Read Chapter 25 Lesson 1 in your textbook or online.

Global InterdependenceNations depend on one another for goods and services. This is

called global interdependence. Countries trade things they

have for things they do not have. Rich nations buy raw materials

and local products from poor nations. Poor nations buy

technology, medicine, and other goods from developed countries.

Global trade works because nations have different resources.

One country may have advanced technology but few natural

resources. Another may have natural resources but little

technology. Yet another country may have a large labor force

but not enough food to feed its people. These differences

encourage trade between nations.

The United States exports many goods. It sells wheat, aircraft,

computer software, video games, and much more. The United

States also imports many goods. One major import is oil.

Sometimes nations cooperate on trade issues. One example

is the European Union. This group of 27 European nations

has ended most trade barriers among its members. The North

American Free Trade Agreement (NAFTA) is another example.

It is an agreement among the United States, Canada, and

Mexico. The goal of these agreements is to promote free trade.

Global IssuesCountries’ dependence on one another has led to increased

trade in many parts of the world. People usually have more

choices when trade increases. Prices usually go down.

Increased trade has costs as well as benefits, however.

Workers, for example, can lose jobs due to international

trade. One reason is that some companies hire workers

in other countries that have low labor costs.

Nations sometimes try to protect their industries from

imports produced in countries with cheaper labor. They

do this by putting up barriers to trade. A trade barrier is any

government policy that limits trade among nations. One type

of trade barrier is the tariff. A tariff is a tax on imports. Tariffs

raise the price of imported goods. This makes goods produced

at home more competitive with imported goods.

Other nations may respond with trade barriers of their

own. Sometimes tariffs lead to trade wars. A trade war is an

economic conflict that occurs when one or more nations put

up trade barriers to punish another nation for its trade barriers

against them. Trade wars raise prices and reduce choice

for everyone.

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Developed

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Economic inequality among nations is a major global

challenge. Nations have grown at different rates, widening

the wealth gap between rich and poor.

Nations with a high standard of living are called developed

countries. Developed countries usually have economies and

governments that are stable. This means they are unlikely

to change very much. The United States and Germany are

examples of developed countries.

Developing countries have low standards of living. They are

trying to build modern economies. Many struggle with political

unrest and conflict. Haiti is one example of a developing

country. It is the poorest nation in the Western Hemisphere.

Sometimes nations disagree. Nations have different forms

of government and different views about the world. The United

States and Venezuela are one example. The two nations dislike

each other’s economic policies. They trade with each other in

spite of this. Venezuela needs money from the United States.

The United States needs oil from Venezuela. The two nations

depend on each other.

The environment is another global concern. As nations

have developed their industries they have hurt the environment.

The removal of trees from large areas, known as deforestation, leads to flooding and mudslides. Since trees absorb carbon

dioxide, their destruction has led to higher levels of it in the air.

Many experts believe that burning oil, gas, and coal has helped

cause climate change.

One way to help the environment is through conservation.

Conservation means using resources carefully. It also means

limiting bad effects of human activity. For example, conserving

gasoline helps reduce air pollution.

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People disagree about conservation. Supporters say it will

help save the environment, prevent climate change, and help

prevent health problems. Critics say that conservation drives

up the costs of goods and services. Developing nations struggle

to balance concern for the environment with the need for

economic growth.

Today’s world faces other challenges as well. Tension over

immigration is one such problem. Immigrants are people who

move willingly. People often move to a new country in search

of better lives. When large groups move, they place added

demands on resources in their new country. This can cause

tension within nations. Differences among religious and ethnic groups can make such problems worse. An ethnic group is a

group of people who share the same race, language, or culture.

Other global issues today are the threat of war and

terrorism. Terrorism is the use of violence or the threat

of violence to attain a goal.

When wars, natural disasters, or famine force people

to leave their homes, they are called refugees. Millions of

refugees need help from the nations of the world. In addition

many people in the world do not have enough food, clean

water, or health care. Nations must cooperate with one

another in order to meet these challenges.

The movement of people between countries is an example of global interaction. In the United States, illegal immigration is an issue over which people disagree.

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