INTB 1203 Lecture Notes - Lecture 2: Environmental Degradation, Organizational Culture, Decision-Making
15 Dec 2016
School
Department
Course
Professor
INTB 1203
Test 1 Study Guide
Chapters 1,2,3,4,5,7
Practice Questions:
1. Discuss the arguments for and against globalization regarding jobs and
income.
Pro
• Falling barriers to international trade and investment drive global economy
toward greater prosperity and a higher general income for people in countries.
• Increased international trade leads to lower prices for goods and services
• Stimulates economic growth, raises consumer income, helps create jobs in all
participating countries
Con
• Falling trade barriers to international trade destroy manufacturing jobs in wealthy
and advanced economies (US, UK) because it allows for firms to move
manufacturing activities to countries where job wages are much lower. This has
also lowered wages in developed nations.
• Environmental degradation
• The earnings gap between and unskilled labor workers has widened
considerably, leading to poorer work conditions for those who are unskilled.
2. Discuss why supply must not be restricted for a pure market economy to
function.
Supply must not be restricted because a pure market functions by the interaction of
supply and demand for goods and services, which happens organically. When supply is
restricted, such as with a monopoly, where a single company can manipulate the prices
of goods, social welfare is drastically lowered while the company benefits immensely. In
cases like these, the government MUST, encourage vigorous free and fair competition
between private producers.
3. Discuss the concept of deregulation.
Deregulation involves removing legal restrictions to the free play of markets, the
establishment of private enterprises and the manner in which private enterprises
operate. Before the fall of communism, many countries had strict restrictions in place
regarding prices and output, entering of private enterprises to the market and
international trade. In these cases, deregulation involved removing price controls and
allowing prices to be set by the interplay between supply and demand, abolishing laws
regulating the establishment and regulation of international enterprises and international
trade.
4. How does a caste system differ from a class system?
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find more resources at oneclass.com
Document Summary
Practice questions: discuss the arguments for and against globalization regarding jobs and income. Pro: falling barriers to international trade and investment drive global economy toward greater prosperity and a higher general income for people in countries. Increased international trade leads to lower prices for goods and services: stimulates economic growth, raises consumer income, helps create jobs in all participating countries. Con: falling trade barriers to international trade destroy manufacturing jobs in wealthy and advanced economies (us, uk) because it allows for firms to move manufacturing activities to countries where job wages are much lower. Supply must not be restricted because a pure market functions by the interaction of supply and demand for goods and services, which happens organically. When supply is restricted, such as with a monopoly, where a single company can manipulate the prices of goods, social welfare is drastically lowered while the company benefits immensely.
