2. Social 10­1 ­ Chapter 11 ­ Expansion of Economic Globalization.
notebook
Chapter 11
The Expansion of
Economic Globalization
Slide 1
• The expansion of economic globalization is affecting people's
lives around the world in a variety of wars.
• Some of the factors that are contributing to this rapid
expansionism
ε International agreements/International
organizations
ε Transnational Corporations
ε Media and Transportation Technologies
Slide 3
The World Trade Organization (WTO) (aka GATT before
1995)
• Works to improve trade relations among the countries of the
world, by removing tariffs and other barriers to trade.
• The only international organization dealing with the global
rules of trade among countries.
• Main purpose ‑ settle trade disputes among government and
organize trade negotiations and meetings.
Slide 5
November 02, 2023
How are these two sources related?
Slide 2
International Agreements and Organizations
• There have been a number of international agreements and
organizations have led to the expansion of economic
globalization.
• Some of the these are:
Ȃ The World Trade Organization (WTO)
Ȃ The Group of Seven (G7)
Ȃ La Francophonie
Ȃ The Canadian International Development Agency
(CIDA)
Ȃ European Union (EU)
Slide 4
• Trade disputes between WTO member countries are brought
before special tribunals of trade experts and lawyers.
• The tribunals decide which country is in the wrong and what
that country has to do to meet WTO regulations.
• Decisions are binding ‑ must be followed ‑ countries that
refuse to abide by the rulings can face economic sanctions
from other members or be expelled from the WTO.
• The WTO officially has a one‑country, one‑vote system, but in
practice, decisions are made by coming to a consensus ‑ a
general agreement.
Slide 6
1
2. Social 10­1 ­ Chapter 11 ­ Expansion of Economic Globalization.notebook
November 02, 2023

Opponents of WTO Proponents of WTO

• The WTO has too much
power.
• It is not democratically
accountable(hearings are
closed to the public and
media).
• Does not care about the
problems of the
developing countries.
• Has not done enough for
the environment, child
labour, workers' right, or
health care.
• WTO's rules were written by
member states (many are
democracies).
• Trade improvments brought
about by the WTO have
raised and continue to raise
living standards around the
world.

Slide 7 Slide 8

The Group of Seven (G7) ‑ (formerly G8) • Criticisms of G7:

• An informal group of the seven major industrial democracies from ε Represents the interests of an elite group of more
1997‑2014 (Russia was suspended in 2014 because of their
developed countries
annexation of Crimea ‑ they have decided to permanently withdraw
from the G8 in 2017).
ε Does not actually have the world's largest 7 economies (ex.
• G7 leaders and representatives from the European Union meet at China and Brazil) or emerging economies (India).
annual summits to discuss economic and foreign policies.
• Not an institution like the WTO or UN, but has major influence. • Supporters of G7:
• G7 countries have nearly 50% of the vote in the World Bank and ε G7 has been instrumental in aiding less developed
IMF. countries (ex. campaigns to combat disease) and debt‑
• Therefore, they have played an important role in expanding relief plans.
economic globalization.
1975 members:
‑ USA, Britain, France,
Germany, Italy, Japan
1976 addition:
‑ Canada
1997/8 addition:
‑ Russia

Slide 9 Slide 10

La Francophonie
• One of its major objective is to protect and promote the
culture of French‑speaking peoples.
• Formed in 1970 and consists of 88 members, 54 are full
members, 7 associate members, and 27 observers.
• It plays an important role in enhancing the economic
development of countries with French‑speaking citizens.
• Canada is one of its original and wealthiest members and is a
leader in the organization.
• We are trying to help the least developed countries gain some
of the benefits of becoming part of the global economic
system.

