Apr 15 2008

Intro to International Economics – “Making Globalization Work”

We began our final unit in AP Economics today on international economics. Some of the topics we’ll cover in this unit are trade, protectionism and exchange rates. We’ll also continue the discussion that began today about the impact of economic globalization on both developed and developing countries.

One of the big questions we’ll address is whether globalization works; whether it has contributed to real improvements in the lives of people in both the rich and poor countries, whether the international financial and trading systems in place today are adequate, and the degree to which government should be involved in controlling the impact of international economic integration.

One of the leading economists in the field of international economics is Joseph Stiglitz, winner of the 2001 Nobel Prize in Economics and author of the recent book, Making Globalization Work. As an introduction to some of the issues we will discuss in this unit, watch the video below in which Stiglitz addresses some of the major challenges nations face in making globalization work. Leave a comment sharing your responses to the questions below the video.

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Discussion Questions:

  1. What are some of the pressures faced by Americans in the era of globalization?
  2. What does Stiglitz think it means to “manage globalization well”?
  3. “Social protection doesn’t mean protectionism” – discuss…

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author


One response so far

One Response to “Intro to International Economics – “Making Globalization Work””

  1. James Tsaoon 19 Apr 2008 at 1:43 pm

    According to Stiglitz, the pressures faced by Americans in globalization is primarily one of competition. Against poorer developing countries that have no safety standards and unemployment insurance, domestic U.S producers face higher costs of production. Moreover, as many companies outsource their manufacturing plants, many jobs are loss in the U.S.

    Additionally, Stiglitz defines managing globalization well as a scenario in which both sides benefits. In other words, globalization must not be imbalanced, where one country exploits another without giving anything back.

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