ECON 2301 Unit 7


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Unit 7: Macroeconomic Issues: Development and Growth



A.  Read the following selections from the Margin Notes by clicking on each link.


B.  Watch these presentations. When you click on one of the links below, a new screen will pop up. Use the scrollbar on the side of the new screen to navigate. You need Adobe Reader to view PDF files.


C.  (Optional) Read the following chapters from the textbook.

Chapters 11 - 15


D.  The following Optional Links will help you do better in your course but they are not required.


E.  Activity #4: Analyzing Globalization (10 points)To Do Note

For Activity #4, we're going to watch a documentary about the new China economy.



Go to Wide Angle's video, To Have and Have Not. On that page read the paragraph titled About The Film. From the Inside this Episode menu on the upper right, choose the following links.

Introduction (the first page)

Essay: China’s WTO Guinea Pigs: Will They Bring Political Change?

Sizing Up China’s Economy

Debate: What the WTO Means for China

The World Trade Organization (WTO) is an institution dealing with rules of trade between nations. Its goal is to “ensure that trade flows as smoothly, predictably and freely as possible. [The] result is a more prosperous, peaceful and accountable economic world” (WTO website). This result, however, is not universally acknowledged, as evidenced by the growing number of movements against the WTO and globalization, the increasing integration of the world economy. While advocates claim that globalization can bring prosperity to impoverished countries, opponents say it will exacerbate poverty, inequality and environmental degradation.

China became a member of the WTO in December 2001. While the long-term effects of China’s entry into the global market are yet to be determined, some fear that liberalized trade policies and a greater involvement in the global economy will create more poverty and put much of China’s population at a disadvantage. Continue to choose the links until you've read through all 4 pages listed above. Then, from the Inside this Episode menu on the upper right, choose the Additional Web Resources link. That page has a number of links to fascinating background information on the issue. You're not required to read everything linked on that page but I wanted you to know what's there. The information is interesting and the more you know about the issues, the better.



From the Inside this Episode menu on the upper right, choose the Video: Full Episode link. To watch the documentary, you can use Windows Media or Real Player. If you don't have either, you can download one for free by clicking on one of the links at the bottom of the Unit 1 page. The full documentary is just under 60 minutes in length, divided into 7 parts. Access the parts by clicking on the picture or title for each. You should be able to watch the documentary on any but the oldest and slowest computers ... although the slower your internet connection, the longer it will take your computer to load the video. Be patient! Player controls allow you to start, pause, adjust the volume and screen size, etc.

As you watch the video, consider the following questions. (Do NOT send me the answers to these ... they're only to help you stay focused while you're watching.)

What is the World Trade Organization (WTO)?

Who gains and who loses from globalization?

Why do some say the entry of developing countries into the WTO is hurting those countries?

Why do some say the entry of developing countries into the WTO is empowering those countries?

What are the downsides of globalization and entry into the WTO for poorer countries?

Has China benefited from the globalization of the world economy? Why or why not? Has it benefited from its entry into the WTO?

What are the downsides of globalization and entry into the WTO for a country like China?

How are the WTO and globalization related?

What types of industries and which sections of society in developing countries are most negatively affected by globalization?

Are there ways to address the downsides of globalization and the WTO and still allow for free trade?

What are the beliefs and arguments of those who are anti-globalization?


Critical Thinking


Free-market economist David Ricardo (1772-1823) set forth the theory of comparative advantage. Using his famous example of two nations (Portugal and England) and two commodities (wine and cloth), Ricardo argued that trade would be beneficial even if Portugal held an absolute cost advantage over England in both commodities.  Ricardo's argument was that there are gains from trade if each nation specializes completely in the production of the good in which it has a comparative cost advantage in producing, and then trades with the other nation for the other good. According to the theory of comparative advantage, free trade should work to the benefit of all. Yet there seems to be evidence that free trade is not good for all. What's wrong with this picture?

  1. After you've covered the assignment material, I'd like you to send me an essay that answers the question In the long run, is globalization good for everyone? Your answer to that question may be as long or as brief as you want but it must pass two tests.

  2. First, your answer must exhibit an understanding of economic concepts. Make specific and detailed connections to course content.

  3. Second, your answer must reflect the information given in the assignment, both from the video & readings and from the information on David Ricardo. Use what you learned from the assignment to make your case. Too, while I welcome you to include your opinions as part of your comments, those opinions must have some basis in fact. This is the time to demonstrate some critical thinking!

  4. Please be careful to use correct spelling & grammar.


Activity Submission Instructions

By the deadline shown in the Course Schedule on the main page of your syllabus:
  • Send your comments in the body of a new email to

  • Put only your name and Activity #4 at the beginning of your email.

  • Be careful to use the correct subject line.

  • Late comments lose one point per day late, including weekends and holidays.



Copyright 1996 Amy S Glenn
Last updated:   02/14/2018   0130

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