1 / 13

Globalization

Globalization. The Story of Florence, Alabama 1971. Globalization. Low wages combined with efficient production methods make Chinese goods highly competitive in American markets. Global Economy. The system of markets and trade that links the countries of the world. Global Economy.

ron
Download Presentation

Globalization

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Globalization • The Story of Florence, Alabama • 1971

  2. Globalization • Low wages combined with efficient production methods make Chinese goods highly competitive in American markets

  3. Global Economy • The system of markets and trade that links the countries of the world.

  4. Global Economy • Challenge of foreign competition • Ultimately benefits outweigh the costs

  5. Why has global trade increased? • Try to think of three reasons:

  6. Increased Global Trade - 1 • Advances in Transportation

  7. Increased Global Trade - 2 • Improved Communications

  8. Increased Global Trade - 3 • Shift in the type of goods being produced: • Old - (Grain, Coal, Steel) • New – (

  9. Absolute and Comparative Advantage • Even rich countries benefit when they specialize in the production of some goods and services and TRADE those products for other goods and services

  10. Comparative Advantage • America and Colombia • America and Italy • America and Canada • Brazil and South Africa • United States and Japan

  11. Comparative Advantage • Differences in Climate – Tropical countries export crops such as bananas and coffee • Temperate climates grow grains such as wheat and corn • Seasonal as well (New Zealand)

  12. Comparative Advantage • Differences in the factors of production • China (Clothes) • Japan (Cars)

  13. Comparative Advantage • Differences in Technology • Japan (Cars) • U.S. and Europe (Software and Pharmaceuticals)

More Related