Question

In the past, national governments influenced the pace

of globalization through agreements to lower barriers

to international trade and investment. Is rapid change

now outpacing the capability of governments to

manage the global economy? Consider recent global

events (from the past 3 months) to help support your

arguments.

Answer 1

Globalization is the process of expanding operations of business in foreign countries.Countries tend to develop economically by extending their business internationally.Government of various countries reduced barriers and restrictions on trade.The economic gains from expanding international trade are measured in hundereds of billions of dollars,and the gains from international trade as a whole probably reach well into the trillions of dollars.

The potential for gains from trade may be especially high among the smaller and lower-income countries of the world.

In the context of a global economy that currently produces more than $30 trillion of goods and services each year , this amount is not huge; it is an increase of 1% or less.