In an effort to encourage investment,the president of Country X reduced tariffs,making the country more attractive to Company Y,which came in and built a large factory.Company Y used local,cheap labour,but made a product these people could not afford to buy.The product was shipped to Country Z,where citizens could purchase and enjoy the new product.What term refers to this set of relationships between countries?

Question

Quizplus · Accepted Answer

This set of relationships between countries is an example of top-down globalization, where decisions made by powerful actors such as governments and multinational corporations shape and affect global markets and economic relationships. The reduction of tariffs by the president of Country X was a top-down decision, which attracted Company Y to invest and build a factory that used local, cheap labor. The product produced by Company Y was then sold in Country Z, where citizens could afford it, thus creating a top-down flow of economic benefits and dependence between these three countries.

In an Effort to Encourage Investment,the President of Country X