IBUS 20002 Business in the Global Economy Semester 2 2017 This document contains the following sections: Assignment Task Specifications Assignment 1 Marking guidelines at Appendix 1 ASSIGNMENT 1: HOW CAN GLOBALISATION BE MADE VIABLE? “We live increasingly in a world of haves and have-nots, of gated communities next to ghettos, of extreme poverty and unbelievable riches. Some enjoy rights that are completely denied to others. Relative inequalities are exploding, and the world's poorest, despite all the advances of globalisation, may even be getting poorer.” This quote from Noreena Hertz, an English academic, economist and best-selling author, sums up the hugely controversial stance on globalisation. Indeed, few concepts invoke such contrasting feelings as “globalisation”. As much as it has its detractors, the concept also has its ardent supporters who extol the global business and developmental opportunities it generates. Anne O. Krueger, First Deputy Managing Director (Sept 2001–Aug 2006), International Monetary Fund said, “…. growth and globalisation have gone hand-in-hand: Access to a buoyant international market has greatly facilitated faster growth. It has permitted a degree of reliance on comparative advantage and division of labor that was not possible in the nineteenth century.” Now, imagine you are a trade policy specialist engaged by the government of an imaginary closed economy that is looking to open its borders to global trade and investment. The government has asked you to objectively evaluate the positive and negative experiences of some open economies on a macro basis and to propose trade and investment policies aimed at mitigating the deleterious effects of globalisation.
To narrow the scope of this otherwise vast topic, your task as a trade policy specialist is three-fold , to: