Chapter 28.1Chapter 28.1

Global DevelopmentsGlobal Developments

Global InterdependenceGlobal Interdependence

Global InterdependenceGlobal Interdependence means that people means that people and nations worldwide depend on one another and nations worldwide depend on one another for many goods and services. It also means for many goods and services. It also means that what happens in one nation or region that what happens in one nation or region affects what happens in others.affects what happens in others.

The U.S. must import ½ the oil we use, so we The U.S. must import ½ the oil we use, so we must maintain good relations with oil-must maintain good relations with oil-producing countries. The U.S. also imports producing countries. The U.S. also imports many of the minerals needed for industry (tin, many of the minerals needed for industry (tin, bauxite, ect).bauxite, ect).

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Other countries depend on the U.S. Other countries depend on the U.S. for computers, aircraft and other for computers, aircraft and other high-tech products. Poorer countries high-tech products. Poorer countries look to the U.S. for food, medicine look to the U.S. for food, medicine and arms.and arms.

Trade includes both competition to Trade includes both competition to sell products and cooperation to sell products and cooperation to make trade beneficial to everyone.make trade beneficial to everyone.

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World markets offer profit World markets offer profit opportunities for businesses and opportunities for businesses and lower prices and wider variety for lower prices and wider variety for consumers. However, global consumers. However, global competition can force weak competition can force weak companies out of the business, companies out of the business, hurting some national economies hurting some national economies and costing workers their jobs.and costing workers their jobs.

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ProtectionismProtectionism is a nation’s policy to is a nation’s policy to protect its industries from foreign protect its industries from foreign competition by imposing tariffs. This competition by imposing tariffs. This policy can harm other countries. It policy can harm other countries. It may cause price increases and trade may cause price increases and trade wars, in which nations set up ever wars, in which nations set up ever greater trade barriers.greater trade barriers.

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Many countries now support free Many countries now support free trade. NAFTA will gradually abolish trade. NAFTA will gradually abolish all trade barriers between the U.S., all trade barriers between the U.S., Mexico and Canada. The WTO will Mexico and Canada. The WTO will work to reduce tariffs and eliminate work to reduce tariffs and eliminate quotas among more than 150 quotas among more than 150 nations.nations.

Global Problems and American Global Problems and American InterestsInterests

There is a growing inequality There is a growing inequality between the rich developed between the rich developed countries and the poor less-countries and the poor less-developed countries. As this occurs, developed countries. As this occurs, conflicts grow.conflicts grow.

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Developed countries, such as the U.S., Developed countries, such as the U.S., Japan, Germany, Canada, Britain and Japan, Germany, Canada, Britain and France, have highly developed France, have highly developed business and industry. Their citizens business and industry. Their citizens are relatively well educated and are relatively well educated and healthy. They produce most of the healthy. They produce most of the world’s manufactured goods and world’s manufactured goods and consume much of the world’s natural consume much of the world’s natural resources, enjoying a high standard of resources, enjoying a high standard of living.living.

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Many citizens of less developed nations Many citizens of less developed nations live in the shadow of death from starvation live in the shadow of death from starvation or disease. These countries are called or disease. These countries are called developing countries because they are developing countries because they are trying to develop industrial economies.trying to develop industrial economies.

Some developing countries are very poor. Some developing countries are very poor. They have few resources and cannot They have few resources and cannot produce enough food to feed their people. produce enough food to feed their people. They manufacture few products and have They manufacture few products and have high levels of unemployment and disease.high levels of unemployment and disease.

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Other developing nations have valuable Other developing nations have valuable natural resources. Saudi Arabia and Iraq natural resources. Saudi Arabia and Iraq have oil. Columbia grows coffee. They have oil. Columbia grows coffee. They have little industry, though, and lack the have little industry, though, and lack the health and educational facilities to develop health and educational facilities to develop their human resources.their human resources.

Most developed nations are located in the Most developed nations are located in the Northern Hemisphere. Most developing Northern Hemisphere. Most developing nations are in the Southern Hemisphere. nations are in the Southern Hemisphere. This is called the “North-South conflict”. This is called the “North-South conflict”.

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Developed and developing nations need Developed and developing nations need each other. Richer nations sell products to each other. Richer nations sell products to and obtain raw materials from poorer and obtain raw materials from poorer nations. Poorer nations need food, nations. Poorer nations need food, technology and money from richer nations.technology and money from richer nations.

Many industrial nations try to help Many industrial nations try to help developing nations. They give financial and developing nations. They give financial and technical aid. Businesses build factories in technical aid. Businesses build factories in poor countries, providing jobs and training.poor countries, providing jobs and training.

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Foreign aid poses questions. Should Foreign aid poses questions. Should the U.S. increase aid or encourage the U.S. increase aid or encourage poorer countries to get help from poorer countries to get help from private investors? Should we favor private investors? Should we favor nations that support our policies? nations that support our policies? Should we give less foreign aid and Should we give less foreign aid and spend more on problems at home?spend more on problems at home?

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Destruction of the environment is Destruction of the environment is another global problem. Industries another global problem. Industries and vehicles release poisonous and vehicles release poisonous metals into the air and water. Oil metals into the air and water. Oil spills pollute the oceans and spills pollute the oceans and beaches, killing sea birds and fish.beaches, killing sea birds and fish.

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Coal-burning factories release sulfur Coal-burning factories release sulfur dioxide gas into the air, where it dioxide gas into the air, where it mixes with water vapor and later mixes with water vapor and later falls to the earth as falls to the earth as acid rainacid rain. Acid . Acid rain created with gases from U.S. rain created with gases from U.S. factories falls in Canada, damaging factories falls in Canada, damaging forests and killing fish in lakes.forests and killing fish in lakes.

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The world must work together to The world must work together to save the environment. One way is save the environment. One way is conservationconservation – limiting the use of – limiting the use of polluting resources. Conserving polluting resources. Conserving gasoline cuts polluting gases. gasoline cuts polluting gases. Conserving forests protects wildlife Conserving forests protects wildlife and leaves more trees to absorb and leaves more trees to absorb carbon dioxide.carbon dioxide.

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Some opponents argue that conservation Some opponents argue that conservation slows economic growth. Supporters argue slows economic growth. Supporters argue that not conserving may provide short-that not conserving may provide short-term gains but long-term problems.term gains but long-term problems.

Poor nations believe antipollution Poor nations believe antipollution regulations unfairly slow their economic regulations unfairly slow their economic growth. Developed nations polluted freely growth. Developed nations polluted freely while becoming rich, but now won’t allow while becoming rich, but now won’t allow poor nations to do the same.poor nations to do the same.