Ch+34+Economics

Economics


 * Economic globalization** is a term that refers to increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. Globalization is the culmination of the worlds continued economic and technological developments (Civil War Technology and Innovation, Ch.24 The New Economy).The continual growth of the interdependence of one country upon the rest has created a global marketplace or a single world market. Globalization is dependent on Laissez-Faire Economics where different businesses compete with other countries over who can produce a better product. Whether or not Economic globalization is a good thing can be determinant on the paradigm (to learn more go to []). Economic globalization is a term that refers to the globalization of production, [[image:http://3.bp.blogspot.com/_wQBFbdCcv78/SfqMAzWzqLI/AAAAAAAAAEk/tTAbhuvx34U/s320/globalization.gif align="left"]]markets, competition, technology, and corporations and industries. While economic globalization has been occurring for the last several thousand years (since the emergence of trans-national trade, see [] ), Economic globalization has developed much more dramatically over the last 20-30 years. This recent boom has been largely accounted by developed economies integrating with less developed economies, by means of foreign direct investment, the reduction of trade barriers, and the modernization of these third world cultures. Globalization offers new and more varied products and lower prices for many of them. The costs consist of the following: out sourcing; were factories and other work organizations were set up outside of America to avoid having to pay the enormous wages demanded in America, thus shipping over seas. Economic globalization also causes fewer jobs in America because after globalizing the economy several people lost jobs so that the American businesses could compete with all the new businesses that had rights to sell their products to the same group of people. (in this case Americans).


 * Free Trade** is something that has found its way onto the global market system and has allowed more and more countries to develop their economies. Free trade is a policy that allows members of their respective trading parties to act and or transact without interference from government. The policy permits trading partner's mutual gains from trade of goods and services. Under a free trade policy, prices are a reflection of true supply and demand, and are the sole determinant of resource allocation. Supply and demand are the sole factors in determining how prices vary amongst products as opposed to alternative trade policies that create artificial prices. These artificial prices are the result of [|protectionist] trade policies, whereby governments intervene in the market through price adjustments and supply restrictions (i.e. not-so-free trade). Not-so-free trade is caused by government interventions that can increase as well as decrease the cost of goods and services to both consumers and producers.


 * [[image:http://www.hamilton.ca/NR/rdonlyres/6CD96582-7CC3-4446-9E53-8C8931A46A8A/0/Mundlogonoshading.png width="336" height="307" align="right"]]Mundialization** is French for globalization. Def: "a movement expressing the solidarity of populations of the globe and aiming to establish institutions and supranatural laws of a federative structure common to them, while respecting the diversity of cultures and peoples". However the concept and intent of the word creates a much more transcendental idea. Where as globalization is the integration of the world economically, mundialization refers to a leader of a city or country signing a charter declaring their city a "world citizen". The concept was invented by the self-declared World Citizen Garry Davis in 1949, as a logical extension of the idea of individuals declaring themselves world citizens, and promoted by Robert Sarrazac, a former leader of the French Résistance who created the Human Front of World Citizens in 1945. In case the reader hasn't figured it out already and needs me to explain this idea, essentially people see countries at war and find that a bad thing and think to themselves "boy I wish we could all just work together and stop fighting over stuff". By then stating that they are a member of no country and they are part of the world they alleviate any connections they have with their country. (this never works because these people talk the talk and don't walk the walk i.e. they go home and pay taxes and probably get paid for their services by their countries government). The process of cities declaring themselves part of the world has taken 3.4 million inhabitants that have voted mundialisation charters. One of the goals was to elect one delegate per million inhabitants to a People's World Constitutional Convention given the already then visible failure of the Unite Nations to create global institutions able to really negotiate world peace.


 * [[image:http://www.international.gc.ca/trade-agreements-accords-commerciaux/assets/images/tri-e.gif width="499" height="419" align="right"]]NAFTA (North Atlantic Free Trade Agreement)** is an agreement signed by the governments of the United States, Mexico, and Canada eliminating most trade barriers in North America as well as creating the GATT or the General Agreement on Trade and Tariffs. The agreement came into being on January 1, 1994. It came after America and Canada had already tried a similar agreement with just the two of them. In terms of combined purchasing power of its members, as of 2007 the trade block is the largest in the world and second largest by nominal GDP comparison. The proposed Canada-U.S.trade agreement had been extremely controversial and divisive in Canada, and the 1988 Canadian election was fought almost exclusively on this issue. More Canadians voted for anti-free trade parties but more seats in parliament were won by the pro-free trade Progressive conservatives. Mulroney and the PCs had a majority in parliament and were able to easily pass the NAFTA bill. However Mulroney himself had become deeply unpopular and resigned on June 25, 1993. He was replaced as Conservative leader and prime minister by Kim Campbell, who then led the PC party into the 1993 election where they were decimated by the Liberal party under Jean Chrétien. Chrétien had campaigned on a promise to renegotiate or abrogate NAFTA, but instead negotiated the two supplemental agreements with the new U.S. president, Bill Clinton. Bush had been working hard to quickly send the agreement through congress eventually ran out of time and had to leave the bill to his predecessor Bill. Clinton introduced several clauses that would protect the American workers, which eventually would help it to pass through congress. The ability to enforce these clauses, especially with Mexico, and with much consideration and emotional discussion the House of Representatives approved NAFTA on November 17, 1993, by a vote of 234 to 200. The agreement's supporters included 132 Republicans and 102 Democrats. NAFTA passed the Senate 61-38. Clinton signed it into law on December 8, 1993; it went into effect on January 1, 1994.


 * The Economic situation from 1988 to 2005** As opposed to previous time periods in which big business was slowed by government, (Clayton Antitrust Act, Monopolies and TrustsMonopolies and Trusts), the time period of globalization is noted highly for buisness friendly government policies. Started with stagflation which is any period of time where the unemployment [[image:http://thingsthatarerectangles.files.wordpress.com/2009/10/dollar-bill-2.jpg width="554" height="220" align="left"]]rate is extremely high as well as extremely high inflation. But after a long period of stagflation, business used new technology to be more productive. Using mergers and new techniques to create the reduction of labor costs, America became not only competitive but began a period of economic growth. America began to specialize in technological industries. With the growth of digital technology led to an increase in production of new cell phones and cameras etc. leading to major economic success in the closing decades of the twentieth century. The GNP (Gross National Product) rose from 2.5 to almost 10 trillion dollars from 1980 to the trn of the millennium.


 * [[image:http://www.allgoodseats.com/images/wwe.jpg align="left"]]Target Marketing** Was the new idea that if you couldn't win over an [[image:http://image.shutterstock.com/display_pic_with_logo/102804/102804,1207332158,3/stock-photo-young-boy-in-a-straw-cowboy-hat-looking-to-the-left-11132020.jpg width="227" height="175" align="right"]]entire population with your product, then you could win over a certain minority group or a single race or religion. A principal concept in target marketing is that those who are targeted show loyalty to that particular product. Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement(e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style. Consumers are persuaded by the characteristics in the advertisement and those of the consumer.


 * Economic progress for African Americans** Between the thirty years of the African Americans equal rights movement and 1992 half of the African American population was now middle class/white collar workers. Differences between black and white professionals diminished substantually. See also FUTURE LINK TO SOCIAL PAGE.

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American History by Alan Brickley

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