InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
INSTRUCTOR MANUAL FOR ty ty
Carbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty9798214041605;tyCha
pterty1:tyThetyInternationaltyEconomytyandtyGlobalization
TABLE OF CONTENTSTY TY
PurposetyandtyPerspectivetyoftythetyChapter .............................................................................................. 1
ChaptertyObjectives ..................................................................................................................................... 1
CompletetyListtyoftyChaptertyActivitiestyandtyAssessments ....................................................................... 2
KeytyTerms................................................................................................................................................... 2
ChaptertyOutline .......................................................................................................................................... 3
PURPOSE AND PERSPECTIVE OF THE CHAPTER
TY TY TY TY TY
Thetypurposetyoftythistychaptertyistytotyintroducetystudentstytotythetyinternationaltyeconomytyandtyglobalizatio
n.tyFirst,tywetyemphasizetythetyhightydegreetyoftyeconomictyinterdependencetythattycharacterizestytoday’styec
onomies.tyNext,tywetydiscusstythetyUnitedtyStatestyastyantyopentyeconomy;tyglobalizationtyastyatyprocesstyofty
greatertyinterdependencetyamongtycountriestyandtytheirtycitizens;tyandtythetynaturetyoftyinternationaltycompeti
tiveness—
fortyfirms,tyindustries,tyandtynations.tyFinally,tywetylooktyattythetypotentialtyeffectstythattyinternationaltytradety
hastyontyworkers,tyandtyconcludetywithtyatysummarytyoftythetyadvantagestyandtydisadvantagestyoftyglobalizati
on.
CHAPTER OBJECTIVES TY
Thetyfollowingtyobjectivestyaretyaddressedtyintythistychapter:
1.1 Explaintyeconomictyinterdependencetyfromtyantyeconomictyandtypoliticaltyperspective.
1.2 Describetythetydefiningtycharacteristicstyoftyeachtywavetyoftyglobalizationtysincety1870.
1.3 DescribetythetyUnitedtyStatestyastyatyglobaltyeconomy.
1.4 Listtysometyoftythetyfallaciestyoftyinternationaltytrade.
1.5 Describetythetypositivetyandtynegativetyeffectstythattyinternationaltytradetymaytyhavetyontydomestictyworke
rs.
1.6 Explaintywhytysometyeconomiststyconcludetythattyglobalizationtyhastygonetytootyfar.
[returntytotytop]
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
1
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
, InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS
TY TY TY TY TY TY
Thetyfollowingtytabletyorganizestyactivitiestyandtyassessmentstybytyobjective,tysotythattyyoutycantyseetyhowtyt
histycontenttyrelatestytotyobjectivestyandtymaketydecisionstyabouttywhichtycontenttyyoutywouldtyliketytotyemph
asizetyintyyourtyclasstybasedtyontyyourtyobjectives.tyFortyadditionaltyguidance,tyrefertytotythetyTeachingtyOnli
netyGuide.
ChaptertyObjecti Activity/Assessment Sourcety(i.e.,tyPP Duration
ve TtySlide,tyWorkbo
ok)
1.1 DiscussiontyActivity PPTtySlidety9 10tymin
1.1 CasetyStudytyActivity PPTtySlidety10 15tymin
1.1–1.6 Self-AssessmenttyActivity PPTtySlidety47 30tymin
1.1–1.6 Chapterty1tyStudytyQuestions Textbook 1tyhour
[returntytotytop]
KEY TERMS TY
Artificialtyintelligence:tyAtytechnologytythattyenablestycomputerstyandtymachinestytotysimulatetyhum
antyintelligencetyandtyperformtycomplextytaskstythattytraditionallytyrequiredtyhumantyreasoning.
Automation:tyThetycreationtyoftytechnology,tysuchtyastyrobotics,tyusedtytotyproducetyandtydelivertyvarioustygoodst
yandtyservices.
Dieseltyengines:tyTechnicaltyinnovationtythattypowerstycargotyships,tylocomotives,tyandtylargetytrucks.
Economictyefficiency:tyAtystatetywheretyscarcetyresourcestyaretyoptimallytyallocatedtytotymaximizetytotaltyso
cialtywelfaretyandtyoutputtywhiletyminimizingtywaste.
