16.19: Outcome- Globalization
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What you’ll learn to do: connect globalization, international trade and international finance
Trade and Finance are often confused as being synonymous with globalization. Indeed, trade and international finance have contributed to globalization but they are not the same. Globalization is a process that widens, deepens and speeds-up interconnectedness between people, institutions, markets and nations. Trade and finance are two arteries through which the process of globalization flows. There are many ways to conceptualize globalization.
As globalization increases over time, individuals, firms, institutions, and politicians work within and across countries to define exactly how “open” they want to be and whether they prefer to protect their own products through tariffs or trade restrictions. One thing is for sure, protection and openness to international trade OR finance both have income distribution effects. The interesting question is who reaps the benefits and who carries the burden.
The learning activities for this section include the following:
- Reading: Introduction to Globalization
- Reading: Trade Winds
- Simulation: International Trade
- Self Check: Globalization
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.
- Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution