...INTERNATIONAL ECONOMY Globalisation, World trade, Multinational, Exports and imports. Advances in transportation and communication has made the exchange of information and goods and services much more efficient between people and countries, thus making the world seem like a small place. This is referred to as globalisation. The world has become connected in many different ways such as in a cultural, religious, and economical way. Two centuries ago countries only traded within their boarders and the only thing closest to international trade was when explorers such as Vasco Da Gama and Christopher Columbus sailed to undiscovered lands and traded goods such as copper, diamonds, gold and spices. In later years international trade within Europe started to grow, for example neighbouring countries such as France and the U.K traded consumer, capital and military goods with each other. International trade today is enormous, in 2010 global exports and imports were $37 trillion, which is 58 percent of the value of global production. The United States is the largest global trader as it accounts for 10 percent of world exports and 13 percent of world imports, China comes second then Germany third. World trade has made all individual national economies heavily dependent on each other, for example the fall of the United States economy or the appreciation and the depreciation of the United States dollar affects all other economies. A good example of international financial...
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...CHAPTER 4: TARRIFS CHAPTER OVERVIEW This chapter discusses the operation and effects of tariffs. The chapter first defines import tariff, export tariff, specific tariff, ad valorem tariff, and compound tariff. Next discussed is the effective rate of tariff protection and the process of tariff escalation. Attention then turns to postponing import duties via bonded warehouses and foreign trade zones. The chapter examines the welfare effects of an import tariff for a small importing country and a large importing county. It is noted that if a nation is small compared to the world its overall welfare necessarily falls if it levies a tariff on imports. If the importing nation is large relative to the world, the imposition of an import tariff may improve its welfare. The chapter then examines the merits of trade restrictions. Among the arguments for trade barriers are 1. Job creation, 2. Protection against cheap foreign labor, 3. Fairness in trade, 4. Maintenance of the domestic standard of living, 5. Equalization of production costs, 6. Infant-industry argument. Types of Tariffs Tariffs can be specific, ad valorem, or compound. 1.A specific tariff is expressed in terms of a fixed amount of money per physical unit of the imported product. For example, a U. S. importer of a German computer may be required to pay a duty to the U. S. government of $ 100 per computer, regardless of the computer’s price. Therefore, if 100 computers are imported...
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...BUSINESS IN THE INTERNATIONAL ECONOMY ASSIGNMENT – 1 PART – A 1. If demand price elasticity measures 5,this implies that consumers would: Ans: 2. Economic profit is: Ans: 3. In the long run, a monopolistic competitive firm will operate at a price that: Ans: 4. Which of the following would NOT be considered an example of foreign direct investment (FDI)? Ans: 5. In terms of international business, market globalization can be viewed as a ------------. Ans: 6. Which of the following statements is true about the firm-level consequence of market globalization? Ans: 7. Peter, a graduate student from Michigan, ordered a notebook from Opus Inc., an American MNC manufacturing and selling computers and related products. The notebook that Peter ordered from Michigan was assembled in Opus ‘factory in Taipei. This exemplifies the ----------- stage in the international value chain. Ans: 8. A born global firm is defined as -------------. Ans: 9. Which of the following is characteristic of collectivist societies? Ans: 10. Titania is a country characterized by a high-context culture. This implies that ---------. Ans: PART – B a. Discuss the impact of market globalization on consumer lifestyles and preferences around the world. Provide examples to illustrate your answer? Globalization/Internationalization of businesses has had an extreme and largely...
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...Syllabus INTA 3301: International Political Economy Spring 2013 Class meets MWF 1:05-1:55, Instructional Center 109 Instructor: Michael Murphree Sam Nunn School of International Affairs 137 Habersham Building Email: michael.murphree@gatech.edu Office Hours: Monday 2:00-3:00, 137 Habersham, or by appointment TA: Kathleen Thompson Email: kthompson136@gatech.edu Political economy is the study of the role of government, politics and collective human behavior in shaping economic outcomes. This exciting field is both old and new. Political economy predates both political science and economics but only reemerged as a distinct field in the 1960s and 70s. It is concerned with understanding how political forces (broadly defined) shape and are shaped by economic ones (broadly defined). There are many research and policy-relevant questions addressed in this field: 1. What is globalization and is it really good for everyone? 2. Is free trade really the only “appropriate” means for international exchange? 3. Why are some countries or regions rich while others struggle? 4. How did the global casino of high finance emerge and what is its purpose? 5. Is economic performance the root of power or power the root of economic performance? 6. What should be the role of government in the economy? 7. Is there a best practice for government economic policy or are there many workable practices? 8. Why has Asia seemed to perform so well over the last...
