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Global economy Midterm Review Questions - Assignment Example

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These were mainly applied in developing countries by the World Bank and IMF as a condition to get loans. In terms of globalization,…
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Global economy Midterm Review Questions
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Global economy Midterm Review Questions

Download file to see previous pages... phenomenon in which the business environment in a country is deregulated so as to attract investors, causing low wages, poor environmental protection and poor working conditions. Issues such as minimum wage, political autonomy and workers unions are foregone for the sake of creating a favorable working environment. This is considered to e a problem because countries with poor working conditions and low environmental protection standards are deemed best for investment. Causes of race to the bottom include the pollution problem, poor government policy influenced by MNCs and government instabilities.
First, other than free trade, Rivoli argues that there is need to develop strong political policies and reforms to address political barriers. For example, in her book, she argues that having a good political framework to protect the industries in America against the sweatshops that pay their workers 50 cents an hour is a better alternative than the free trade agreement. Secondly, she says that there is need to reform the famous trade agreements that limit or inhibit exports and import. In the US for instance, there are a number of such agreements that in fact limit the importation of t-shirts. If these factors are addressed, fairness in global competition will be introduced. Manufacturers will be able to work and export their products in a fair manner.
The apparel industry best captures the history of globalization by showing how a single commodity moves through various processes and markets, thereby highlighting the interconnections between markets. The industry highlights the basic concepts of globalization such as political and cultural process.
Arms trade globalization occurs both in the production and consumption. Most countries spend considerable amounts for procurement of arms. This is linked to lower spending by governments on the other areas. In the context of globalization, the arms industry is escalating conflicts and the proliferation of arms has ...Download file to see next pagesRead More
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