Globalization Case Study

Chapter 1

1. How can globalization and international economic integration be measured?

Measured by: trade flows, factor (labor and capital) movements, and similarity of prices. Also people flow is part of the four criteria 's economist measure.

2. In what ways is the U.S. economy more integrated with the world today than it was a century ago?

US trade (imports) more with foreigners than a century ago. US is also less integrated in labor by it being less mobile due to passport controls and work permits.

3. What does the trade-to-GDP ratio measure? Does a low value indicate that a country is closed to trade with the outside world?

Openness measures the importance of international trade in a nation 's economy. It is measured by the ratio of

In other words, international organizations can be integral in stemming the spread of national crises to an international level. The arguments against international organizations may include that they violate national sovereignty that they reflect developed countries interests, the cost of implementing their recommendations are often high or overlooked, and they often have a lack of transparency. Though the reasons for international organizations seem noble, I think that the arguments against them outweigh the positives.

3. Give the arguments for and against free trade agreements. How might the signing of a free trade agreement between the United States, Central America, and the Dominican Republic have harmed Bangladesh?

Arguments for free trade agreements include:

a. The domestic effects of a reduction of trade barriers are less intense since they cover smaller, regional areas.

b. A smaller number of countries can come to agreement on trade barriers easier than the whole of the WTO.

c. Agreements that would not be possible worldwide can be experimented with.

Arguments against free trade agreements