Chapter 25: Lesson 1- Global Independence and Issues

Global Interdependence:
   
     Global interdependence means that people and nations depend on each other for goods and services. Developed countries usually export technology and medicines for developing countries and developing countries export raw materials and local products to developing countries.

Global Trade

      The global trade between countries occur because nations have different needs, comparative advantages, and resources. The U.S. is a very important factor in global trade.Some exports are: wheat, corn, computer software, aircraft, medical equipment, and machinery that is sent to nations who cannot produce these goods on their own. The U.S. still needs some imports, such as oil, which usually comes from Canada, Saudi Arabia, Venezuela, and Mexico and is used in the daily lives of most Americans. Some times the U.S. needs certain goods, such as diamonds, which are imported from South Africa, Democratic Republic of the Congo, and Botswana.

Global Economic Cooperation

       The North American Trade Free Trade Agreement (NAFTA) was made to end trade barriers between Canada, Mexico, and the U.S. Although it does not solve all disagreements between nations, they do support global interdependence.

Global Issues

       Since global interdependence has made people aware of issues that have affected the world as a whole, nations cooperate and work together to find solutions to the problems of the world. However, varieties of political and cultural forces are also at work around the globe. These forces can encourage nations not to work together.

Costs of Competition and Trade

The global interdependence has increased trade and has led to the wealth in many parts of the world. Although, trade may cause problems. Companies may move their factories to other countries with lower labor costs and greater populations. People may lose their jobs in the process. Some countries may put up barriers to protect their industries from imports produced in countries with cheaper labor, but they cost money. Although trade barriers can lead to more barriers and may end up in a trade war. Which results in higher prices for everyone and fewer choices for consumers.

Rich and Poor Nations

Unequal levels of economic growth have led to a large gap between rich and poor nations. The developing nations are making progress but not enough to catch up to developed countries. Developed nations usually have a higher per capita GDP and stable political systems. Some examples are: United States, Germany, and Australia. On the other hand, developing countries have a lower per capita GPDs and low rates of growth. They may lack natural resources, have unskilled workers, political unrest, poor schools, or health problems.

Global Politics

The different governments and views of every nation can lead to disagreements. For example, Venezuela criticizes the U.S. market and the U.S. condemns the economic policies of Venezuela. Yet Venezuela, a developing country, needs the United States, a developed country, for money. The U.S. also needs the oil from Venezuela.

Environmental Issues

Even with the modern comforts of today, there is usually a price. Not with money, but our environment. The chemicals released by factories cars pollute everything around us all. Especially burning coal and oil, the chemicals released by it harm trees and animals. Deforestation is becoming more common but it causes flooding, mudslides, and lessens the amount of carbon dioxide trees absorb. Poor nations fear that taking steps in preventing pollution will slow their economic growth, which they need to better the lives of the citizens.

Other Global Challenges

One of the problems in today's world is immigration. Sometimes the citizens of that country are unhappy with the immigrants. The differences in ethnic groups, race, or racial background may bring up some disagreements between people. Terrorism also may occur between countries, the violence is geared towards the government and/or people to behave a certain way with force. With terrorism,

comes refugees, who are people that flee from famine, conflicts, terrorism, or natural disasters. They live in temporary camps. They also require the cooperation between countries to help them into a safer environment with food, clean water, and basic health care.






Review Questions:

1) Why does the U.S. trade with Venezuela, even though they have disagreements?

2) Why do developing countries depend on the developed countries?





Answers:

1) The 2 nations have something that the other doesn't and therefore are in need for it, so that trade keeps a steady balance in a relationship between a developed and a developing country.

2) Developing countries don't have a very stable per capita GDP, they may lack natural resources, have unskilled workers, political unrest, poor schools, or health problems.