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. The U.S. economic system is a mixed economy where resources are owned both by the government and private sector. Though private sector can function independently but Government has the power to place regulatory restrictions on some of their voluntary actions. Some of the advantages of this system include increased flexibility to business firms to grow and invest in this ear of globalization and liberalization, however, there might be increased government intervention which needs to be taken care in this kind of mixed economy.

B. Automation will help in making the economy more efficient and increase our production capacity in the long run. However, it will lead to increase in the level of unemployment in the economy due to taking away mainly unskilled jobs of labor. Robots have started replacing human labor force in tasks driving, home delivery of goods being done by drones etc.

C. The U.S is moving towards a restricted economy and increasing tariff on foreign goods and also reducing the benefits given to nations in trade agreements. This has reduced the overall global trade and also reduced the growth rate of other nations. Thus, overall growth rate of the world economies along with U.S. is declining because of movement towards a restricted economy.

D. Increasing globalization and competition in the market is making businesses more efficient and increasing their social responsibility. Large scale firms in all the countries are partnering with public companies to increase their social contribution and thus benefit society.