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Economic Globalization

November 19, 2010 Bonnyville Centralized High School. Economic Globalization. Setting our Course. Outcome Students will become aware of the ideas and practices that have contributed to current understandings of economic globalization Objectives

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Economic Globalization

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  1. November 19, 2010 Bonnyville Centralized High School Economic Globalization

  2. Setting our Course • Outcome • Students will become aware of the ideas and practices that have contributed to current understandings of economic globalization • Objectives • Students will learn about the economists that influenced how we know economic globalization • Students will understand freer trade and its link to economic globalization

  3. Technology and Communication (1/2) • Information Revolution – rapid progression since second half of 20th century • Equally as essential in economic globalization • Made communication between two halves of the world simplistic • International Money Market – markets where funds are loaned for a short term to businesses and governments • The decentralization of international money markets brought with it e-Commerce.

  4. Technology and Communication (2/2) • Electronic Herd – recent trends shown that all potential investors need is access to a computers • Professional Money Managers (P$M) – have the education, resources, tools, and millions of investors’ dollars at their disposal • prior to recession, P$Ms made 12%-18% from blue chip stocks, bonds, real estate • Usually attracted more investor dollars if successful, and scared away dollars if unsuccessful • Also affects currencies and economies

  5. The Big Two Economists

  6. Freer Trade • Concept originated after WWII with the UN looking for way to open trade between countries and encourage working relations • Were there a problem with trade restrictions before WWII? http://www.youtube.com/watch?v=27J3CByXKow

  7. General Agreement on Tariffs and Trades (GATT) • Now the World Trade Organization – founded in 1947, and over the years the trade barriers became fewer and fewer • Operated on four basic principles • Non-discriminatory trade conduct – no special treatment • Equal treatment of domestic and imported goods • Use of tariffs opposed to quotas or fees • Tariff taxes are designed to increase price of foreign goods for purpose of reducing competition • Prospective members needed to begin negotiating reductions to current-existing restrictions

  8. Freer Trade Locally • How is Canada disadvantaged geographically? • Share a border with only one country • Fortunately, it’s a border shared with a superpower • Free Trade Agreement (FTA) – First free trade movement between Canada and the US • Win-Win – Canada benefited because we finally got a local trading partner, and US benefited because they could access Canada’s natural resources

  9. North American Free Trade Agreement (NAFTA) • Agreement that now included Mexico • At the time, it was the largest free trade area in the world (360 million people) • For Canada, it meant a second major trading partner without an ocean in between • 200% increase in exports from Mexico (check out some of your sporting apparel) • Has NAFTA been beneficial to Mexico? • http://www.youtube.com/watch?v=OtRjG8z5xZI&feature=related

  10. Canada and NAFTA • Since 1994, debates on Canada’s involvement in NAFTA have been diverse • Depended largely on which industries were being investigated • Benefits are probably more notable for Canada than the other participants • Gross Domestic Product at 3.6% • Increase in employment • Boosting of bilateral agricultural flow

  11. Canada and NAFTA (continued) • Three significant have also arisen from NAFTA • Freshwater – Canada attempted to prohibit bulk export of water, but the prohibition resulted in a Arbitration Claim • Gasoline additive MMT – banning the additive from Canada sparked another Arbitration, which went in favour of US companies • Softwood lumber – Four-year long dispute ended in July 2006 • http://www.youtube.com/watch?v=N-Uj-nw3XUk

  12. Notetaking Complete NOW….

  13. It’s Time for… The Perfect Ten on Chapter 10 • You will have until the start of Tuesday’s class to complete your perfect 10 • Items to be completed include information in Chapter 10, and pp.256-260 • You have a series of activities you can complete, each with a different level of difficulty • You must complete enough activities so the difficulty scores added together equal 10

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