Globalization:
The trans-national increase in trade and capital transfers across national boundaries.
GDP:Gross Domestic Product, the monetary value of all the finished goods and services produced within a country's borders
Market Economy:
a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.
Law of Supply and Demand:
The law of supply states that the quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls. Conversely, the law of demand (see demand) says that the quantity of a good demanded falls as the price rises, and vice versa
Supply and Demand:
Milton Freedman Explains Capitalism:
Criticisms of capitalism:
It doesn't reward virtue as much as manipulation
Too many people can't compete in the market
Perpetuates the stigma of the "haves and have-nots"
Allows people to control other's lives
It doesn't reward doing the best for people
Defences of capitalism:
Every case of people being lifted out of poverty have been because of capitalism
The people on top can provide work for people below
I personally feel that capitalism presents a lot of positive ideas and policies, but it must be regulated to a degree. I think the people on the top of the top absolutely should be taxed higher than the average blue collar worker. I agree with the statement that capitalism doesn't reward virtue and dedication as much as it rewards manipulation and stepping over others to get to the top yourself, yes it is true that you will find that happening in other economic systems as well, but being the best out of a bad bunch doesn't make something good.
What exactly are the statistics and the real numbers behind the statements? What is the threshold between rich and poor? Just how big is the gap? What systems are in place (or being put in place currently) to regulate these corporate giants that are hurting things so much?
Pros and Cons of Walmart:
Good:
Walmart stands to gain from servicing the people who make the economy run.
They do a good job of providing people with the things they want, there is something to be said for convenience.
They do provide a lot of jobs.
Increases money going to the city.
Walmart saves a typical American family of 4 about $2,500 a year.
Brings people in poor countries out of poverty.
Bad:
Pays workers "slave wages".
They import millions of products manufactured in other countries.
They push other companies to move factories to other countries, not providing jobs to Americans.
Jobs provided by Walmart are not the highest quality.
Walmart forces manufacturers to lay off workers in a lot of cases.
They do not provide sufficient health care services.
Walmart stores in small towns tend to lower property values around it.
Causes more traffic.
Walmart, regardless of their increased production of goods all over the world, it going to have to make some changes to their business model in the next few years and make a big shift to more e-commerce (online shopping) because that is where a lot of their profits have been disappearing to.
Why divide labor?
Dividing labor between multiple people doing each of the multiple steps of production helps to increase efficiency by allowing people to be specialized, if everyone is doing what they're best at, then passing the product along to the next person who is also better at their job, things get produced quicker and end up higher quality.
What can we learn about globalization through exploring America's largest retailer?
Walmart is pretty much the poster-child of American capitalism and globalization, they get their practically never-ending supply of various products from all different places around the world, paying foreign producers less and shipping the products large distances leads to higher profit for Walmart, and a wider selection of things to buy for consumers.
What is America producing that the world wants?
America produces and exports an extremely large amount of petroleum and coal, motor vehicles, as well as services such as internet and electronics.
What can we learn about the benefits of globalization by following the journey of a T-shirt?
By following the steps taken to produce a simple T-shirt, we find that it actually travels incredible distances between each step in the process. Each person involved in making a T-shirt is a professional at whatever it is they do. From this we find that dividing up labor into multiple people each with a specialized job to do is the best way to make goods.
Anti Union:
Pro Union:
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When is it a bad thing to close down sweatshops?
In the case of countries like China, that are still going through their industrial revolutions that the U.S. went through 100 years ago, it would be unfair to them to "shut down" their chance to industrialize like we did.
My favorite things about this class:
I liked the trip to Walmart and how it showed me that not many things are made in America and just how globalized Walmart is and where all the things come from.
I enjoyed learning about all the intricacies of the way the world economy operates.
I also enjoyed the part where we learned how much more efficient the assembly line is and how the division of labor is smart.
Another thing about this class I liked was learning about all the steps and processes that go into the production of something even as simple as a T-shirt.
In the case of countries like China, that are still going through their industrial revolutions that the U.S. went through 100 years ago, it would be unfair to them to "shut down" their chance to industrialize like we did.
My favorite things about this class:
I liked the trip to Walmart and how it showed me that not many things are made in America and just how globalized Walmart is and where all the things come from.
I enjoyed learning about all the intricacies of the way the world economy operates.
I also enjoyed the part where we learned how much more efficient the assembly line is and how the division of labor is smart.
Another thing about this class I liked was learning about all the steps and processes that go into the production of something even as simple as a T-shirt.