Week 4: How Free Trade, Globalization Create New Borders by Bloomberg

Question 1

According to Joseph Stiglitz, Ha-Joon Chang, and Wendy Brown (in order), globalization and free trade have caused which three problems?

Answer 1

1) Worsened inequality, 2) Heavy state-intervention, 3) Cause of physical barriers like the US-Mexico border

Question 2

What attracts companies to “special economic zones”? Where do they exist?

Answer 2

Lower taxes for manufacturing and international inflow of money. Primarily in China, Dubai, India, and even the US.

Question 3

How does Singapore run its hybrid model of globalization?

Answer 3

They balance economic openness with political control. Operates like a city-state with a seat at the UN but also cuts taxes and reduces regulations for international companies.

Question 4

What are two negative effects of special economic zones?

Answer 4

Businesses/workers outside of the zones do not benefit from globalization.
Attract drug/human trafficking.

Question 5

What is an example of a positive effect from special economic zones?

Answer 5

During COVID-19, companies in these zones remained open to produce N95 masks and essential supplies as employees were allowed to work.

Question 6

How is the current model of “special economic zones” different from what globalization started out as?

Answer 6

Globalization aimed for a borderless world – instead, this creates divisions within nations.