Global Trade and the Emergence of the Global Economy

1. Chapter 16 Globalization

2. Chapter Outline • The Development of Global Trade • The Emergence of the Global Economy • Globalization: The Continuing Process • Population Growth and Inequalities in the Global Economy • Consequences of Globalization and the Global Economy

3. Globalization • The process of integrating the worlds peoples economically, socially, politically, and culturally into a single world system or community.

4. Development of Global Trade • Before 1500, world regions were virtually isolated from each other. • The Old World (Africa, Europe and Asia) formed a unit within which trade allowed spread of technology and institutions.

5. Major States and Regions of Europe, Asia and Africa, ca. 1500

6. European Expansion • Began with the discovery of the Americas by Columbus in 1492. • The Spanish, Portuguese, English, French and Dutch invaded the Americas. • The European global maritime trade network allowed the exchange of technology, food, animals, diseases and people.

7. Industrial Revolution • Starting in about 1800, European contact with non-Western people changed to political domination. • 19th century was a time of European imperial expansion as the countries of Europe began claiming lands and people of Africa, Asia and Oceania.

8. Emergence of the Global Economy Three factors • Collapse of the existing colonial empires. • Developments of technology have made geography irrelevant. • International finance and the globalization of world capital.

9. Globalization • global trade • The direct or indirect exchange of good and services in an integrated global market. • global economy • The buying and selling of goods and services in an integrated global market.

10. Growth of World Trade: 1905-2000

11. Continuing Process of Globalization • Every country still has its own regulations regarding imports and exports. • The World Trade Organization is attempting to negotiate the elimination of all import/export regulations in favor of global free trade. • The International Monetary Fund is assuming a regulatory role in international monetary transactions.

12. Transnational Corporation • One that has most of its employees, produces and sells most of its products or services, and generates most of its gross revenues outside the national boundaries of its “home” country.

13. Population Changes

14. Population Growth and Inequalities in the Global Economy • The population of the world is growing rapidly. • In the last 50 years world population has jumped from 2.5 billion to more than 6 billion. • The population growth of the developed countries has stabilized and in many cases started to decline, however, in the underdeveloped countries it continues to grow rapidly.

15. Population Growth and Inequalities in the Global Economy • While the global economy has greatly benefited the developed countries, many of the countries of Asia, Africa, and Latin America have seen their economies decline. • There is an increasing skewing of wealth between countries and regions of the world. • Globally, there is an inverse correlation between economic development and population growth.

16. Population Growth and Inequalities in the Global Economy • Throughout the world there is a massive movement of people from rural agricultural areas to urban centers. • There is also a massive migration of people from underdeveloped countries to more developed countries.

17. Refugees • Individuals and families who temporarily take up residence in another region or country to escape famine, warfare, or some other life threatening event.

18. Consequences of Globalization • Increasing contact among peoples and increasing exposure of non-Western peoples to Western cultural traditions. • Growing resentment of Western economic dominance and cultural influences.

19. Quick Quiz

20. 1. Globalization is: • just an economic issue • a continuing process that began 500 years ago • a term used since the beginning of European expansion • all of the above

21. Answer: b • Globalization is a continuing process that began 500 years ago.

22. 2. The industrial revolution escalated: • political revolutions in the Americas • the slave trade • taxation of local peoples • all of the above

23. Answer: d • The industrial revolution escalated political revolutions in the Americas, the slave trade, and the taxation of local peoples.

24. 3. The largest proportion of immigrants to the U.S. comes from: • Mexico • Latin America • Canada • Asia

25. Answer: d • The largest proportion of immigrants to the U.S. comes from Asia.