Introduction of Case Studies on International Trade (Note)

Introduction

Globalisation of the World Economic

* Many services used are increasingly provided by foreigners

* Even small companies that until a few decades ago face only local or regional competition now must compete with firms across the globe.

* Jobs have moved from advanced countries to emerging countries like India and China.

* Case Study 1-1: The Dell PCs, iPhones and iPads Sold in the US are Anything but American.

* Dell coordinates global production network in 34 countries in America.

* Most of the Dell products are final assembled in America because most high value and low value components are cheaper to produce in other parts of the world.

* Some midlevel components that are costly to ship by air to meet the volatility in demand are produced domestically.

* Globalisation brings a lot of benefit but also some side effects.

* Although labour migration maximise the efficient utilisation of labour, it also leads to job losses and lower wage for less skilled labours in advanced nation, harming the nations of emigration.

* Financial globalisation and unrestricted capital flows lead to more efficient use of capital throughout the world, bringing higher profit and risk in return but also seem to lead to periodic international financial crisis.

* Anti-globalisation movement blames globalisation for human and environment damage, sacrificing human and environment well being to the corporate profits of multinational.

* Globalisation also causes world poverty and child labour in less advanced country, job loss and low wage in advanced country, as well as environment pollution and climate change.

* Despite of all the disadvantages, globalisation is important as it increases efficiency in production.

International Trade and Nation’s Standard of Living

* A rough measure of the economic relationship among nations or their interdependence is given by the ratio of their import and export of goods and...