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us hist sem 2 - 4.2.5​ ​U.S.​ ​HIST.​ ​SEM.​...

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Unformatted text preview: 4.2.5​ ​U.S.​ ​HIST.​ ​SEM.​ ​2 - - In​ ​2010,​ ​the​ ​People's​ ​Republic​ ​of​ ​China​ ​(PRC)​ ​was​ ​America's​ ​third​ ​largest​ ​trading​ ​partner,​ ​behind only​ ​America's​ ​neighbors,​ ​Canada​ ​and​ ​Mexico.​ ​However,​ ​just​ ​40​ ​years​ ​ago,​ ​China​ ​had​ ​no​ ​official ties​ ​to​ ​the​ ​United​ ​States,​ ​let​ ​alone​ ​a​ ​trade​ ​partnership. Two​ ​major​ ​events​ ​in​ ​2001​ ​changed​ ​the​ ​relationship​ ​between​ ​the​ ​United​ ​States​ ​and​ ​China.​ ​The 9/11​ ​attacks​ ​on​ ​the​ ​World​ ​Trade​ ​Center​ ​refocused​ ​much​ ​of​ ​U.S.​ ​foreign​ ​policy​ ​toward​ ​stopping terrorism​ ​in​ ​the​ ​Middle​ ​East.​ ​China​ ​gave​ ​direct​ ​support​ ​to​ ​the​ ​resulting​ ​U.S.​ ​effort​ ​in​ ​Afghanistan and​ ​the​ ​War​ ​on​ ​Terror. THE​ ​WTO - - - - Secondly,​ ​China​ ​joined​ ​the​ ​World​ ​Trade​ ​Organization​ ​(WTO),​ ​agreeing​ ​to​ ​help​ ​ensure​ ​open​ ​trade among​ ​member​ ​nations.​ ​These​ ​agreements​ ​forced​ ​China​ ​to​ ​make​ ​their​ ​economic​ ​policies​ ​known to​ ​the​ ​WTO.​ ​The​ ​WTO​ ​prevents​ ​members​ ​from​ ​creating​ ​trade​ ​policies​ ​or​ ​barriers​ ​for​ ​another member​ ​that​ ​do​ ​not​ ​apply​ ​equally​ ​to​ ​all​ ​other​ ​members. The​ ​WTO​ ​is​ ​a​ ​global​ ​organization​ ​that​ ​governs​ ​the​ ​rules​ ​of​ ​trade​ ​between​ ​countries.​ ​Its​ ​members join​ ​voluntarily,​ ​and​ ​their​ ​governments​ ​approve​ ​the​ ​regulations.​ ​The​ ​WTO​ ​wants​ ​to​ ​help​ ​trade flow​ ​as​ ​freely​ ​as​ ​possible​ ​—​ ​to​ ​keep​ ​governments​ ​from​ ​interfering​ ​with​ ​trade​ ​—​ ​and​ ​to​ ​reduce​ ​any negative​ ​economic​ ​impact​ ​from​ ​the​ ​actions​ ​of​ ​the​ ​member​ ​countries. - Terrorism:​ ​The​ ​use​ ​of​ ​violence​ ​or​ ​the​ ​threat​ ​of​ ​violence​ ​against​ ​people​ ​for​ ​political​ ​gain. - WTO:​ ​World​ ​Trade​ ​Organization,​ ​an​ ​institution​ ​that​ ​supervises​ ​international​ ​trade​ ​and promotes​ ​free​ ​markets. The​ ​WTO​ ​creates​ ​standards​ ​for​ ​international​ ​trade​ ​laws,​ ​so​ ​that​ ​suppliers​ ​and​ ​buyers​ ​around​ ​the world​ ​can​ ​be​ ​sure​ ​they​ ​will​ ​be​ ​treated​ ​the​ ​same.​ ​Starting​ ​in​ ​the​ ​1970s,​ ​shipping​ ​companies​ ​began using​ ​standardized​ ​containers​ ​so​ ​that​ ​their​ ​shipping​ ​partners​ ​could​ ​predict​ ​how​ ​goods​ ​would arrive,​ ​and​ ​plan​ ​for​ ​their​ ​handling. Almost​ ​every​ ​item​ ​imported​ ​to​ ​the​ ​United​ ​States​ ​spends​ ​some​ ​time​ ​in​ ​a​ ​steel​ ​container​ ​like​ ​the ones​ ​you​ ​see​ ​above.