Chapter 23 Section 4 An Interdependent World. Globalism The idea that the world is becoming more...

Chapter 23 Section 4

An Interdependent World

Globalism • The idea that the world is

becoming more linked and interdependent is called globalism.

• Americans who support international trade believe it helps U.S. businesses sell goods abroad.

• They also think importing low-cost goods keeps inflation and interest rates low.

• Opponents of a global economy warned that participation by the United States would cause manufacturing jobs to move to nations where wages were low.

NAFTA

• One means of increasing international trade was to create regional trade pacts.

• In the 1990s, trade pacts increased international trade.

• The North American Free Trade Agreement (NAFTA) joined Canada, the United States, and Mexico in a free-trade zone.

European Union (EU)

• In 1993 the European Union (EU) was created to promote economic and political cooperation among the many European nations.

• The EU set up the euro, common money used by member nations.

APEC

• The Asia Pacific Economic Cooperation (APEC) set up a Pacific trade community.

WTO• The World Trade Organization

(WTO) promoted world trade and involves some 120 countries.

• It helped form trade agreements and settled trade disputes.

• American supporters of the WTO cited benefits for U.S. consumers, including cheaper imports, new markets, and copyright protection for the American entertainment industry.

China and U.S. Market

• China, with its huge population, offered vast potential as a market for American goods and today China plays a big part in world trade.

• In 2000 a U.S. bill gave China permanent normal trade relation status, despite union concerns that inexpensive Chinese goods would flood the U.S. market.

Environment

• The rise of a global economy also increased awareness of global environmental issues.

• In the 1980s, scientists found out that chemicals called chlorofluorocarbons (CFCs) could break down ozone in Earth’s atmosphere.

Ozone

• Ozone is a gas that protects life on Earth from the ultraviolet rays of the sun.

• CFCs were used in air conditioners and refrigerators.

• In the late 1980s, scientists found a large hole in the ozone layer above Antarctica.

• Many people wanted to stop the manufacture of CFCs.

Phasing out CFCs

• In 1987, 23 nations agreed to phase out the production of chlorofluorocarbons (CFCs) and other chemicals that could weaken the ozone layer.

Global Warming • In the early 1990s, scientists

found evidence of global warming.

• This is an increase in average world temperatures over time.

• This rise in temperature could lead to more droughts and other types of extreme weather.

• Many experts believe that carbon dioxide emissions from factories and power plants cause global warming.

Other side of global warming

• The global warming issue is controversial because the cost of controlling emissions would fall on industries.

• These costs would eventually be passed on to consumers.

• Developing nations that are beginning to industrialize would be hurt the most.

Kyoto Protocol

• In 1997 thirty-eight nations and the EU signed the Kyoto Protocol.

• The nations promised to reduce emissions, though very few nations put this into effect.

U.S. opposed to Kyoto Protocol

• President Clinton did not present the Kyoto Protocol to the Senate because most senators opposed it.

• In 2001 President George W. Bush withdrew the United States from the treaty. He believed that it had flaws.