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China Joins Global Economy Last spring China joined the World Trade Organization (WTO), an international organization that sets rules governing international trade among member countries. As a member of the WTO, China will be able to sell its products in WTO member countries without having to pay high tariffs. It will also be required to lower tariffs on goods and services it imports. Accession of China into the WTO was fought by many Americans, including human rights activists and organized labor. Organized labor fought China's entry into the WTO because of fears that an increase in imports from China would decrease demand for goods made in the United States, forcing factories to cut back jobs and wages. Human rights activists argued that China should be forced to improve its human rights record before being admitted into the world body. President Clinton strongly supported WTO membership for China, which will open the 1.2 billion-person market to U.S. producers. American business people and farmers also welcomed the move. Activists Protest Globalization Activists opposed to globalization staged protests in Seattle during the meetings of the World Trade Organization last fall. The protesters, which included members of organized labor and environmental groups, claimed that globalization was hurting poor countries and endangering the environment. Similar demonstrations were staged in April in Washington, D.C., during the annual meetings of the International Monetary Fund and World Bank and in August at the Democratic Party's national convention in Los Angeles. Euro Falls Against the Dollar The Euro, the new currency adopted in 11 European countries, fell sharply against the dollar in 2000. When it was introduced, in 1999, the new currency was worth $1.17. By July 2000 its value had fallen to about $0.92. The decline is good news for Americans travelling in Europe and for European exporters. It is bad news for American exporters, whose goods are relatively expensive for Europeans. Eleven European countries-Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain- adopted the single currency in 1997. Greece will adopt the Euro at the end of this year, and Great Britain may join in the future. The purpose of the new currency is to increase unity within Europe and increase the competitiveness of European goods. Euro coins and notes will not be issued until January 2002. But most banks, all stock markets, and many companies have been doing their accounting in Euros since last year. All prices in participating countries are labeled in both the national currency and the Euro. Both the Euro and national currencies will circulate until July 2002, when national currencies will be withdrawn from circulation. Adoption of the single currency will save travelers millions of dollars in fees to banks and money changers. Think About It
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