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Chapter 16
Chapter Outline
The Development of Global Trade
The Emergence of the Global Economy
Globalization: The Continuing Process
Population Growth and Inequalities in the
Global Economy
Consequences of Globalization and the
Global Economy
The process of integrating the worlds
peoples economically, socially, politically,
and culturally into a single world system
or community.
Development of Global Trade
Before 1500, world regions were virtually
isolated from each other.
The Old World (Africa, Europe and Asia)
formed a unit within which trade allowed
spread of technology and institutions.
Major States and Regions of
Europe, Asia and Africa, ca. 1500
European Expansion
Began with the discovery of the Americas
by Columbus in 1492.
The Spanish, Portuguese, English,
French and Dutch invaded the Americas.
The European global maritime trade
network allowed the exchange of
technology, food, animals, diseases and
Industrial Revolution
Starting in about 1800, European contact
with non-Western people changed to
political domination.
19th century was a time of European
imperial expansion as the countries of
Europe began claiming lands and people
of Africa, Asia and Oceania.
Emergence of the Global
Three factors
 Collapse of the existing colonial empires.
 Developments of technology have made
geography irrelevant.
 International finance and the globalization
of world capital.
global trade
 The direct or indirect exchange of good
and services in an integrated global
global economy
 The buying and selling of goods and
services in an integrated global market.
Growth of World Trade:
Continuing Process of
Every country still has its own regulations
regarding imports and exports.
The World Trade Organization is attempting to
negotiate the elimination of all import/export
regulations in favor of global free trade.
The International Monetary Fund is assuming a
regulatory role in international monetary
Transnational Corporation
One that has most of its employees,
produces and sells most of its products or
services, and generates most of its gross
revenues outside the national boundaries
of its “home” country.
Population Changes
1950 (%)
2025 (%)
Developed countries
Undeveloped countries
Population Growth and Inequalities
in the Global Economy
The population of the world is growing rapidly.
In the last 50 years world population has
jumped from 2.5 billion to more than 6 billion.
The population growth of the developed
countries has stabilized and in many cases
started to decline, however, in the
underdeveloped countries it continues to grow
Population Growth and Inequalities
in the Global Economy
While the global economy has greatly benefited
the developed countries, many of the countries
of Asia, Africa, and Latin America have seen
their economies decline.
There is an increasing skewing of wealth
between countries and regions of the world.
Globally, there is an inverse correlation between
economic development and population growth.
Population Growth and Inequalities
in the Global Economy
Throughout the world there is a massive
movement of people from rural
agricultural areas to urban centers.
There is also a massive migration of
people from underdeveloped countries to
more developed countries.
Individuals and families who temporarily
take up residence in another region or
country to escape famine, warfare, or
some other life threatening event.
Consequences of
Increasing contact among peoples and
increasing exposure of non-Western
peoples to Western cultural traditions.
Growing resentment of Western economic
dominance and cultural influences.
Quick Quiz
1. Globalization is:
just an economic issue
a continuing process that began 500
years ago
a term used since the beginning of
European expansion
all of the above
Answer: b
Globalization is a continuing process
that began 500 years ago.
2. The industrial revolution escalated:
political revolutions in the Americas
the slave trade
taxation of local peoples
all of the above
Answer: d
The industrial revolution escalated
political revolutions in the Americas,
the slave trade, and the taxation of
local peoples.
3. The largest proportion of immigrants to
the U.S. comes from:
Latin America
Answer: d
The largest proportion of immigrants to
the U.S. comes from Asia.