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...Managing in International Economies Individual assignment Submitted by Student Name: SHI YONGQIANG Annotated Bibliographies 1. Christina Öberg , (2014),"Customer relationship challenges following international acquisitions", International Marketing Review, Vol. 31 Iss 3 pp. 259 - 282 2. Rajah Rasiah Peter Gammeltoft Yang Jiang, (2010),"Home government policies for outward FDI from emerging economies: lessons from Asia", International Journal of Emerging Markets, Vol. 5 Iss 3/4 pp. 333- 357 3. Hamid Yeganeh, (2011),"Culture and international trade: evidence from Canada", International Journal of Commerce and Management, Vol. 21 Iss 4 pp. 381 – 393 Table of Content Annotated Bibliographies 2 1.0 Customer relationship challenges following international acquisitions 5 1.1Citation 5 1.2 Introduction 5 1.3Aims and Research methodology 5 1.4 Scope – Analysis, Findings and Results 6 1.5 Usefulness 6 1.6 Limitation 7 1.7 Challenges and Critiques 7 1.8 Conclusion 8 1.9 Reflection 8 2.0 Home government policies for outward FDI from emerging economies: lessons from Asia 9 2.1 Citation 9 2.2 Introduction 9 2.3 Aims and Research Methods 9 2.4 Scope – Analysis, Findings and Results 10 2.5 Usefulness 10 2.6 Limitation 11 2.7 Critiques and Challenges 11 2.8 Conclusion 11 2.9 Reflection 12 3.0 Culture and international trade: evidence from Canada 13 3.1 Citation 13 3.2 Introduction 13 3.3 Aims and Research Methods 13 3.4...
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...Caspe, Lilac Certeza, Jason Diestro, Laurence Tugade, Ruby Rosselle PoS131: International Political Economy TITLE One cannot speak of International Political Economy without at least wading through the fundamental debate between the degree of importance of political structures and market forces in economic development. This dynamic serves as one of the basic foundations of the discipline itself as well as subsequent major schools of thought. Theories in International Economy have been founded on empirical observations on the economic conditions of a set of cases and are, as Robert Cox posits, critical of the circumstances from which certain politico-economic configurations emerge[1]. A contemporary theory that has surfaced in the last few decades is the developmental state theory which sought to explain the precipitous economic progress of East Asian states after the Second World War. Although the initial outcome of adopting developmental strategies among East Asian states have shown the theory’s potency as a basis for economic development policies, subsequent events especially the results of Southeast Asian attempts to pattern itself after developmental strategies have put into question the developmental state’s efficacy as a long-term arrangement. Specifically, the Philippines’ status as an “anti-developmental” state[2] serves as a channel for criticism of the developmental state theory through other IPE theories not only in terms of strategies and...
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...nternational political economy (IPE), also known as global political economy, is an academic discipline within the social sciences that analyzes international relations in combination with political economy. As an interdisciplinary field it draws on many distinct academic schools, most notably political science and economics, but also sociology, history, and cultural studies. The academic boundaries of IPE are flexible, and along with acceptable epistemologies are the subject of robust debate. This debate is essentially framed by the discipline's status as a new and interdisciplinary field of study. Despite such disagreements, most scholars can concur that IPE ultimately is concerned with the ways in which political forces (states, institutions, individual actors, etc.) shape the systems through which economic interactions are expressed, and conversely the effect that economic interactions (including the power of collective markets and individuals acting both within and outside them) have upon political structures and outcomes. IPE scholars are at the center of the debate and research surrounding globalization, both in the popular and academic spheres. Other topics that command substantial attention among IPE scholars are international trade (with particular attention to the politics surrounding trade deals, but also significant work examining the results of trade deals), development, the relationship between democracy and markets, international finance, global markets, multi-state...