Economictyinterdependence:tyAlltyaspectstyoftyatynation’styeconomytyaretylinkedtytotythetyeconomiestyoftyitstytra
dingtypartners.
Friendshoring:tyAntyefforttytotytradetywithtyalliestywhotyhavetysimilartyvalues,tysuchtyastydemocratictyinstitutionst
yortymaintainingtypeace.
Globalization:tyThetyprocesstyoftygreatertyinterdependencetyamongtycountriestyandtytheirtycitizens.
Naturaltygas-
firedtyturbines:tyTechnicaltyinnovationtythattypowerstyplanestyandtyothertymeanstyoftytransportation.
Openness:tyThetyratiotyoftyatynation’styexportstyandtyimportstyastyatypercentagetyoftyitstygrosstydomestictyprod
uctty(GDP).
Security:tyAtynewtykindtyoftyglobalizationtywhichtyemphasizedtydoingtybusinesstywithtypeopletyyoutycantyrel
ytyontyandtyintycountriestyyourtygovernmenttyistyfriendlytywith.
[returntytotytop]
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
2
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
, InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
CHAPTER OUTLINE TY
Thetyfollowingtyoutlinetyorganizestyactivitiesty(includingtyanytyexistingtydiscussiontyquestionstyintyPowerPoi
ntstyortyothertysupplements)tyandtyassessmentstybytychapterty(andtythereforetybytytopic),tysotythattyyoutycantys
eetyhowtythetycontenttyrelatestytotythetytopicstycoveredtyintythetytext.
I. GlobalizationtyoftyEconomictyActivityty(1.1,tyPPTtySlidesty4–11)
A. Globalizationtyistythetyprocesstyoftyincreasedtyinterdependencetyamongtycountriestyandtyth
eirtycitizens.tyIttyinvolvestygreatertyinteractiontyoftymarketstyacrosstynationstythroughtytrad
e,tyimmigration,tyandtyforeigntyinvestment.tyIttyencompassestyeconomic,typolitical,tytechno
logical,tyandtyculturaltyaspects.
B. Peopletyaretymoretylikelytytotyconsumetyproductstyfromtyothertycountries.tyIncreasedtylikelih
oodtyoftyinvestingtyintyortyearningtyincometyfromtyforeigntycountries.tyGreatertycommunicati
ontyandtytraveltybetweentycountries.tyIncreasedtyawarenesstyoftyandtyinfluencetyfromtygloba
ltyeconomictydevelopments.
C. TechnologicaltyChange:tyInnovationstysincetythetyIndustrialtyRevolutiontyhavetyincrease
dtyproductivitytyandtyreducedtytransportationtycosts.tyRecenttydevelopmentstyintyinformati
ontyandtycommunicationstytechnologytyhavetyfurthertyreducedtybarrierstyoftytimetyandtyge
ography.tyThetyinternettyhastysignificantlytyreducedtycommunicationtycoststyandtyincreas
edtytradetyintyservices.
D. TradetyandtyInvestmenttyLiberalization:tyMultilateraltytradetynegotiationstyhavetyledtytotyre
ducedtytariffstyandtyremovaltyoftymosttyquotas.tyLiberalizationtyoftyinvestmenttytransactio
nstyandtydevelopmenttyoftyinternationaltyfinancialtymarketstyhavetyfacilitatedtyglobaltytrad
e.
E. Companiestycantynowtylocatetydifferenttypartstyoftytheirtyproductiontyprocessestyintyvari
oustycountriestywhiletymaintainingtyatysingletycorporatetyidentity.tyhastyledtytotythetytrans
fertyoftyjobs,tytechnologies,tycapital,tyandtyskillstyaroundtythetyglobe.
