Question

what are the chief indicators of the increase of globalization since World War II? What is comparative advantage and how does it contribute to aggregate economic gains for states from trade? How does trade contribute to the economic sources of order in the international system?

Answer 1

The chief indicators are: a. A recent round of globalization has been supported by the technological developments that are associated with the internet that have made it possible to trade services. B. The growth of imports and exports and C. The international trade has led to an increase in economic activity.

A comparative advantage is the gain from trade stem from the differences in the relative efficiency of individuals, firms and all the gains in the production of some mix of goods.

The comparative advantage contribute to aggregate economic gains for states from trade by narrowing the range of economic tasks for which an asset is used, the specialization tends to enable the states in order to be deployed in their most efficient way as a function.

The trade contribute to the economic sources of order in the international system by increasing the state national income and the desire to get economic gains from trade leads to cooperative international agreements.