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| | Beginning soon after the end of World War II, the western nations discussed agreements to reduce tariffs for trade among themselves. In 1947, they entered into the General Agreement on Tariffs and Trade (GATT) in order to decrease tariffs that interfered with trade. This marked a significant change from how nations had used tariffs in the past to protect their domestic industries and raise revenue. Under GATT, western countries first froze the tariffs (preventing them from increasing) and later began reducing the tariffs. In 1995, this approach was taken one step further with the World Trade Organization (WTO), which included non-western countries and also established international courts for deciding trade disputes among nations. There are 150 members of the WTO today, and Vietnam (which the communists won by war in the 1970s) joined the WTO in 2007. | | Beginning soon after the end of World War II, the western nations discussed agreements to reduce tariffs for trade among themselves. In 1947, they entered into the General Agreement on Tariffs and Trade (GATT) in order to decrease tariffs that interfered with trade. This marked a significant change from how nations had used tariffs in the past to protect their domestic industries and raise revenue. Under GATT, western countries first froze the tariffs (preventing them from increasing) and later began reducing the tariffs. In 1995, this approach was taken one step further with the World Trade Organization (WTO), which included non-western countries and also established international courts for deciding trade disputes among nations. There are 150 members of the WTO today, and Vietnam (which the communists won by war in the 1970s) joined the WTO in 2007. |
| | [[File:European Union.jpg|right]] | | [[File:European Union.jpg|right]] |
| − | Western European nations also joined the European Common Market after World War II, and then in 1958 joined the European Economic Community (EEC) to reduce tariffs among themselves. The EEC later became the European Union (EU), which includes all Western European countries except Switzerland, which has never joined anything and fiercely defends its independence, Norway, Iceland, and several very small countries. In 2002, all of EU began using a common currency known as the “euro”, except for Denmark, Sweden, and the United Kingdom, which still use their own currencies. In 2004, many Eastern European nations also joined the EU though most of them have not yet been able to adopt the euro. A map of the EU is to the right. | + | Western European nations also joined the European Common Market after World War II, and then in 1958 joined the European Economic Community (EEC) to reduce tariffs among themselves. The EEC later became the European Union (EU), which includes all Western European countries except Switzerland, which has never joined anything and fiercely defends its independence, and Norway. In 2002, all of EU began using a common currency known as the “euro”, except for Denmark and the United Kingdom, which still use their own currencies. In 2004, many Eastern European nations also joined the EU. A map of the EU is to the right. |
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| | The large Muslim nation of Turkey has requested to join the EU. One opponent is the new Pope Benedict XVI of the Catholic Church, who succeeded Pope John Paul II in 2005 upon his death. Pope Benedict has emphasized the need to keep Europe Christian, and he sparked Muslim riots in late 2006 when he repeated a provocative quote about Islam. One of President Barack Obama’s most significant statements after his election was to call for the inclusion of Turkey in the EU. | | The large Muslim nation of Turkey has requested to join the EU. One opponent is the new Pope Benedict XVI of the Catholic Church, who succeeded Pope John Paul II in 2005 upon his death. Pope Benedict has emphasized the need to keep Europe Christian, and he sparked Muslim riots in late 2006 when he repeated a provocative quote about Islam. One of President Barack Obama’s most significant statements after his election was to call for the inclusion of Turkey in the EU. |
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| | North America has also created a free trade zone (free from tariffs) with the North American Free Trade Agreement (NAFTA), which was never ratified by the Senate as a treaty but which Congress passed into law anyway. NAFTA establishes international courts that have already been used to force the United States to open its borders to Mexican trucks, which are less safe than American ones. The importation of drugs into the United States from Mexico has increased since NAFTA went into effect. | | North America has also created a free trade zone (free from tariffs) with the North American Free Trade Agreement (NAFTA), which was never ratified by the Senate as a treaty but which Congress passed into law anyway. NAFTA establishes international courts that have already been used to force the United States to open its borders to Mexican trucks, which are less safe than American ones. The importation of drugs into the United States from Mexico has increased since NAFTA went into effect. |
