Unit 9 Review

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Globalization

Globalization

Interaction among peoples, governments. and companies around the world.

economic liberalism

Economic liberalization involves fewer restrictions on trade, lower government spending on taxes, and transferring ownership of government.

knowledge economy

A knowledge economy creates, distributes, and uses knowledge and information.

japanese economic growth

•  Japan became a manufacturing powerhouse. 

• Japan's impressive growth came at a high cost for its consumers. 

• Low-wage workers producing items for foreign markets often could not afford to buy what they made (Japanese-made cars were more expensive in Japan than they were in the United States). 

• Japanese unions became strong enough to negotiate higher wages, and international pressure forced Japan to relax trade restrictions. 

Asian Tigers

The Asian Tigers were 4 states: Hong Kong, Singapore, South Korea, Taiwan. Like Japan, these states prospered through government-buisness partnerships, high exports, intense education, and a low-wage workforce. Their success raised hundreds of millions of people from poverty.

economic continuities

• As the knowledge economy develops in some regions, industrial production and manufacturing in those regions, including in the United States, have declined.

• Manufacturing plants are increasingly located in Asia and Latin America rather than United States and Europe. 

• Countries in Asia and Latin America have become known for their contributions to textile and apparel industries, though they manufacture many other products. 

• So while it has moved to different regions, manufacturing continues to play a key role in the global economy.

transnational organization

• Several organizations contributed to the growth of global economy in the decades following World War II. 

• Some countries joined regional organizations such as the European Economic Community, Mercosur (South America), and the Association of Southeast Asian Nations (ASEAN). 

Many countries signed an international accord, the General Agreement on Tariffs and Trade (GATT), lifting barriers to trade.

• By lowering and eliminating many tariffs, the agreement promoted more international trade and helped restore economic prosperity to war-ravaged Europe. 

• 1990s: Average tariff rates sunk below 5 percent, easing the movement of goods across national borders and lowering prices for consumers. 

• 1995: World Trade Organization (WTO) took over GATT's operations. 

• The WTO made rules that governed more than 90 percent of all international trade.

• Because of its power the organization became controversial. 

• Its meetings were closed to the public, and its board members represented mostly corporate interests. 

• The organization's rules favored trade over consideration of issues of moral concern. 

  • Through strict application of WTO rules, a member nation that refused to buy clothing made by sweatshop labor could suffer trade sanctions from the organization.

multinational corporations

•  Legally incorporated in one country but makes or sells goods or services in one or more other countries. 

• Joint-stock companies of Commercial Revolution (British and Dutch East India Companies, 4.5) were the earliest examples of multinational corporations. 

• Multinational corporations were the business means through which imperialist nations made their wealth during the age of imperialism, exploiting the resources and labor of the colonized regions for profit in home countries.