Please answer 2 of the questions below: d) Do you agree that most world trade ba

Question

Please answer 2 of the questions below:

d) Do you agree that most world trade barriers are slowly dissapearing?

Watch the following videos:

1) The world is flat by Thomas Friedman.  http://www.youtube.com/watch?v=EcE2ufqtzyk

2) World 3.0. Why it is not as flat as you might think?  http://www.youtube.com/watch?v=m1mlFsk836Y

3) World 3.0. How to succeed between global and local?  http://www.youtube.com/watch?v=bEwP54pp5BI

e) What are your first impressions after watching the video?

f) Discuss each of the factors that are making the world a flat world?

g) Have any of these factors affected you? How?

h) Do you think that the current economic crisis will make the world 'less' flat?

Explanation / Answer

d) Yes, most world trade barriers are slowly diasppearing due to the below reasons -

1. Globalization resulted in companies from one country expanding their businesses by entering other countries to reap the benefits of a new customer base, cheap and skilled labor, ease of setting up businesses, availability of land and natural resources etc.

2. Firms from various countries have been working together through strategic alliances, joint ventures, imports and exports etc. based on long-term contracts and mutual trust resulting in overcoming the trade barriers.

3. It has become a win-win situation resulting in flourishing trade and economy.

4. Technology and digitalisation played a prominent role in the reduction of trade barriers.

f) The factors that are making the world a flat world include -

i. Phone calls - Information flow through cross-border communication among people working in various countries.

ii. Immigrants - Influx of people from other countries to work in the foreign country and contribute to the GDP.

iii. Direct investment - Influx of money for investment by foreign companies in the domestic market resulting in increased availability of goods for consumers and growing economy.

iv. Imports and Exports - Influx and outflux of goods across countries resulting in ease of trade.

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