36 Global Economic Systems

8/8/2019 36 Global Economic Systems

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New &

Innovative

GlobalEconomies


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Innovative

Examine trade patterns in recenttimes. [Global Transfer of Wealth]

How has the balance of trade begunto shift patterns global power andinfluence?

What possible changes in thesepatterns can we expect based uponinformation from the past?

Essential Questions


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Business organizations thatoperate across borders.

They owe no allegiance to anycountry.

THEIR FOCUS IS PROFITWITHOUT NATIONALLOYALTY.

Multinational Corporations


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The GrossNational Product

(GNP) is the totaldollar value of all finalgoods and servicesproduced for

consumption insociety during aparticular timeperiod.

The GrossDomestic

Product (GDP)measures outputgenerated throughproduction by labor

and property whichis physically locatedwithin the confinesof a country.

How We Measure Wealth


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Country% of Global

GDP% of World Population

USA 32.9% 4.65%

Japan 13.4% 2.09%

Germany 6.0% 1.36%

Britain 4.6% 0.99%

France 4.2% 0.97%

China 3.7% 20.84%

Italy 3.5% 0.95%

Canada 2.3% 0.51%

Mexico 2.0% 1.62%

Spain 1.9% 0.65%

GrossNational

Product

(2000 data, billiondollars)

(per capita)


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LATIN AMERICA

Continued economic growth Based upon

Resources

Industrialization Despite relative political instability

Halted in 1970s & 80s

Dependence of the2nd World


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AFRICA Least developed

Lack of: Capital

Technology

Foreign markets

Managerial class

Very rich in resources

Little or no industry

Dependence of the 3rd

World


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Little Tigers

Hong Kong TaiwanSouth Korea

Singapore Phenomenal growth

Serious competition

for: Japan

U.S.A.

European Union

East & S.E. Asia


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Pacific Rim Economic SectorJapan

The Little Tigers China

Economic Growth in Asia


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Taiwan


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Hong Kong


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Singapore


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Japan

Singapore

China

Taiwan


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U.S. aid,investments,

protection W.W.2 > aid to

rebuild

U.S. foreigninvestment

U.S. military &trade protection

Export oriented

Supported by lowwages

Shift to technologyintensive

production

Model for theworld

Japanese Powerhouse


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CHINADengs economic reforms

Privatization in coastal zonesOpen borders Sought technological parity

East Asia


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Balance of Trade


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Post Soviet Asia


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Cost of Gasoline


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Some Organizations Enhanced FreeTrade

GATT WTO

EC & EU

NAFTA

Some Organizations Hinder Free Trade OPEC

Global Trade Relations


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FREE TRADE TRADING ALLIANCES

GATT /WTO Developed nations

ASEAN

Southeast Asia

EC & EU European

NAFTA

American

NAFTA

ASEAN

Trade

Organizations


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Limited Trade

Trade Cartel O.P.E.C.

Oil Producingand ExportingCountries

LimitedProduction

Controlsupply/price


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OPEC Members


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The High Price of Dependence


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Capital Punishment

36 Global Economic Systems

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