Case Study Questions
Specialization means to produce those goods and services
which you can make most efficiently and with the greatest cost advantage.
What good did Mr.
Sanchez specialize in?
·
Mr. Sanchez specialized in personalized computer
id cards
What were his reasons?
·
He was an engineer and he loved to make products
What are some
examples of specialization in the global context? Are there particular regions
or countries that have historically specialized in a product or group of
products?
·
Computer products. Yes, for example Japan and
there they specialize in the mass production electronic devices.
What are the reasons
for that historic specialization? Are there regions or countries that have only
recently begun to specialize in a product or group of products?
·
The reason for specialized products is because
countries need to have a special product that they can trade with other
countries. For example America has begun to make some of their own products,
for example Asia has been known for the products they make but recently America
has started to make their own electronics. For example Apple.
What changes in
technology, trade, or other areas do you think lead to this specialization?
·
I think that this specialization was made
because of the upgrade in agriculture and technology, so then a place with good
electronics can trade with people with good agriculture.
What types of
decisions did Mr. Sanchez make? What types of actions did the government take?
·
Mr. Sanchez made the decision to lower his
prices so that he could compete with the other countries. The government still
taxed him for the work he did.
How did those
decisions or actions affect the success or failure of the business?
·
These decisions hurt his business because then
he got a smaller amount of profit. Also he had to pay his workers which made it
even harder for him to get profit.
What factors might
have led Mr. Sanchez to make a decision other than the one he chose?
·
If he was making more money in his business he would have not have lowered his prices. If
the other countries weren’t selling the same product for less, then he also
would have not had to change his prices.
How would access to
information affect the decisions made by Mr. Sanchez?
·
If he had known more about the economy then he would
have known that other countries would eventually make the same product as him
and eventually make him lower his process. If he would have known this then he
wouldn’t have had to change his prices.
To export means to
sell goods or services to foreign markets.
To what countries did
Mr. Sanchez export his devices?
·
India and Japan
In some countries,
export-oriented industries are the primary source of employment.
What are the
advantages and disadvantages of relying heavily on exports?
·
If the
other countries stop wanting the product then you will have no business because
you didn’t rely on your own country. But on the other hand an advantage would
be if the country is in desperate need for your product then they will keep
buying it and you will have a huge business.
How might a strong
export-oriented economy affect employment?
·
It will be effected in a positive way because if
you are constantly exporting then you are giving people in your own country
more jobs, whereas if you are constantly importing then you are preventing your
country from having as many jobs.
Can you think of an
example in which a country relies almost completely on export of one good?
·
U.A.E.
*oil*
How has this affected
the country?
·
It has earned them a good amount of profit, and
it helps them
To import means to
sell goods or services made in other countries in your home market
What products
discussed in the case study were imported into the United States?
·
Personalized computer id cards
How did this affect
Mr. Sanchez?
·
This affected him badly because the US dollar
was weak at the time
What imported
products are available in your community?
·
In Africa there is: export a lot of Minerals,
·
Gold, Coal, Iron, Platinum, Uranium, Chromium,
Cement is exported from Egypt and Morocco.
Is there any
additional value associated with the importation of any of these products
(i.e., French wine, Italian shoes, Japanese electronics)?
·
Yes there is value because in the 3rd
world countries in Africa this minerals help them to get more money and tends
to be the only source of money
What affect on a
country’s culture might result from widespread availability of imported goods
and services?
·
Making things available for people everywhere is
a good thing because it gets the country more money and stuff.
A trade barrier is a
governmental policy that affects the flow of trade.
What trade barrier,
put in place by the government, initially helped Mr. Sanchez?
·
What happened when
that barrier was removed?
What are some
products that have barriers or tariffs restricting their trade (imposed either
by the US or its trading partners)?
·
When they tax to high on the product this stops
a lot of buyers from buying the product.
How might a barrier
based on communication, trust, and reluctance to import US products (such as in
Japan) differ from a formal trade barrier?
·
With this example,
why might a removal of a formal trade barrier have little or no effect?
What are the dangers
of removing a trade barrier?
·
Buyers would take advantage of it
What were the goals
of Mr. Sanchez in opening his factory
·
He just wanted to make his product and sell it
without any problems in his business
What were the goals
of U.S. government policy when Mr. Sanchez opened his factory?
·
The US was trying to get money with the high tariff
and taxing all of the exports out of the country .
How did these goals
change over time? Why do you think they changed?
·
They would tax
high if the economy was bad or vise versa.
jilauren Williams
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