​ ​Over​ ​17​ ​million​ ​such​ ​containers​ ​travel​ ​around​ ​the​ ​world​ ​on​ ​ships,​ ​trains,​ ​and even​ ​trucks.​ ​Over​ ​a​ ​quarter​ ​of​ ​them​ ​come​ ​from​ ​China. Free​ ​Trade - International​ ​trade​ ​has​ ​been​ ​going​ ​on​ ​for​ ​centuries.​ ​Nations​ ​have​ ​competed​ ​with​ ​one​ ​another​ ​and sometimes​ ​gone​ ​to​ ​war​ ​over​ ​trade​ ​issues.​ ​In​ ​the​ ​21st​ ​century​ ​there​ ​is​ ​growing​ ​support​ ​for​ ​"free trade,"​ ​which​ ​means​ ​goods​ ​can​ ​move​ ​more​ ​easily​ ​between​ ​nations.​ ​This​ ​means​ ​lower​ ​or​ ​no import​ ​taxes​ ​or​ ​any​ ​other​ ​system​ ​that​ ​would​ ​slow​ ​down​ ​the​ ​importation​ ​of​ ​goods.​ ​In​ ​America​ ​we are​ ​used​ ​to​ ​driving​ ​cars​ ​from​ ​Sweden​ ​and​ ​Japan.​ ​Our​ ​clothes​ ​mostly​ ​come​ ​from​ ​Asia​ ​and​ ​a​ ​lot​ ​of our​ ​wood​ ​comes​ ​from​ ​Canada.​ ​With​ ​free​ ​trade​ ​more​ ​countries​ ​can​ ​sell​ ​to​ ​more​ ​people. NAFTA - - The​ ​North​ ​American​ ​Free​ ​Trade​ ​Agreement,​ ​or​ ​NAFTA,​ ​puts​ ​free-trade​ ​principles​ ​in​ ​place​ ​in​ ​a smaller​ ​area.​ ​Established​ ​in​ ​1994,​ ​the​ ​agreement​ ​creates​ ​free​ ​trade​ ​among​ ​the​ ​United​ ​States, Canada,​ ​and​ ​Mexico.​ ​The​ ​agreement​ ​ended​ ​most​ ​direct​ ​tariffs​ ​and​ ​created​ ​a​ ​schedule​ ​for removing​ ​others. However,​ ​there​ ​are​ ​critics​ ​of​ ​NAFTA.​ ​Canadians​ ​fear​ ​they​ ​will​ ​lose​ ​control​ ​of​ ​their​ ​vast​ ​natural resources;​ ​Mexican​ ​farmers​ ​are​ ​threatened​ ​by​ ​unrestricted​ ​imports​ ​of​ ​cheap​ ​U.S.​ ​harvests,​ ​and many​ ​Americans​ ​resent​ ​the​ ​emergence​ ​of​ ​Mexican​ ​factories​ ​and​ ​reduced​ ​restrictions​ ​on immigrant​ ​workers. - NAFTA:​ ​North​ ​American​ ​Free​ ​Trade​ ​Agreement,​ ​an​ ​agreement​ ​signed​ ​by​ ​the​ ​United States,​ ​Mexico,​ ​and​ ​Canada​ ​in​ ​1994.​ ​It​ ​called​ ​for​ ​fewer​ ​tariffs,​ ​or​ ​taxes,​ ​on​ ​goods​ ​being sold​ ​between​ ​the​ ​three​ ​countries.​ ​It​ ​also​ ​made​ ​it​ ​easier​ ​for​ ​workers​ ​to​ ​pass​ ​between countries. Sweatshops - In​ ​poor​ ​countries,​ ​workers​ ​perform​ ​even​ ​highly​ ​skilled​ ​or​ ​labor-intensive​ ​work​ ​for​ ​far​ ​less​ ​than​ ​the minimum​ ​wage​ ​in​ ​the​ ​United​ ​States.​ ​Some​ ​maquiladoras​ ​are​ ​also​ ​sweatshops.​ ​These​ ​factories are​ ​often​ ​called​ ​sweatshops,​ ​a​ ​term​ ​used​ ​to​ ​describe​ ​the​ ​brutal​ ​workplaces​ ​that​ ​existed​ ​in American​ ​cities​ ​at​ ​the​ ​turn​ ​of​ ​the​ ​last​ ​century.​ ​Many​ ​Americans​ ​criticize​ ​companies​ ​that​ ​use​ ​unfair and​ ​abusive​ ​sweatshop​ ​labor,​ ​but​ ​these​ ​companies​ ​argue​ ​that​ ​without​ ​sweatshops,​ ​the​ ​people​ ​of these​ ​countries​ ​would​ ​not​ ​be​ ​employed​ ​at​ ​all. Maquiladoras - Maquiladoras​ ​are​ ​special​ ​kinds​ ​of​ ​factories​ ​that​ ​exist​ ​in​ ​Mexico​ ​as​ ​a​ ​result​ ​of​ ​NAFTA​ ​free-trade policies.