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| − | There are other free trade zones. LAFTA is the Latin American Free Trade Agreement passed in 1961, and replaced in 1981 by the Latin American Integration Association (ALADI). ALADI has not been very successful and therefore several Latin American countries decided to form new free trade zones. The most successful free trade zone in Latin America is the South American Common Market (Mercosur) which has Brazil, Argentina, Uruguay, Paraguay and Venezuela as members. Other trade zones in the Americas include the Andean Community, the Central American Common Market (CACM) and the Carribean Common Market (Caricom). These agreements are aimed at helping Latin American countries develop economic independence from foreign powers. There is CAFTA, which was recently founded and includes Central America, the United States, and the Dominican Republic. There is ASEAN, the Association of Southeast Asian Nations, founded in 1967 by Indonesia, Thailand, Singapore, Malaysia and the Philippines to combat communism. ASEAN signed trade agreements with Japan (1977) and the European Community (1980). All these agreements and associations seek to reduce tariffs between member states and promote so-called “free trade.” | + | There are other free trade zones. LAFTA is the Latin American Free Trade Agreement passed in 1961, and replaced in 1981 by the Latin American Integration Association (ALADI). ALADI has not been very successful and therefore several Latin American countries decided to form new free trade zones. The most successful free trade zone in Latin America is the South American Common Market (Mercosur) which has Brazil, Argentina, Uruguay, Paraguay and Venezuela as members. Other trade zones in the Americas include the Andean Community, the Central American Common Market (CACM) and the Carribean Common Market (Caricom). These agreements Latin American countries develop economic independence from foreign powers. There is CAFTA, a recently enacted Central American Free Trade Agreement that the United States joined. There is ASEAN, the Association of Southeast Asian Nations, founded in 1967 by Indonesia, Thailand, Singapore, Malaysia and the Philippines to combat communism. ASEAN signed trade agreements with Japan (1977) and the European Community (1980). All these agreements and associations seek to reduce tariffs between member states and promote so-called “free trade.” |
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| − | The promotion of “free trade” has many opponents. Conservatives object to sending money to foreign countries and the resultant loss of American manufacturing jobs to near-slave labor in foreign countries. A consequence of “free trade” is an increase in illegal drugs from foreign countries into the United States, often hidden within other goods. Foreign countries, particularly China, have been putting cheaper but dangerous substitutes into goods that result in injuring Americans, including children and pets, who end up using them. Many inside and outside the United States also object to a culture of “consumerism”, such that people are encouraged to buy more than what is healthy or necessary. Brand names like McDonalds, Coca-Cola and Nike dominate television and the culture of teenagers. “McDonaldization” is when American advertising (as in the case of McDonalds) has an influence on the world culture, causing distant children (like Chinese) to repeat a McDonald’s slogan they heard on television. Parts of the left also oppose free trade, but for different reasons. Unions object to their loss of jobs that result from “free trade,” as it is cheaper to have goods manufactured outside of all the expensive regulations and lawsuits that occur in the United States. Socialists around the world often like to equate globalism with the expansion of American influence, which is usually unfounded. Venezuela's president Hugo Chávez is currently one of the most noteworthy proponents of this claim. | + | The promotion of “free trade” has many opponents. Conservatives object to sending money to foreign countries and the resultant loss of American manufacturing jobs to near-slave labor in foreign countries. A consequence of “free trade” is an increase in illegal drugs from foreign countries into the United States, often hidden within other goods. Foreign countries, particularly China, have been putting cheaper but dangerous substitutes into goods that result in injuring Americans, including children and pets, who end up using them. Unions object to their loss of jobs that result from “free trade,” as it is cheaper to have goods manufactured outside of all the expensive regulations and lawsuits that occur in the United States. Many inside and outside the United States also object to a culture of “consumerism”, such that people are encouraged to buy more than what is healthy or necessary. Brand names like McDonalds, Coca-Cola and Nike dominate television and the culture of teenagers. “McDonaldization” is when American advertising (as in the case of McDonalds) has an influence on the world culture, causing distant children (like Chinese) to repeat a McDonald’s slogan they heard on television. |
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| | ===Energy=== | | ===Energy=== |
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| − | Americans discovered crude oil (petroleum) near Titusville, Pennsylvania, and drilled their first oil there in 1859. It began yielding 25 barrels a day.<ref>By the end of 1859 the flow of oil from this first well had slowed from 25 to 15 barrels a day.</ref> The world would never be the same again. By 1906, American oil production had reached 126 million barrels a year. Today petroleum constitutes 40% of Americans’ overall energy consumption, with coal being the other big source of energy. Most of the cheap, readily accessible oil in the world is under the control of Muslims in the Middle East. | + | Americans discovered crude oil (petroleum) near Titusville, Pennsylvania, and drilled their first oil there in 1859. It began yielding 25 barrels a day.<ref>By the end of 1859 the flow of oil from this first well had slowed from 25 to 15 barrels a day.</ref> The world would never be the same again. By 1906, American oil production had reached 126 million barrels a year. Today petroleum constitutes 40% of Americans’ overall energy consumption in the United States, with coal being the other big source of energy. Most of the cheap, readily accessible oil in the world is under the control of Muslims in the Middle East. |
