Assignment:
After reading the February 19th, 2009 Economist article, Turning their backs on the world do you believe it is wise for world governments to shy away from globalization during a period of economic crisis?
Your initial post as well as a response to two other classmates initial discussion question. (This is for first page)
]here is the first one for classmate believes
I think it is unwise for world governments to shy away from globalization during an economic crisis. Restricting trade is likely to make the economic crisis worse. This is because exports are ultimately paid for by imports. If foreigners want to buy products from the US then they will need dollars, and they obtain those dollars from the imports that Americans buy .Therefore, restricting imports is likely to result in a decline in exports, so there is no gain in terms of the demand for final goods and services. Furthermore, restricting imports will force consumers to turn to higher prices domestic products, which will reduce consumption. Finally, imposing trade restrictions will likely result in retaliation from other countries, causing exports to fall and weakening demand for final goods and services. Therefore, turning away from globalization is likely to worsen an economic crisis.
This I exactly what occurred during the Great Depression. The US passed the Smoot-Hawley tariffs which significantly increased the tariff rates on imports into the US. Other countries responded with their own trade restrictions and world trade plummeted, which likely made the Great Depression even worse.
and this is the second one,
After I read this article, I believe it Is unwise the government to shy way the globalization at the economic crises period. If the government made trade system difficult or restricted the economic crises would be the worst. If other countries want to buy products from united state, they will need to buy with the American dollar. And united states need to import products from outside. If the trade system works both import and exports the economic would be much better than before.
Restricting imports will result to the consumers to buy products at high price. If that happen many companies will loose their business.
In my opinion, the trade market will help consumers and business to gain profit if the government didn't restrict the trade market system business will gain more profit and successful.
It would be great if the trade mark would be a free trade which nations could concentrate their production on the goods that they could make the most cheaply. then the business would gain their high rate profit and customers would get fewer price goods and services.
Attachment:- turning_their_backs_on_the_world.rar