Drivers of globalization - techonological impact
Technological change particularly the dramatic developments in recent years in communication, information processing and transportation technologies. The lowering of trade barriers made globalisation of markets and production a theoretical possibility; technological change made it a tangible reality.
Major Technological Advancements
Microprocessors and telecommunications
The Internet and the World Wide Web
Implications of Globalisation for Production
Improvements in transportation technology have enabled firms to better respond to international customer demands
Political and economic reasons for government interventions in international trade
There are two types of arguments for government intervention: political & economic
* Political arguments are concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers). Political arguments for interventions are includes, Protecting jobs and industries, National security, Retaliation, Protecting consumer, and Furthering foreign policy objectives
* Economic arguments are typically concerned with boosting the overall wealth of a nation (to the benefit of all, both producers and consumers). Economic argument for interventions are includes The infant industry argument and Strategic trade policy
Trade theories - compare and contrast different trade theories
Free trade Refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.
Objectives of Theories of international trade
To explain the observed patterns of international trade
To determine the impact of trade on economic growth
To determine the impact of trade on the rest of the economy... [continues]
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