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Please, give specific answers with good examples.

2007-01-18 22:32:39 · 2 answers · asked by enam 1 in Social Science Economics

2 answers

I agree with the first answerer in that globalization is a choice. Look at the economies that managed to remain closed for many years, such as China and Japan. Choosing not to trade is a viable option.
However, I do not necessarily feel that it is a poor choice. Like the first answerer said, globalization allows individual countries to take advantage of areas in which they are better suited. This is the principle of comparative advantage in action. If Japan can make cars more efficiently than the United States, then trading something we produce better, such as wheat and corn, makes sense. Both countries are better off and have more than if they had tried to produce everything on their own.
In addition, when countries are trading with each other, there is generally more peaceful relations, as countries tend not to go to war with countries that they trade with. This is part of the reason that the UN never seems to support different wars, because some country probably trades with the country that will come under attack, and it would hurt their interest to have a war going on there. This isn't to say wars don't occur, since they obviously do. But generally it's not between trading partners.

So, bottom line, globalization is a choice, but one that makes an economy stronger because it not only gives a bigger market for products that a country produces, but also because it gives a chance to purchase goods that may not otherwise be able to be produced.

2007-01-19 01:53:30 · answer #1 · answered by theeconomicsguy 5 · 0 0

Actually, it -is- a choice, just a poor one. Specialization allows a country (or community) to produce a product or a limited group of goods at a much higher productivity rate than if each country (or community) were to try to produce all of its goods.
That's why we have trade. Mexico produces oranges much better than Alaska, Alaska produces polar bear fur much better than Mexico. So they specialize in those two objects and trade. It would be very difficult for Alaska -and- Mexico to produce -both- oranges -and- polar bear fur.

2007-01-19 06:49:28 · answer #2 · answered by Kilroy 4 · 0 0

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