Main Idea

Events in one part of the world can almost Immediately Influence events In another pan of the world.

Key Terms protectionism, acid rain, conservation

Reading Strategy Organizing Information As you read the section, complete a diagram like the one below by Identifying three major problems developing countries must overcome to sustain economic development.

P'nblerns Facing Developing Nations

Read to learn

■ How are nations of the world politically and economically interdependent?

■ How are nations addressing Important economic and environmental issues?

Global Interdependence

Global interdependent means that people and nations all over the world now depend upon one another for many goods and services. It also means that what happens in one nation or region affects what happens in other places.

Today every country depends upon odier countries for some of the products, services, and raw materials it needs to function. This relationship is called global economic interdependence.

The fuel to power our cars, planes, trains, trucks, and buses and to heat and light our homes and run our factories is an important example of growing interdependence. The United States must import about 50 percent of the oil it uses. An important goal of U.S. foreign policy, therefore, is to maintain good relations with oil-producing countries.

In addition> the United States imports many of the minerals its industries need in order to keep working. For instance, 98 percent of the manganese* 93 percent of the bauxite* 81 percent of the tin, and 62 percent of the mercury Americans use come from other countries.

¿Imsr/cans in Action

Jimmy Carter served as president of the United States from 1977 to 1981. After leaving the White House, he and his wife Rosalyn founded the Carter Center In Atlanta. Georgia. The center focuses on global health, human rights, and democracy. Its many accomplishments include monitoring democratic elections in nations and a worldwide effort to eradicate Guinea worm disease that annually cripples more than 2 million Africans. The Carters are also Involved In the Habitat for Humanity program. With thousands of other volunteers, they help build houses for the poor. Carter believes *To work for better understanding among people, one does not have to be a former president Peace can be made In the neighborhoods, the living rooms, the playing fields, and Two former presidents the classrooms of our country." Joseph Estrada of the

Philippines and Jimmy Carter, build a wall.

610 Chapter 28 An Interdependent World

Global interdependence also means that other countries depend upon us. The United States sells computers^ telecommunications equipment^ aircraft, medical equipment^ farm machinery, and countiess other high-technology products around che world. JLn addition, many smaller, poorer countries look to the United States for food., medicine., and arms.

Global Trade

The most important part of economic interdependence is trade. As you learned in Chapter 26, trade includes both competition and cooperation. Nations compete to sell their products. ITiey also cooperate to make trade beneficial for everyone.

Global trade has many advantages. Businesses can make more profit, for example, by selling to a large world market. Increased competition may result in lower prices for consumers and a greater range of products from which to choose. However, global trade can also lead to problems. Competition may force weak companies

What is the dismal science? fj

Nineteenth-century essayist and historian Thomas Carlyle read Thomas Malthus's Essay on the Principle of Population. Mallhus foresaw future world problems caused by a population that was growing faster than food production. Carlyle found the work so depressing that he labeled economics "the dismal science."

out of business, hurting some national economics and costing workers their jobs. Remember that nations often try to protect their industries from foreign competition by placing tariffs on imports. This policy, called protectionism, often harms the economies of other nations and the global economy. It may cause price increases and lead to trade wars, in which nations set up even greater trade barriers. Trade wars can create serious tensions between nations.

Hourly compensation costs, 2000






r hi

Analyzing Graphs

This graph shows the compensation costs for production workers in manufacturing in 12 countries. Hourly compensation includes wages, bonuses, benefits, and other plans. All amounts are converted to U.S. dollars. What countries' production workers earn less than $10 per hour?

Chapter 28 An Interdependent World 611

i lME T0&1SWAction

It all started with a vegetable patch. As a little boy, Everett Law used to love working in his backyard garden in Minneapolis, Minnesota. Every day, he would tend the soil, nurturing each plant. Eventually, the garden matured: so did Law. and so did his passion for protecting the earth.

In sixth grade. Law took his enthusiasm to middle school. He built a new garden in the central courtyard, using money he raised from several corporations. Two years later, in 1999, he organized the school's first Earth Day event. By the year 2000, Law's Earth Day program had 23 different groups taking part. In 2001,Ihere were 50. The event was so popular, Lav/ began organizing Earth Day programs in schools across Minnesota. He also started writing an Earth Day elementary school curriculum. "I guess it goes to show that youth arc capable," Law told TIME. "Young people arc able to do these kinds of things, even in an adult world."

Today, Law's group. Earth Day Operations, works with some 200 schools, environmental groups, corporations, colleges, and government agencies.

