Question

5. Do you agree there should be special assistance programs for those who lose their jobs because of competition from foreign firms that go above and beyond the assistance available in those who lose their jobs for any other reason? WHY do you agree or disagree?

   6. Name and explain 4 factors that have helped lead to increased globalization of the world

economy over the past 30 years. The most important part of your answer is your explanation of

WHY these 4 factors lead to increased globalization.

7. Why do competitive economies experience more economic growth than less competitive

   economies? Your answer should also include an explanation of the role of free trade in the level of

   competitiveness of a country.

Answer 1

5. I do not agree that people who lose their jobs because of competition from foreign firms should be given more assistance above and beyond the assistance available to those who lose their jobs for any other reason. Firstly, it is not easy to clearly identify exactly which people lost their jobs because of foreign competition and which lost because of other reasons. Therefore, identifying the true beneficiary will be a very difficult job. Secondly, It will be unethical to provide more assistance to people losing jobs because of foreign competition than people who lost jobs because of factors like disability. Thirdly, this will amount to the higher intervention of the government in the economy which might result in efficiency loss.