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Globalization (Free Trade (NAFTA = North American Free Trade Agreement …

Globalization

Free Trade

NAFTA = North American Free Trade Agreement

He was hesitant at first, but eventually supported the agreement once becoming president

They were not happy  believed NAFTA was corporation-dominated

Thousands of companies set up shop in Mexico, employing millions of workers as a result

Mexico’s support of NAFTA represents the government’s realization of open markets as the key to economic growth

Since NAFTA, Mexico’s trade has almost doubled

It is a tariff-free production zone near Shanghai

over 300 million Chinese were lifted out of poverty.

The only economy not growing quickly was Japan they were not careful with debt and believed they were in a “bubble economy”.

Thailand opened up its global markets   making loans to Thai businesses equal $200 billion 4 years later

The Thai Baht severely weakened   sending many workers into unemployment and poverty

The US decided not to help Thailand b/c they thought its economy collapse would have no effect on them.

As Thailand’s economy continued to get worse, potential investors were associated Thai’s poor economy with other Asian nations  something known as “contagion”.

The Indonesian cities descended into chaos  forcing the IMF to give huge loans to the Southeast Asian countries in debt

Spread to Korea, one of the most prosperous economies in the world, who was given a loan of $55 billion by the IMF from bailout

The LTCM controlled $100 billion in global assets; however they quickly became losses as a result of the contagion  represented the decaying economy and the idea that there is no such thing as a safe investment

Brazil’s government enforced government cuts and reforms, so they were prepared for the economy collapse. While they took a small hit, they managed to keep their economy stable.

The Crisis proved there are risks and no alternatives to global business. While it’s important to take precautions and be conservative, it is important for international business to occur for global markets to flourish.

Clinton argued free trade was crucial for maintaining world peace and having a truly connected world

The Bush government had very similar opinions, thinking of it as a triumph and an aid for many of the world’s problems.

Brought wealth and poverty related crisis

Money  in the form stocks, bonds, and currencies

Many Americans as well as CalPERS, an investment company.

CalPERS have a total of $150 billion in assets

Changed as opportunities opened up to overseas investors

Clinton promised the protection against global competition

He told the leaders he agreed with their perspective and believed businesses needed to flourish for the economy to recover

New Global Village

Silicon Valley = spiritual center  it was the source of technology and entrepreneurship

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Over 200 thousand Indians work there
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The Anti-Globalization Movement was a group that tried to channel public anxiety into stopping international trade

The Seattle negotiations proved to be unexpected, as they were a means for people to express a broad range of opinions on globalization

Over 17 million new jobs were created in America, however few were unionized

The protestors used the power of the Internet to come together and have their voices heard, forcing the world’s leaders to evaluate various issues and come up with solutions