List problems that stem from globalization related to economic development, labor issues, and the environment. Explain the origins and effects of labor migration, outsourcing, and offshoring. Describe possible approaches to dealing with the problems presented by globalization. Key Ideas Critics of globalization believe that it is harmful because it is driven by narrow economic interests. The benefits of globalization are unevenly distributed, and it causes hardship for poorer countries.
It can be argued that quality of people’s lives depends on more things than simply the material resources that are available. Another common problem with using GDP as a way to compare is the problem with exchange rates. GDP is calculated initially in terms of local currencies and then later it is converted into US dollar using official rates. The conversion into US dollar itself is a problem since the rates used are likely to be influenced by government intervention. This is especially true in developing economies where the currencies are normally pegged to another currency such as the US dollars.
Week 2 Discussion Post2: Gross Domestic Product (GDP) is the broadest measure of output for an economy. However, GDP does not perfectly measure well-being of a nationand its citizens' welfare. Discuss what GDP is and what it measures? Discuss what the shortcomings (limitations) of GDP as a measure of well-being and welfare of a nation are? posting1) Antonio GDP stands for Gross Domestic Product and it represents and estimated value in economic terms of a country’s total output at a particular point in time.
There are governments that totally control their economy and do not do business with other countries. There are governments that rule monetary policy and tax business, but do not become concerned in the markets otherwise. Similar to mixed economies, the positions of a government in the configuration of an economy is crucial to understand in order to understand the economics of the country. Concepts of Macroeconomics and Understanding Business or economic cycles focus on the variations, both anticipated and unexpected, within an economy. Variations in business cycles are able to be seen as short-term and long-term progression developments and they could shift.
Economic costs of deflation- deflation has proved to have several economic costs, the main cost is that it encourages differed expenditure where people’s expectations change and they delay spending in the hope of getting a better deal. This then results in a decrease in AD causing business revenues to fall and confidence to decrease delaying business investment and cutting costs, i.e. increasing unemployment, all of which could slow economic growth and force a recession as evidenced in the 1930s depression. Additionally deflation increases the real value of debt leading to
The argument or what Hobson called “the economic taproot of imperialism” was excessive capital in search of investment, and that this excessive capital came from over saving made possible by the unequal distribution of wealth. (The New Imperialism/The Latin Library, Thompson) The remedy, he maintained, was internal social reform and a more equal distribution of wealth. (New Imperialism Lecture Notes, J. Hollis & Western Heritage, pg 828). Meanwhile, Lenin and other Marxists believed imperialism resulted in the demise of capitalism. As wealth concentrates in fewer hands, the ability for investment at home is reduced resulting in foreign investments and exploit weaker nations.
POSC 100 PAPER #1 Inequality is an ongoing problem in America rather it be political or economic inequality. Despite the United States having the largest economy in the world, the major issue with inequality is that wealthy Americans and politicians have a better likelihood to influence policies and agendas as opposed to the average American. Due to this matter, economic inequality directly leads to political inequality. This paper will discuss the reality of economic inequality in the United States, the relationship between economic and social inequality, and how social movements affect change in the economic and political system. The reality of economic inequality in the U.S. is that 46.2 million people live below the poverty line.
Political and Economic Environment * What type of risks do foreign firms face in trying to conduct business in this type of environment? Lack of transparency, corporate governance, Poor regulatory environment, Widespread corruption, Organized crime, money laundering, counterfeiting, trafficking (humans, drugs, arms), Conflicts of interest, Fraud, Theft of proprietary information, Industrial disputes. b. Why is corruption so prevalent in Indonesia? P.65 Because political and economic factor listed above; In addition, government bureaucrats salaries are very low, inevitably demand bribes from any company that cross their path meaning a long line of officials might require bribes.
Incentives are offered to people in order to induce them to make certain choices or behave in a certain way. They can be either positive or negative. For example, positive incentives like discounts and rewards are beneficial; whereas negative incentives such as fines and penalties are not. Understanding how people respond to both positive and negative incentives is important in analyzing how society operates as a whole. Ultimately, it can be argued that “incentives are the cornerstone of modern life” (Levitt, 12), and having a grasp of this concept is a key to solving social and economic riddles.
Aggregate demand is defined as the total demand in the economy. The importance of managing aggregate demand in order to bring about a sustained reduction in unemployment depends on your economic view. There are two schools of thought who both have different views on how to reduce unemployment: Keynesian economists and Monetarist economists. Keynesian economists believe that increasing aggregate demand in order to stimulate higher output of goods and services, then leads to an increase in employment. In contrast, Supply side economists believe that unemployment is caused by the supply side of the economy not functioning properly.