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Unit11AmongtheFringersExercisesAnswerthequestionsonthetext:QuebecTradeSummitwasheldinQuebecCityfromApril20toApril22,2001.Leadersofthe34WesternHemispherecountriesmadeadeclarationduringtheSummitcallingontheSummitcountriestoconcludenegotiationsonaFreeTradeAreaoftheAmericasby2005.TheHemisphericSocialAllianceorganizedtheSummit”thatwasstronglyagainsttheQuebecTradeSummit.DuringtheSummit,somesecuritymeasureshadtobetakentosafeguardsuchaninternationalgathering.Theauthorheresuggestedthatteargasmightbeusedtodispersetheprotesters.Theauthorknewverywellthatthe Summit”attendeeswerethose“fromthefar-lefttothefarther-left”andtheywereallopposedtofreetrade.Tochoosethelesserevilortogetaclearerpictureoftheactivists,theauthordecidedtointerviewthosewithlessradicalideas,probablythoseactivistswithfewerbodypiercings.AJapanesesoldierisolatedonaPacificislandduringWorldWarIIhadnoideaofunconditionalsurrender.TheauthorwassayingthatpeopleonthestreetsofQuebecrealizewhathadhappenedintheworldandtheyjustturnedablindeyetotheachievementstradeliberalizationhadmade.ItistruethatboththeWorldTradeOrganizationanditspredecessor,theGeneralAgreementonTariffsandTrade,havesomewhatreducedtradebarriersovertheyears.However,someeventsofgreatsignificanceoccurredwithouttheinfluenceofinternationalinstitutions.caseinpointiseconomicreformprogram.Globalizationisanirreversiblydevelopingtrendandtheideaofeconomicfreedomhasbeenembracedbymostcountriesintheworld.Therefore,internationalinstitutionsmayjusthaveamodestimpactonglobalization.Accordingtotheauthor,thesuccessofdiversionandappeasementwasassociatedwithanumberoffactorsthatdonotexistnow.TheendoftheColdWar,thespreadofglobalizationandtheawarenessofthesignificanceofunilateraltradeliberalizationallcontributetothefactthatthestrategyofdiversionandappeasementisnolongerworkableintermsoffreetradepromotion.Manysupportersoftradeareopposedtounilateralliberalizationbecausetheybelievethatalthoughopendomesticmarketsaregood,itispreferabletoopenallmarketsatonce.Theauthorarguesthatitisabsolutelyunrealisticforallcountriestoopentheirmarketsallatoncesinceopendomesticmarketsneedtherightpoliticalatmosphereandnocountrycanbeforcedtodroptheirtradebarriers.Theoretically,however,theideaofopenmarketsasaconcessiondoesnotholdwaterandacountryalwaysbenefitssolongasitopensitsdomesticmarket.OnefeatureoftheWTOdisputesettlementisthatithastheabilitytoimposesanctionsagainstanon-complyingcountry,whichisagainsttheideaoftradereciprocityandliberalizationthattheWTOiscommittedto.Abetteridea,accordingtotheauthor,isthattheplaintiffcountryrelieson“compensation”ratherthanonanysanctions.Insteadofimposingsanctionsonthelosingparties,theWTOdisputesettlementmechanismmayrequirethemtodropsometradebarriersascompensationfortheirviolationoftheWTOrules.Suchanideamaybeviableundercertaincircumstances,butmaynotbesoaswell.AsanoffendingnationmayrefusetoabidebythedecisionsmadebytheWTO,whycan’ttheyrefusetodropitstradebarriers?Theconceptofmarketeconomy standsforrelianceonthemarketcompetition.Itisaprocessthroughwhichmarketcompetitionprovestobethemostefficientwaytomeetthedemandfromconsumersforgoodsandservices.Itismarketcompetitionthatbringscompaniestoincreaseproductivity,toexpand,toinnovateandtocreatejobs.Inshort,itrecognizesthatthemarketforcesarethemostefficientgeneratorofprosperity.Historically,thisunderstandingofmarketcompetitiondidnotseempopularatall.Therefore,marketcompetitionisadiscoveryprocess.Theauthoremphasizestheimportanceoffreetradeandtheachievementsithasmade.Thecountriesthatareopentointernationaltradebenefitalotmorethanthosethatsealthemselvesofffromtheglobaleconomy,andpeopleinmanycountriesoftheworldhavebeenliftedoutofpovertyjustbecauseofthefreetradepoliciesadoptedbytheirgovernments.Thepointtheauthorwantstomakeisthatanationbenefitsfromopeningitsmarketsanywaywithoutnecessarilyhavingmarketsofothercountriesopened.Europeshouldhaveathoroughunderstandingofunilateraltradeliberalizationandregarditasitsbestpolicy.Anti-globalizationprotestersbelievethatglobalizationisarecentphenomenonthathasbeendrivenprimarilybyinternationalinstitutions.Asamatteroffact,globalizationisadevelopingtrendthatisunlikelytobereversed,becausemostcountriesintheworldhaveacceptedtheideaofeconomicfreedomandbecomefullyaware thatacountrybenefitsfromopeningitsmarketsregardlessofwhatothercountriesdo.Therefore,theimpactofinternationalinstitutionsonglobalizationhasbeendecidedlymodest.Thisrealityhastobeclearlyexplainedtoapublicthatisbecomingincreasinglyfearfulofglobalization.Tomakesurethatfreemarketswillcontinueto gain momentum,Europe should adopt the policyof unilateraltrade