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...Hans-Hermann Hoppe. p. cm. Includes index. © 2010 by the Ludwig von Mises Institute and published under the Creative Commons Attribution License 3.0. http://creativecommons.org/licenses/by/3.0/ Ludwig von Mises Institute 518 West Magnolia Avenue Auburn, Alabama 36832 mises.org ISBN: 978-1-933550-73-2 Socialism and Capitalism Hans-Hermann Hoppe A Theory of Acknowledgements Three institutions assisted me while I wrote this treatise. As a Heisenberg Scholar I enjoyed the most generous financial support from the German Science Foundation (DFG) from 1982 through 1986. The present study is the most recent work I completed during this period. Additional support came from the Johns Hopkins University Bologna Center for Advanced International Studies, where I spent the academic year 1984-1985 as a Visiting Professor. The lectures delivered there provided the core of what is presented here. Finally, during the academic year 1985/86, when my research took on its present form and which I spent in New York City, I received the most unbureaucratic and cordial help from...
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...Adi Sayoga / 1021105018 Ekonomi Internasional Sebuah tinjauan kritis atas bab dalam buku China’s Trade Pattern yang ditulis oleh Xiao-guang Zhang, 2000, dengan judul “Measuring Comparative Advantage”, Macmillan Press Ltd, hal. 75-89. Lahirnya pandangan bahwa setiap negara akan memperoleh keuntungan dengan melakukan perdagangan bebas dan spesialisasi terhadap produk unggulan menjadi dasar dari pemikiran keuntungan absolut yang dipopulerkan oleh Adam Smith pada abad ke-18, sebagai anti-tesis dari pandangan kaum merkantilis yang menganggap bahwa perdagangan antar negara hanya didorong oleh transaksi ekspor semata dan impor produk harus dibatasi. Pembagian kerja dan spesialisasi menjadi garis besar dari pandangan keuntungan absolut dari Smith dan selama beberapa dekade pemikiran Smith menjadi kunci utama dalam perdagangan internasional. Akan tetapi keuntungan absolut hanya ditentukan oleh perbandingan sederhana dari produktifitas buruh sehingga sangat mungkin sebuah negara tidak memiliki keuntungan absolut sama sekali. Hal inilah yang mendasari David Ricardo, seorang ekonom asal Inggris, untuk memodifikasi pemikiran Smith dengan suatu teori baru yang disebut keuntungan komparatif. Prinsip keuntungan komparatif telah memberi kontribusi yang signifikan terhadap efisiensi sumber daya dan pertumbuhan ekonomi dunia. Fenomena keuntungan absolut inilah yang ingin disajikan oleh Zhang dalam bab ini terutama bagaimana keuntungan komparatif ditentukan oleh perbandingan antara domestic shadow...
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...Critical Book Review: States and Markets Susan Strange 1993 Susan Strange wrote States and Markets in 1994 and it was amazingly predictive of the future of the Internal Political Economy or Global Political Economy (IPE or GPE). Although there are some blind spots in her theory and mode, and she was not able to predict many things. She was still able to accurately describe the four main structures, which affect structural and relational power structures thereby directly affecting IPE. * The model she proposes in this book is not based on rigid theories of international relations that give no room for debate, which are erroneously based on some preconceived assumptions. First, one must understand how the author defines certain ideas and concepts differently. According to Strange “ Firstly a great deal of social theory is no more then description” (Strange, 10, 1994). She expands with the facts are well known but are arranged in a different order or category (Strange, 10, 1994). Susan Strange’s security structure is not rigid, like most other security models and it does not dictate a set of conditions nor does it bias itself to one nation. It is not a uniquely American perspective that assumes military dominance nor is it a British Empire that demands subjugation. It is more easily applied to developing nations that lack the military might of a super power due to its assumption of conventional forces only and lack of military. She theorizes that without protection...
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...Paul Woods PSC 485 Dr. Edward Kwon 4-14-11 How the U.S Economy affects International Countries The United States of America has the most expansive economic system that out rivals any other country when compared to the U.S. The thought that if the United State’s financial system were to crumble would have a devastating effect for not only the United States but that of every other country in the northern as well as the southern hemisphere. It’s no surprise that the United States is one of the biggest exporter/importers in the world, but when the biggest country suffers economic turmoil, how does it affect the entire international community? The first question that I want to bring to the surface is what kind of impact does the Federal Reserve Bank have upon the United States economy and what exactly do their powers entail? In order to find out why our economy is in the shape it’s in, we must go straight to the source and find out what they are able to do as well as what must be done to keep our economy afloat. The second research question that I want to address covers the economic crisis that occurred in 2008-09, when Wall Street crashed, making it the second worst financial crisis since the Great Depression in 1929. We will deeper and examine the government bailouts and how it affected the GDP of domestic industry and on the international scale. Finally, our third question will be how we can focus our attempts to avoid instances like this in the future. We will look...
