Difference between revisions of "World Cultures Comparison Project/Paper"

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World Cultures Paper - Pro: Economics by Plaz Template:World Cultures Comparison Project

Globalization, in the long run, has a positive impact on both richer and poorer (or developing) nations. Increasing trade between nations helps both parties advance; globalization does not represent a one way street. Both parties can prosper through growth, the act of expanding outputs, as well as the law of competitive advantage.

No one can do everything, and the same is true for nations as well. For starters, not every nation has enough of every natural resources. The United Stated does not have enough oil to survive efficiently. Sure, if necessary we could end our dependence on oil, but this would be at hugh cost to our current industries. Alternative fuels are just too expensive currently, or we would have adopted them already. But the same also holds true for manufacturing. America represents one of the most efficient producers of medicines. Other countries could also make medicines if they wished, but at higher cost then importing them from the United States. On the other hand, Asians are the cheapest manufactures of televisions in the world. We trade them our medicines for televisions. This represents the most efficient means of production.

The most efficient means of production usually comes out the cheapest. And the cheapest product usually gets purchased, regardless of origin. For example, Wal-Mart the world's largest retailer, and domestic private employer (via Wikipedia) use the economies of scale to achieve the lowest price possible through massive operations around the world. They are successful because of the principle of economies of scale. They are able to use technology to remove as much waste from their operation as possible. Consumers must like this because more then one-third of the United State's population visits a Wal-Mart every week (via Wikipedia). They come for the low prices. In fact this savings on purchasing basic household needs at lower prices gives them extra money to purchase other things. This has increased the standards of living in the Unites States by saving money from reducing inefficiencies to spend on luxury goods or vacations.

Trade Barriers

Trade barriers, like quotas and tariffs, hamper both consumers, foreign markets, and even domestic production. They artificially increase prices

In fact inefficent busiensses function like

trade barriers harms

Thus

Globalization increases competition, granting the most efficient operation the business. This trims the excess fat from supply chains, providing for lower prices.

Throughout history (give example) there has been consistent evidence that monopolies are detrimental to society as a whole. They allow a smaller subset of producers to artificially raise prices (Brue 85). Monopolies are not governed by market principles, and therefore are not run for the good of consumers or the economy as a whole. The blockage of trade between nation, therefore, shows tendencies and qualities of monopolies (Brue 85). explain it better

Monopolies also result in higher prices for consumers. Many countries depend on global trade, for both imports and exports, including the United States. Not only does the US import final consumer goods, but many goods made in the United States are assembled with foreign components (Brue 101). The US has and continues to benefit from exporting our goods (Brue 102). Many agricultural goods are sent out of the United States to nations which do not have as much fertile land as we have. We also sell automobiles, airplanes, and coal to nations around the world. In fact, 42% of our exports go to developing nations, helping to improve their lives through products bot essential and luxury (Brue 103).

Thus, the amount of tariffs, and other trade barriers, both internationally and in the United States has gone down in the last 100 years (Brue 115). In fact, many economists consider the Smoot-Hawley Tariff Act of 1930 to be a major cause of the Great Depression (Brue 114). The Smoot-Hawley act attempted to choke off import to help domestic producers. Instead, it raised prices for goods, leading to the recession. Thus artificial or protectionist trade barriers are harmful to a nation's aggregate economy, as well as the global climate.

Protectionism, the act of establishing trade barriers to shield domestic production from foreign competitors does more harm then good. Sure times are hard, if people are put out of work. ?why bad - ask reily ?move wal*mart here

Growth

Growth is the means which reduces the burden of scarcity (Brue; start of growth chapter). It allows more finished goods to be produced either by increasing imports or making production more efficient (Brue ?).

Growth is keystone of improvement in our lives, and technological advancements are what power it. Looking back a hundred years, standards of living were much lower (cite). There were no airplanes, requiring long voyages on ships or trains to reach destinations. In fact, the US was even more polluted (CITE!!!) then then it is today. Life expectancy and life quality have both risen. Technological advancement has been the largest source of growth in the United States making up 28% of the increase in productivity according to Edward Denison and projected to 1998 by McConnell and Brue (374). New farming techniques have risen farm output (give ###!!!). Less farmland, and less farmers support more people. Computers take the pain out of rewriting essays.

In the United States increases in the amount of people willing to work has amounted to a third of our growth (Brue 374). This has been in part because of our open arms towards immigrants. In the 50s, 60s, and 70s, growth was largely due to women joining the regular workforce (Brue 374). Prior to this, discrimination and domestic duties kept women in the house. New technologies permitted millions of women to spend less time cooking and more time producing goods and services. This goes to show what happens when discrimination gets removed.

Discrimination, whether against women, foreigners, or people of color hurts the economy by reducing the amount of labor available (Brue 749). This increases the cost of labor while decreasing productions; both propel the economy backwards. Ending or reducing global trade will only have the same effect.

?shria here?

more international perspectives

Sources

• Brue Textbook
• Wikipedia
• ?Riley interview
• The Choice

Further Reading

• The Choice