WORLD AND US ECONOMY

Socratic Seminar

Globalization: Is globalization beneficial or detrimental to the international world? How effective is globalization? How can globalization affect international

government policies on the environment? Which countries benefit the most from

globalization?

Remember:- Do NOT raise your hand to speak! - Try to “counter-point” someone else’s statement- Use statistics, facts, and real data!!!

Natural Disasters & Economy Article Quiz:

1. What is the costliest decade for natural disasters?

2. What is the relationship between the cost of these disasters and the death toll (rising/falling?)

3. Why are countries, like Bangladesh, prone to more natural disasters?

4. What did Kahn’s research indicate about developing countries and natural disasters?

5. Why are wealthier countries more at a disadvantage when natural disasters hit?

6. What does the Intergovernmental Panel on Climate Change believe will happen to natural disasters in the future?

7. How can one person’s wealth help protect him from a natural disaster?

Answers

The past decade 2000-2010 Rising/falling Geographically prone to disasters GDP is higher then you would have fewer

deaths Better infrastructure (roads, bridges,

etc.) that are more valuable if destroyed. Climate change is going to raise the

damage by disasters More money = cleaner cars = no

pollution

Economic terms to know for the exam Globalization NAFTA European Union World Trade

Organization Debt Deficit Foreclosure Securities and

Exchange Commission Depression Recession Bailout

Free Trade Gross Domestic Product Inflation Deflation Tariff Unemployment Rate Profit Revenue Stimulus Supply Demand

Frontline: Meltdown

http://www.pbs.org/wgbh/pages/frontline/meltdown/view/

United States: Top International Trade Partners

1. Canada - $696 Billion

2. China - $488 Billion

3. Mexico – $435 Billion

4. Japan - $240 Billion

5. Germany - $180 Billion

6. UK – $134 Billion

7. South Korea - $98 Billion

8. France - $88 Billion

9. Brazil - $74 billion

10. Netherlands - $73 Billion

(Through June of 2009)

United States: Top International Trade Partners

Map Continued – no particular order Saudi Arabia Venezuela Italy Belgium India Singapore Malaysia Nigeria Ireland Switzerland

Globalization

McDonalds Restaurants worldwide? 31,000 total 119 countries in 6 continents

Interconnectedness – economically, politically, & culturally

Globalization Characteristics: Technology & Transportation Movement of People & Capital Diffusion of Knowledge Labor and Corporations

Globalization?

Is globalization connecting the world or tearing it apart?

Pros:

1. Productivity grows faster

2. Living standards go up

3. Global competition controls prices (not getting too high)

4. Spurs innovations and new ideas

5. Job creation (exporting jobs)

6. Betters the global economy

7. Cultural intermingling and sharing

Cons:

1. Loss of jobs due to imports

2. Competition has decreased business size

3. Often leads to pay-cuts

4. Countries loose their identity (culture)

5. Primarily focused on 1st-2nd world countries

6. Increase in diseases (travelers, workers)

7. Exploiting labor (sweat-shops)

The Globalization Debate

Barack Obama on Globalization http://www.youtube.com/watch?v=7owMXr

Lu2d8

Is Globalization bringing the world together? Or is it tearing it apart? With a partner brainstorm a list of ideas

(both positive and negative) that addresses the above question.

Read Article: Thomas Friedman

ECONOMY LECTURE

Natural Disasters & Economy Top 10 Costliest Disasters since 1980

slideshow: http://money.usnews.com/money/busine

ss-economy/slideshows/the-top-10-costliest-disasters-since-1980

United States

Current Debt http://www.brillig.com/debt_clock/ http://www.usdebtclock.org/

How did the debt get so large? 1. taxes lowered 2. accumulates 3. treasury bonds

Debt

Who owns the debt? 1. Fed Reserve & Intergovernmental

holdings 2. Investors/Saving Bonds 3. China 4. Japan 5. Mutual Funds

Inflation Rate: Low since 1990 but rose to 4.1% in 2007 (lowered to 1.4 – 2012) Fed Reserve controls inflation Interest Rates go up while spending goes

down Reduce interest rates – increases money

supply – consumer spending increases. Statistics (unemployment, recession,

etc.) 7.3% for United States 7.1% for Missouri

Inflation Rates

Obama’s Budget Proposal Charts: http://www.nytimes.com/interactive/2010/0

2/01/us/budget.html 2011 Proposal

http://www.nytimes.com/packages/html/newsgraphics/2011/0119-budget/ 2012 Proposal

