Regulating Globalization
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Transcript of Regulating Globalization
LESSON 2
REGULATING GLOBALIZATION
OBJECTIVES
• Review economic systems.• Review key economic terms.• Introduce trade agreements and regulating
bodies.• Identify issues and controversies surrounding
globalization.
WARM UP
• What is economics?• Way in which we manage
resources to meet needs
• What factors drive global economic decision-making?• Scarcity• Supply & Demand• Opportunity Cost• Comparative Advantage
REVIEW ACTIVITY
• Decide as a class how to line yourselves up according to term on card…• You must be able to
connect to each term on your right and left!
REVIEW
• What is globalization?• Growing integration
of the world’s economies and societies.
• When/Why?• How?
GLOBALIZATION: ISSUES AND CONTROVERSIES
• National Sovereignty• Loss of Cultural Identity• Free Trade or Fair Trade
• Globalization & Human Rights• Globalization & Migration
• Emerging Powers• Global Economic Crisis
TRADE AGREEMENTS AND REGULATING BODIES
• Regional Trade• Promote and regulate trade between countries
in specific regions, exception to MFN status
• NAFTA (US, Canada, Mexico)• EU (European Union)• AU (African Union)• ASEAN & SAFTA (SE Asia) • MERCOSUR (S. Amer)• GAFTA (Greater Arab)
TRADE AGREEMENTS AND REGULATING BODIES
• International Trade• Monitor trade practices between
nations and implement fair trading practices
• IMF• World Bank• WTO
ACTIVITY
• Quiz “What’s Up with Trade?”• Answers: • B• D – 2013: 5-7%• D• B• X – 2013: 4m (women) in 5K factories , $19b/yr• C• D• Which was the last nation to become a member?
TRADE AGREEMENTS AND REGULATING BODIES
• International Monetary Fund (IMF)
• 1944, Bretton Woods NH• HQ Washington, DC
• Purpose:• Aid to countries in
economic crisis
• Stabilize internatl financial and currency markets
• Membership• 188 Nations• Donate & vote based on
% of global economy• Christine Lagarde MD
• Functions• Surveillance/Monitoring• Short Term Loans• Technical assistance
TRADE AGREEMENTS AND REGULATING BODIES
• World Bank
• 1944, same as IMF• HQ: Washington, DC
• Purpose:• Financial aid to
developing countries for long-term development
• Membership• 188 Nations• Fee based on %• 24 Executive
Directors
• Functions• Financial loans• Technical assistance
TRADE AGREEMENTS AND REGULATING BODIES
• World Trade Organization (WTO)
• 1995 permanent• HQ Geneva, Switzerland
• Purpose:• Oversee international
trade• Multilateral Trade Talks
(“Rounds” – Doha Dvpt Round since 2001)
• Membership• 159 Nations (24
Applying)• Consensus decisions
• Functions• Oversee GATT (Gen
Agreement on Trade & Tariffs)
• Rules for free/fair trade
• Settle disputes• Settle disputes• Intellectual Property
PRINCIPLES OF THE WTO
• Trade Without Discrimination (MFN)• Regional groups• Developing nations
• Freer Trade• Progressive Liberalization
• Predictability• Transparent• Binding
• Promoting Fair Competition• Protection• Compensation
• Development & Reform• Time & assistance
(market/technical) to developing countries
CLOSURE
• Why are trade groups important to the global economy?
•Help free barriers, dvp/expand economies, maintain flow, set rules
HOMEWORK
• Sesame Street Around the World• The Globalization of Coke OR
McDonaldization
• Rap Topics