Question

A. What is the U.S. economic system and what do you think are the advantages and disadvantages of the American economic system in the context of globalization?

B. Our economic system operates within a digital world where automation is increasing. What do you think are the advantages and disadvantages of automation (use of robots and software to make activities more efficient) in our economic system?

C. Given what you are hearing or reading in the news, how do trade agreements affect the U.S. economy? Explain and cite sources.

D. What trends do you see about businesses and social responsibility? What do you believe are driving these changes?

E. When is outsourcing a good business move? When is it not?

Answer 1

A) US economic system is capitalistic.

It is a system where private goods are owned privately without any state control.

Disadvantages of economic system in context with Globalization-

1. Inequality- Globalization increase inequality and increases the gap between the countries involved in Globalization and the countries which are not.
2. Inflation- Sometimes, the demand of some products increases too much, that in the shortfall of quantities of these products, this result in inflation.
3. BOP- when imports exceeds exports, it leads to BOP crises which further results in destabilization in the economy.

Advantages of economic system in context with Globalization-

1. Economies of scale- due to Globalization, demand has increased. This leads to economies of scale as the producer has to produce more quantities.
2. Increases GDP- Globalization increases GDP of the country. It opens the international trade and if the country succeeds in exporting more, it drives the GDP forward.
3. Benefits customers- due to the diversity of products and low prices due to more competition, Globalization has benefitted the customers.

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