Economic Globalization Assignment 2022

   

Added on  2022-02-19

59 Pages2393 Words16 Views
MSc in International Management
«Global Scenarios: Module 2 (Macroeconomics)»
Lectures 10 & 11
Globalization
Economic Globalization Assignment 2022_1
Economic Globalization
• International exchange of:
– Goods
– Services
– Factors of production
• Capital (FDI)
• Labor (Migration)
Economic Globalization Assignment 2022_2
Agenda
• Trade in goods and services
– Main drivers
– Gains from trade
– Debate over globalization
– Trade policy: impact of import tariffs
• Trade liberalization
– WTO: main principles
• Offshoring and outsourcing
– Location
– Internalization
– The pandemic and GVCs
Economic Globalization Assignment 2022_3
TRADE IN GOODS AND SERVICES
Economic Globalization Assignment 2022_4
World trade over GDP
Source: World Bank
Economic Globalization Assignment 2022_5
Main drivers of economic globalization
• Decline in
transportation &
communication costs
• Decline in
tariffs/quotas & other
barriers to trade
– WTO
– Regional/Bilateral
trade agreements
(NAFTA, EU,
Mercosur, ASEAN, ...)
Economic Globalization Assignment 2022_6
Why do countries trade?
• Comparative advantage
– Trade among different countries (North – South trade)
• Economies of scale
– Trade among similar countries (North – North or South
– South trade)
Gains from trade
Economic Globalization Assignment 2022_7
Comparative advantage
2 key elements
8
Countries are
different
if resources are used to produce units of one good,
the same resources cannot be used to produce
another good...
Scarcity of
resources
Opportunity cost
Economic Globalization Assignment 2022_8

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Fundamentals of economics - assignment
|12
|2796
|25

Comparison of Factor Endowment Theory
|6
|1399
|448

Theory of comparative advantage and allocation of scarce resources
|11
|2741
|217

Interdependence and Gains from Trade
|4
|715
|54

Comparative Advantage and International Trade
|7
|1104
|57

Affirmative FTA with China Will Be Beneficial To Canada's National Welfare
|3
|625
|441