A. Define the term "globalization."
b. Describe the benefits of globalization.
c. Who is likely to oppose globalization and why?
What will be an ideal response?
a. Globalization refers to the process of countries becoming more open to foreign trade and investment.
b. The benefits of globalization include: (1 ) consumers have access to a wider array of goods and services at lower prices than under autarky; (2 ) trade permits a far more efficient allocation of resources than is possible under autarky; (3 ) specialization in production leads to productivity gains which raise a nation's standard of living.
c. Opposition to globalization comes from three sources: (1 ) firms and workers harmed by globalization. The revenues and profits of domestic firms that produce the same goods and services that are imported will fall and some workers may lose their jobs; (2 ) those who fear that low-income countries are at risk of losing their cultural identity as multinational corporations sell western goods in the markets of these countries; (3 ) those who are concerned that multinational corporations will relocate factories in low-income countries to take advantage of low-cost labor while disregarding the interests of these countries (e.g., noncompliance with environmental standards) and its citizens (e.g. hiring child labor).
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The chairman of the Federal Reserve's Board of Governors
A) controls the agenda of the Federal Open Market Committee meetings. B) is the main point of contact between the Fed and the President of the U.S. C) receives frequent background briefings on monetary policy issues from a large staff of economists and technical experts. D) All of the above answers are correct.
The ratio at which a country can exchange domestic products for imported products is called the terms of trade.
Answer the following statement true (T) or false (F)