GLOBAL ECONOMY

Example:

The global economy is worried about any possible loss of the U.S. financial
instruments. This will cause an increase in its financial costs, which will create
even bigger budget deficits. This, in turn, will create the need to perform
budget costs that will have a global impact, since a 1% budget cost on the
U.S. budget can have considerable effects worldwide. This is an example of
how the global economy works, where one country’s decisions might have a
big impact in the overall worldwide economy.

Connection:
. Free trade is supposed to reduce barriers such as tariffs, value added taxes,
subsidies, and other barriers between nations. This is not true. There are still
many barriers to free trade. The Washington Post story says “the problem is
that the big G20 countries added more than 1,200 restrictive export and
import measures since 2008

*Competition between countries is supposed to drive prices down. In many

cases this is not working because countries manipulate their currency to get a
price advantage.

Economic Globalization
*needs people who are familiar with the international economic
situation, who understand the legal and cultural framework of other
nations, who have a good command of foreign languages, and who
can use advanced technology. Such people who are the workforce of
the globalised world are educated and trained in the institutions of
higher learning. 
* It is the increasing economic integration and interdependence of national, regional, and
local economies across the world through an intensification of cross-border movement of
goods, services, technologies and capital.

Trade Agreements – Both the NAFTA and the South Korean Korus trade
agreements might have been good for Wall Street and the multi-national
corporations but they eliminated jobs in America and expanded our trade
deficit. The upcoming Trans Pacific Trade Agreement will do the same thing
and Congress should not fast track this bad agreement for a dozen reasons.

• globalization decreases the cost of manufacturing. This means that

companies can offer goods at a lower price to consumers. The average cost of
goods is a key aspect that contributes to increases in the standard of living.
Consumers also have access to a wider variety of goods

The Spread of TRADE, TRANSPORTATION, and COMMUNICATION

systems on a Global scale in the interest of promoting
International commerce
• Also involves a wide variety of processes, opportunities,
and problems related to the spread of economic activities
among countries around the world

Protecting one’s economy from foreign competition by creating trade barriers.  Domestic products
> Imported goods  TARIFF- tax levied by a government on imports and exports. The money
collected from tariffs is called a customs duty.  IMPORT QUOTA- limits on the number of products
that can be imported into a country.  BANS- forbid products on import goods.

SUSTAINABILITY The degree to which the Earth can provide resource for human needs. 
Specifically developing the world in a way where the needs of a present day generations are met
while preserving resources for future generations. (2008) Canada pass the Federal Sustainable
Development Act SUSTAINABLE DEVELOPMENT