9781422281222

tors have combined to create a variety of products and a global demand for even the smallest goods. With the expan- sion of global trade, the world has become wealthier, and wealthy people buy things. During the Renaissance, only the rich could afford to purchase luxury goods. Most people struggled to pay for food, clothing, and shelter. Then the middle class appeared and expanded in the nineteenth and twentieth centuries. This group of people created a demand for all the things factories produced. Changes in ideas and government policies have also encouraged the growth of global trade. In the past, countries approached trade by focusing on their own GDP. Today, world leaders make trade decisions based on international cooperation, the profits of companies, investors in other countries, and the living standards of people around the globe. When it comes to trade, the divisions between conti- nents and countries have fallen away. Globalization This system of international connections among workers, investors, products, and buyers is called globalization . Globalization connects supplies, producers, and buyers on every continent—as seen in the iPhone supply chain. This global web results in the most efficient use of the world’s resources, including raw materials, labor, and finances. Globalization also leads to rapid growth in the amount of goods that are produced and traded. In turn, low-cost and high-volume production creates lower prices and more choices for consumers .

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