​ ​Because​ ​of​ ​the​ ​tariff​ ​reductions,​ ​U.S.​ ​companies​ ​can​ ​send​ ​raw​ ​materials​ ​across​ ​the border​ ​to​ ​be​ ​processed​ ​or​ ​manufactured​ ​by​ ​low-paid​ ​workers,​ ​and​ ​then​ ​bring​ ​the​ ​finished​ ​goods back.​ ​Maquiladoras​ ​employ​ ​thousands​ ​of​ ​Mexicans​ ​and​ ​account​ ​for​ ​nearly​ ​half​ ​of​ ​Mexican exports.​ ​However,​ ​like​ ​other​ ​factories,​ ​profits​ ​remain​ ​with​ ​the​ ​U.S.​ ​companies​ ​that​ ​own​ ​them. - If​ ​companies​ ​have​ ​to​ ​ship​ ​products​ ​from​ ​overseas,​ ​why​ ​doesn't​ ​the​ ​shipping​ ​make​ ​them​ ​more expensive? - Standardized​ ​containers​ ​mean​ ​big​ ​savings​ ​on​ ​the​ ​labor​ ​to​ ​load​ ​or​ ​unload​ ​goods​ ​at​ ​every stop. How​ ​do​ ​labor​ ​costs​ ​play​ ​a​ ​role​ ​in​ ​the​ ​move​ ​toward​ ​free​ ​trade? - Labor​ ​costs​ ​in​ ​the​ ​United​ ​States​ ​make​ ​companies​ ​want​ ​to​ ​hire​ ​cheaper​ ​workers​ ​in​ ​other countries,​ ​and​ ​free​ ​trade​ ​helps​ ​them​ ​do​ ​that. How​ ​do​ ​you​ ​think​ ​American​ ​workers​ ​feel​ ​about​ ​outsourcing? - Many​ ​don't​ ​like​ ​having​ ​to​ ​compete​ ​with​ ​sweatshop​ ​workers​ ​who​ ​accept​ ​low​ ​pay​ ​and terrible​ ​conditions.​ ​But​ ​free​ ​trade​ ​helps​ ​Americans​ ​who​ ​make​ ​products​ ​for​ ​export. Does​ ​outsourcing​ ​help​ ​or​ ​hurt​ ​workers​ ​in​ ​developing​ ​countries? - People​ ​disagree.​ ​Sweatshop​ ​work​ ​is​ ​hard​ ​and​ ​dangerous.​ ​But​ ​some​ ​people​ ​say​ ​those workers​ ​would​ ​earn​ ​even​ ​less​ ​without​ ​those​ ​jobs. - - - - A​ ​reaction​ ​against​ ​outsourcing​ ​and​ ​decreased​ ​labor​ ​standards​ ​has​ ​increased​ ​support​ ​of​ ​fair trade.​ ​The​ ​fair​ ​trade​ ​movement​ ​is​ ​an​ ​effort​ ​to​ ​improve​ ​living​ ​standards​ ​in​ ​developing​ ​countries. That​ ​means​ ​that​ ​workers​ ​in​ ​other​ ​countries​ ​are​ ​treated​ ​fairly​ ​and​ ​not​ ​abused.​ ​By​ ​supporting​ ​fair trade,​ ​consumers​ ​agree​ ​to​ ​pay​ ​more​ ​for​ ​their​ ​goods,​ ​but​ ​in​ ​return​ ​they​ ​know​ ​that​ ​their​ ​purchases are​ ​not​ ​supporting​ ​unfair​ ​labor​ ​practices. - Outsourcing:​ ​When​ ​a​ ​company​ ​purchases​ ​products​ ​or​ ​services​ ​from​ ​an​ ​outside​ ​supplier, rather​ ​than​ ​performing​ ​the​ ​same​ ​work​ ​within​ ​its​ ​own​ ​facilities,​ ​in​ ​order​ ​to​ ​cut​ ​costs. - fair​ ​trade:​ ​Buying​ ​products​ ​internationally​ ​at​ ​a​ ​price​ ​that​ ​helps​ ​the​ ​seller​ ​to​ ​reach​ ​a​ ​higher standard​ ​of​ ​living.