Want to find out more about Earth Day Operations? Go to www.webspawner,com/ u sers/earth d avoperati on s/i n dex. hi m L For information about Earth Day events worldwide. go to www.e a rlhd ay. o rg

Everett Law from Minnesota

Trade Agreements

Many countries now support a policy of free trade that aims to eliminate tariffs and other economic harriers. The North American Free Trade Agreement (NAFTA) will gradually abolish all trade barriers between the United States, Mcxico, and Canada. The World Trade Organization (WTO) will work to rcducc tariffs among more than 150 nations and eliminate import quotas.

{¿SÜSSES) Explaining What does free trade eliminate?

Global Problems and American Interests

Two of the biggest global problems arc the growing economic inequality among nations and destruction of the environment.

Growing Economic Inequality

There is a growing split between the rich and poor nations of the world. An old saying describes what is happening: "ITie rich get richer and the poor get poorer." As this occurs, conflicts grow, and the United States faces difficult decisions.

On one side are the 25 or so rich, industrialized countries, including the United States, Japan, Germany, Canada, Great Britain, and Francc. These nations arc called developed countries because they have built a way of life based on highly developed business and industry.

The developed countries possess natural resources such as coal and iron, or they have easy access to such resources. They have many large industries such as steel, electronics > and car making. Their citizens are relatively well educated, healthy, and accustomed to working in business and industry. They produce most of the manufactured

goods sold around the world.They also consume much of the world's natural resources, enjoying a high standard of living.

On the other side arc about 165 poorer and less developed nations. Many of their citizens live in the shadow of high death rates due to starvation or disease. Because most of the poor countries are trying to develop industrial economies, they are called developing countries.

Characteristics of Developing Nations

Some of these countries, such as Chad, Albania, Paraguay, and Uganda, arc very poor. They have few natural resources and cannot produce enough food to feed their populations. They manufacture few products tor export. They have high levels of unemployment, disease, and poverty. Their average life expectancy is less than 40 years.

Other developing countries have valuable natural resources. Countries such as Saudi Arabia and Venezuela have oil. Colombia grows coffee. The Democratic Republic of the Congo has copper. Some of these countries have little industry, though. Some do not have the health and educational facilities to develop their human resources. It generally takes scientists, engineers, bankers, and business leaders to develop industry.

For various reasons, most developed nations are located in the Northern Hemisphere, and most developing nations are in the Southern Hemisphere. As a result, policymakers and the news media often talk about the "North-South conflict" when discussing this global problem.

The Process of Economic Development

Developed and developing nations need each other. Rich nations sell their products to the poorer nations, in a recent year, for example, more than one-third of American exports went to developing countries. Developed nations also get much of the raw materials they need from developing countries. For their part, the developing nations badly need the food, technology, and money that the developed nations supply.

Many industrial nations try to help developing nations. The U.S. Agency for International Development, for example, distributes billions of dollars in financial and technical aid. American businesses help by investing money in poor countries to build factories, which provide jobs and training. U.S. citizens help by volunteering to teach important skills, such as modern methods of farming.

Foreign Aid

¿Americans and their government leaders face some difficult questions about foreign aid. Should the United States increase its aid to the poorer countries, or is it better to encourage them to get help from private investors? In giving aid, should we favor nations that support our policies, even if other nations might need that aid more? Should we distribute less foreign aid and spend more on problems at home?

Economics and You


With companies extending their reach around the world. Lrademarks have become increasingly important. A tjrariomark is a name or symbol used to show that a product is made by a parLicular company. IL is legally registered with a government so lhaL no other rrianufaclurer can use it. Use the most, roccnt. edition of The Top Ten of Everything to discover the nations wilh Ihe mosl regisLered Lrademarks and wilh the best selling registered hrands.

Environmental Destruction

Another global problem today is destruction of the natural environment. Industries and motor vehicles have pumped poisonous metals such as mercury and lead into the air and water. Spills from tanker ships have spread millions of gallons of oil into the oceans and onto beaches, killing fish, sea birds, and food for marine life.

Coal-burning factories release sulfur dioxide gas into the air, where it mixes with water vapor and later falls to the earth as acid rain. Sulfur dioxide from factories in the American Midwest may fall as acid rain in Canada, damaging forests and raising the acid level in hundreds of Canadian lakes.* killing many fish. The United States and Canada have formed a joint commission to explore solutions to the problem of acid rain.

To save the environment, countries around the world must work to end pollution both within their borders and internationally. An important way to reduce pollution is through conservation limiting the use of polluting resources.

Conserving gasoline, for example, cuts back on the amount of gases that pollutes the atmosphere. Conserving forests protects wildlife habitats and leaves more trees to absorb carbon dioxide. Conservation will also help ensure that a variety of resources will be available when they are needed in the future.

