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Pros
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Cons
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Economic Integration. So companies, can trade and invest with less barriers and tariffs. |
Increase in illicit trade. There are major consequences such as; money laundering, corruption and government collapse. Governments are not powerful enough to stop it. |
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Reduce in poverty. (Countries such as; China, India, Uganda, Vietnam, etc…) |
Rich stay rich, poor stay poor. Inequalities in the current trading system, due to the weak institution, corrupt violence, etc… |
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Countries can share different ideas and culture. |
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Technology has improved the way the economy works, with more economic opportunities, easy transfers of assets and it is easier to come together with other countries. |
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Links used:
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:23272496~pagePK:51123644~piPK:329829~theSitePK:29708,00.html?argument=value
http://www.globalization101.org/what-is-globalization/
Very naize. About economic integration: I learned in econ class about comparative advantage. Comparative advantage basically promotes specialization to maximize the efficiency of resource production. Though it may be profitable, I think there may be disadvantages to specialization because an economy could potentially become too one-dimensional. The specializing countries get other goods and services from other countries, so what would happen if trade relations worsen for some reason? Uh-oh.
ReplyDeleteTOTALLY! I've thought about this in terms of some of the most advanced economies which focus primarily on services and finance. Take Luxembourg for example, they're a banking and financial center and other than some tourism, a bit of agriculture, and a little industry, they're pretty one dimensional. What happens to this kind of economy if the global markets all crap out?
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