Globalization and International Finance, Questions and Answer

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Q1. History of your topic (i.e. product, country(ies), article, etc)? Please explain in detail your topic selection. Globalization is defined as moving towards a world in which barriers to cross-border trade and investment are declining; distance is shrinking due to new advance in transportation and telecommunications technology, material culture is starting to look similar the world over; national economies are merging into an interdependent, integrated global economic system (Hill). The word itself. “globalize”, appeared in the 1960s meaning to “make global in scope or application”.
Can be traced from the Silk Road, route between China and the Mediterranean Sea, which promoted the exchange of ideas and knowledge, along with trade
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Same way, the increase in income allows India allows to buy from the US. Free trade benefits all. Also, the wage gap between developing and developed nations is closing due to economic growth. When outsourcing to lower-wage countries, it contributes to higher unemployment and lower living standards in their home countries. Free trade allows the goods to be produced thru specialization that they are more efficient in, while importing the goods that they cannot produce as efficiently.The cons are That outsoucing has led to depressed wages in developed countries, by moving firm activities to countries where wages are lower and there is loss of national soverignty. The benefits of globalization outweigh the costs.As country gets rich there is more strict environmental standards.

5. Please explain the policies and/or government dilemmas, if any. Globalization has eroded national soveirignity. Government must devise new strategies for managing programs effectively in a globalized world. Government must adapt to fit traditional vertical systems to the new challenges of globalization and integrate new horizontal sysstems to the traditional vertical ones. Furthermore, the government must enhance its ability to govern and manage the transformed environment. New strategies for efficient management and accountability must be made. North American Free Trade Agreement (NAFTA) was passed between Canada, Mexico and United States was created after Mexico

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