Smartphones, a key tool in a globalized world, are an example of the uneven benefits of globalization. Like many other products, smartphones are produced by multiple people in multiple countries, and they have revolutionized life and business in many wealthy nations like the United States, Japan, and the United Kingdom. Many of the consumers who use smartphones live in wealthier nations, yet many of the raw materials used to make smartphones are mined in less wealthy nations like the Democratic Republic of the Congo. Many of these miners work long hours in poor conditions and with few government protections. Not as many residents of these nations enjoy the benefits of technologies they help to produce. Although the pace of globalization accelerated during the 1900s and 2000s, it has not occurred evenly around the globe. The technologies that have driven globalization require a well-developed infrastructure. Infrastructure refers to the framework that supports a country’s economic activity. Infrastructure includes roads, railways, ports, airports, and other networks that allow for transport of people and goods. It also includes networks that enable communication. For example, phones, computers, television, and other communication devices need large networks of wires, cables, and satellites to function. Such infrastructure is expensive to build and requires highly educated workers to design and maintain it. Countries that have been able to create strong and modern infrastructures are often called developed nations. In a world where economies depend on one another, countries must be able to exchange goods and information quickly. The advanced transportation and communication networks of so- called developed nations give them an advantage over nations that do not have strong infrastructures. As a result, these nations have relatively prosperous and stable economies that are able to respond to changes in the global marketplace.France is an example of a developed nation. Its robust transportation system includes highways, high-speed trains, international airports, seaports, and even a tunnel under the English Channel. This infrastructure allows for easy travel and transport within France and beyond its borders. In addition, France has highly developed communications networks. As of 2014, about 86 percent of people in France had access to the Internet—a rate that ranked 11th in the world. France’s infrastructure supports one of the largest economies in Europe, with a gross domestic product (GDP) of about $2.6 trillion. GDP is a measure economists use to see how wealthy a country is. Many people in countries with high GDPs have enough money to live comfortably, have access to good health care, and have a relatively high life expectancy. France’s poverty rate is about 8.1 percent. Countries that do not yet have the strong infrastructure needed to compete in a global economy are often called developing countries. They may lack resources, knowledge, or technology, which puts them at a disadvantage. Many people do not have enough money to live, and they struggle to meet their basic needs. The Democratic Republic of the Congo is an example of a developing country . Compared to developed countries, it has a poorly developed transportation infrastructure. Although it has some airports and railways, most of its roads are unpaved, and it has only one seaport. Its telecommunications network is also underdeveloped. There are few telephone wires and radio towers. About 48 percent of people have mobile phones, but less than 1 percent have access to the Internet.Because of this poor infrastructure, the Democratic Republic of the Congo has a weak economy. Although its population is much larger than that of France, its GDP of about $63.27 billion is about 40 times smaller than France’s. Its poverty rate is about 63 percent. This means that most of the population does not have enough money to provide for basic needs like food, shelter, and clothing. Global Smart Phone Production rer = Unted Dene 0 Tesch 9 tama“ Toman Global Smartphone Production Why do you think so many countries have a part in smartphone production? Is this good thing or a bad thing?The Economic Chain Why does globalization benefit some countries and not others? Just as money and resources are not spread evenly throughout the world, neither are economic activities. There are three main categories into which economic activities are divided: the primary sector, the secondary sector, and the tertiary sector. The primary sector includes production of raw materials such as crops, precious metals, and fossil fuels. Industries like agriculture, fishing, and mining are primary sector activities. Bangka Island in Indonesia relies on a primary sector industry—it mines for tin used in a variety of electronics equipment, including tablets and smartphones. The secondary sector includes manufactured goods. Industries that turn raw materials into products perform secondary activities. A garment factory, for example, turns a raw material (cotton) into a manufactured good (clothing). An oil refinery turns crude oil into finished products like gasoline and plastics. Many of China’s industries are in the secondary sector. China takes raw materials and manufactures them into clothing, car parts, and electronics. The tertiary sector includes industries that provide goods or services to consumers or other businesses. Restaurants, hotels, and law firms are examples of tertiary activities. Unlike manufacturers, they do not create goods. They sell goods or provide services to customers. The United States has many industries in the tertiary sector, including telecommunications (computers and phones) and consumer goods (toys and office supplies).Large, developed nations tend to have diverse economies that are strong in all three economic sectors. Even though the United States and China were highlighted as having industries in the tertiary and secondary sectors respectively, their economies have a mixture of all three sectors. For example, the United States produced over one billion tons of coal in 2014 from its primary sector to supply its energy needs. Developing nations, in contrast, usually have economies based mainly on the primary sector. They must rely heavily on trade with developed nations to supply manufactured goods and services. In return, they may supply developed nations with the raw materials, but the value of these goods is often unpredictable. The market for primary sector products such as oil and precious metals is very sensitive to supply (how much is available) and demand (how much people buy). In other words, prices for these products can change quickly. If prices for a certain item drop significantly, it can be devastating for nations that rely heavily on that product for trade. An economic downturn can also have an impact on the social and political stability of a nation. For example, Venezuela relies heavily on oil production. Crude oil accounts for 95 percent of its exports. In 2014, worldwide prices for oil began to drop sharply due to overproduction in other countries. As a result, Venezuela’s economy went into a steep decline. International demand for Venezuela’s oil fell, and because its economic activity was so focused on oil production, it had few other goods to trade with other countries. As a result, Venezuelans experienced shortages of many basic goods such as toothpaste, toilet paper, and medical supplies. All of these goods were imported from other countries, and Venezuela’s economy was not able to adapt to produce such goods for its citizens. Many Venezuelans blamed the government for the country’s economic troubles, leading to protests and riots.