Globalization & Trade

What is Globalization? 1) the linking together of the world’s nations through trade and 2) the development of a world culture and interdependence among nations.

We (as a world) have created a complex web of sharing resources. We depend on one another for goods, raw materials, and markets to sell the goods. This is called INTERDEPENDENCE. A huge part of this interdependence relies on trade…

Which country might dominate world trade? Make a guess and write it on your paper…don’t cheat…I’m watching you…seriously…

Source: U.S. Census Bureau, U.S. International Trade Statistics, http://censtats.gove/naic3_6/naic3_6.shtml (accessed February 11, 2013).

U.S.-China Trade in 2012TOP IMPORTS FROM CHINA (IN BILLIONS)

1) Mobile phones and

broadcasting equipment $49.8

2) Computers $44.9

3) Computer equipment $17.2

4) Audio/video equipment$15.9

5) Toys $15.5

All American Imports $425.6

TOP EXPORTS TO CHINA (IN BILLIONS)

1) Soybeans $15.0

2) Waste and scrap $9.5

3) Planes $8.4

4) Autos $5.7

5) Semiconductors $3.9

All American Exports $110.6

If you have something that I want and I have something that you want, what can we do? We can TRADE!

Generally, if a country has a lot of a certain natural resource, good, or type of food, they will sell their extras to other countries: they will Export their “extra” resources in order to make money.

On the other hand, if they do not have enough of something, they will Import it.

Think…Exit-ExportIn-Import(its not perfect)

Stop- before you move on.

Make some predictions on your paper about what the US Imports and Exports

We’re going to look at some details about importing and exporting. MAKE A PREDICTION for each question before clicking for the answer…SERIOUSLY… I’m watching…

Import or Export Review! Goods shipped from one country to another country (when goods exit your country) are called…

Import or Export Review! Goods shipped from one country to another country (when goods exit your country) are called…

EXPORT

Import or Export Review! Goods that are brought in to a country from another country (when goods enter your country) are called…

Import or Export Review! Goods that are brought in to a country from another country (when goods enter your country) are called…

IMPORT

Import or Export Review Your country doesn’t produce enough goods on its own so you will ___________ goods.

Import or Export Review Your country doesn’t produce enough goods on its own so you will ___________ goods.

Import

Import or Export Review Your country is the primary source of the goods (only your country has this good) so you will ___________ goods.

Import or Export Review Your country is the primary source of the goods (only your country has this good) so you will ___________ goods.

Export

Import or Export Review Your country produces more goods than it can use so you will __________ goods.

Import or Export Review Your country produces more goods than it can use so you will __________ goods.

Export

Import or Export Review! Your country can produce a good at a lower price than other countries so you will __________ goods.

Import or Export Review! Your country can produce a good at a lower price than other countries so you will __________ goods.

Export

Buy American… Have you ever heard the phrase “buy American” or “made proudly in the U.S.A.”? Why do people say that? Give me a good guess on your paper. You know I’m watching…

In order to persuade people to buy stuff that was made in their own country (and thus made by people who had jobs in your country)

Governments created a special tax on imported goods- this special tax on imports is called a TARIFF

If you have an extra tax on goods not made in your country, then the idea is that goods that are made in your country will be cheaper to buy and more people will buy them and then more people in your country will have jobs.

Sometimes Governments also put QUOTAS, or number limits on certain products.

The government does this to make the imported goods more expensive and they are hoping that will persuade the buyer to buy the product made in their own country.

Example: If the government says the U.S. can only buy 1,000 Toyotas (made in Japan) per year, more people will have to buy Fords (made in the U.S.).

We put Tariffs and Quotas on a lot of things…here are just a few…

But, this isn’t always a win-win situation. If we say we won’t buy stuff from another country, do you think they will still buy stuff from us? Probably not… Before moving on… answer the question on your paper. And yes, I’m watching…

Many times, countries will make Free Trade agreements with other countries saying that they will always allow free trade with each other (they are kind of like economic Alliances). Remember, “Free trade” DOES NOT MEAN THAT EVERYTHING IS FREE!

There are many of these free trade agreements around the world… The largest free trade organization in the world is the E.U. which stands for the European Union. What is the European Union? I’m glad you asked… Watch the following video. If you don’t have head phones… its okay- there are captions.

https://www.youtube.com/watch?v=b2-4gpRIkUE

A really important one in the US is NAFTA it stands for the North American Free Trade Agreement.

That means that we trade “freely” with all North American Countries.

You will need headphones for the following video. You can stop at 3:40.

https://www.youtube.com/watch?v=-qntfkkVi2A

There are many of these free trade agreements around the world…

The U.S. has Free Trade agreements with the following countries as well. Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, Singapore…

So what do U.S. trade agreements require of other countries? The agreements are very specific. Each is about a particular good and a promise that the U.S. will buy it in return for that country’s cooperation. Often times, they require Fair Trade.

Fair Trade means… 1. Creating JOB opportunities for the poor. 2. Fair PRICES and payment to the poor. 3. No CHILD labor and no SLAVE labor. 4. Good WORKING conditions. …just to name a few.

Fair Trade Videos Watch the following two videos on Fair Trade, then answer the question on your paper.

https://www.youtube.com/watch?v=7K4G5-ydhS0

https://www.youtube.com/watch?v=J60mvcp_Q_E

iPhone price video Click on this link to watch the video then answer the questions on your paper.

http://www.businessinsider.com/price-iphone-brazil-world-2014-6

Now, turn in your paper

Go back to my website and use the posted links to help you practice for next week’s Asia Map Quiz. You are only responsible for the countries that are on your Asia map.