Abstract

The case illustrates the Global economy phenomena and dependence of each country on one another. Since over the period of time, China as emerged as one of the largest produces in all categories at a cheaper rate, much of the US markets are dependent on Chinese products for cost effective shopping. It is due to the competitive dge and comparative edge that each region has over each other. Such an example is discussed in the report, outlining the dependence of the US household on Chinese products. The global integration of the economies has created certain dependencies and a comparative edge, offering certain cost benefits and efficiency in production, leading to more profits. Moreover, such has also allowed micro-level businesses to take advantage of the cost effectiveness and difference in exchange rates to make businesses more profitable in the market.

Keywords: Comparative Edge, Competitive position, Global Economy, Globalization, economic Integration.

How does this video illustrate the global economy?

The Video illustrates the world’seconomy through the intertwined relationship between China and America. Over the period of time, with the effect of globalization and economic integration, countries have developed more intertwined relationships so as to attain theresources that are scarce in their own regions or are costlier toproduce. Such can be seen from the general example of the US importing consumer goods from the other regions that havea competitive edge in producingthose goods at minimum rates,such canbeduetothe demographic or economicprecursors such as high population, low labor cost, agricultural base, etc.

Not Made In The USA Harvard Case Solution & Analysis

Under the particular video, the phenomena of global economy can be seen from the dependence of each nation (USandChina) on one another for particular trade-offs. Usually the economies optto initiatetrade with each other in order to attain costbenefit or to attain betteremployment, as there is always scarcity of resources that is fulfilled either byproducing it internally at high cost or by outsourcing it externally at lowerlabor cost.Since China has the highest population rate, it has a hugeavailability of labor working at low cost for US manufacturers.Such,in turn, offers the US manufacturers toattain goods andservices atcheaprates, making it attractivefor the business and for the consumer as well, earning profits through economies of sales and value for moneymodel,respectively.

Lastly, the video depicts the concept ofa global economy through depictingthe concept of comparative edge. Each nation hasa particular comparative edge that distinguishes it from other regions. The USeconomy has a comparative edge of investing into weapons and ammunitions while theChina has the comparative edge in producing everything at a lowprice. The economicintegration betweenthese two nations, thus, fulfills the purpose of US manufacturers to attain consumer goods at cheap rates, while allowingthe Chinese to earn more money by offering particular services, developing a trade-off relationship and benefits to upgrade the economy and thus, making the world a globaleconomy. (Ghemawat, 2010)

Such an example is discussed in the report, outlining the dependence of the US household on Chinese products. The global integration of the economies has created certain dependencies and a comparative edge, offering certain cost benefits and efficiency in production, leading to more profits. Moreover, such has also allowed micro-level businesses to take advantage of the cost effectiveness and difference in exchange rates to make businesses more profitable in the market.................

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