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36.2 Global Economic Development - Coggle Diagram
36.2 Global Economic Development
Technology Revolutionizes the World's Economy
Introduction
Plastic became really important when the recipe of petroleum at low temps and pressures was perfected since industries were able to easily and cheaply make things out of plastic
Information Industries Change Economics
Even with a reduced need for factory workers, Computer companies needed people to transmit info quickly and cheaply, or knowledge workers, while their industry boomed
The Effects of New Economies
An Economic shifted happened between two different kinds of nations
Developed Nations
Developed nations were already industrialized and were starting to upgrade, but they lost jobs due to the new technological advancements
Information workers doubled in developed countries due to a need for well-educated people
Emerging Nations
Manufacturing jobs moved to these nations since they were just now starting to become industrialized
They were prime locations, eager and cheaper workers
Economic Globalization
Introduction
Global economics started to take shape around the second half of the 1800's, but was helped by cargo ships, computer links and others
Multinational Corporations
Multinational companies are companies that operate in several different countries, Ford, Exxon, toyota
These companies operate overseas for several reasons
Raw materials and labor are cheap
Allows for economic integration, gathering the materials in one countries and selling it to a plant in the other
Goods and sevices are distributed without boundaries in countries
Expanding Free Trade
A major goal of globalization is
free trade
, or the elimination of tariffs or trade barriers
This led to the General Agreement on Tariffs and Trade (GATT) which was the lowering of tariffs and expansion of trade, an agreement the world trade organization has been watching
Regional Trade Blocs
Europe set out an organization to promote tariff-free trade, whcih turned into the European Union because of its success
The economic success fueled other agreements, like the North American Free Trade Agreement to eliminate tariffs in Canada, US and Mexico
Globalization - For and Against
Some Debate about globalization
For
Increased Standard of living, Competitive markets, and free flow help nations
Aganist
Other say its helped developed nations and made poorer nations even worse and help must be provided to them
Impact of Globalization
Political Impacts
Trade requires a lot of energy, and oil is the main source
Disruption of oil has caused problems
Nations with oil reserves have a lot of power like the Organization of Petroleum Exporting Countries made an embargo on oil
When Iraq invaded Kuwait, they took the oil fields and people were scared they take over all the oil fields in the ME, so the UN tried to make them give back Kuwait
They didn't, so 39 countries went to war with Iraq, and they gave it up
Environmental Impacts
Coal and Oil had caused carbon dioxide levels to rise
Chlorofluorocarbons released by fridges and AC's destroyed the ozone layer causing a lot of skin cancer and dying plants
Large scale soil erosions have destroyed habitats, leaving a greater extinction rate for animals and plants
Sustainable Growth
Economists and scientists have met to try and manage development without hurting the planet
Sustainable growth requires 2 things
Meeting current economic needs
Preserving environment