Reference no: EM133384712
Assignment:
Globalization, meaning the rapid exchange of information, goods, and services around the planet, started in the 1990s as innovative technology made worldwide communications possible. This process continued until 2020 as the pandemic and war caused supply disruptions. Answer the following questions (one paragraph for each) from information in the text, class discussions, and your own observations and research.
1. How did globalization affect your local economy? Did firms benefit by being able to export more? Or was local manufacturing and services negatively impacted?
2. Globalization increased the supply of inexpensive imported goods for US consumers. When globalization was halted, there were shortages of some goods. Overall, do you believe you benefitted or were harmed more from globalization as a consumer, given the lack of domestic production today?
3. China loosely linked its currency to the US dollar. How did this benefit China? Did it benefit the USA? What effect did it have on the balance of trade and payments?
4. Explain what happens to your ability to buy a foreign good when the US dollar gets stronger. What happens to US firms that export as the US dollar gets stronger?
5. A country may tax imports to protect its domestic producers. The result is higher prices for consumers. A benefit is a domestic base of production. Which do you think is better - lower prices on imported goods or higher prices on domestic goods? Why do you think this?
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