Unit 6 - World War I

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Vocabulary ?
Definition
Term
Knowledge Connections
Picture
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• Essential Question

How has the world become globally interdependent?
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What is interdependence?
INTERDEPENDENCE
Nations relying upon one another
1960 - ORGANIZATION OF PETROLEUM EXPORTING
COUNTRIES (OPEC) created
Organization made up of mostly oil rich Middle
Eastern nations
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What does OPEC do?
Today, twelve nations belong to OPEC and those
nations control the price of oil in the world
Indonesia
IranIraqKuwaitQatarSaudi ArabiaUnited Arab
Emirates
AlgeriaAngolaLibyaNigeria
Venezuela
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What power does OPEC have?
1973 OPEC uses its power to put an EMBARGO on
oil to the US and Israel during the Yom Kippur War
Stopping the sale of items to certain nations
Oil fell into short supply
Gas prices skyrocketed
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How is the world connected economically?
The oil crisis of 1973 made people aware of the
GLOBAL ECONOMY
A worldwide marketplace where nations buy and
sell goods
This has given rise to MULTINATIONAL CORPORATIONS
Companies that have their headquarters in their
home country, but they have business locations
all over the world
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What are the goals of a global economy?
The global economy has made trade relations more
important than ever
Goals Balance of tradeExport gt Import Create
regional trade marketsFind nations with similar
goals
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What are some economic alliances?
Examples of Economic Alliances
European Union (EU) North American Free
Trade Agreement (NAFTA) Association of
Southeast Asian Nations (ASEAN) World Trade
Organization (WTO)
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What is the European Union?
Established in 1992
European Union
aka the European Economic Community (before 1992)
As of 2007, 27 nations belong to the EU
The European Union has a common bank and a common
currency called the EURO
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What is NAFTA?
NAFTA
North American Free Trade Agreement
Established in 1994

• Members
• United States
• Canada
• Mexico

• Removes all barriers to trade between these
  nations
• Between 1993 and 2000, US exports to Canada and
  Mexico rose 104

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What is ASEAN?
Established 1967
ASEAN
Association of Southeast Asian Nations
ASEAN has helped many Asian nations become
trading giants and have a powerful impact on the
global economy
      Brunei       Cambodia
      Indonesia       Laos       Malaysia
      Myanmar       Philippines
      Singapore       Thailand       Vietnam
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What is WTO?
Established in 1995
WTO
World Trade Organization

• Made up of 150 nations

Goals Negotiate trade agreements Settle trade
disputes
The World Trade Organization is the only global
organization that deals with the rules of
international trade
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• Essential Question

How has the world become globally interdependent?
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World Becomes GloballyInterdependent