II. WavestyoftyGlobalizationty(1.2,tyPPTtySlidesty12–20)
A. FirsttyWavetyoftyGlobalizationty(1870–
1914).tyThistyperiodtysawtyatysignificanttyincreasetyintyglobaltyinterdependence,tydriventyby:ty
decreasedtytarifftybarriers;tytechnologicaltyadvancementstyreducingtytransportationtycoststy(
e.g.,tysteamships,tyrailways);tyincreasedtyexportstyastyatysharetyoftyworldtyincomety(nearlytyd
oublingtytoty8typercent);tyrisetyintypertycapitatyincomesty(1.3typercenttyannualtyaverage)
B. SecondtyWavetyoftyGlobalizationty(1945–
1980).tyFollowingtyWorldtyWartyII,tythistywavetywastycharacterizedtyby:tyestablishmenttyofty
globaltyeconomictyinstitutionsty(e.g.,tyIMF,tyWorldtyBank,tyGATT);tyfocustyontyfreetytradety
andtyruletyoftylaw;tyincreasedtypertycapitatyincomestyintydevelopedtycountries;tylimitedtyparti
cipationtyoftydevelopingtycountries,tymainlytyintyagriculturaltyandtynaturaltyresourcetyproduct
s
C. ThirdtyWavetyoftyGlobalizationty(1980–
present).tyThistyongoingtywavetyistymarkedtyby:tydevelopingtycountriesty(e.g.,tyChina,tyInd
ia,tyBrazil)tyenteringtyglobaltymanufacturingtymarkets;tyincreasedtyinternationaltycapitalty
movements;tyforeigntyoutsourcingtyandtyparticipationtyintyinternationaltyproductiontynetw
orks;tyrisetyoftyautomationtytechnologies;tydigitaltytechnologytydrivingtyglobalization,tywi
thtyChinatyandtyemergingtynationstytakingtyatyleadingtyrole.
D. Intyrecenttyyears,tytheretyhastybeentysometybackpedalingtyontyglobalization:tydeclinetyintygl
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
3
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
, InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
obaltytradetyduringtyandtyaftertythety2007–
2009tyGreattyRecession;tyrisetyoftynationalisttypoliciesty(e.g.,tyBrexit,tyUStywithdrawaltyfr
omtyTPP);tyshifttyintypoliticaltydiscoursetyfromtyeconomictybenefitstyto
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
4
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
INSTRUCTOR MANUAL FOR ty ty
Carbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty9798214041605;tyCha
pterty1:tyThetyInternationaltyEconomytyandtyGlobalization
TABLE OF CONTENTSTY TY
PurposetyandtyPerspectivetyoftythetyChapter .............................................................................................. 1
ChaptertyObjectives ..................................................................................................................................... 1
CompletetyListtyoftyChaptertyActivitiestyandtyAssessments ....................................................................... 2
KeytyTerms................................................................................................................................................... 2
ChaptertyOutline .......................................................................................................................................... 3
PURPOSE AND PERSPECTIVE OF THE CHAPTER
TY TY TY TY TY
Thetypurposetyoftythistychaptertyistytotyintroducetystudentstytotythetyinternationaltyeconomytyandtyglobalizatio
n.tyFirst,tywetyemphasizetythetyhightydegreetyoftyeconomictyinterdependencetythattycharacterizestytoday’styec
onomies.tyNext,tywetydiscusstythetyUnitedtyStatestyastyantyopentyeconomy;tyglobalizationtyastyatyprocesstyofty
greatertyinterdependencetyamongtycountriestyandtytheirtycitizens;tyandtythetynaturetyoftyinternationaltycompeti
tiveness—
fortyfirms,tyindustries,tyandtynations.tyFinally,tywetylooktyattythetypotentialtyeffectstythattyinternationaltytradety
hastyontyworkers,tyandtyconcludetywithtyatysummarytyoftythetyadvantagestyandtydisadvantagestyoftyglobalizati
on.
CHAPTER OBJECTIVES TY
Thetyfollowingtyobjectivestyaretyaddressedtyintythistychapter:
1.1 Explaintyeconomictyinterdependencetyfromtyantyeconomictyandtypoliticaltyperspective.
1.2 Describetythetydefiningtycharacteristicstyoftyeachtywavetyoftyglobalizationtysincety1870.
1.3 DescribetythetyUnitedtyStatestyastyatyglobaltyeconomy.
1.4 Listtysometyoftythetyfallaciestyoftyinternationaltytrade.
1.5 Describetythetypositivetyandtynegativetyeffectstythattyinternationaltytradetymaytyhavetyontydomestictyworke
rs.
