Global

Economies
New &
Innovative
Essential Questions
• Examine trade patterns in recent
times. [Global Transfer of Wealth]
• How has the balance of trade begun
to shift patterns global power and
influence?
• What possible changes in these
patterns can we expect based upon
information from the past?
Multinational Corporations
• Business organizations that
operate across borders.
• They owe no allegiance to any
country.
• THEIR FOCUS IS PROFIT
WITHOUT NATIONAL
LOYALTY.
How We Measure Wealth
• The Gross • The Gross
National Product Domestic
(GNP) is the total Product (GDP)
dollar value of all final measures output
goods and services generated through
produced for production by labor
consumption in and property which
society during a is physically located
particular time within the confines
period. of a country.
 Gross Country
% of Global
GDP
% of World Population

National
USA 32.9% 4.65%

Japan 13.4% 2.09%

Germany 6.0% 1.36%

Product Britain

France
4.6%

4.2%
0.99%

0.97%

China 3.7% 20.84%

Italy 3.5% 0.95%

Canada 2.3% 0.51%

(2000 data, billion
Mexico 2.0% 1.62%
dollars)
Spain 1.9% 0.65%
(per capita)
 Dependence of the
2nd World
• LATIN AMERICA
• Continued economic growth
• Based upon
• Resources
• Industrialization
• Despite relative political instability
• Halted in 1970s & 80s
 Dependence of the 3rd
• AFRICA World
• Least developed
• Lack of:
• Capital
• Technology
• Foreign markets
• Managerial class
• Very rich in resources
• Little or no industry
East & S.E. Asia
• Little Tigers
• Hong Kong – Taiwan
South Korea –
Singapore
• Phenomenal growth
• Serious competition
for:
• Japan
• U.S.A.
• European Union
Economic Growth in Asia
• Pacific Rim Economic Sector
• Japan
• The Little Tigers
• China
Taiwan
Hong Kong
Singapore
 Taiwan

China

Japan Singapore
Japanese Powerhouse
• U.S. aid, • Export oriented
investments,
protection • Supported by low
wages
• W.W.2 > aid to
• Shift to technology
rebuild
intensive
• U.S. foreign production
investment
• U.S. military & • Model for the
trade protection world
East Asia
• CHINA
• Deng’s economic reforms
• Privatization in coastal zones
• Open borders
• Sought technological parity
Balance of Trade
Post Soviet Asia
Cost of Gasoline
Global Trade Relations
• Some Organizations Enhanced Free
Trade
• GATT
• WTO
• EC & EU
• NAFTA
• Some Organizations Hinder Free Trade
• OPEC
Trade
Organizations
• FREE TRADE
• TRADING ALLIANCES
• GATT /WTO ASEAN
• Developed nations
• ASEAN
• Southeast Asia
• EC & EU
• European NAFTA
• NAFTA
• American
• Limited Trade
• Trade Cartel
• O.P.E.C.
• Oil Producing
and Exporting
Countries
• Limited
Production
• Control
supply/price
OPEC Members
The High Price of Dependence
Capital Punishment