WORLD AND US ECONOMY
Socratic Seminar

Globalization: Is globalization beneficial or
detrimental to the international world?
 How
effective is globalization?
 How can globalization affect international government
policies on the environment?
 Which countries benefit the most from globalization?
Remember:
-
Do NOT raise your hand to speak!
-
Try to “counter-point” someone else’s statement
-
Use statistics, facts, and real data!!!
Natural Disasters & Economy Article Quiz:
1.
2.
3.
4.
5.
6.
7.
What is the costliest decade for natural disasters?
What is the relationship between the cost of these disasters
and the death toll (rising/falling?)
Why are countries, like Bangladesh, prone to more natural
disasters?
What did Kahn’s research indicate about developing
countries and natural disasters?
Why are wealthier countries more at a disadvantage when
natural disasters hit?
What does the Intergovernmental Panel on Climate Change
believe will happen to natural disasters in the future?
How can one person’s wealth help protect him from a natural
disaster?
Answers






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The past decade 2000-2010
Rising/falling
Geographically prone to disasters
GDP is higher then you would have fewer deaths
Better infrastructure (roads, bridges, etc.) that are
more valuable if destroyed.
Climate change is going to raise the damage by
disasters
More money = cleaner cars = no pollution
Economic terms to know for the exam

Globalization

Free Trade

NAFTA

Gross Domestic Product

European Union

Inflation

World Trade Organization

Deflation

Debt

Tariff

Deficit

Unemployment Rate

Foreclosure

Profit

Revenue

Stimulus

Securities and Exchange
Commission

Depression

Supply

Recession

Demand

Bailout
Frontline: Meltdown

http://www.pbs.org/wgbh/pages/frontline/meltdown/view/
United States: Top International Trade Partners
1.
Canada - $696 Billion
2.
China - $488 Billion
3.
Mexico – $435 Billion
4.
Japan - $240 Billion
5.
Germany - $180 Billion
6.
UK – $134 Billion
7.
South Korea - $98 Billion
8.
France - $88 Billion
9.
Brazil - $74 billion
10.
Netherlands - $73 Billion
(Through June of 2009)
United States: Top International Trade Partners

Map Continued – no particular order

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

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
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Saudi Arabia
Venezuela
Italy
Belgium
India
Singapore
Malaysia
Nigeria
Ireland
Switzerland
Globalization

McDonalds Restaurants worldwide?
 31,000
total
 119 countries in 6 continents


Interconnectedness – economically, politically, &
culturally
Globalization Characteristics:
 Technology
& Transportation
 Movement of People & Capital
 Diffusion of Knowledge
 Labor and Corporations
Globalization?

Is globalization connecting the world or tearing it
apart?
Pros:
Cons:
1. Productivity grows faster
1. Loss of jobs due to imports
2. Living standards go up
2. Competition has decreased business size
3. Global competition controls prices
(not getting too high)
3. Often leads to pay-cuts
4. Spurs innovations and new ideas
5. Job creation (exporting jobs)
5. Primarily focused on 1st-2nd world
countries
6. Betters the global economy
6. Increase in diseases (travelers, workers)
7. Cultural intermingling and sharing
7. Exploiting labor (sweat-shops)
4. Countries loose their identity (culture)
The Globalization Debate

Barack Obama on Globalization
 http://www.youtube.com/watch?v=7owMXrLu2d8

Is Globalization bringing the world together? Or is
it tearing it apart?
 With
a partner brainstorm a list of ideas (both positive
and negative) that addresses the above question.
 Read Article: Thomas Friedman
ECONOMY LECTURE
Natural Disasters & Economy

Top 10 Costliest Disasters since 1980 slideshow:
 http://money.usnews.com/money/businesseconomy/slideshows/the-top-10-costliestdisasters-since-1980
United States

Current Debt

http://www.brillig.com/debt_clock/
 http://www.usdebtclock.org/

How did the debt get so large?
 1.
taxes lowered
 2. accumulates
 3. treasury bonds
Debt

Who owns the debt?
 1.
 2.
 3.
 4.
 5.
Fed Reserve & Intergovernmental holdings
Investors/Saving Bonds
China
Japan
Mutual Funds

Inflation Rate: Low since 1990 but rose to 4.1% in
2007 (lowered to 1.4 – 2012)
 Fed
Reserve controls inflation
 Interest Rates go up while spending goes down
 Reduce interest rates – increases money supply –
consumer spending increases.

