Globalization: Major Impediments To The Growth Of International Trade

1. Differences in Political Economy, Ethics, and Culture have often been major impediments to the growth of international trade among nations. Which of the three do you think had been the most important in the past, and which will be the most important in the future to the growth of international trade? Why? Be complete. The difference in the political economy has often been a major impediment to the growth of international trade among nations. Inflation rates, consumer spending, wars, tariffs all affect international trade. “Trade also brings dislocation to those firms and industries that cannot cut it. Firms that face difficult adjustment because of more efficient foreign producers often lobby against trade. So do their workers. They often…show more content…
There are many arguments both for and against globalization. Which do you think are the most important arguments both for and against globalization? Do you think overall that globalization has had and will continue to have positive effects on the growth of international trade and finance or do you think there are and will continue to be more negative effects?

A. There are many arguments for and against globalization, some pros and cons include:
• Pros of globalization: o Free trade reduces barriers o Promotes global economic growth: creates jobs, and the market becomes more competitive for companies, which lowers prices for consumers. o Information is being shared: technology and becoming culturally aware, companies outsource to each other.
• Cons of globalization: o Makes the rich richer and the poor poorer o Large companies can exploit tax havens in other countries o Outsourcing of jobs/exploitation of labor: A major problem for developed countries is that jobs are being lost to lower cost countries. Companies outsource to other countries because it’s cheaper, but they usually ignore safety standards to produce
…show more content…
How will these changes affect the major players in the globalization process embedded in your country’s future? Changes in inflation, gross domestic product, and the labor market are all major players in the globalization process embedded in the future United States. If inflation increases the cost of goods in the United States will increase, interest rates will increase in order to maintain a profit margin. A decline in a nation GDP indicates a recession, which in turn leads to unemployment, which affects the labor market.
B. Based on your discussion above, what do you expect your country’s economic position to be in the future relative to the past decade? Be certain to detail your rationale. I expect the United States to be a good economic position in the future relative to the past decade. The United States went through the Great Rescission of 2010 and the economy is now thriving, the stock market is up, the unemployment rate is down, and it has one of the highest GDPs in the world. “Its low rate of exports, its increasing energy self-reliance and its experiences over the last decade will cause it to be increasingly cautious about economic and military involvement in the world. It has learned what happens to heavy exporters when customers cannot or will not buy their products” (The Stratfor,
Get Access