GLOBAL ECONOMY
       Global Economy is the interconnected 
        economies of the nations of the world.
       Exporting – selling and shipping of 
        goods to another country
       Importing – buying or bringing in goods 
        from other countries to sell
     GLOBAL ECONOMY
       Two important factors that brought about 
        a global economy:
        
           Reduction in Trade Tariffs
        
           Advances in communication technology, 
           particularly the Internet
     GLOBAL ECONOMY
       The World Trade Organization 
        
           Global coalition of Governments that makes the 
           rules that govern International Trade
        
           Eliminates or lessen Trade Barriers
        
           Promotes Free Trade
           ○ NAFTA  - North American Free Trade Agreement 
             -  Canada, US, and Mexico trade has become more 
             profitable
           ○ EU - European Union – Europe’s trading bloc 
             promotes free trade and shared currency
     TRADE BARRIERS
       Trade Barrier – a restriction on goods 
        entering or leaving a country.
       Lowering of barriers has increased the 
        flow of goods between countries
        
           Tariffs – taxes on imports and/or exports
        
           Governments charge tariffs on imports to 
           protect domestic industries
     TECHNOLOGY
       Developments in communications, 
        information processing and 
        transportation technology has 
        transformed how business is done.
       Technology has made the world smaller
        
           Communicate with people in other countries 
           by phone, through fax machines, with e-mail 
           and over the Internet