- Discuss how "catch-up" (convergence) ties in with globalization in China and India.
- Define Globalization and discuss the benefits and costs of globalization.
In addition, write about how globalization has affected your life. How would your life be different in a world without globalization? How has Taiwan in particular been affected, and how has that changed your life and the lives of people you know?
- Advocates of globalization says that through increased employment and technological advances, many developing nations such as China and India have been able to catch-up with the developed nations much faster in terms of living standards and economic activity. For example, usually, it should have taken two generations for a developing nation to double its standard of living, but now, for China, it takes only years for living standards to double.
- Globalization in the economic point of view is the interdependent world economy. It is the process of different countries and people interacting with each other as sellers, buyers, or intermediates. The benefits of globalization, other than help developing nations catch-up, also allows technological advances, liberalization of policies, and increased consumer choices due to increased competitiveness. However, when one benefits and gains, it costs another person and this person loses. The costs of globalization includes the problems of using low cost employees without giving them a minimum standard of working conditions, the displacement of a nation's own workforce, and the interference of economy on politics and national sovereignty.
- Globalization affect my life by allowing me more choices, and provides me insight on which products have a higher marginal social benefit compared to its marginal social cost. Without globalization, I would loose access to products that are only available in other countries. Without globalization, Taiwan would not have a market to sell its specialized microchip products and cause its economy to slow down. On the other hand, globalization has provided Taiwan with a market.