1.6 Explaintywhytysometyeconomiststyconcludetythattyglobalizationtyhastygonetytootyfar.
[returntytotytop]
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
1
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
, InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS
TY TY TY TY TY TY
Thetyfollowingtytabletyorganizestyactivitiestyandtyassessmentstybytyobjective,tysotythattyyoutycantyseetyhowtyt
histycontenttyrelatestytotyobjectivestyandtymaketydecisionstyabouttywhichtycontenttyyoutywouldtyliketytotyemph
asizetyintyyourtyclasstybasedtyontyyourtyobjectives.tyFortyadditionaltyguidance,tyrefertytotythetyTeachingtyOnli
netyGuide.
ChaptertyObjecti Activity/Assessment Sourcety(i.e.,tyPP Duration
ve TtySlide,tyWorkbo
ok)
1.1 DiscussiontyActivity PPTtySlidety9 10tymin
1.1 CasetyStudytyActivity PPTtySlidety10 15tymin
1.1–1.6 Self-AssessmenttyActivity PPTtySlidety47 30tymin
1.1–1.6 Chapterty1tyStudytyQuestions Textbook 1tyhour
[returntytotytop]
KEY TERMS TY
Artificialtyintelligence:tyAtytechnologytythattyenablestycomputerstyandtymachinestytotysimulatetyhum
antyintelligencetyandtyperformtycomplextytaskstythattytraditionallytyrequiredtyhumantyreasoning.
Automation:tyThetycreationtyoftytechnology,tysuchtyastyrobotics,tyusedtytotyproducetyandtydelivertyvarioustygoodst
yandtyservices.
Dieseltyengines:tyTechnicaltyinnovationtythattypowerstycargotyships,tylocomotives,tyandtylargetytrucks.
Economictyefficiency:tyAtystatetywheretyscarcetyresourcestyaretyoptimallytyallocatedtytotymaximizetytotaltyso
cialtywelfaretyandtyoutputtywhiletyminimizingtywaste.
Economictyinterdependence:tyAlltyaspectstyoftyatynation’styeconomytyaretylinkedtytotythetyeconomiestyoftyitstytra
dingtypartners.
Friendshoring:tyAntyefforttytotytradetywithtyalliestywhotyhavetysimilartyvalues,tysuchtyastydemocratictyinstitutionst
yortymaintainingtypeace.
Globalization:tyThetyprocesstyoftygreatertyinterdependencetyamongtycountriestyandtytheirtycitizens.
Naturaltygas-
firedtyturbines:tyTechnicaltyinnovationtythattypowerstyplanestyandtyothertymeanstyoftytransportation.
Openness:tyThetyratiotyoftyatynation’styexportstyandtyimportstyastyatypercentagetyoftyitstygrosstydomestictyprod
uctty(GDP).
Security:tyAtynewtykindtyoftyglobalizationtywhichtyemphasizedtydoingtybusinesstywithtypeopletyyoutycantyrel
ytyontyandtyintycountriestyyourtygovernmenttyistyfriendlytywith.
[returntytotytop]
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
2
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
, InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
CHAPTER OUTLINE TY
Thetyfollowingtyoutlinetyorganizestyactivitiesty(includingtyanytyexistingtydiscussiontyquestionstyintyPowerPoi
ntstyortyothertysupplements)tyandtyassessmentstybytychapterty(andtythereforetybytytopic),tysotythattyyoutycantys
eetyhowtythetycontenttyrelatestytotythetytopicstycoveredtyintythetytext.
I. GlobalizationtyoftyEconomictyActivityty(1.1,tyPPTtySlidesty4–11)
A. Globalizationtyistythetyprocesstyoftyincreasedtyinterdependencetyamongtycountriestyandtyth
eirtycitizens.tyIttyinvolvestygreatertyinteractiontyoftymarketstyacrosstynationstythroughtytrad
e,tyimmigration,tyandtyforeigntyinvestment.tyIttyencompassestyeconomic,typolitical,tytechno
logical,tyandtyculturaltyaspects.
B. Peopletyaretymoretylikelytytotyconsumetyproductstyfromtyothertycountries.tyIncreasedtylikelih
oodtyoftyinvestingtyintyortyearningtyincometyfromtyforeigntycountries.tyGreatertycommunicati
ontyandtytraveltybetweentycountries.tyIncreasedtyawarenesstyoftyandtyinfluencetyfromtygloba
ltyeconomictydevelopments.
