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Unformatted text preview: Da rasy Than 1. During the post-World War I I era, the world's economies have become increasingly in terdependent in terms of the movement of goods and services, business enterprise, capital, and technology. 2. An open t rade system contend that international t rade results in higher levels of consumption and investment, lower prices of commodities, and a wider range of product choices for consumers. Arguments against open t rade system tend to be voiced during periods of excess production capacity and high unemployment. 3. The Uni ted States has seen growing interdependence with the rest of the world in i ts t rade sector, financial markets, ownership of production facilities, and labor force. 4. What factors influence the rate of growth in the volume of world t rade? 5. One fallacy is that t rade is a zero-sum activity: if one t rading party gains, the other must lose. Another fallacy is that imports reduce employment and act as a drag on the economy, while exports promote growth and employment. 6. In ternational competitiveness is productivity, or output per workers hour. In ternational competitiveness can be analyzed in terms of a fi rm, an industry, and a nation. 7. Researchers have shown that exposure to competition with the world leader in an industry improves a fi rm's performance in that industry. Global competitiveness is a bit like sports: you better by playing against folks who are better than you. 8. When in ternational t rade helps workers in export industries, but workers in import-competing industries feel the threat of foreign competition. They often see their jobs and wage levels undermined by cheap foreign labor. 9. The major challenges confronting the international t rading system are dealing with fair labor standards and concerns about the environment. 10. The problems that terrorism pose for globalization is that globalization could well become slower and more costly. ...
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- Spring '11