Unformatted text preview: growth. 4. What are the costs of globalization? Opponents of trade argue that trade will actually promote poverty pointing to Haiti as an example. The bulk of the evidence supports the claim that trade liberalization actually promotes more rapid growth. Free immigration may cause a loss of jobs in the domestic economy due to the increased competition for jobs. Free capital flows can have negative repercussion for some nations due to over investment, as what happened to Korea Thailand and Indonesia in the 1990s. 4. How is globalization related to political systems? More open economies do not necessarily mean increased democracy worldwide. There is a wide range of opinion about what the level of government involvement should be. However, most economists believe that the allocation of resources should be left to the market by and large....
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This note was uploaded on 09/14/2009 for the course ECON 304L taught by Professor Staff during the Fall '07 term at University of Texas.
- Fall '07