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...The Travels of a T-Shirt in the Global Economy The opening of this story begins with an organized student protest at Georgetown University, where author Pietra Rivoli, who is a professor of finance and international business, is watching the students arguing statements. This immediately captures my attention as it begins to describe a common characteristic of a major University that I live near and attend many events at. The University’s organized peaceful protest allowed the public speaking through protesting on the topic of the evils of big corporations and the explanation of how these big corporations, Globalization, The World Trade Organization (WTO) and the international Monetary Fund (IMF) are exploiting workers all around the world. One speaker alluding to “sweat shops” particularly caught the attention of the author by exclaiming, “Who made your T-Shirt”? This statement sparked Rivoli’s intrigue that is a great use of foreshadowing for what the story will lead to. The traveling of thousands of miles and across multiple continents to find out “who” really did make these shirts. We all wear our everyday cotton “tee’s” without giving a second thought about the journey each T-Shirt had to go through in order to make it here to the United States. This sets the foundation for the rest of the book and explains its purpose. The first stop in this journey isn’t on foreign soil where I expected the book to lead off, but rather here in the Continental United States at the Reinsch...
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...A B S T R A C T "The Belt and Road" strategic initiative put forward by China, has a significant influence on the development of international society. At the same time, as a grand strategic initiative, the construction of "The Belt and Road" will also promote the economic development of countries which will participate in the project. The initiative involves so many countries and such a large population, which is unprecedented in the history of China's diplomacy. What’s more, the domestic environment in these nations is complex and pluralistic, which undoubtedly plays an important role in "The Belt and Road". I will explore what opportunities and challenges this initiative will bring to regional and international economic development In this paper, by analyzing the implementation process of the initiative, different attitudes of involved countries and several meaningful accomplishments of the project. Keywords: The Belt and Road Influence Opportunities Challenges 1. Introduction The "Silk Road" in history is the main trade route connecting China and outside world and the core bond between China and outside, through which they can make economic, political and cultural exchanges a lot. To speed up the construction of Chinese new open economy system, China put forward a strategic planning about "Pushing the construction of Silk Road Economic Zone and Maritime Silk Road, and forming a new opening all-round pattern” on the third plenary session of the eighteenth...
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...Contrast liberal and mercantilist theories of international political economy and consider which approach is most apparent in the contemporary world. The following seeks to contrast liberal and mercantilist theories that have developed to describe and analyze the international political economy. Once the contrasts have been made conclusions as to which theory is the most apt or apparent in the contemporary world will be drawn. Both liberal and mercantilist theories have advantages and disadvantages when used to understand the international political economy in the present global system. Perhaps it would be more apt to describe the liberal theory as being neo-liberal as it has undergone a recent revival in popularity. It must be remembered that whether a state is most influenced by liberal or mercantilists theories that trade will never be completely free of duty and tariffs, as they are useful sources of revenue for governments. Governments also have to have relationships with other governments and non-state actors that may or may not share their worldview. Liberalism itself can be dated back to the English, American and French revolutions of the seventeenth and eighteenth centuries, when the mercantilist economic system evolved into capitalism. Liberals were originally regarded as being politically centrist or left wing in outlook but favoring little or no state intervention in the economy. In its original form liberal economic theory strongly advocated a free market...
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...Globalization What is globalization, and what are some of the traditional international trade theories that support the concept of globalization? Globalization is defined as a shift towards an integrated world economy (Hill, 2009). Globalization can be explained in many ways, one is the globalization of production. For example, computer hardware or software, cell phones, food, and music are all products that are distributed globally. Globalization is the process in which economies of countries all over the globe become integrated over time leading to organizations having access to a larger market base and customers having access to a greater variety of goods and services. Globalization is also a method of communication and integration among the consumers, organizations, and governments of different nations, which is driven by international trade and investment and assisted by information technology. This process has effects on the environment, culture, political systems, economic development, and on human nature in societies around the world. Supporting the concept of globalization are several traditional international trade theories, including Free Trade, New Trade, and Mercantilism. List the major drivers of globalization and give three examples of each. Several drivers underline the continued trend of globalization in today’s popular culture. The first is the decline in barriers to the free flow of goods, services, and capital (Hill, 2009). Companies...
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