Global Interdependence

1411 WordsJul 8, 20186 Pages
As technology of the past gives way to the technology of the future, the world is becoming a smaller and smaller place. In economic terms, Global Interdependence is increasing as time goes on. In other words, we as the United States, as well as other countries, rely on each other for the three factors of production, Land, Labor and Capital. As noted in Thomas L. Freidman’s book, The World is Flat, there are several instances in which the Global Interdependence started. For example, the introduction of the Internet created a common forum in which people could connect to each other instantly was revolutionary in the interdependence process. In addition, the Global Interdependence Center, located in Philadelphia, PA is a non-profit…show more content…
This is described as the Most Favored Nation rule, or MFN for short. They cannot set a certain tariff on one good from a nation then set a higher one on a different nation. This promotes non-discrimination between countries. In addition to MFN, the WTO also provides National Treatment. This asks countries to give the same benefits that it would give to its domestic products, to foreign products. National Treatment and MFN are simply put, cornerstones of all international trade. The World Trade Organization is an integral part of Globalization due to its policies of fair and balanced trade between countries of greater affluence and countries of less prosperity. Although there are many organizations that help further Globalization, Many smaller corporations help too. For example, many auto Industries, although their headquarters is located on foreign soil, will build factories on domestic ground. Take BMW as an illustration, a company based in Munich, Germany, opened a new Factory in Spartanburg South Carolina. This cuts down on costs of transportation and labor. In addition to BMW, other companies such as Toyota, Nissan, Subaru, and Mercedes have constructed multiple factories in America. As a result, these companies can price their cars less steeply than other companies that have to ship cars from foreign soil. Foreign companies aren’t the only ones building plants across America. American companies such as Ford have their cars
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