Chapter 1globalization & Economic Trends Flashcards
Globalization
Process of integration among countries around the world
Social
Political
Economic
Cultural
Technological
Benefits of growing global trade and investment
Wealth (santé)
Jobs
Technology
Lower prices
Criticisms of globalization
Offshoring (délocalisation) of business services jobs to lower-wage (bas salaires) countries
Growing trade deficits (Des déficits commerciaux croissants)
Slow wage growth (Faible croissance des salaires)
Environmental and social impacts
World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
Regional Agreements
North American Free Trade Agreement (NAFTA)
U.S.—Central American Free Trade Agreement (CAFTA)
Free Trade Agreement of the Americas (FTAA)
European Union (EU)
Association of Southeast Asian Nations (ASEAN)
International investments
- 80 percent from developed countries
- Foreign direct investment (FDI)
- Economic growth potential (esp. China and Asia in general)
- Trade growing faster than most domestic economies
Over one-half of world trade is accounted for by
United States
European Union
Japan
Developing and Emerging Countries
India
Low per capita GDP (Faible PIB par habitant)
Recent trend of locating software and high value-added services to this country
Attractive to U.S. and British investors (well educated, English speaking, technologically sophisticated workers)
Middle East and Central Asia
Large oil reserves
Highly unstable geopolitical and religious forces
Plagued by continuing economic problems
Africa
Considerable natural resources
African nations remain very poor and undeveloped
International trade is not a major source of income
Populace divided into 3,000 tribes that speak 1,000 languages and dialects
Major political instability
Poverty, starvation, illiteracy, corruption, overcrowding among many social problems negatively affecting economic sector