​ ​This​ ​is​ ​often​ ​used​ ​in​ ​trade​ ​with​ ​developing​ ​countries. How​ ​Long​ ​Can​ ​the​ ​United​ ​States​ ​Keep​ ​Buying​ ​Goods Made​ ​Overseas? - - In​ ​the​ ​United​ ​States,​ ​one​ ​of​ ​the​ ​most​ ​serious​ ​effects​ ​of​ ​globalization​ ​has​ ​been​ ​on​ ​factory​ ​workers and​ ​their​ ​communities. Many​ ​large​ ​American​ ​industrial​ ​cities,​ ​such​ ​as​ ​Detroit​ ​and​ ​Flint,​ ​Michigan,​ ​where​ ​cars​ ​are​ ​made, face​ ​rising​ ​unemployment​ ​and​ ​shrinking​ ​populations.​ ​Causes​ ​include: ● The​ ​move​ ​of​ ​jobs​ ​and​ ​businesses​ ​to​ ​the​ ​South. ● Competition​ ​from​ ​Japanese​ ​and​ ​German​ ​auto​ ​companies. ● Foreign-owned​ ​auto​ ​companies​ ​setting​ ​up​ ​plants​ ​in​ ​other​ ​parts​ ​of​ ​the​ ​United​ ​States. ● Outsourcing Globalization:​ ​A​ ​term​ ​that​ ​describes​ ​the​ ​increasing​ ​interdependence​ ​the​ ​nations​ ​of​ ​the​ ​world​ ​have on​ ​one​ ​another.​ ​The​ ​word​ ​is​ ​used​ ​to​ ​discuss​ ​economic​ ​interdependence,​ ​but​ ​it​ ​also​ ​refers​ ​to political,​ ​cultural,​ ​and​ ​technical​ ​interdependence. Trade​ ​Deficit - - - Manufacturing​ ​products​ ​overseas​ ​in​ ​developing​ ​countries​ ​increased​ ​profits​ ​for​ ​U.S.​ ​corporations, especially​ ​retailers.​ ​But​ ​as​ ​more​ ​jobs​ ​went​ ​overseas​ ​and​ ​more​ ​finished​ ​goods​ ​came​ ​in,​ ​the market​ ​for​ ​U.S.-made​ ​exports​ ​could​ ​not​ ​keep​ ​up​ ​with​ ​goods​ ​being​ ​imported.​ ​Beginning​ ​in​ ​the mid-1980s,​ ​more​ ​money​ ​left​ ​the​ ​country​ ​to​ ​buy​ ​foreign​ ​goods​ ​than​ ​came​ ​in​ ​for​ ​goods​ ​sold.​ ​This created​ ​a​ ​trade​ ​deficit.​ ​Throughout​ ​the​ ​1990s,​ ​this​ ​deficit​ ​grew​ ​despite​ ​America's​ ​booming economy. Because​ ​Americans​ ​do​ ​not​ ​bring​ ​in​ ​enough​ ​dollars​ ​to​ ​pay​ ​for​ ​the​ ​goods​ ​that​ ​they​ ​buy,​ ​countries like​ ​China​ ​invest​ ​their​ ​trade​ ​surplus​ ​in​ ​American​ ​bonds.​ ​In​ ​effect,​ ​China​ ​is​ ​lending​ ​the​ ​United States​ ​the​ ​money​ ​to​ ​continue​ ​buying​ ​Chinese​ ​exports. Joining​ ​the​ ​WTO​ ​forced​ ​china​ ​to​ ​be​ ​more​ ​open​ ​w.​ ​It​ ​eco.​ ​Acts. NAFTA​ ​is​ ​a​ ​trade​ ​agreement What​ ​is​ ​a​ ​part​ ​of​ ​globalization​ ​? - Increasing​ ​international​ ​dependence Sweatshops​ ​provide​ ​abusive​ ​and​ ​unfair​ ​working​ ​conditions Which​ ​is​ ​a​ ​cause​ ​of​ ​America’s​ ​trade​ ​deficit? - Increased​ ​trade​ ​with​ ​china Why​ ​would​ ​US​ ​comps.​ ​Outsource​ ​jobs? - To​ ​decrease​ ​labor​ ​costs Why​ ​shipp.​ ​Comps.​ ​Start.​ ​Use​ ​of​ ​standardized​ ​contains.? - To​ ​make​ ​shipp.​ ​More​ ​efficient 3rd​ ​indust.​ ​Revolt.​ ​Describes​ ​how​ ​comps.​ ​Have​ ​changed​ ​the​ ​eco. ...
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