Related Issue #3 Review

This period, we’re going to talk about some of the key concepts from Related Issue #3.

As was the case with the last 2 exams, the concepts that we cover today are not ALL of the concepts on the exam, just the ones that I feel we need to go over again.

Everything that we discuss today is directly relevant to your exam, so pay attention, ask questions, and seek clarification.

We’re going to go through 1 chapter at a time, and cover some of the tougher concepts from each.

I’m going to be running this in the form of a question-answer, so the more willing you all are to participate, the more efficiently we’ll get through it

all.

Chapter 9 – Economic Globalization

What was the Bretton Woods conference?

Why was it held?

At the Bretton Woods Conference, UN members met for the first time &

discussed how the world might avoid the same economic turmoil that led to

WWII (such as The Great Depression)

What important things came out of the Bretton Woods Conference?

(2 specific organizations)

The ideas of Keynes & Hayek were both discussed at the Bretton Woods

Conference, and the UN members used these ideas to create two

international organizations:1. The World Bank

&

2. The International

Monetary Fund

What were Keynes & Hayek both known for?

Keynes argued that World War I, II, and the Great Depression were the fault of unchecked capitalism.

He felt that the government needed

to play at least some role in the

economy, in order to protect people.

Hayek argued that the government should

protect the market with rules and laws, but

otherwise should stay out.

He believed that capitalism should be

unchecked, and competition should

decide the fate of the economy.

So, to summarize their differences:

Keynes believed that we should have _____ government control over the economy.

Hayek believed that we should have ______ government control over the economy.

no

some

Would Hayek & Friedman be in favor of, or against, privatization?

They would be IN FAVOR of privatization, because it means less government involvement in the economy.

What are some impacts that World War I, World War II, and the Great

Depression had on the world economy?

As World War I dragged on, the economic costs grew and grew.

Every country involved in the war spent massive amounts of money to fight it, and the destruction caused cost even

more money.

Many countries stopped trading with everybody while

they tried to rebuild their devastated economies.

Germany, the aggressor in World War I, was hit the hardest.

The treaty that ended the war forced Germany to pay reparations to the Triple Entente, which were

payments for damages that Germany had caused during the war.

Remember: Germany was already poor

from fighting the war. So, the reparations

crippled their economy even worse.

Many people warned that the crippling reparation payments would just make the

German people desperate and angry, and ensure another major war.

They were right.

On October 29, 1929, the New York Stock Exchange crashed, sending the entire world

crashing into an economic depression (slump) known as the Great Depression.

Hitler came to power because he made a lot of promises to pull Germany out of the

tough economic situation caused by WWI and the Great Depression.

Hitler started WWII…

While World War II cost both sides a lot of lives, it boosted the global economy, getting it back

on it’s feet after the Great Depression.

In Canada, for example, the government had to manufacture weapons, tanks, airplanes, etc. To do this, they needed workers, so unemployment fell

dramatically, which meant more money for Canadians and in turn, through taxes & spending,

more money for the government.

So, in one small sense, World War II ended up being positive for economic globalization.

Chapter 10 – Expanding Globalization

What concept does the following cartoon represent? Explain.

Outsourcing: Sending labour to other countries where workers can be paid less and where job standards (safety, health, etc.) are lower.

What concept does the following cartoon represent? Explain.

Maquiladoras – A case study of globalization

The American companies hire Mexican workers in the maquiladoras because they can pay them much less than

American workers… So, maquiladora workers make little money and work in some harsh conditions. Most of these workers are

women or young girls.

Maquiladoras – A case study of globalization

Maquiladoras are a product of two main things that happened between the U.S and Mexico:

Trade liberalizationNAFTA (free trade)

Take a look at the following cartoon. Analyze it with a partner or in a small

group. Be prepared to discuss the following:

What concepts are represented in the following cartoon, either directly or

indirectly? Come up with as many as you can.

1. Trade Liberalization: Removing trade barriers between countries to make trading easier.

2. Free Trade: The extreme form of trade liberalization – no taxes/barriers between countries.

3. NAFTA: North American Free Trade Agreement (Canada + U.S + Mexico)4. WTO: World Trade Organization – the entire purpose of which is to

promote trade liberalization worldwide.

What concepts does the following cartoon represent? Explain.

The European Union (EU): International organization formed to encourage free trade between European nations.

The Euro: The currency adopted by most EU members as a means of promoting trade.

Chapter 11 – Globalization & Sustainability

Explain the concept of ecological footprint.

Be able to explain some of what goes into your own ecological footprint, and think about how

you might be able to lessen this impact.

We (humans) are using more land than the Earth can reasonably supply for us (2.8 hectares per

person, when we only have 1.89)…

… and our population is growing.

We’re at over 7 billion people on Earth right

now.

What is the term that

describes this problem of not having enough

resources?

This problem of not having enough resources is known as the resource gap…

… at some point, the Earth will not longer be able to sustain us.

What is the message of the following cartoon?

What was the purpose of the Kyoto Protocol?

Canada, and 140 other countries,

signed an agreement known as the Kyoto

Protocol.

The idea of the agreement was to

combat global warming by

lowering greenhouse gas emissions.

Chapter 12 – Sustainable Prosperity

What concept is represented in the following cartoon?

(talk about it with a partner or small group)

Sustainable development: Surviving in the present while still maintaining the economy and the environment for the future.

What is the cartoon implying about the challenges of sustainable development?

What does the term knowledge economy refer to?

The knowledge economy includes businesses that create things such as computers, robots, & biotechnology (such as antibiotics).

Knowledge economy improves global trade & competition, because workers need to constantly upgrade their skills to stay

competitive.

Finally, know the difference between HDI & GNH.

What does HDI stand for?What does GNH stand for?

2. Human Development Index (HDI)

Human Development Index (HDI) is used by the UN to measure quality of life. Countries are classified as developed, developing, or underdeveloped based upon their HDI score. The score is based on 3 categories:

Life expectancy Knowledge (literacy/school enrollment)Standard of living (GDP per person)

3. Gross National Happiness Index (GNH)

The Gross National Happiness Index (GNH) measures happiness and well-being (health, spiritual well being, etc.) of the people, rather than economic growth.

So, both HDI & GNH are different measurements of quality of life.

How are they different?

HDI measures more ‘hard evidence’, while GNH measures things like spiritual well-

being.