How do externalities distort the effects of trade?© BrainMass Inc. brainmass.com October 17, 2018, 9:59 am ad1c9bdddf
Externalities impose an external cost. This is the impact of a product that imposes a negative side effect on a third party. Common examples of externality are pollution caused by industries or an increase in the greenhouse effect by some industries or the use of some products. In each of these cases the firm makes the product for the consumer but third parties suffer because of pollution or greenhouse effect. ...
Effects of Trade is discussed in great detail in this solution.
Examining Alternatives to Globalization
The opponents of globalization focus their criticism on the role of globalization in homogenizing the world and driving wages and prices to a minimum. Supporters argue that lower prices and greater opportunities are worth the costs that come at the price of industrial development.
1) What do the opponents of globalization criticize?
2) With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling? Why?