Question:The essay: I’d like you to think across the various topics and readings covered in the second half of the course and come prepared to answer a specific question in class (in NO MORE than 3-4 blue book pages). Here is the question: The revolution in transportation and in information and communications technology has opened up new opportunities for (and placed additional pressures upon) transnational corporations. In particular, these technological advances have accelerated the ‘internationalization’ of the production process (e.g. through the creation of increasingly elaborate global supply chains). The latter process most obviously involves an acceleration in the cross-border movement of capital but also, to a somewhat lesser extent, an increase in the international movement of people (of various skill sets and educational levels). As a well-trained economist with full autonomy to make international economic policy in EITHER a developing or developed country, discuss the kinds of efficiency (welfare) and equity considerations you would need (want) to take into account in determining whether to embrace, resist, or reduce/slow down the impact of this latest phase of globalization on the residents of your country.
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As I am from South Korea, “Residents of your country” here would be South Korea.
*The concepts concerned for this exam are:
1. Trade and Technology:The Ricardian Model
2. Trade and Resources: The Heckscher-Ohlin Model
3. Movement of Labor and Capital between countries
4. Import Tariffs and Quotas under Perfect Competition
*I will see if I can upload you my textbook later
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