Globalization of world economy (ECON 1103)
1a) Since 1980, income inequality has declined across countries but risen within most countries.
How can we relate globalization to these two opposite trends? Briefly explain.
b) Many government policies are results of rent-seeking. Give another example (not trade policy)
and explain how it is related to rent-seeking.
2a) Global capital mobility is a “double-edged sword” for developing countries. Why? Discuss
the benefit and cost of free capital mobility faced by developing countries.
b) How would Covid-19 pandemic affect the future of globalization
3) According to economic theory, global climate change is essentially an externality problem.
Briefly explain: a) What is externality? How could externality cause market failure? b) Why is
climate change an example of externality problem? c) What policies should be used to deal with
climate change?
1a) Since 1980, income inequality has declined across countries but risen within most countries.
How can we relate globalization to these two opposite trends? Briefly explain.
b) Many government policies are results of rent-seeking. Give another example (not trade policy)
and explain how it is related to rent-seeking.
2a) Global capital mobility is a “double-edged sword” for developing countries. Why? Discuss
the benefit and cost of free capital mobility faced by developing countries.
b) How would Covid-19 pandemic affect the future of globalization
3) According to economic theory, global climate change is essentially an externality problem.
Briefly explain: a) What is externality? How could externality cause market failure? b) Why is
climate change an example of externality problem? c) What policies should be used to deal with
climate change?
