GLOBALIZATIONWhy is globalization so controversial?

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Make arrangements for your makeup test before or after school ASAP!

Project assignments will be given today. Vocabulary words: absolute &

comparative:○ Find synonym for each○ Find anonym for each○ Create an analogy for each

We’ll complete reader’s theatre.

What is globalization?

No one answer.

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What is Globalization?

Process of increasing the connectivity & interdependence of world markets and businesses.

What’s driving globalization?

Technological advances that make it easier for people to:CommunicateTravelDo business internationally.

The Internet Advances in telecommunications

Globalization

As economies become more connected to other economies, they have increased opportunity but also increased competition.

Because of Globalization we have Powerful pro-globalization groups Powerful anti-globalization groups One of more powerful pro-globalization

groups: World Trade Organization (WTO)

WTO Protests: Seattle, 1999

Who? Union organizers,

environmentalists, animal rights activists, and senior citizens protested during WTO meeting.

WTO Protests: Seattle, 1999

Protesters attempted to shut down WTO meeting by blocking major roads, breaking windows of businesses, engaging police

WTO Protests: Seattle, 1999 Why? Protestors believed

WTO policies promoted greater free trade:

were bad for environment

Increased world poverty

Only made large corporations wealthy

WTO Protests: Seattle, 1999

Supporters believed:WTO policies

promoting free trade improves living standards worldwide

Better living standards lead to increased human rights, literacy rates and even life expectancies

More names for the two opposing groups: Protectionists

Want trade barriers to protect domestic industries.

Free TradersFavor fewer and even no trade restrictions

to encourage free trade (international trade)

National Defense

Protectionists ArgueCountry might become so specialized that it

would be too dependent on other countries.Dependency might keep us from getting

supplies in time of war.Some small countries (Israel & South Africa)

are loading up on arms just in case this happens.)

National Defense

Free Traders argueAdmit national security is a valid concernMust consider that supply would be smaller

without free trade.Might argue over which industries are critical

to national defense.

Infant Industries

ProtectionistsNew or emerging industries (infant

industries) must be protected to gain strength and experience before competing globally.

Trade barriers would give infant industries time to develop.

Infant Industries

Free TradersWill go along with infant industries argument

as long as trade barriers are eventually removed.

When companies get protection they seldom want to give it up.

Protect Domestic Jobs Protectionists

Tariffs and quotas protect domestic jobs from cheap foreign labor.

Makes it easier for people to work in communities they grew up on.

Free TradersBelieve it is best not to interfere.Protecting jobs keeps industries from being

efficient with resources.Believe pressure should be put on threatened

industries to modernize & improve.

Protect Domestic Jobs

Free TradersBelieve if prices get too high people will find

substitute goods & jobs will still be lost even though they are protected.

Believe profit loss system is a major feature of American economy that helps weed out inefficient businesses.

Keeping the Money at Home Protectionists

Will keep American money in US. Free Traders

Believe American dollars spent abroad will eventually come back.○ Example – US buying Japanese made cars.

Japanese in turn buy soybeans, cotton, airplanes, etc.

Helping the Balance of Payments Balance of Payments

Difference between the money a country pays out to, and receives from, other nations when it engages in international trade.

Protectionists:Argue restrictions on imports help balance of

payments by restricting amount of imports. Free Traders:

Argue dollars return to US to stimulate employment in other industries.