opponents
Supporters believed that NAFTA
Opponents believed that NAFTA
• would create thousands of high
paying jobs
• would cause thousands of jobs to
leave Canada and the U.S. for
Mexico
• would raise living standards in
Canada, Mexico, and the U.S.
• would create a “race to the
bottom” for wages in all three
countries
• would improve environmental
and employment standards
• would undermine health,
environmental, and safety
standards
• would transform Mexico from a
developing country to developed
country
• would undermine the ability of
member states to make their own
decisions
Many believed that Mexico was the
most negatively affected country
from NAFTA. Why do you think
that is?
How was Canada negatively
affected?
The European Union
» Created a liberalized trading area in
Europe
» Came into effect in 1991 after more
than 40 years of negotiation
» EU enables members to take advantage
of the opportunities created by
economic globalization while protecting
them from certain aspects of
globalization (pressure to reduce
spending on social programs)
» Also serves as a parliament
WHICH OF THE TWO TRADE
AGREEMENTS DO YOU THINK HAS
A GREATER GDP? POPULATION?
The European Union and NAFTA
(2006)
Category
European Union
NAFTA
Area
4 324 782 sp. km
21 5888 638 sq. km
Population
486 642 000
438 993 672
Member
27
3
GDP
$12.82 trillion(U.S)
$15.279 trillion(U.S)
GDP per Person
$29 400 (U.S)
$34 8-5 (U.S)