28 Jun GLOBAL ECONOMY
The Global Economy
1. For several decades, the United Stated has experienced chronic current
account deficit. For many observers, this simply means that U.S. exports are
less than its imports. Is there more to this issue than meets the eye? Identify
and explain what other factors may be involved in perpetuating the U.S.
current account deficit.
2. The Peoples Republic of China ranks among the fastest growing third world
countries. Is the Chinese mode of economic growth and development a
suitable example for other developing countries? Which aspects of Chinas
global economic strategy may be transferable or replicated in other
developing countries? Which may not? Please justify your response to this
question with some concrete examples.
3. With the demise of the communist economies of Eastern Europe and the
former Soviet Union, as well as the revolution in international
communication and information technologies, globalization appears to be an
accomplished fact. If this is so, what current or future global, regional, or
geographically specific circumstances may be potential strengths,
weaknesses, opportunities, or threats of the global economy in a decade or
so? Please base your answer upon realistic projection for the future of
globalization.
Global organizations have played a critical role in encouraging the international
community to engage in more comprehensive free trade. In spite of this, many less-
developed countries have complained about their lack of access to the markets of
the more developed, industrialized states. Review the Doha round of trade
negotiations sponsored by the WTO in 2001. How, in your view, did the outcome of
these negotiations support or refute the complaints of the less-developed
countries?
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