Chapter 9

Chapter 9

Foundations of Economic Globalization

To what extent should globalization contribute to sustainable prosperity for all people?

Poll

I believe that my standard of living will be higher than my parents.

• Agree

• Disagree

Poll

I am optimistic about my economic future.

• Agree

• Disagree

Poll

I think that Canadians will be economically secure in the future.

• Agree

• Disagree

Poll

I believe that, in general, most people in the world will be more prosperous in the future.

• Agree

• Disagree

Poll

I believe that it is very important to keep jobs in Canada.

• Agree

• Disagree

​Economic Globalization

​Economic Globalization - the increasing spread of trade, transportation, and communication systems around the world in the interest of promoting worldwide commerce

Multiple Choice

What is NOT an example of economic globalization?

• You can buy fresh strawberries from Mexico in your local supermarket.

• You lose your job because Canadian manufacturers don't want to pay high wages.

• You can't use your credit card to pay for street food in Thailand.

• Your traditional land gets destroyed because oil is discovered and extracted.

​Joseph Stiglitz

Countries and people are more interconnected than ever before.

​

​Why?

• reduction in cost of transportation ​and communication

• ​reduction of barriers that allow more flow of goods, services, capital, and knowledge

Draw

How has economic globalization benefitted you?

Poll

Which of the following people/organizations would be the MOST supportive of economic globalization?

• NBA

• Google

• McDonalds

• Tourism Canada

Globalization can be healthy, but it doesn't benefit everyone. ​

​- William Tabb

Globalization builds fences of social exclusion between people. ​

​- Naomi Klein

Open Ended

Who is not benefitting or getting excluded from globalization?

​What factors affect the global economy?

​?

​?

​?

Open Ended

What factors affect the global economy?

​What factors affect the global economy?

HOW DID 20TH-CENTURY WORLD EVENTS SHAPE CONTEMPORARY ECONOMIC GLOBALIZATION?

​World War I

• ​Britain, France, and Russia vs. Germany and Austria-Hungary.

• ​high economic costs of the war

• destruction of European cities, towns, ports, ships, and railways (infrastructure)

• Significant decrease in the production of goods

• Unemployment

​Goal = create peace and prevent another world war

​

​Reparations - the act of making amends for wrongdoing, may include payments made by a defeated enemy to countries whose territory was damaged during a war.

​Treaty of Versailles (1919)

Big Four: Lloyd George of Britain, Vittorio Emanuele Orlando of Italy, Georges Clemenceau of France, and Woodrow Wilson of the U.S.

Multiple Select

Who lost WWI?

• France

• Germay

• Austria-Hungary

• Italy

Treaty of Versailles

John Maynard Keynes

• ​member of British delegation

• ​reparations from Germany and Austria is NOT a good idea

​

​BUT... it happened anyway

• Germany had to accept full responsibility for the war

• ​German colonies taken

• ​limited military power

• ​pay 6,600 million euros ($269 billion today)

​WWI and Canada

• Cost $2.5 million/day – income tax temporary introduced

• After the war, interest payments on the country’s war debt totalled $164 million a year and soldiers’ pensions cost another $76 million a year –income tax becomes a permanent feature

• During war = a shortage of labour (soldiers/nurses/farm/factory)

• After the war, soldiers come home and weapon manufacturing stopped – unemployment rose.

Lesson RECAP Questions​

Multiple Choice

Economic uncertainty is one of the factors that affects the global economy. Which of the following would be the least concerning for economists in speculating the economic future?

• imposition of tariffs

• collapse of a major industry

• depletion of natural resources

• political change

Poll

The Treaty of Versailles was created after WWI in order to promote peace and prevent another world war. How effective was the Treaty of Versailles in accomplishing its goal?

• Ineffective

• Somewhat ineffective

• Somewhat effective

• Effective

Multiple Select

What were some legacies of WWI for Canada?

• debt

• payment of reparations

• destruction of infrastructure

• permanent income tax

Open Ended

Why is this an example of economic globalization?