International Economics Assignment

Added on - 29 Apr 2020

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Running head: INTERNATIONAL ECONOMICSInternational EconomicsName of the StudentName of the UniversityAuthor note
1INTERNATIONAL ECONOMICSTable of ContentsAnswer 1..........................................................................................................................................2Answer 2..........................................................................................................................................3References........................................................................................................................................6
2INTERNATIONAL ECONOMICSAnswer 1Globalization is the process of increasing integration and environment of co-operationamong different economies. It results in inter-related and integrated world economies. Thebenefits of globalization is realized in forms of greater free trade, increased capital flows,increased movement of labor, integration of global trade cycle, growth of multinationalcompanies and improved means of transport and communication that removes barriers amongcountries. Free trade allows specialization to the countries. When countries specialize in goods,in which it has a comparative advantages then it enjoys several benefits (Baylis, Owens & Smith,2017). The consumers get goods at a lower price in the world market; trade enables a greaterchoice of goods and a wider market for exporters, increased competition in the world marketenhances efficiency in production and the countries enjoys economies of scale. The freemovement of labor comes with advantages for both the countries and workers. The increasingspecialization reduces average cost and makes good cheaper. Globalization comes along with thebenefit of increased investment. The flow of funds from developed to developing nationscontributes to economic growth of these nations.The anti-globalization arguments are related to effects of trade on labor standard, workersand environment. In contrast to the benefits of free trade arguments, there are two widely heldcontroversies against free trade. The supporters of government intervention states that there aresome industries remaining underfunded in the free market environment (Mander, 2014). Otherforms of imperfect competition dominate these markets. The globalization effect onenvironment, workers and sovereignty warrant the support from government. The free traderesulted from globalization harms developing countries. The developing countries face difficultyto compete with developed nation. The industries in developing nation often need protection to
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