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PRINCIPLES OF MACROECONOMICS

 Factors Affecting Globalization:

 

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  1. Capital Flows
  2. Labor Flows
  3. Technology
  4. Transportation
  5. Communication
  6. Specialization
  7. Economic Growth
  8. Income Inequality
  9. Trade Agreement

Introduction: Of late, there has been a growing debate on globalization. Those advocating in favor, argue that globalization reduces cost of production that helps both developed and developing countries to be more competitive, and in turn, achieve higher economic growth and prosperity. This is done by minimizing inefficiencies in the production systems, liberalizing international trade, free flow of capital and labor as well as transfer of technology. On the other hand, those who stand against, argue that globalization has brought more destruction that construction. As for example, it has led to job losses particularly to national countries as more multinational companies relocate to regions and/or countries where they can benefit from lower labor wages. They go on to say that globalization has also killed local industries as they could not stand competition from multinational companies. For developing countries, globalization has also posed a threat to the agriculture sector as their markets often get flooded with products from developed countries. The above figure is accompanied by a number of factors affecting globalization.

Purpose: This assignment is designed to test your understanding of the definition of globalization, fundamental attributes of globalization and factors driving it. In addition, the assignment is aimed at assessing the degree to which ECON 2010 students can effectively communicate their arguments and influence decision-making.

Approach: Using the following questions below, write a 6-page essay.

  1. What does the term ‘globalization’ mean to you?
  2. Select any two factors affecting globalization and explain how they contribute to the process of globalization.
  3. How does globalization impact you in your everyday life?

Submission of the Assignment: Your essay must be well thought out using complete and clearly meaningful sentences. Use MLA Formatting Style Guide. The essay must have citations. Also include references at the end. On completion, please upload your single Word File document to the ECON 2010 Assignment Dropbox. Also send a copy to the instructor as email attachment.

 

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