Following questions will be answered:
Analyse the merits of globalisation in terms of their benefits to countries?
It is said that ‘Trade Liberalisation is generally supported by governments’, but many barriers still exist. Discuss why this is the case?
In context of emerging economies (i.e. China) or transition economies (i.e. Eastern Europe), explain how they can benefit from foreign direct investment (FDI)?
Critically evaluate the role of the WTO within world trade and international competition?
Table of Contents
- Question 1: Analyse the merits of globalisation in terms of their benefits to countries?
- Question 2: It is said that 'Trade Liberalisation is generally supported by governments', but many barriers still exist. Discuss why this is the case?
Objectives and Key Themes
This assignment analyzes the merits of globalization and the reasons behind continued protectionism despite general governmental support for trade liberalization. It examines the effects of globalization on different countries, considering both positive and negative impacts, and explores the rationale behind various trade barriers.
- The benefits and drawbacks of globalization for both developed and developing countries.
- The role of international organizations (IMF, World Bank, WTO) in shaping globalization.
- The impact of globalization on poverty, employment, and economic growth.
- The reasons for government intervention in trade, despite the theoretical advantages of free trade.
- Examples of trade barriers such as tariffs, quotas, and subsidies.
Chapter Summaries
Question 1: Analyse the merits of globalisation in terms of their benefits to countries?: This chapter explores the multifaceted nature of globalization, defining it as a process leading to deeper integration between countries. It analyzes the advantages of globalization, such as economic growth in developing countries (exemplified by China and India), increased productivity through technology transfer and specialization, and protection against inflation in developed countries due to cheap imports. However, the chapter also acknowledges the negative aspects, including job losses in developed nations due to outsourcing and potential economic slowdown in low-income countries. The discussion highlights the complex interplay of benefits and drawbacks, emphasizing that the effects of globalization are not uniformly positive across all nations.
Question 2: It is said that 'Trade Liberalisation is generally supported by governments', but many barriers still exist. Discuss why this is the case?: This chapter examines the paradox of widespread governmental support for trade liberalization alongside the persistence of numerous trade barriers. It begins by defining free trade and referencing the theories of Adam Smith and David Ricardo. While the World Bank promotes trade liberalization as a poverty-reduction tool, and economists like Krugman and Obstfeld highlight the benefits of worldwide competition and innovation, the chapter delves into the reasons why governments maintain protectionist measures. The use of tariffs for government revenue and protection of domestic industries is discussed, along with non-tariff barriers like quotas and subsidies. The European Common Agricultural Policy serves as a prominent example of how governments actively support domestic sectors through subsidies and tariffs, even if it means deviating from free trade principles.
Keywords
Globalization, trade liberalization, protectionism, economic growth, poverty, employment, foreign direct investment (FDI), tariffs, quotas, subsidies, comparative advantage, international organizations (IMF, World Bank, WTO), outsourcing.
Globalization and Trade Liberalization: FAQ
What is the purpose of this document?
This document provides a comprehensive preview of an assignment analyzing the merits of globalization and the reasons for continued protectionism despite general governmental support for trade liberalization. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main topics covered in this assignment?
The assignment examines the benefits and drawbacks of globalization for both developed and developing countries, the role of international organizations (IMF, World Bank, WTO), the impact of globalization on poverty, employment, and economic growth, and the reasons for government intervention in trade despite the theoretical advantages of free trade. It also explores examples of trade barriers such as tariffs, quotas, and subsidies.
What are the key arguments regarding the merits of globalization?
The document argues that globalization offers benefits such as economic growth in developing countries (illustrated by China and India), increased productivity through technology transfer and specialization, and protection against inflation in developed countries due to cheap imports. However, it also acknowledges negative aspects like job losses in developed nations due to outsourcing and potential economic slowdown in low-income countries.
Why do governments maintain trade barriers despite supporting trade liberalization?
The document explores the paradox of governmental support for trade liberalization alongside persistent trade barriers. It discusses the use of tariffs for government revenue and the protection of domestic industries, along with non-tariff barriers like quotas and subsidies. The European Common Agricultural Policy is cited as an example of government support for domestic sectors, even if it deviates from free trade principles.
What are some examples of trade barriers discussed?
The document mentions tariffs, quotas, and subsidies as examples of trade barriers. It explains how these mechanisms are used by governments to protect domestic industries and generate revenue.
What role do international organizations play in globalization?
The document highlights the role of international organizations like the IMF, World Bank, and WTO in shaping globalization. It implies that these organizations have a significant influence on global trade policies and practices.
What are the key terms associated with this topic?
Key terms include globalization, trade liberalization, protectionism, economic growth, poverty, employment, foreign direct investment (FDI), tariffs, quotas, subsidies, comparative advantage, and international organizations (IMF, World Bank, WTO), outsourcing.
What are the chapter summaries included in this preview?
The preview includes summaries for two chapters. The first analyzes the merits of globalization, weighing its benefits and drawbacks. The second examines the reasons for continued protectionism despite governmental support for trade liberalization, discussing the paradox of theory versus practice in free trade.
- Citation du texte
- Miriam Mennen (Auteur), 2006, International Business Environment: About the merits of globalisation, the role of WTO in world trade, emerging and transition economies (China and Eastern Europe) and trade liberalisation, Munich, GRIN Verlag, https://www.grin.com/document/145498
