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Globalization: Essay questions

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1. What is globalisation and how does it affect domestic businesses? In your discussion, include both positive and negative impacts of globalisation. 2. When you compare Absolute Advantage Theory and Comparative Advantage Theory, which one appears to be more practical, and why? Also, explain how benefit from trade arises based on this theory using a numerical example of 2 countries producing 2 products. 3. Donald Trump, president of United States of America, announced imposition of tariff on Chinese imports in the recent past. Based on your understanding of the first 3 topics of this uni...

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Question Preview:

1. What is globalisation and how does it affect domestic businesses? In your discussion, include both positive and negative impacts of globalisation. 2. When you compare Absolute Advantage Theory and Comparative Advantage Theory, which one appears to be more practical, and why? Also, explain how benefit from trade arises based on this theory using a numerical example of 2 countries producing 2 products. 3. Donald Trump, president of United States of America, announced imposition of tariff on Chinese imports in the recent past. Based on your understanding of the first 3 topics of this unit, (i) what could have been the reason/logic behind such a comment/decision, and (ii)what are the implications of such an intervention on domestic consumers?

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Globalization over time has become a significant and wide topic of discussion. In short globalization points the effort towards making the entire world a global community. The products and goods that were only found in western nations are now available all around the globe. Thus, many nations can enjoy distinctive advantages of the industrial progress and scientific advances that are available in developed nations for the growth as well as improvisation of their areas. Precisely, globalization can be referred as to a continuing procedure by which all regional cultures, economies, and societies have become incorporated via a world-spanning communication network and trade (Lundvall et al. 2011).

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