IL global economy

Major topic towards the end of the course.
Focus on how globalization, climate change, and trade influence our understanding of the global community.
Discuss the regulation of trade between countries.

Tariffs:
- Defined as taxes applied to international trade.
- Regulate the international trade environment.

Responsibility of MNCs concerning human rights violations.
Importance of discussing the ethical implications of MNC actions.
Example Scenario: If it is discovered that clothing branded by a corporation (hypothetically "Qian") is made by child labor, it raises important questions about the corporation's accountability and public perception.

Persistence of inequality, exacerbated by situations such as the COVID-19 pandemic.
Notable increase in wealth concentration:
- More billionaires have emerged than ever before.
Explaining the vast wealth of billionaires:
- If an individual possesses a billion dollars and spends $1,000 a day, their wealth would last for 2,740 years.
- This enormous length of time is difficult to comprehend.
Criticism of wealth disparity and its implications on society:
- The existence of billionaires raises questions about wealth accumulation ethics and the living wages of ordinary workers.

A perspective on economic disparities and relationships between global economies.
Question raised: Should corporations be considered legal persons responsible for their actions abroad?
- Example: If H&M increased wages by 25 cents for workers in Bangladesh, many would be able to achieve living wages.
- Questions of responsibility arise: Who is to blame? The corporation, the local government’s laws, or consumers?

Holding corporations accountable raises significant issues:
- Legal concepts: with rights come responsibilities.
- Debate on the transformative power of corporations with economies larger than some nations.
- Possible consequences of granting corporations rights, such as affording them geopolitical power.

Major organizations:
- International Monetary Fund (IMF): Focuses on international monetary cooperation and financial stability.
- World Trade Organization (WTO): Regulates international trade, emerging from the GATT (General Agreement on Tariffs and Trade).
- Established in 1995, the WTO coped with trade agreements that shape international economic law.
- World Bank: Provides financial and technical assistance to developing countries.

All three organizations (IMF, WTO, World Bank) face criticisms similar to those faced by the UN.
- Critiques include accusations of favoring the United States and its allies at the expense of formerly colonized or third-world countries.

Historical context of currency value:
- Previously, currencies were pegged to gold.
Concept of Petrodollar: The dollar's position as a global benchmark currency affecting international trade.
Implications of a strong U.S. dollar:
- The ability of the U.S. to print more money without necessarily affecting its value severely impacts global economic stability.

General Agreement on Tariffs and Trade (GATT) laid the groundwork for international economic laws.
Transition to the WTO, reinforcing the principles established by GATT pertaining to trade.

American ideology linking freedom, capitalism, and democracy.
Acknowledgment of alternative models emerging alongside traditional Western economic ideologies.

Importance of graphical data (such as maps) to understand the structure of global economies and trade relationships.
- European Union: Represented as a cohesive block due to shared currency.

Encourage students to stay informed about documentaries and current events related to these issues to enhance understanding of global economic dynamics.
Clarify changes in the EU with examples such as Great Britain's exit from the union.