Statistics (unemployment, recession, etc.)
 7.3%
for United States
 7.1% for Missouri
Inflation Rates

Obama’s Budget Proposal Charts:
 http://www.nytimes.com/interactive/2010/02/01/us/
budget.html 2011 Proposal
 http://www.nytimes.com/packages/html/newsgraphics
/2011/0119-budget/ 2012 Proposal
Housing Crisis 2007

Housing bubble 2006-2007

Bailout of major corporations

1. Mortgage lenders borrowed money

2. House payments increased

3. Demand for homes decreased

4. People could not sell their homes

5. Lenders declared bankruptcy

6. No loans being issued
http://www.youtube.com/watch?v=-vboCTGpI8Y
Auto Bailout

Auto Crisis & Bailout
 1.
Auto industry was weakened due to oil prices
 2. GM, Ford, Chrysler (Big 3) and Toyota
 3. Govt bailout of the Big 3
 4. Declining car sales
 5. Labor jobs cut
 6. Wages reduced
 Time for a Victory lap?
 http://video.foxnews.com/v/4298942/obama-takes-
victory-lap-on-auto-bailout




Recession- general slowdown in economic activity
over a period of time
Deficit- amount by which expenditures exceed
income
Deflation- decrease in the general price level of
goods and services over time
Inflation- rise in general level of prices of goods
and services over time


Unemployment rate (2013) – 7.3%
US Debt (2013) – 16.9 trillion
World Economy
NAFTA – North American
Free Trade Agreement

PROS
CONS
Low Tariffs & Lowers prices
Jobs are relocated (cheap
labor)
Economic Support with 3 other
countries
Increases competition for prices
Opened Markets (more
products)
Increase in illegal immigration
Reducing Mexican poverty
Increase environmental hazards
(trucks, factories have no
restrictions)
World Economy

WTO – World Trade Organization – 1995
CRITICISIMS:
Too Powerful – overpowering small sovereign states
Run by the rich and for the rich (not wanting to deal with developing countries)
Lacks democratic accountability (not open to public)
Does not concern itself with child labor, environment, workers rights, and health


Supporters argue that most of the member nations are democratic in
government (who write the rules) and the WTO helps to raise living
standards around the world
http://www.youtube.com/watch?v=X-ptS6Ln_ss
US Trade Partners





Canada
China
Mexico
Japan
Germany
World Economy

EU – European Union
European Economic
Community
Common Foreign and
Security Policy
Police and Judicial
Cooperation
5 min – Financial Crisis 2013

US Debt Crisis 2013 - US Economy Explained Understanding the Financial Crisis
 http://www.youtube.com/watch?v=OJk6vcztEds

Bias?
Will/when our economy improve?
CNN Outlook on US Economy:
 http://www.cnn.com/video/#/video/politics/2010
/08/12/am.tully.economy.cnn?iref=videosearch
Fox News Outlook on US Economy:
 http://video.foxnews.com/v/4323089/grim-stateof-us-economy-confirmed
Key Questions:




Are tax refunds the best economic stimulus measure?
Should the federal government help homeowners
who face foreclosure?
How can WTO and globalization be linked
together?
Can you stem global warming and at the same time
promote economic growth?
ALA TOPICS AND
MELTDOWN: FRONTLINE
Economic ALA Topic Suggestions:

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Oil Dependency
Bush Tax Cuts
Budget Deficit
Fair v. Free Trade
Mortgage Lenders
Social Security
Health Care
Minimum Wage







Green Policies (and
economy)
US Debt
Housing Crisis
Auto Bailout
NAFTA
WTO
EU
Meltdown: Housing Crisis – How did the
bubble burst?



http://www.pbs.org/wgbh/pages/frontline/meltdo
wn/view/?utm_campaign=viewpage&utm_medium
=grid&utm_source=grid
Video Clip – 55 mins
Complete a 6-Chain of Events (and discussion
questions) on how the housing crisis began following
through until the crisis goes global!
Videoconference Prep movies:



Big Picture Small World:
http://www.bigpicturesmallworld.com/movies/inde
x.shtml
World in 10 seconds:
http://www.bigpicturesmallworld.com/movies/inde
x.shtml
Leadership 101:
http://www.bigpicturesmallworld.com/movies/inde
x.shtml