Question

-Discuss the globalization of the US economy.

-Explain the role of price as a free market regulator.

-theoretically the market is an automatic, competitive, self regulating mechanism which provides for the maximum consumer welfare and which best regulates the use of the factors of production. Explain

-Enumerate the ways in which a nation can overcome an unfavorable balance of trade.

-Support or refute each of the various arguments commonly use in support of tariffs.

-Does widespread unemployment change the economic logic of protectionism?

-Review the economic effects of major trade imbalances such as those caused by petroleum imports.

- Discuss the main provisions of the omnibus Trade and competitiveness Act of 1988.

-The Tokyo Round of GATT emphasized the reduction of non tariff barriers. How does the Uruguay Round differ?

-Discuss the evolution of world trade that led to the formation of the WTO.

Answer 1

GLOBALIZATION OF U.S. ECONOMY

Globalization can be defined as the integrating the economies of all the nations for conducting commerce. The the development in technology and communication had positive impact in expanding globalization through out more efficiently and easily. Globalization has many positive impact on U.S. economy.

Globalization had increased the choices available to consumers on goods an services and also it decreases the price of goods and services when compared to past prices.

Because of this increase in choices and decline in price, the consumers of United States spend very less on goods and services compared to their spending earlier.

Due to the increase in advancement in technology, the long term labour productivity had increased positively.

The increase in the productivity of labour had lead to many advantages to different sectors of the U.S. economy. Transfer of capital is now efficient and easy through out the world after globalization.

Globalization enables economies of scale.

The foreign direct investment increased rapidly as a part of globalization which had lead to the growth of firms, transfer of technologies, restructuring of industries etc...

After globalization, United States had become the lead of innovations in health care globally. The ten biggest pharmaceutical firms are in United States. In the case of medical devices also, United States is having a top position now. In the global market share, almost 45 % is owned by United States in this sector.

In the technology sector also United States follows the same trend. The united states lead the globe in technology sector.