ECON 255 Lecture Notes - Lecture 5: Impossible Princess, Dani Rodrik, Economic Integration
Document Summary
Source #1: reduced barriers to trade and investment intensifies the inequality between groups that can cross international borders and those that cannot. Category 1: owners of capital, highly skilled workers and professionals these people can travel anywhere where their job is in demand. Category 2: unskilled and semi-skilled workers and most middle managers. Due to globalization, the demand for this profession is elastic since their jobs don"t require extensive knowledge, it can be easily replaced competition for this job occurs domestically and internationally (substitutability) Source #2: globalization causes internal and external conflicts over domestic norms and the social institution that embody them. As technology used becomes standardized, the competing values/norms that will fuel the inequality (subject to how each civilization views it) values (ie morality) are important whereby they"re attached to the processes and the outcomes fair trade. Focuses of fair trade practices: labor standards, environment, competition policy, corruption.
