Analyze the ways in which interdependence has affected both developed and developing nations. In your answer, be sure to use examples and evidence to explain the benefits and risks facing each type of nation. In your analysis, evaluate a problem that interdependence has created, and propose one solution to fix this problem.
I am so lost on this... can anyone Help???
2 answers
I suggest you start by carefully reading and taking notes on the pertinent information in your reading assignment.
Globalization or linkages between various countries by international trade has caused interdependence among them.
At the beginning of the financial crisis in late 2007 and early 2008, when it seemed the emerging markets and Asia, in particular, would grow rapidly regardless of what happened in the United States and Europe. Then came the panic of late 2008, after the collapse of the investment banking firm Lehman Brothers. The marked worldwide slowdown, even in China, sparked concern that the crisis that started on Wall Street could lead to a collapse of growth in the emerging and developing world.
This is a clear economic example of the degree of interdependence between the developed and developing world.
Economic interdependence has also come to include other aspects of economic life and, the beginnings of the age of computerization, telecommunications, and low-cost travel and shipping -- has taken new forms including the worldwide structural integration of production and marketing. At present interdependence on developing countries like India, and Bangladesh for cheap labor, and outsourcing of work from developed countries can also be seen. Merchandise trading with Bangladesh is much in vogue.
The benefits are the creation of jobs in poor or developing countries while the risks are the alignment of economies, if one economy crashes the others are affected. The procurement of cloth at cheap rates from Bangladesh by developed countries like the USA has led to the overexploitation of laborers there. This is a problem of interdependence in the social font. Minimum wages, competitive prices, unions, and fair trade agreements are some ways to curb this problem.
If Bangladeshis form a cartel and increase prices too much then that would be detrimental for developed economies since that would destroy their cheaper source of imports.
Explanation:
At the beginning of the financial crisis in late 2007 and early 2008, when it seemed the emerging markets and Asia, in particular, would grow rapidly regardless of what happened in the United States and Europe. Then came the panic of late 2008, after the collapse of the investment banking firm Lehman Brothers. The marked worldwide slowdown, even in China, sparked concern that the crisis that started on Wall Street could lead to a collapse of growth in the emerging and developing world.
This is a clear economic example of the degree of interdependence between the developed and developing world.
Economic interdependence has also come to include other aspects of economic life and, the beginnings of the age of computerization, telecommunications, and low-cost travel and shipping -- has taken new forms including the worldwide structural integration of production and marketing. At present interdependence on developing countries like India, and Bangladesh for cheap labor, and outsourcing of work from developed countries can also be seen. Merchandise trading with Bangladesh is much in vogue.
The benefits are the creation of jobs in poor or developing countries while the risks are the alignment of economies, if one economy crashes the others are affected. The procurement of cloth at cheap rates from Bangladesh by developed countries like the USA has led to the overexploitation of laborers there. This is a problem of interdependence in the social font. Minimum wages, competitive prices, unions, and fair trade agreements are some ways to curb this problem.
If Bangladeshis form a cartel and increase prices too much then that would be detrimental for developed economies since that would destroy their cheaper source of imports.
Explanation:
2 answers