Globalization – Empire Building



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chapter 13 for CD

Global Economy

  • No country on earth has, within its boundaries and jurisdiction, all the resources needed to operate as a developed country.
  • The USA imports 100% of more than a dozen key mineral resources.
  • Benefits:
    • Greater economic diversity and job opportunities for countries.
    • Better quality, lower cost consumer products.

Three Levels of Cooperation

  • Free Trade Area – No internal tariffs
    • Each country sets tariffs for nonmembers
  • Customs Union – Eliminates internal tariffs & adopts a common external tariff policy
  • Common Market–closest level of cooperation
    • Eliminates internal tariff & sets common external
    • Common laws relating to production
    • May establish some common political institutions & may work toward eventual political union
    • Many common political, economic, & social areas

Economic Unions

  • The development after WW II of the European Union has improved living standards among members and given Europe the longest period of peace
  • NAFTA has the potential to do that in the Western Hemisphere – effort are being made to expand it.
  • Initially there are some dislocations, but in the long-run member countries and their citizens benefit

EU Cooperation – potent force

  • European Parliament – growing but limited power
  • One huge market for goods, capital, labor
    • Euro accepted by most but not all
  • Transportation system at all levels
  • Regional policy to assist poor agricultural areas and declining urban areas
  • Social policy – laws for work, labor, visas, etc.
  • Environmental policies
  • Defense (really through NATO)

European Union Growth


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