Question

1. When was the latest wave of globalization? What new advances in technology supported this?

1. How can international economic integration (globalization) be measured? Provide information on each method.

1. What does the trade -to-GDP ratio measure? Does a low value indicate that a country is closed to trade with the outside world?

1. What are some of the differences between capital flows today versus the 1900’s? Provide details on at least 2 of these differences.

Answer 1

When a new wave of globalization comes upon us again, it brings us to where we are today. In a world dominated by two global powers.,the US and China the new frontier of globalization is the cyber world. In the 3nd wave of globalization, is the digital economy is becoming a force to be reckoned with in its infancy, through e-commerce, digital services and 3D printing etc,. It has been further actived with artificial intelligence but threatens cross-border hacking and cyber attacks.

At the same time, negative globalization continues to develop through the global impact of climate change. Pollution in one part of the world leads to servere weather in another. Deforestation in the few green lungs abandoned by the world, such as the amazon rainforest affects not only the world's biodiversity but also it's ability to cop with dangerous greenhouse gas emissions.

Economic integration is an arrangement that includes the reduction or elimination of trade barriers or the coordination of monetary and fiscal policy. Economic integration aims to reduce costs for consumers and producers to increses trade between treaty countries.

The globalization index also mesures economic integration. It tracks the movements of goods and services by examining the changing role of international trade in each country's economy and measures the accessibility of national borders through a combination of domestic and international prices. The index also tracks the movement of money by listing domestic and external foreign investment portfolio capital inflows income payment and receipts.

The trade -to -GDP ratio is an indicator of the relative Importantance of international trade in country's economy. It is calculates the total value of imports and exports by dividing the GDP over the Same period. Although it is called a ratio. It is usually expressed as a percentage. It is used as a country's open measure of international trade, hence it is also called the trde openness ratio.

The trade -to -GDP ratio calculates imports and exports to GDP. Imports +exports GDP it measures the relative importance of a country's economy and shows how much a country depends on its trade. Low value does not means that the country is closed for trade.  

Capital flow to countries like India was very high in the 1990's. Capital flow at that time was mainly to industries. But today the capital flow is mostly to this area of e-commerce ,in addition capital inflows into the real estate sector are also high.