Chapter 25, Lesson 1

1. Chapter 25, Lesson 1 Global Interdependence and Issues

2. Global Interdependence • Global interdependence means that people and nations rely on one another for goods and services. • People around the world exchange what they have or make for things they do not have. • Developed nations usually buy raw materials and local products such as certain food items from developing nations. • Developing nations buy things like technology and medicine from developed countries.

3. Global Trade • Global trade occurs because nations have different needs, comparative advantages, and resources. • The United States is both a large exporter and a large importer. • The U.S. sells wheat, corn, computer software, aircraft, machinery, and medical equipment to other nations as well as entertainment such as movies, music, and video games. • We depend on other countries for things like oil and also for goods that can be produced cheaper elsewhere.

4. Costs of Competition and Trade • Global interdependence has increased trade and led to prosperity in many parts of the world, but it can cause problems too. • Companies may decide to move factories to other countries with lower labor costs which can result in a loss of jobs. • However, the companies that do stay and pay higher wages and cost of business suffer as well. • To prevent this, some countries create trade barriers such as tariffs, but these may hurt consumers as well by raising prices. • When one country responds to another country’s trade barriers with barriers of their own, a trade war can result. • The result is higher prices and fewer choices for everyone.

5. Rich and Poor Nations • A major challenge in the world today is the growing economic inequality among nations. • Developing nations are making some progress, but many of them are not growing fast enough to catch up. • Some lack natural resources or have unskilled workers. • Some struggle with political unrest or have poor schools. • Many face serious health problems such as a lack of clean water or high rates of infectious diseases.

6. Environmental Issues • Modern life offers many comforts, but they can come at a cost to the environment. • Chemicals released by factories and cars pollute the air and water. • Most experts believe that burning coal and oil is causing dangerous changes in Earth’s climate. • Deforestation, the mass removal of trees, causes flooding, leads to mudslides, and lessons the amount of carbon dioxide that trees absorb. • The process of switching to other sources can be costly, and many poor nations believe that taking steps to curb pollution will slow their economic growth. • One solution may be conservation, carefully using resources and limiting the harmful effects of human activity.

7. Other Global Challenges • Immigration is a challenge that comes with an interdependent world. • Differences among religious and ethnic groups as well as economic concerns can intensify bad feelings. • Ethnic groups: those with a common national, cultural, or racial background • Many counties also suffer from war, conflict, or terrorism. • Terrorism: the use of violence to make people afraid and to force people to behave in a certain way. • In addition, millions of refugees have been driven from their homes by famine, conflicts or natural disasters. • Meeting these challenges requires cooperation among nations