Housing Crisis 2007

Housing bubble 2006-2007 Bailout of major corporations 1. Mortgage lenders borrowed money 2. House payments increased 3. Demand for homes decreased 4. People could not sell their homes 5. Lenders declared bankruptcy 6. No loans being issued

http://www.youtube.com/watch?v=-vboCTGpI8Y

Auto Bailout

Auto Crisis & Bailout 1. Auto industry was weakened due to oil

prices 2. GM, Ford, Chrysler (Big 3) and Toyota 3. Govt bailout of the Big 3 4. Declining car sales 5. Labor jobs cut 6. Wages reduced Time for a Victory lap?

http://video.foxnews.com/v/4298942/obama-takes-victory-lap-on-auto-bailout

Recession- general slowdown in economic activity over a period of time

Deficit- amount by which expenditures exceed income

Deflation- decrease in the general price level of goods and services over time

Inflation- rise in general level of prices of goods and services over time

Unemployment rate (2013) – 7.3% US Debt (2013) – 16.9 trillion

World Economy

NAFTA – North AmericanFree Trade Agreement

PROS CONS

Low Tariffs & Lowers prices

Jobs are relocated (cheap labor)

Economic Support with 3 other countries

Increases competition for prices

Opened Markets (more products)

Increase in illegal immigration

Reducing Mexican poverty

Increase environmental hazards (trucks, factories have no restrictions)

World Economy

WTO – World Trade Organization – 1995

Supporters argue that most of the member nations are democratic in government (who write the rules) and the WTO helps to raise living standards around the world

http://www.youtube.com/watch?v=X-ptS6Ln_ss

CRITICISIMS:

Too Powerful – overpowering small sovereign states

Run by the rich and for the rich (not wanting to deal with developing countries)

Lacks democratic accountability (not open to public)

Does not concern itself with child labor, environment, workers rights, and health

US Trade Partners

Canada China Mexico Japan Germany

World Economy

EU – European Union

European Economic CommunityCommon Foreign and Security PolicyPolice and Judicial Cooperation

5 min – Financial Crisis 2013

US Debt Crisis 2013 - US Economy Explained - Understanding the Financial Crisis http://

www.youtube.com/watch?v=OJk6vcztEds Bias?

Will/when our economy improve?

CNN Outlook on US Economy: http://www.cnn.com/video/#/video/politic

s/2010/08/12/am.tully.economy.cnn?iref=videosearch

Fox News Outlook on US Economy:

http://video.foxnews.com/v/4323089/grim-state-of-us-economy-confirmed

Key Questions:

Are tax refunds the best economic stimulus measure?

Should the federal government help homeowners who face foreclosure?

How can WTO and globalization be linked together?

Can you stem global warming and at the same time promote economic growth?

ALA TOPICS AND MELTDOWN: FRONTLINE

Economic ALA Topic Suggestions: Oil Dependency Bush Tax Cuts Budget Deficit Fair v. Free Trade Mortgage Lenders Social Security Health Care Minimum Wage

Green Policies (and economy)

US Debt Housing Crisis Auto Bailout NAFTA WTO EU

Meltdown: Housing Crisis – How did the bubble burst?

http://www.pbs.org/wgbh/pages/frontline/meltdown/view/?utm_campaign=viewpage&utm_medium=grid&utm_source=grid

Video Clip – 55 mins Complete a 6-Chain of Events (and

discussion questions) on how the housing crisis began following through until the crisis goes global!

Videoconference Prep movies: Big Picture Small World:

http://www.bigpicturesmallworld.com/movies/index.shtml

World in 10 seconds: http://www.bigpicturesmallworld.com/movies/index.shtml

Leadership 101: http://www.bigpicturesmallworld.com/movies/index.shtml