Globalization, through the reduction of trade barriers, has increased integration of various national economies. Its impact on advanced nations, such as the USA and Japan, is highly positive and profitable. However, the same cannot be said with regard to developing nations, such as Thailand and Indonesia. Globalization is akin to swimming in the sea, depending on the status of the nation. Advanced nations can enjoy the cooling feel of the water, but the less advanced of the risk of sinking or even drowning.
However, there are advantages and disadvantages of international trade in the simulation that cause the world’s economy to fluctuate and leave certain countries astray. One of the advantages to international trade that I found for countries was the monetary gains and having the ability to keep their own markets honest causing the local producers to improve its goods for the reason citizens have more choices available to them. The disadvantages of international trade have to deal with countries of higher power that try to take advantage of smaller countries by swindling their government into unorthodox trading during a crisis within those countries. Another disadvantage is the possibility of local producers becoming weak, causing the unemployment rate to rise because local producers are unable to compete with international
Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor. While poverty rates have fallen as a result of our world becoming globalized, the workers are still getting an incredibly low income, which might cause social instability and conflict. Globalization has had a positive impact. One of the main advantages is that based on per capita GDP
Using more effective manufacturing systems and double shifts has been implemented to achieve this. This is a small increase in comparison to the sales of competitors, showing that the global market could provide a number of new opportunities for the company as it grows. However, the opinion of the managing director, Butler-Adams,the company believes is that a significantly higher number of sales in a short time period could undermine the brand’s image which may decrease the desirability of the
'International aid brings both benefits and problems for a country trying to develop its economy' with the aid of named examples evaluate this view. (30 marks) International aid can bring many problems to a country in need of development, this is usually through the ill-use, ill-deployment and abuse of International aid by both the donor countries and the recipient countries. However, effective aid brings more benefits to developing countries than problems is the aid is properly allocated to the area most in need and the aid is not ties so that it benefits the donor. International aid can bring problems to a developing country as it can be an obstacle to development and can provide other problems put forward by the political right. Aid can become an obstacle to development because of the tied nature of much aid, which benefits the donor country more than the recipient, in economic terms.
If the LEDC had the high enough levels of development it could educate it population and these profit providing process could be taxed and boost the economy of the LDC to allow such infrastructure to grow. With low levels of infrastructure health care is not as available as in MEDC nations. This causes LDC nations to have lower life expectancies and be less productive due to being ill. In Sierra Leone high levels of AIDS/ HIV, approximately 49,000, and outbreaks such as the deadly Ebola Virus means little taxes can be taken as unemployment is high. As a consequence many LDC nations rely on foreign health and economic aid putting them in a situation of unrepayable debt, so even less money can be spent on infrastructure and supporting the economy.
Even though they may have a good price for the quality and quantity the monies is not helping our economy grow. Once again we are sending money out helping other countries grow while we as a whole are here in the U.S. struggling. I can understand the need to buy steal, iron or any other manufactory goods cheaper if they can be found on foreign land, even though it make take away plenty of money. However, the use of these materials may be used to build new stuff that will help the grow economy and cause more jobs. I believe with using the foreign countries we as the United States need to make sure the steel, manufacture goods and anything else is of good material and we will not put out more money than needed because “we” decided to trust them.
A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor. Free trade can bring a lot of advantage to us; however, it does not apply in real world. Tariff and non-tariff are the tools that use to trade protection or prevent the economy from undergoing adjustment during economic stagnation. Although tariff and other restriction can concede the economic losses and using resource with less efficiency, but protectionism argue that non-economic benefit such as a national security can more than offset those economic losses. Normally trade protection is use to secure domestic industry and labor union’s economy welfare.
I believe there is good that comes from globalization but there are also some bad things that can come from it. Starting with the good, globalization has allowed for a shift in countries having independent or isolated economies and has created an integrated global economy. If there is a weakness in the economy of any one country, the effects will spill over into others and the economic hardships that the country of Greece recently had would be good proof of that. When there is more trading that takes place between countries, there is a greater exchange of wealth and that exchange in the end creates more wealth. Countries that have been considered poor and have struggled globally now have the opportunity to sell their low cost labor to the world market.
Cultural familiarity seems more important than cultural similarity in international trade. However, the cost associated with communication across linguistically dissimilar partners is very likely to impede the trade flows. Therefore, as long trade is economically beneficial, managers should not discourage trade with culturally dissimilar partners; however the need for