Regulating Globalization?Regulating Globalization?Globalization Day 2 Lesson

ObjectivesObjectives

• Review economic systems.

• Review key economic terms.

• Introduce trade agreements and regulating bodies.

• Identify issues and controversies surrounding globalization.

Warm UpWarm Up

• What is economics?– Way in which we manage

resources to meet needs

– Market/Capitalism

• Free choice, competition

– Command/Communism

• Govt decides, controls

– Traditional

• Custom dictates

ActivityActivity

• Get into group of five

• Divide your illustrations from yesterday and give one to each group member.

• Identify the term illustrated in each.

ReviewReview

• Comparative Advantage– Nation makes certain products at

lower cost (higher quality) than others

• Trade Barriers– Limit or prohibit imports to protect

domestic producers

• Tariffs• Quotas• Embargoes• Subsidies

ReviewReview

• What is globalization?– Growing integration of

the world’s economies and societies.

– Open country to free trade

– Open currency markets

– Privatize business

Trade Agreements and Regulating BodiesTrade Agreements and Regulating Bodies

• Regional Trade– Promote and regulate

trade between countries in specific regions

– NAFTA (US, Canada, Mexico)

– EU (European Union)– AU (African Union)– ASEAN (SE Asia)

Trade Agreements and Regulating BodiesTrade Agreements and Regulating Bodies

• International Trade– Monitor trade practices

between nations and implement fair trading practices

– IMF– World Bank– WTO

Trade Agreements and Regulating BodiesTrade Agreements and Regulating Bodies

• International Monetary Fund (IMF)

• 1944, Bretton Woods NH– HQ Washington, DC

• Purpose:– Aid to countries in

economic crisis

– Stabilize internatl finanacial and currency markets

• Functions– Surveillance– Short Term Loans– Technical assistance

Trade Agreements and Regulating BodiesTrade Agreements and Regulating Bodies

• World Bank

• 1944, same as IMF– HQ: Washington, DC

• Purpose:– Financial aid to

developing countries for long-term development

• Functions– Financial loans– Technical assistance

Trade Agreements and Regulating BodiesTrade Agreements and Regulating Bodies

• World Trade Organization (WTO)

• 1995 permanent– HQ Geneva,

Switzerland

• Purpose:– Oversee

international trade

• Functions– Oversee GATT (Gen

Agreement on Trade & Tariffs)

– Rules for free/fair trade

– Settle disputes• Intellectual Property

Globalization: Issues and ControversiesGlobalization: Issues and Controversies

• National Sovereignty

• Loss of Cultural Identity

• Free Trade or Fair Trade

• Globalization & Human Rights

• Globalization & Migration

• Emerging Powers

• Global Economic Crisis

ClosureClosure

• Identify one example of a regional trade group and one example of an international trade group.

• Regional – NAFTA, EU, AU, ASEAN

• Internatl – IMF, WTO

HomeworkHomework

• Sesame Street Around the World

• The Globalization of Coke OR

McDonaldization

• Rap Topics