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Name: Vrunda Patel Subject: International Business Prof: George Repic Date: 1/22/2014 Module 1 - Homework assignment How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes? Answer: Changes in technology have contributed to the globalization of markets and production by bringing the world closer. I believe that improvements of technology in internet, microprocessors, and transportation not only make our lives more convenient, but also enable the growth of globalization of production and markets. For example, improvements in transportation technology have made it easy for companies like…show more content…
Free market economies stimulate greater economic growth, whereas state-directed economies stifle growth. Discuss. Answer: I agree that free market economies stimulate greater economic growth, whereas state-directed economies stifle growth. In free market, private individuals and corporations are allowed to own property and other assets. This right of ownership provides a powerful incentive for people to work hard, introduce new products, develop better advertising campaigns, invent new products, etc., all in the hopes of accumulating additional personal capital and wealth (Charles W.L.Hill, 2013 ). In turn, the constant search on the part of individuals and corporation to accumulate wealth enriches the entire economy and creates economic growth. In contrast, in a state-directed economy, private individuals and corporations are not allowed to own substantial quantities of property and other assets (Charles W.L.Hill, 2013 ). The objective of a state-directed economy is for everyone to work for “the good of the society” (Charles W.L.Hill, 2013 ). Although, this sounds like a noble ideal, let us face it; a system that asks individuals to work for the good of society rather than allowing individuals to build personal wealth will not succeed. Moreover, it will not provide a great incentive for people to invent
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