Slide 11 Slide 12

2
2. Social 10­1 ­ Chapter 11 ­ Expansion of Economic Globalization.notebook
November 02, 2023
The Canadian International Development Agency
(CIDA)
• Government agency responsible for administering foreign
aid programs in less developed countries.
• Mandate ‑ "to support sustainable development in developing
countries in order to reduce poverty and contribute to a more
a secure, equitable, and prosperous world."
• CIDA will provide short‑term humanitarian aid in the form of
money, supplies and human resources during times of
natural disasters.
• CIDA long‑term development involves sponsoring medical
personnel, farmers, teachers, technicians, and other advisors.
• CIDA's priorities include to promote human rights,
democracy and good governance in less developed countries.
Slide 13
Trade within the European Union
• The EU came into effect in 1991 after 40 years of
negotiations.
• Today, there are almost no restrictions on the movement of
people, capital, foods and services across national borders,
the common market has facilitated trade.
• By acting as one large market, it has allowed EU countries to
take advantage of global economic opportunities and
protects its members against some of the challenges.
• Trade among these countries accounts for 33% of all EU
trade.*
• Each country's trade is more than 50% with member
countries.*
• Accounts for 20% of global imports and exports.*
*2007 textbook statistic
Slide 15
The EU and Brexit (Britain and Exit)
• In 2016, the UK (United Kingdom) had a vote to decide
whether the UK should leave or remain in the European
Union.
• The referendum turnout was 71.8%, with more than 30
million people voting and the leave EU side won by 51.9% to
48.1%.
• On January 31, 2020, the UK officially left the EU.
Slide 17
European Union (EU)
• Consists of 27 countries, population of over 445 million
people or roughly over 5% of world's population (2018).
• Share a common flag, anthem, founding date, currency,
passport and working on other issues like citizen's rights and
environmental protection.
Slide 14
European Union Government
• Though each member state has their own national
government, they also have a European Parliament.
• The European Parliament and the Council of the European
Union share the responsibility for passing laws and making
policy decisions for the entire region.
• Every 5 years, EU citizens elect their Parliament.
• Council is made up of ministers from the national
governments of all EU nations.
• Number of votes generally reflect size of population.
• Council responsible for common foreign and security
policies and strategies on justice and freedom.
Slide 16
Transnational Corporations (TNCs)
• In order for TNCs to expand their businesses, they set up
operations in foreign countries.
• TNCs have grown rapidly since the 1950s.
• Today, there are more than 77,000 TNCs with 500,000
subsidiaries = companies controlled by the parent company.
• About 70% of global trade transactions involve
transnationals, but more than 50% of these TNCs are in 5
countries ‑ Japan, USA, France, Germany, and Britain.
Slide 18
3
2. Social 10­1 ­ Chapter 11 ­ Expansion of Economic Globalization.notebook
Biggest Companies in Each Country of the World in
2015 (based on revenue)
Slide 19
Class Debate Activity:
• Are transnational corporations more beneficial for
developed countries OR developing countries?
Developed Countries Developing Countries
Slide 21
• TNCs can also bring negative impacts in less developed
countries by
Ȃ using their influence over a country's government to
gain subsidies and grants or exemptions from taxes or
environmental laws
Ȃ ignoring human rights issues (ex. no trade unions)
Ȃ employing managers from other countries but
employing local manual labour and paying them low
wages
Ȃ using capital‑intensive production = most work is done
by machinery, instead of using labour‑intensive
production = most work is done by hand; therefore the
benefits to local economies can be minimal
Slide 23
November 02, 2023
Slide 20
Impact of TNCs on the Global Economy
• TNCs can reduce poverty in less developed countries by:
Ȃ employment and investment = wealth
Ȃ growth of local businesses that provide goods and
services to newly employed workers
Ȃ paying taxes to the host country's government
Ȃ passing on expertise, thus increasing a country's
human capital, the knowledge, skills, and talents that
workers have
Ȃ TNCs provide training and education for employees =
more highly skilled labour force
Slide 22
Telecommunications and Transportation Technologies
• Innovations in communication technologies have changed
the world.
• It took 20 years for the printing press to reach 100, but today,
cell phones, television, radio, computers, and the Internet are
impacting people's daily lives in a shorter period of time.
• Technological convergence is also increasing ‑ your cell
phone can take pictures, videos, send e‑mails, access, the
Internet, and still make phone calls.
Slide 24
4
2. Social 10­1 ­ Chapter 11 ­ Expansion of Economic Globalization.notebook
November 02, 2023
• Developments in telecommunications over the past 25 years
have revolutionized the business world.
For example:
• The use of ATM machines and Internet banking = reduced bank
costs.
• Computers allow businesses to process, share, and store huge
amounts of information on digital platforms.
• Stocks, bonds, and other securities can be traded around the clock
and around the world.
• Internet, fax machines, cell phones, and satellites = instant
communication with employers and customers.
• Foreign call centres for customer service help.
Slide 25
• This process is known as containerization = the
transporting of goods in standard‑sized shipping containers.
• There are also clearly defined routes to large transshipment
terminals at strategic locations around the world.
Slide 27
How is this process impacting our lives?
Slide 29
Transportation
• The growth of international trade and the globalization of
production go hand in hand with improvements in
international transportation systems.
• More passengers and freight can be transported more
quickly and efficiently.
• Businesses now use intermodal transportation to move
freight around the world using different types of
transportation.
• Large standardized containers are used to transport
packaged merchandise so that they can be transferred easily
to truck trailers or rail cars.
Slide 26
Slide 28
How is this process impacting our lives?
March 23‑29, 2021
• Ever Given blocked in Suez Canal for six days.
• Roughly 12% of the world's shipping traffic.
• Suez Canal Authority demanded $916 million fine for losses
incurred by the blockage (later reduced to $550 million).
• Who should pay though? The ship is owned by a Japanese
company, leased by a Taiwanese corporation, and operated by a
German Shipmanagement.
Slide 30