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| | To keep the price of oil higher than it would be in a free market, Middle Eastern countries formed OPEC (Organization of Petroleum Exporting Countries) in 1960. The original members were Saudi Arabia, Kuwait, Iran, Iraq and also the Latin American country of Venezuela. African and Asian countries later joined OPEC too. Angered by American support of Israel during the Arab-Israeli war of 1973, OPEC placed an embargo on the shipment of oil to the United States. Prices jumped by a multiple of four in two years, and there were many long lines and shortages at American gas stations. The worldwide economy was hurt by this shock in energy prices, aggravating a problem with inflation and unemployment late in the 1970s. Japan, which relies heavily on oil imports, was hit hard. But OPEC’s influence has steadily declined due to increased competition by other countries. Mexico and Russia have become large oil-producing nations, and they have not joined OPEC. In 2007, the net revenues from oil to OPEC nations will be about $500 billion, while the non-OPEC nations will have net oil revenues of about $225 billion. The United States imports about $170 billion-worth more of oil than it exports. | | To keep the price of oil higher than it would be in a free market, Middle Eastern countries formed OPEC (Organization of Petroleum Exporting Countries) in 1960. The original members were Saudi Arabia, Kuwait, Iran, Iraq and also the Latin American country of Venezuela. African and Asian countries later joined OPEC too. Angered by American support of Israel during the Arab-Israeli war of 1973, OPEC placed an embargo on the shipment of oil to the United States. Prices jumped by a multiple of four in two years, and there were many long lines and shortages at American gas stations. The worldwide economy was hurt by this shock in energy prices, aggravating a problem with inflation and unemployment late in the 1970s. Japan, which relies heavily on oil imports, was hit hard. But OPEC’s influence has steadily declined due to increased competition by other countries. Mexico and Russia have become large oil-producing nations, and they have not joined OPEC. In 2007, the net revenues from oil to OPEC nations will be about $500 billion, while the non-OPEC nations will have net oil revenues of about $225 billion. The United States imports about $170 billion-worth more of oil than it exports. |
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| | When immigrants failed to learn and speak the local language, tensions arose. By the end of the 20th century, there was growing opposition in both the United States and Europe to the large amounts of immigration. | | When immigrants failed to learn and speak the local language, tensions arose. By the end of the 20th century, there was growing opposition in both the United States and Europe to the large amounts of immigration. |
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| − | The EU removed most internal border patrols, so people now flow freely from one country into the next, such as from Austria into Germany. The Muslim influx has been particularly high. In past centuries, churches would play a central role in integrating the immigrants into the local activities and culture. But churches, which have become largely empty in Europe anyway, cannot integrate the Muslim immigrants. In France, a politician Jean-Marie Le Pen demanded tougher controls against immigration, but he grew increasingly controversial when he trivialized the Holocaust and defended the Vichy puppet regime that was installed by the Nazis in France during the Second World War. To the suprise of many he managed to qualify himself for the second round in the presidential elections of 2002, but eventually he was badly defeated by the incumbent Jacques Chirac. But meanwhile Islam is overtaking the Christian French culture, as the mosques are more vibrant than the churches in France now. In 2004, France desperately banned the wearing of the Muslim hijab (headscarf) girls in state schools. | + | The EU removed most internal border patrols, so people now flow freely from one country into the next, such as from Austria into Germany. The Muslim influx has been particularly high. In past centuries, churches would play a central role in integrating the immigrants into the local activities and culture. But churches, which have become largely empty in Europe anyway, cannot integrate the Muslim immigrants. In France, a politician Jean-Marie Le Pen demanded tougher controls against immigration. But the media then labeled him as a racist and he was badly defeated in the election for president in 2002. But meanwhile Islam is overtaking the Christian French culture, as the mosques are more vibrant than the churches in France now. In 2004, France desperately banned the wearing of the Muslim hijab (headscarf) girls in state schools. |
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| | Many European nations now face the controversy of whether to allow women to wear the Muslim coverings. In late 2006, the Dutch government announced its plan to ban Muslim head coverings in all public places. In Germany, many teachers are forbidden from wearing the hijab. A Belgian town banned the burqa (full-body covering) and niqab (a veil that covers only the face) entirely from its streets. In Britain, schools were allowed fire teachers for wearing face-coverings. Even in the Muslim country of Turkey, its military rulers have banned any wearing of the Muslim veil in public buildings since the 1920s, when Mustafa Kemal Atatürk established the modern Republic of Turkey. | | Many European nations now face the controversy of whether to allow women to wear the Muslim coverings. In late 2006, the Dutch government announced its plan to ban Muslim head coverings in all public places. In Germany, many teachers are forbidden from wearing the hijab. A Belgian town banned the burqa (full-body covering) and niqab (a veil that covers only the face) entirely from its streets. In Britain, schools were allowed fire teachers for wearing face-coverings. Even in the Muslim country of Turkey, its military rulers have banned any wearing of the Muslim veil in public buildings since the 1920s, when Mustafa Kemal Atatürk established the modern Republic of Turkey. |