Social 10-2: Introductory Notes to Chapter 12 – Economic Globalization Expands

1. Free Trade: Defined as ….

• The absence of barriers to the free flow of
goods and services between countries
• trade among countries that occurs without
barriers such as tariffs or quotas
• international trade free of government
interference

Is the picture to the right a picture supporting free

trade? What is the perspective in the cartoon?
(Americas Free Trade Agreement)

2. Subsidy: Defined as …
• In economics, a subsidy is a kind of
financial government assistance,
such as a grant, tax break, or trade
barrier, in order to encourage the
production or purchase of a good.
• Money paid by a government to
encourage people to do something
the government believes is
desirable.
What might be the disadvantage of a
subsidy? Why are some nations opposed to
subsidies?

3. Protectionism: Defined as …
• Government policies fostering home
industries by protecting them from the
competition of foreign goods
• The government's placing of duties or
quotas on imports to protect of domestic
industries from global competition.

Who benefits from protectionism? Does

protectionism contribute to sustainable
prosperity for all?

Chapter 12 Student Activity Marson 2007

Social 10-2: Chapter 12: Economic Globalization Expands Pages 196 – 213

Remember…. We are still looking to see if globalization can create sustainable prosperity
for all people.
1. Start by reading over the Chapter Focus on page 196 of your
text. Do you think you will ever see an ‘amero’ in your lifetime?
________ What would the ‘amero’ be similar to? ___________
This is the trade currency for which economic group of 15
nations? _________________________.

Some people are afraid to give up their own nation’s currency. Provide 2 reasons that
would support this perspective.
a. ________________________________________________________________
b. ________________________________________________________________
Others argue that a common currency would be beneficial to a nation’s economy. Provide
two arguments that support a common currency.
a. ________________________________________________________________
b. ________________________________________________________________

We are going to continue with our look at the foundations of economic globalization since
World War II. Our investigation will have us evaluate whether or not international
organizations and policies of globalization contributes to sustainable prosperity.
Specifically we will look at
• The creation of international trade agreements
• Developments in technology
• Role of transnational corporations within economic globalization

Free Trade Area in the Americas

1. Once NAFTA was completed, where did the United States want to
launch? ______________________________________________
2. State what FTAA stands for:____________________________
3. Why have FTAA negotiations failed? ______________________
__________________________________________________________________
4. Provide 2 reasons why Latin American nations are opposed to FTAA.
a. ________________________________________________________________
__________________________________________________________________
5. Define the term Maquilador: __________________________________________
6. What is the role of a Maquiladora? ______________________________________
__________________________________________________________________
7. Sneaky, sneaky! The U.S. is getting around the FTAA! What is the U.S. Doing? _____
__________________________________________________________________
Chapter 12 Student Activity Marson 2007
VOICES: Indigenous Peoples and the FTAA
8. Describe the goals of South American people as it related to trade.
GOAL: ____________________________________________________________
__________________________________________________________________

9. La Francophonie: An international organization that protects and promotes the culture

of French-speaking peoples throughout the world. Canada is a founding member. Our
government has two goals to pursue in this organization. What are these goals?
a. ________________________________________________________________
b. ________________________________________________________________

Do Trade Agreements Benefit All People?

10. Look at Figure 12-6: What conclusion is presented in regards to trade between the
top 5 exporting nations and 49 of the world’s least developed countries? ___________
__________________________________________________________________

11. Complete the chart: Find evidence that supports both sides to the question.
Trade Agreements Benefit All Trade Agreements DO NOT Benefit All

Global Connections: Trade Issues Between Countries: Subsidies

12. Define the term SUBSIDY: __________________________________________
13. Give an example of an area of subsidy in Canada: ____________________________
14. What do Mexico and Brazil think about our dairy subsidies? ___________________
__________________________________________________________________
Communications and Technology (page 205-206)
Rank the developments in communication technologies over the past 25 years from most
important to least important in transforming the business world.
#1.

#2.

#3.

#4.

#5.

Chapter 12 Student Activity Marson 2007

Transportation Technologies

In this container define containerization and how it operates in our

global economy.

Advancements in transportation technology have

resulted in cheaper goods for consumers. However,
there are critics of the use of cheap
transportation.
List two arguments against cheap transportation.
a. ___________________________________
_____________________________________
b. ___________________________________
_____________________________________

These same critics offer a solution to these

problems. What do they offer as solutions to these
problems?
a. ____________________________________
______________________________________
b. ____________________________________
______________________________________

Chapter 12 Student Activity Marson 2007

 Social 10-2: Chapter 12 Transnational Corporations: Pages 208 – 212

We live in a world that is guided by many different principles, based on the values we
share. In the business world companies can be cut throat and trample on smaller
companies or they can run their businesses based on a strong set of values.

Social responsibility corporations (businesses) run their business in a way that considers
their employers, host communities, the environment, and society in general. They look to
do the following:
• Protect the environment
• Respect human rights
• Respect labor rights
• Make products and services that aren’t harmful to society

This section’s chapter focus question is: How do Transnational

Corporations (TNC’s) influence economic globalization? Do these big
companies contribute to sustainable prosperity for all? We are going to
see what the text says about these companies and then do a little
investigation of our own.

Page 208:
1. The Top 200 TNC account for ________ % of all global activity?
2. What is so unique about a TNC’s geographical location? ______________________
_________________________________________________________________
3. There are more than ________TNCs in the world, with some ________ subsidiaries.
4. Define subsidiary: __________________________________________________
5. According to the text, the simplest form of integration is ____________________
__________________________________________________________________
6. Describe the impact of TNC’s when they enter into new markets. _______________
__________________________________________________________________

The wealth of a transnational corporation is often compared to that of an entire country.

This measure lets us know how big and wealthy these companies are!
7a. What is the comparative wealth of Altria corporation? ______________
7b. What is the comparative wealth of General Motors? ________________
7c. What is the comparative wealth of Toyota? ______________________
8. What nation has the most corporate headquarters? _________________________
Transnational corporations can gain great wealth and often with wealth comes power.
TNC’s can start to dictate the policies of a nation, especially developing nations that want
to have their businesses located in their countries.
9. Look at the Fast Facts: What were the top 5 TNC’s in 2005? ________________,
Chapter 12 Student Activity Marson 2007
________________, ________________, ________________ and ____________
Did you know that the in 2006 an organization called the multinational monitor published
the top 10 worst offenders and BP and Exxon Mobil were at the top of the list.
10. What is the Global Compact? _________________________________________
It is run by the ___________ ______________.
Not everyone believes that an organization can make companies improve global social
responsibili8ty.
11. Can you find one arguments that support and criticize the actions taken by the Global
Compact?

Critics of Global Compact Supporters of Global Compact

12. Go to page 228 of your book: Why do some people call TNC subsidiaries ‘Sweatshops’?
_______________________________________________________
12a. Does the GAP run a sweatshop? ______________________________________
12b. Does Disney run a sweatshop? _______________________________________

Chapter 12 Student Activity Marson 2007