Submitted by: Submitted by bellcyz
Views: 167
Words: 789
Pages: 4
Category: Business and Industry
Date Submitted: 08/27/2013 09:12 PM
Global Studies 10 – Extra Reading 1
- Basic principles that bring prosperity:
1) Investment (foreign)
2) Spread of technology
3) Strong institutions
4) Sound macroeconomic policies
5) Educated workforce
6) Existence of a market economy
7) Participation and integration in the global economy
- And the biggest threat to continuing to raise living standards throughout the world is not that globalization will succeed but that it will fail.
- People of developing countries have the biggest need for globalization because it provides them opportunity to take part in the global economy.
- These opportunities come with risks, such as volatile capital movement so IMF help economies reduce and manage these risks.
WHAT IS GLOBALIZATION?
* Increasing integration of economies around the world, particularly through the movements of goods, services and capital across borders.
* Movement of knowledge (technology) or people (labor) across international borders.
* Technological advances that made it easier and quicker to complete international transactions.
Growth in global economy promote efficiency through competition and division of labor – in specialization
Globalization extends greater access to modern technologies in health care, facilitate commerce and education, and create a framework for corporation among nations.
Globalization implies that information and knowledge get dispersed and shared – avoid ideas that have a track record of failure.
INTERNATIONAL TRADE
Core element of globalization is the expansion of world trade through the elimination or reduction of trade barriers, such as import tariffs.
Imports – wider variety of goods at lower prices, provide strong incentives for domestic industries to remain competitive.
Exports – source of economic growth, stimulate job creation as industries sell beyond their borders.
Trade promotes economic resilience and flexibility, as higher imports help offset...