Chapter 7, Problem 5SQ

Corporate taxation in South Africa is too high and has negative implications for economic growth and our competitiveness with our main trading partners.” Do you agree with this statement? Why (not)? Base your arguments on economic theory.

In what ways have the advancements in global telecommunications and free trade policies shaped the current Global North-South divide?  More specifically, to what extent do global production chains advance economic performance, but create a dependency relationship?  Do you see any relief to this development crisis or do current trends depict a forever embedded global divide?  Be sure to reference examples whenever appropriate.

Can you explain further and give an example of the following below?   REASONS OF GLOBALIZATION Rapid shrinking of time and distance across the globe. Domestic markets are no longer rich. Companies and institutions go global to find political and economic stability. To get technological and managerial know-how of other countries due to their advancement. To reduce high transportation costs if one goes globally. To be close to raw materials and to markets for their finished products. The creation of the World Trade Organization (WTO) had made it possible in stimulating increased cross border trade.

In a world where transporting goods and services across borders is costless, it becomes much easier for firms to access foreign markets. This would eliminate a major barrier that many companies face when considering international expansion. Firms can now export their products to foreign markets without worrying about expensive shipping costs, making it financially viable to target new customers in different countries. The absence of trade barriers, such as tariffs, quotas, and regulatory restrictions, further enhances the feasibility of international expansion. Trade barriers typically increase the cost of doing business across borders and can limit market access. With no such barriers, firms can freely engage in cross-border trade, increasing their market reach and diversifying their customer base. In a world with significant variations in factor conditions, such as labor, capital, natural resources, technology and infrastructure, firms can benefit from international expansion by…

Why has the scale of global trade increased so dramatically since the mid-twentieth century? How has the nature of global trade changed since the 1960s? What are some of the advantages of globalization?

True or false? The European Union seeks to reduce its regional economic disparities by having wealthy regions provide economic subsidies and loans to poorer regions.

Explain why economic globalization according to Joseph Stiglitz is a failure.

According to UNCTAD, trade in goods during the first quarter of 2021 was higher than the pre-pandemic level, but trade in services remained substantially below averages. Outline two (2) strategies that you think Jamaica can undertake to record a faster recovery from the decline in trade caused by the pandemic.

How did the Bretton Woods system structure assist economic globalization after world war 2?