How Should Small Open Economies Respond to the Challenge of Globalization

How Should Small Open Economies Respond to the Challenge of Globalization

Length: 3334 words (9.5 double-spaced pages)

Rating: Research Papers

Open Document

Essay Preview

Thesis statement
Determining whether a country is small is not easy. First, one needs to decide how it will be determined. The “definition of a small open economy is one that is a price taker on world markets” (Wynne) but how this definition should be applied is a harder thing to do than it first appears. Should we focus on imports or exports? In terms of imports, theoretically, all countries all price takers because a country does not specialize in the things that it buys, thus it has no pricing power. Looking in exports is problematic as a country may have significant influence over one product, but even a nation have has a huge share and influence in one market such as Brazil with coffee, the nation will still not have monopolistic power on a global scale.
Other popular measures are using population size, and per capita GDP. Even once a measure has been decided upon there is still the question of what the decision point will be and how that point will be decided on. In one study the decision point was a population of a million or less, this cause Singapore to be excluded, as well as several other notable small countries including a couple that this paper will look at in greater detail. This same study analyzed how countries had progressed and several of the countries included in the first round were no longer considered small based on the criteria. Some studies used per capita GPD as the decision criteria the problem with this is that if a country was successful, then their GDP per capita is naturally going to be higher and will possibly exclude themselves from consideration. The problem, those countries are of particular interest as those nation were able to work within their constraints to be successful. Looking at those s...

... middle of paper ...

... Research Institute on Innovation and Technology.
Jaakko Kiander, 2004. "The Evolution of the Finnish Model in the 1990s: from Depression to High-tech Boom,"Discussion Papers 344, Government Institute for Economic Research Finland (VATT).
Kirby, Peadar. "Globalization, The Celtic Tiger And Social Outcomes: Is Ireland A Model Or A Mirage?." Globalizations 1.2 (2004): 205-222. Academic Search Complete. Web. 5 Dec. 2013.
Ocampo, Jose Antonio. "Small Economies in the Face of Globalisation." Third William G Demas Memorial Lecture. Caribbean Development Bank, Cayman Islands. 14 May 2002. Print. Lecture transcript.
World Bank. GDP per Capita (current $US). 22 Mar. 2012. Web. 4 Dec. 2013.
Wynne, Mark A. "How Have Small Open Economies Responded to the Challenge of Globalization?" Bank of Iceland Conference. Reykjavik, Iceland. 31 May 2007. Print. Lecture transcript.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about The Phenomenon of Globalization

- I. INTRODUCTION The fast pace of globalization is creating serious issues and questions for many developing countries to deal with, such as should they join a free trade bloc or not. What will they gain by being a member and what will they lose. Since the creation of the European Union, first formed by 15 Western European countries and most recently expanded to 10 additional European nations, have influenced many countries around the world to follow the European example and worked together in order to expand their marketplace and increase economical and political power....   [tags: Globalization Technology Economics Essays]

Research Papers
4452 words (12.7 pages)

Globalization Has Undermined The Power Of The Nation State Essay

- In recent decades, globalization has become a trend though hundreds nations around the world. Generally, globalization refers to trend of countries joining together in alliances or unions to support each other in many aspects such as politics, economy, education, and even military (Burbules & Torres, n.d.). While globalization brings a huge package of advantages to many nations and states, it would be fair to recognize a long list of disadvantages from this trend. In my opinion, one of the most significant problem is globalization has undermined the power of the nation state....   [tags: Globalization, United Nations, Nation]

Research Papers
900 words (2.6 pages)

Globalization Is Not An Aspiration Essay

- “Today globalization is not an aspiration: it’s a reality. Only sixty years separate us from an attitude in academia that today feels risible in its narrow and parochial focus. We historians strive to constantly update and broaden our expertise to keep our focus on the vast varieties of human experience.” (Bacon 2013). Globalization has angles that argue that it is a good thing. To illustrate, job opportunities open up to individuals in developing countries, and private corporations, and open markets are providing enhanced goods and services....   [tags: Developing country, World Bank, Poverty]

