International trade and globalization

International trade is an exchange of goods and services between countries. Trade between nations is becoming very important nowadays. No nation has all the goods and resources it needs. So, all nations must trade among each other to obtain the goods they lack. Through international trade countries can improve their living standards.

Governments control trade through tariffs, import quotas, embargoes, monetary exchange controls, government subsidies and assistance to domestic industries. The international trade that takes place without barriers is called free trade.

Globalization” refers to the growing interdependence of countries resulting from the increasing integration of trade, finance, people, and ideas in one global marketplace. International trade and cross-border investment flows are the main elements of this integration.

Globalization started after World War II but has accelerated considerably since the mid-1980s, driven by two main fac- tors. One involves technological advances that have lowered the costs of transportation, communication, and computation to the extent that it is often economically feasible for a firm to locate different phases of production in differ- ent countries. The other factor has to do with the increasing liberalization of trade and capital markets: more and more governments are refusing to pro- tect their economies from foreign com- petition or influence through import tariffs and nontariff barriers such as import quotas, export restraints, and legal prohibitions.

100.SOCIAL POLICY. LORENZ CURVE

Social policy primarily refers to guidelines, principles, legislation and activities that affect the living conditions conducive to human walfare. A capacity to understand theory and evidence drawn from a wide range of social science disciplines, including economics, sociology, psychology, geography, history, law, philosophy and political science. Social Policy is focused on those aspects of the economy, society and policy that are necessary to human existence and the means by which they can be provided. These basic human needs include: water, food, and shelter, a sustainable and safe environment, the promotion of health and treatment of the sick, the care and support of those unable to live a fully independent life; and the education and training of individuals to a level that enables them fully to participate in their society".[1] The Malcolm Wiener Center for Social Policy at Harvard University describes social policy as "public policy and practice in the areas of health care, human services, criminal justice, inequality, education, and labor."[2] Social policy might also be described as actions that affect the well-being of members of a society through shaping the distribution of and access to goods and resources in that society.[3] Social policy often deals with wicked problems.[4]

Lorenz curve

A graphical representation of wealth distribution developed by American economist Max Lorenz in 1905. On the graph, a straight diagonal line represents perfect equality of wealth distribution; the Lorenz curve lies beneath it, showing the reality of wealth distribution. The difference between the straight line and the curved line is the amount of inequality of wealth distribution, a figure described by the Gini coefficient.

Дата добавления: 2015-11-16