While referring to the “EYE on YOUR LIFE” section on page 467 of the textbook, consider the trade...

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While referring to the “EYE on YOUR LIFE” section on page 467 of the textbook, consider the trade policies that serve our self-interests and what best serves the global social interests. Base your answer on the economic concepts you have learned in this course.

For example, as U.S. consumers, we are the “winners” in globalization, which has brought iPods, Wii games, Nike shoes, and a wide range of other products to our shops at low prices. However, the big “losers” of globalization include the U.S. textile workers and furniture makers whose jobs disappeared overseas. Other “losers” include the African farmers whose crops were blocked by trade restrictions and subsidies in the United States and Europe.

What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.

Robert · Accepted Answer

Globalization refers to all those processes by which the peoples of the world are 
incorporated into a single world society, global society. Globalization has its both positive and 
negative effects. While some economic agents have benefitted from globalization, some are 
losers. Undoubtedly globalization is necessary for every nation. It increases social welfare by 
increasing the number of varieties available to a consumer. Moreover globalization brings the 
price of a commodity down to the minimum level. Thus, increase competition due to 
globalization increases the social welfare. 
Now, if we observe the effect of globalization on producers, we can see that in most of 
the cases, the producers of the developed nations are benefitted.

While referring to the “EYE on YOUR LIFE” section on page 467 of the textbook, consider the trade policies that serve our self-interests and what best serves the global social interests. Base your...

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