Mass production and Globalization of technology

comparative economics topic on mass production and globalization its importance advantage and dis advantage.

1. VII. Globalization and Technological Advancement

2. While globalization has been much criticized f o r i t s p o ss i b l e n e g a t i v e s i d e e f f e c t s , t h i s shows that globalization has amplified the spread of technology across borders in two ways. First, globalization allows countries to g a i n e a s i e r a cc e s s t o f o r e i g n kn o w l e d g e . S econd, it enhances international competition — including as a result of the rise o f e m e r g i n g m a r k e t f i r m s — a n d t h i s strengthens firms’ incentives to innovate and adopt foreign technologies.

3. Technological advancement is the generation or discovery of knowledge that advances the understanding of science or technology. The phrase “discovery of knowledge” is often misunderstood.

4. A. THE ADVENT OF MASS PRODUCTION Mass production is the manufacturing of large quantities of standardized products, often using assembly lines or automation technology.

5. An early example of mass production dates back to 1913 when Henry Ford pioneered the first assembly line technique for his famous Ford Model T. Ford's automobiles became available at a lower price because of the efficiency of the method.

6. Advantages of Mass Production

7. Increase productivity Lower cost Higher quality of life Faster Production Safer Medicine Less error Increase worker safety Rapid evolution

8. Disadvantages of Mass Production

9. Initial Cost Less flexibility Pollution Affect employee's wellbeing

10. B. Machination of Progress

11. Machination of progress refers to the discovery of new and improved methods of producing goods. Changes in machination leads to an increase in labor, capital and other factors of production. Phases of Technological Progress Invention Innovation Diffusion

12. Invention – the act of creating new technology. Innovation – may be used synonymously with “invention” or may refer to discovering a new way in which to use or apply existing technology. Relative advantage – means the product or behavior is perceived as being better than the alternatives by the person adopting the innovation. Compatibility – refers to how the innovation aligns with the adopter’s lifestyle.

13. Complexity – how easy or difficult innovation is to understand. Trialability – the process of testing the innovation O b se r v ability – i n v ol v es se e in g the p r odu c t o r b e h a vior in action. 3. Diffusion – refers to the spread of technology throughout a society or industry.

14. Why machination of progress important?

15. G L O B A L I Z I N G T R A D E

16. What is Globalization? is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

17. W h a t i s T r a d e ? Trade is the buying and selling of goods and services between different countries around the world. G ood s t h a t a r e br o ught i n t o a c o un tr y a r e ca ll e d _ IMPORTS , and those that are sold to another country are called EXPORTS .

18. W H A T I S G L O B A L T R A D E ? Global trade is the exchange of goods or services between countries and is made up of the total imports and exports of each participating nation. It is governed by supply and demand (with occasional government intervention) and relies on that supply and demand to determine the price of each product or service sold.

19. Some nations choose to specialize in various products and services and have a comparative advantage over other nations. Countries with an absolute advantage on a good or service are the best at producing that good or service and are most likely to export these to other nations. That is how the global economy is formed – trade be t wee n n a t i ons .

20. F R E E T R A D E is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

21. PROTECTIONISM is the practice of following protectionist trade policies. A protectionist trade policy allows the government of a country to promote domestic producers, and thereby boost the domestic production of goods and services by imposing tariffs or otherwise limiting foreign goods an d se rvic e s i n t h e m a rke t p l a c e .

22. Some of the main tools used to accomplish P RO T EC T I ON I S M a r e : TARIFFS SU B S IDI E S QUOTAS EMBARGOS

23. T o p T r a d e S e c t o r s The top trade sectors in the global trade market have remained relatively consistent in spite seen significant market fluctuation in the past decade. Entities wishing to trade globally might consider some of these sectors.

24. According to the CIA World Factbook, these are top 10 most traded commodities since 2017. Electrical Machinery – Including Computers (14.8%) Mineral Fuels – (14.4%) Nuclear Reactors – (8.9%) Vehicles – (8.9%) Scientific and Precision Instruments – (3.5%) Plastics – (3.4%) 7.Iron and Steel – (2.7%) O r g a n i c C h e m i c a l s – ( 2 . 6 % ) Pharmaceutical Products – (2.6%) Precious Stones – (1.9%) O t h e r s i g n i f i c a n t t r a d e a r e a s i n c l u d e s e r v i c e / l a b o r a n d i n t e ll e c t u a l property.

25. The US currently spends nearly $2.361 trillion annually o n import s a n d th e t o p 3 c o mmodities include: Industrial Supplies (32.9%) Consumer Goods (31.8%) Capital Goods (30.4%)

26. Currently the US is operating at a trade deficit. It earns approximately $1.553 trillion annually and its top 3 e x port e d p r o du c t s includ e: Capital Goods (49%) Industrial Supplies (26.8%) Consu m e r G o o d s (15 % )

27. A d v a n t a g e s a n d D i s a d v a n t a g e s of Global Trade

28. Building blocks for international growth – once a business is able to successfully expand to one foreign market, they increase their likelihood of spreading to others. They can increase brand awareness in the region, spark interest in neighboring countries, a n d pul l t h e b r a n d i n t o t ho s e coun t ri e s a s w e l l . Increases competition – The more sellers in the marketplace, the cheaper and better the products are for the consumer. Advantages

29. Improves financial performance – Most countries offer significant market potential for many products. Expanding globally allows more people to see, evaluate, and purchase products. More exposure often correlates to higher sales. Distributes a brand’s or business’s risk – Once again, the more people exposed to a product or service, the better chance to make a sale. Selling to foreign countries increases sales potential and relieves pressure to sell domestically. Advantages

30. Disadvantages Political risk – Operating in foreign nations means operating with foreign governments, laws, and customs as well as with potential p o li t i c a l un r e s t . S h i ft i n g p o li t i c a l c li ma t e s c a n o f t e n p o s e disr u p ti o n to global trade. Cultural complications – This can take many forms and can be difficult to anticipate. Some of the major gaffs come from language barriers, physical mannerisms, or religious offenses. These mistakes c a n b e c o st l y i f e n a ct e d i mpr o p er l y .

31. Disadvantages Increases the risk IP theft – Some individuals do not act ethically and will not adhere to US patent law or follow intellectual property protections. Trading globally often exposes companies to copyright and trademark infringement and it is more difficult to combat on f o r e i g n s o i l w h e r e l a w s a n d c u s t o m s d i ff e r f r o m t h e U S Exchange rate risk – Global currency is constantly shifting value, s o p r o d u c t a n d s e r v i c e v a l u e s a l s o s h i f t .

32. Global trade has been the backbone of the global economy and continues to grow today. There are many advantages and disadvantages associated with it, and many more strategies on what is the best way to do it

33. https:// www.thebalancemoney.com/free-trade-agreement-pros-and-cons- 3305845#:~:text=FTAs%20can%20force%20local%20industries,livelihoods%2C %20and%20local%20employment%20issues. https:// www.investopedia.com/terms/f/free- trade.asp#:~:text=A%20free%20trade%20agreement%20is,prohibitions%20to %20inhibit%20their%20exchange. THANK YOU!