Globalization and Free Trade

Richer Countries

involved in more lucrative activities planning, design, marketing, sales

Poorer Countries

involved in the least lucrative activities providing unskilled labor

Quotas

limits placed on the quantities

tariffs

taxes imposed on goods imported into a country

Maquiladoras

the Mexican name for manufacturing operations in a free trade zone

Globalization

the process of increasing interdependence and interaction among people, companies, and governments of different nations

Push factor

are the reasons compelling a migrant to leave person's home country EX: economic hardship, lack of opportunity, poor education, civil war/unrest, unemployment, persecution

Multinational Corporations

businesses with a headquarters in one country but with operations in a number of others

Immigration Factors

1. Push Factor 2. Pull Factor

How Globalization is possible

1. Technology 2. Communication networks and internet access 3. Growth of economic cooperation - trading blocs 4. Collapse of communism 5. Movement to free trade

Issues with Cooperate Expansion

1. accountability of global business 2. increased gap between rich and poor fuels potential terrorist reaction 3. ethical responsibility of business 4. efforts to remove trade barriers

Problems of Cooperate Expansion

1. damage to the environment 2. exploitation of labor 3. monopoly power 4. economic degradation 5. non-renewable resources 6. damage to cultures

Characterstics of Cooperate Expansion

1. expand revenue 2. lower costs 3. source raw materials 4. control key supplies 5. control of processing 6. global economies of scale

Pros of Cooperate Expansion

1. export jobs often pay more than other jobs in that country 2. living standards cab go up faster in poorer countries 3. global competition keeps prices lower for consumers 4. good for US cooperations

Benefits of Immigration

1. helps keep the economy moving by filling low-wage jobs 2. helps lower prices of products by keeping low wages 3. creates a pool of consumers for a variety of goods and services 4. immigrants pay social security taxes (do not claim), sales tax, and real estate tax 5. millions of undocumented workers rent properties in depressed areas where renters are hard to find 6. crime rate among undocumented workers is actually lower than for general population

Cons of Free Trade

1. leads to loss of jobs in importing country 2. negative consequences of competition 3. free trade only works if all do it 4. too much specialization 5. difficult to enforce free trade agreements protections of environment and worker rights

Cons of Cooperate Expansion

1. millions of Americans have lost jobs due to imports 2. new american jobs created are in service industry and pay less 3. US service and white collar jobs are increasingly vulnerable to moving offshore 4. workers face pay cut demands from employers , who often threat to export jobs 5. UN Declaration of Human Rights (Article 23)

Global Labor Rights

1. no unforced labor 2. no discrimination 3. no child labor 4. freedom of association (unions) 5. payment of a living wage 6. no excess overtime 7. safe and healthy workplace 8. a legally binding contract with pay rates

Pros of Free Trade

1. promotes competition 2. reduces prices of products 3. promotes democracy 4. promotes economic growth 5. comparative advantage

Globalization consists of

1. social/culture 2. political 3. economic 4. the increasing internationalization of product and labor markets

Problems with US Immigration

1. use of social services 2. principle of rule of law threatened violators rewarded 3. those who are successful encourage others to follow 4. society becomes dependent on cheap labor 5. lower wages and take jobs of working and middle-class citizens 6. millions of US dollars remitted to Mexico 7. Encourage human trafficking 8. overcrowding public schools

NAFTA

Canada US Mexico

International Labor Org

Global Labor Rights

Transnational Corporations

Multinational Corporations

Pull Factor

draw or attract a person to his/her destination EX: employment opportunities, political freedom, rejoining family, social services, better education, established immigrant communities