Will globalization continue to expand in the future? Why or why not?

1. Will globalization continue to expand in the future? Why or why not?

2. Econoland runs a current account deficit of $100 billion in a given year. Explain what must have happened to the financial account and Econoland s international investment position. Specifically explain how the financial account and Econoland s international investment position are related.

3. Why does most of the worlds international trade take place between similar developed economies?

4. Exports sometimes are targeted at different market segments in various countries. Foreign suppliers are often accused of dumping their products in foreign markets at prices below their home market prices, but there are numerous cases where exporters deliberately charge much higher prices overseas than at home. Discuss the difference between comparative advantage and competitive advantage of the above pricing strategies.

5. Think of some examples of creative destruction. Describe them and discuss their benefits or costs to human welfare.

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