Challenges & Opportunities
Key Question: What political and economic challenges and opportunities are associated with globalization?
Governments, businesses, communities, and individuals in countries around the world face both challenges and opportunities as a result of rapidly expanding economic globalization. Because of the speed of electronic connections, changes in a country's economy can happen very quickly and can deeply affect people and institutions. A natural or human-made disaster in Asia, for example, can present immediate problems for that country's trading partners and investors in other countries.
In recent years, Friedrich Hayek's and Milton Friedman's ideas of ensuring freedom and prosperity by promoting a market economy that is free of government interference have taken hold among many government leaders, especially in North America and Europe. According to this view, governments serve their people best by getting out of the way and letting their economies expand. Even China, a communist state, is determined to expand its economy through global trade.
In recent years, Friedrich Hayek's and Milton Friedman's ideas of ensuring freedom and prosperity by promoting a market economy that is free of government interference have taken hold among many government leaders, especially in North America and Europe. According to this view, governments serve their people best by getting out of the way and letting their economies expand. Even China, a communist state, is determined to expand its economy through global trade.
Remember: Market Economy (little government involvement in the economy) vs. Interventionist Economy (increasing government participation in the economy)
Reflection:
Reflection:
- Which approach best meets the needs of citizens, based on your current knowledge?
- Do you think governments should let their countries' economies expand without exerting control?
- Do you think that expanding economies will eventually lead to sustainable prosperity for all peoples?
- Should governments have a role in controlling their economies, in the interest of their citizens?
- Will expanding free market economies result in prosperity for all people? Will that prosperity be sustainable?
|
Foreign Investment
|