What is the major problem in achieving an efficient use of the world's water? If there were a global market in water, like there is in oil, how do you think the market would work? Would a free world market in water achieve an efficient use of the world's water resources? Explain why or why not.
Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures? If yes, how (explain using economic concepts and terms how it is occurring)?