Some people oppose conservation efforts, claiming that they slow economic growth. Others argue that a lack of conservation may produce short-term gains but long-term problems. Not dealing with air pollution, for example, may lead to dangerous changes in climate, destruction of

Projected water use, 2025

Water us« at % of toi til available CZ Less than \0% I_ I ÛX to 1Ù%

Water us« at % of toi til available CZ Less than \0% I_ I ÛX to 1Ù%

tniorpfetina Maps

By th© year 2025, as many as two-thirds of the world's people may be subject to moderate to high water stress. What is the projection for the United States?

Political Cartoons

forests and lakes, and severe health problems as people breathe polluted air.

Poor nations believe that antipollution regulations arc unfair because such rules would make it more difficult for them to develop their own industries. They argue that the developed countries polluted freely while they were becoming rich, but now they do not want to let the poor countries do the same.


Should the United States push for the same pollution-control rules for everyone? Or, should die poorer countries be given the cliancc to develop their economies without worrying about pollution? These are questions that we and the leaders of our country must face.

Defining What is conservation?



Checking for Understanding

1. Key Terms Define the following terms end use Lhem in sentences related to environmental issues: acid rain, conservation.

Reviewing Main Ideas

2. Explain What is the purpose of protectionism?

3. Identify How arc developing countries difierenl from developed countries?

Critical Thinking

4. Making Generalizations What characteristics do industrialized nations she re?

5. Organizing Information On a chart like the one ho low, describe the advantages and disadvantages of global trade.

Analyzing Visuals In recent years, experts have debated whether emissions from fossil fuels are gradually causing the earth's temperature to rise. What point Is the cartoonist making about global warming? How does the cartoonist convey this argument?

Global Trade



6. Interpret Study the graph on pege 611. What co Lin tries' production workers' costs are between $16 and $20 per hour?


7. Research Find oul what opportunities your community offers tor individual involvement in world issues. Find oul how you might contribute to such efforts.

Chapter 28 An Interdependent World 615

iHF™*™^^-™ I « I yi?»« bojck'v?j-tery Miineap;!; ¿-br- rtfcin»

Critical Thinking m in trill.

m in trill.


Reading a Time Line

Initiates first global census attempt


Assists Tn 1979

settll n.g Slx-Daj' Announces worldwi dc

Ara o-lsrael I War cradicatio n of small pox


See ks I nternatlona I Opens CyberSchool Bus cooperation on drug issues Tor students worldwide


Reports the worldwide decline of polio

Reading a Time Line



First meeting

Initiates first global census attempt


Assists Tn 1979

settll n.g Slx-Daj' Announces worldwi dc

Ara o-lsrael I War cradicatio n of small pox


See ks I nternatlona I Opens CyberSchool Bus cooperation on drug issues Tor students worldwide


Reports the worldwide decline of polio









1945 World War II ends



Korean War ends


U.S. astronauts reach the moon 1975

Communists control ell of Vietnam

1990 Cold Wbr ends


Terrorists kill U.S. marines In Lebanon


Terrorists stage attacks In two U.S. cities 1994

Nelson Mandela elected president of South Africa

Why Learn mis Skill?

As you read or study, you learn of events occurring at different times. One way of organizing the events is to view them on a time line. A time line is a graphic that arranges events in the order in which they happened and shows the dates of their occurrences. Reading time lines helps you view an event in the context and sequence of other events.

Learning the Skill

To interpret a time line, follow these steps:

♦ Trace the time line from left to right. Note the dates at each end. This tells you the total span of time covered.

♦ Notice the shorter segments, or time intervals, marked off along the time line. The segments have a uniform length and may cover days, years, or other blocks of time.

♦ Read the title or label above the time line to determine the type of events displayed. There may be a title below the time line, indicating that a different category of events occurred during the same time span.

♦ Examine the events contained in the time line. Note which events occurred before or after other events. Observe the length of time separating different events.

Practicing the Skill

Examine the time line on this page. Then answer the fo I lowing questions.

Q What span of time does this time line cover?

© What is the time interval between segments?

In what year did the United Nations first attempt a global census? When did the Cold War end? 0 Which happened first, the UN's announcement on smallpox or its introduction of CyberSchoolBus?

Applying the Skill.

Make a list of important events that occurred in your school life this year. Construct a time line displaying those events.

Pfcielicf? key «kills wilh GI«n<:op's Skillbuilder Interactive Workbook CD-ROM. Level 1.


Internet Entrepreneurship Survival Guide

Internet Entrepreneurship Survival Guide

Master The Backwoods of Internet Entrepreneurship All Distilled into a Single Most Powerful Guide! Like a long pole, that can shift a great weight with little effort such is the case with succeeding in business. Your chances of succeeding-as an 'army of one' fall somewhere between zip, zilch and nill.

Get My Free Ebook

Post a comment