Author Question: Compare and contrast globalization as it existed in the late nineteenth century with globalization ... (Read 374 times)

faduma · **on:** Jun 30, 2018

Compare and contrast globalization as it existed in the late nineteenth century with globalization today.

What will be an ideal response?

Question 2

Which of the following institutions is the most important participant in foreign currency markets?

A) A retail customer
B) A commercial bank
C) A foreign exchange broker
D) A central bank

jjorrostieta · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

I would expect my students to address the following:
That in percentage terms, a significant portion of world economic activity was engaged in trade in both periods.
That in the prior period, trade was mostly in agricultural products and commodities, whereas today capital goods play an increasingly important role.
That labor may have been more mobile in the past than it is today due to changes in immigration policies.
That capital was mobile in both periods, but might be more so today, especially given new instruments.
That changes in transportation and communication were significant in both periods in terms of reducing transaction costs and encouraging product and factor mobility.

Answer to Question 2

B