Research Papers
779 words (2.2 pages)

Globalization is a Threat to the Environment Essay

- Global change has become a popular word in scientific debates on long-range structural change in the earth's ecology. Globalization has in the past played a major role in the controversial environmental debates. Many problems resulted in this area of discussion, in regard to the intricate linkages between globalization, government, trade and transport, and environmental decay. The current debate on the environmental effects of globalization is particularly concerned with the question whether a worldwide liberalization of trade may provoke environmental collapse....   [tags: Globalisation Essays]

Free Essays
1033 words (3 pages)

Globalization is Harms the Worlds Cultures Essay

- "Globalization, both as an ideology and process, has become the dominant political, economical and cultural force in the 21st century." Quote from "Globalism: The New Market Ideology" by Manfred D.Steger Globalization essentially is the growth of an industry to a world wide scale. Globalization is seen in several varying ways. Many tend to believe that expanding the political, economic, and cultural spectrums of the world will essentially lead the masses in to an enlightened future. However, there are many counter arguments that portray globalization as a greedy power hungry mechanism used to exploit poor and undeveloped countries....   [tags: Outsourcing, Offshoring, Free Trade]

Research Papers
1299 words (3.7 pages)

Essay about Globalization: An Ideology of Western Elitists?

- Globalization, both as an ideology and process, has become the dominant political, economical and cultural force in the 21st century (Steger, 2002, 6). As a social and economic concept, globalization has its roots in neoliberalism which advocates: the primacy of economic growth, free trade to stimulate growth, a free market, individual choice, reduction of government regulation, and global social development based on a western model (Steger, 2002, 9). Although globalization is not a new concept, technological advancements in the last few decades have, for the first time in human history, allowed for real global production, transport and communication....   [tags: Neoliberal Philosophy]

Research Papers
1230 words (3.5 pages)

Globalization And Localization Of The United States Essay

- Introduction During the first part of this class, we talked about globalization and Localization. The different forces of the two. One is more powerful than the other because of the forces. Companies should consider national differences in order to be successful in their business. However, during the second half of this class, we learned about different international business strategies, what foreign markets to enter, & different entry modes. Each of the entry modes have advantages and disadvantages....   [tags: Mobile phone, Laptop, Difference, Smartphone]

Research Papers
1565 words (4.5 pages)

My First Concern For Globalization Essays

- Fort Branch is a small town in Southern Indiana. In 2013, there were 2,799 people who resided in this rural community, and I suspect that this number has only increased slightly in the last three years. There are many corn fields and a lot of hard working citizens, especially farmers, who love their community. I am the assistant to the mayor, and I have an expertise in language, communications and technology, and the increase of Americanization in regards to globalization. The mayor has asked me to read Globalization- A Reader for Writers by Maria Jerskey, and I chose five articles to discuss....   [tags: United States, English language, Languages]

Research Papers
1012 words (2.9 pages)

A Superficial Core Essay

- “In the twenty-first century the connection between religious fundamentalism, nuclear nationalism, and pauperization of whole populations because of corporate globalization is becoming impossible to ignore.”- Arundhati Roy Thomas P.M. Barnett’s theory divides the world into two parts, the “Core” and the “Gap”. Whether a country finds itself into Core or Gap depends on how well it has integrated into the globalization. He advocates that the threat to United States security will come from the Gap and campaigns “shrinking the gap” by globalization and military means....   [tags: Globalization]

Research Papers
1208 words (3.5 pages)

Globalization and the International Monetary Community Essay

- Executive Summary Our world is steadily shrinking. Technology is building bridges over the barriers of distance, language, and culture. It’s a process called globalization, and it is changing the way we live. Financial institutions haven’t been immune to the effects of this change. In fact, the international nature of financial institutions makes them particularly vulnerable to change. This paper addresses three issues caused by the globalization of the international monetary community. First this paper examines the success of the Euro, and the implications for the formation of a global currency....   [tags: Economy Global Money Economics Essays]

Research Papers
4551 words (13 pages)