C. TechnologicaltyChange:tyInnovationstysincetythetyIndustrialtyRevolutiontyhavetyincrease
dtyproductivitytyandtyreducedtytransportationtycosts.tyRecenttydevelopmentstyintyinformati
ontyandtycommunicationstytechnologytyhavetyfurthertyreducedtybarrierstyoftytimetyandtyge
ography.tyThetyinternettyhastysignificantlytyreducedtycommunicationtycoststyandtyincreas
edtytradetyintyservices.
D. TradetyandtyInvestmenttyLiberalization:tyMultilateraltytradetynegotiationstyhavetyledtytotyre
ducedtytariffstyandtyremovaltyoftymosttyquotas.tyLiberalizationtyoftyinvestmenttytransactio
nstyandtydevelopmenttyoftyinternationaltyfinancialtymarketstyhavetyfacilitatedtyglobaltytrad
e.
E. Companiestycantynowtylocatetydifferenttypartstyoftytheirtyproductiontyprocessestyintyvari
oustycountriestywhiletymaintainingtyatysingletycorporatetyidentity.tyhastyledtytotythetytrans
fertyoftyjobs,tytechnologies,tycapital,tyandtyskillstyaroundtythetyglobe.
II. WavestyoftyGlobalizationty(1.2,tyPPTtySlidesty12–20)
A. FirsttyWavetyoftyGlobalizationty(1870–
1914).tyThistyperiodtysawtyatysignificanttyincreasetyintyglobaltyinterdependence,tydriventyby:ty
decreasedtytarifftybarriers;tytechnologicaltyadvancementstyreducingtytransportationtycoststy(
e.g.,tysteamships,tyrailways);tyincreasedtyexportstyastyatysharetyoftyworldtyincomety(nearlytyd
oublingtytoty8typercent);tyrisetyintypertycapitatyincomesty(1.3typercenttyannualtyaverage)
B. SecondtyWavetyoftyGlobalizationty(1945–
1980).tyFollowingtyWorldtyWartyII,tythistywavetywastycharacterizedtyby:tyestablishmenttyofty
globaltyeconomictyinstitutionsty(e.g.,tyIMF,tyWorldtyBank,tyGATT);tyfocustyontyfreetytradety
andtyruletyoftylaw;tyincreasedtypertycapitatyincomestyintydevelopedtycountries;tylimitedtyparti
cipationtyoftydevelopingtycountries,tymainlytyintyagriculturaltyandtynaturaltyresourcetyproduct
s
C. ThirdtyWavetyoftyGlobalizationty(1980–
present).tyThistyongoingtywavetyistymarkedtyby:tydevelopingtycountriesty(e.g.,tyChina,tyInd
ia,tyBrazil)tyenteringtyglobaltymanufacturingtymarkets;tyincreasedtyinternationaltycapitalty
movements;tyforeigntyoutsourcingtyandtyparticipationtyintyinternationaltyproductiontynetw
orks;tyrisetyoftyautomationtytechnologies;tydigitaltytechnologytydrivingtyglobalization,tywi
thtyChinatyandtyemergingtynationstytakingtyatyleadingtyrole.
D. Intyrecenttyyears,tytheretyhastybeentysometybackpedalingtyontyglobalization:tydeclinetyintygl
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
3
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
, InstructortyManualtyFor:tyCarbaugh,tyInternationaltyEconomics,ty19e,ty2026,ty97982140
41605;
Chapterty1:tyThetyInternationaltyEconomytyandtyGlobalization
obaltytradetyduringtyandtyaftertythety2007–
2009tyGreattyRecession;tyrisetyoftynationalisttypoliciesty(e.g.,tyBrexit,tyUStywithdrawaltyfr
omtyTPP);tyshifttyintypoliticaltydiscoursetyfromtyeconomictybenefitstyto
©ty2026tyCengagetyLearning,tyInc.tyAlltyRightstyReserved.tyMaytynottybetyscanned,tycopiedtyortyduplicated,tyortypos
4
tedtytotyatypubliclyt y accessibletywebsite,tyintywholetyortyintypart.
