Globalization

1
Globalization

• EQ How does globalization encourage economic
  interdependence?

2
Comparative Advantage

• Which country can make a good cheaper.
• In the following example, who has the comparative
  advantage?

3
Comparative Advantage

• Minimum Wage
• United States 7.25
• China 2.00
• Regulations on Producers
• United States EPA, OSHA, many more
• China Few if any
• Corporate Taxes
• United States 35-39
• China 25
• Small Business Taxes
• United States 15-34
• China 20

4
Favorable v. Unfavorable Balance of Trade

• Imports v. Exports
• United States Balance of Trade
• Imports Exports
• China 296,402 65,576
• France 34,034 26,522
• Japan 95,949 51,179
• Mexico 176,537 128,997
• EU 281,319 220,776

5
Protective Tariffs

• Based on what we have learned about Comparative
  Advantages and prices other countries can charge
  while still making a profit, why does the U.S.
  Government have to place Protective Tariffs on
  imports?

6
Exchange Rate

• What the U.S. Dollar is worth compared to
  currency of other countries.
• 1
• Chinese Yuan 6.82
• Mexican Peso 12.32
• Euro 0.75
• Canadian Dollar 1.00
• Japanese Yen 91.99
• British Pound 0.66
• What do these exchange rates mean for American
  tourists to these countries or American companies
  who sell goods to these countries?

7
Price Comparison

• Price Comparison

8
Types of Countries

• Developed
• Developing
• Undeveloped

9
World Map
10
International Organizations

• EU
• NAFTA
• WTO
• IMF
• World Bank
• For each one, determine what it stands for and
  tell what it does and why it was formed.