liberalizationbyabandoningthemercantilistassumptions,tacklinghead-ontheCommonAgriculturalPolicyandreformingthedisputesettlementmechanismintheWTO.Finally,Europeshould,inthenearfuture,holdmajorinternationaltrademeetingsinsomedevelopingcountriessothattheymayfeellessmarginalizedinthenegotiationprocess.Fillineachblankofthefollowingsentenceswithoneofthephrasesinthelistgivenbelow:Theprogramoffersnothingsignificantinthewayoffinancialcompensation.Theoilfieldsstretchacross32,000squarekilometers fromtheriversidetofootofthemountain.Hefailedtoliveuptothehighexpectationsof manyshareholdersandinvestorsalike.Thefirmtriestoavoidbeingignoredintheplayground,anditschiefstrategy,toclingtenaciouslytoitsspecialrelationshipwithChina.Thosewhotryto sealthemselvesofffromthedigitalworldwillcomeupinnumerableinconveniencesinfuture.Theirstrategyistoshiftfromideologicalconfrontationtotacticalcooperation.Thekeytoholdingontoacompany'semployeesis"workthatchallengesaperson'sintellect",whichisconsideredtobeoneofthe“hygienefactors”inhuman-resource.parlanceHeallegedlytookbribesof$2millioninexchangeformakingloans.Whattheyhavedoneislikelyto playintothehandsoftheirperceivedregionalrivals.Asateam,thetwopartiesgainedgroundandbecamenearunbeatable.Theyseemtohavenootheroptions,butbuyoffthefirmtoensurecorporateprofits.It'sasetofskillsthathasbecomeimportantforthemodernmanagercompaniesaresubjecttosecurityfromshareholdersandthepublic.subjectMatchthetermsincolumnAwiththeexplanationsincolumnB: A B fringegroup a)Asystemofeconomicdoctrinesadvocatingthatgovernmentsshouldregulateinternationaltradeinordergaincompetitiveadvantagesandbuildfavorablebalancetrade.3economicfreedom b)Anyactivitybyagovernment,grouporindividualtomaintainorrestoretheenvironmentforthebenefitoflivesintheglobeincludinghumans.5mercantilistassumptions c)Asocialgroupholdingmarginalorextremeviews,believingthecurrentsocietyisunfairandmustbechangedthroughextrememeansincludingviolence.1disputesettlementprocess d)Agovernmentpolicytoencourageexportofgoodsthroughlow-costloans,taxreliefforexporters,governmentfinancedinternationaladvertisingetc.7environmentalprotection e)Anationaleconomicstrategytobuildupadomesticeconomybyemphasizingthereplacementofimportsbydomesticallyproducedgoods.11marketcompetition f)Therightofindividualsandorganizationstopursuetheirownintereststhrougheconomicactivitiesundertheruleoflawwithoutinterventionfromagovernmentoreconomicauthority.2exportsubsidy g)Investmentbycitizens,firmsofthegovernmentofacountryinindustriesofanotherone.12marketsystem h)Proceduresrequiredtoinvestigateadisputeininternationaltrade,tomediatebetweenthetwopartiesconcerned,andtodecidetheoutcomeofthedisputecase.4anti-globalization i)Contestsinthemarketbetweenbusinessfirmsstrivingforagreatershareofamarketorforwinningthesamegroupofcustomers.6anti-dumpingduty j)Asystematicprocessinwhichtherearemarketplayers,mainlysuppliersandconsumers,whointeractandmakedeals.8importsubstitution k)Additionaltariffleviedonimportedgoodswhentheyaresoldtotheimportingcountryatapricelessthanfairvalueandarefoundtothreatenmaterialinjurytoindustryandmarketoftheimportingcountry.10foreigninvestment l)Agrassrootsmovementopposingtoglobalization,intendingtocounteritstrendandharmfuleffects,andtoreformunbridledcapitalism.9TurnthefollowingintoChinese:(在现实世界中他们常常相互竞争改变世界现状。”的风险。IanE.L.DavisDavis外的那些企业同时也使他们在当地超市购买的货物价格降低了。Davis补充说,商界的领袖们还必须要去体认全球化反对者的观点,并要采立一个全国医保系统。另外,他们还可以支持失业工人的再培训项目。PatrickCescau也赞同具体的行动比空ReadthefollowingtextandchoosethebestsentencefromA-Fbelowtofilleachofthegapsinthetext.Buttheyhavebravelydecidedtoabandonthetraditionaldressofthehostcountrytoshowthatdespitetheirdifferences,everybodycouldbemadetolookaridiculousforagroupphoto.Theglobalfinancialcrisishasalreadydoneitforthem.IfallofAPEC'smembercountriesparticipated—abigif—itscombinedannualGDPwouldbe$37trillion.ThelogicforcloserAsianeconomicintegrationisbecomingmorecompellingasintraregionaltradebecomesmoreimportantwhencomparedwithAsia'swiththeWest.Thistrendhasacceleratedsincethefinancialcrisis.SupplementaryReadingGlobalization:curseorcure?Itisimpliedbytheauthoratthebeginningofthearticlethat .TheUnitedStatesisthemostinfluentialforceinglobalization∨ThedominanceofUSdollarplaysakeyroleinglobalizationThe introduction of NAFT is regarded as most critical event globalization.OtherevensliketheopeningofChinaandIndiaismoreimportantglobalization.ThehigherefficiencyofproductionintheprocessofglobalizationisduetoallthefollowingEXCEP .outsourcingandeconomiesofscalecheaperlaborandverticalintegrationeconomiesofscaleandproductionoperations∨verticalintegrationandeconomiesofscaleAccordingtotheauthor,theaccusationsof“stealingjobs“byimmigrantsand“out-migrating capital and oursourcing jobs” by home companies lead to .reorganizationofproductionoperationstightimmigrationrestrictionsandcapitalcontrols∨laborandcapitalmigrationsbetterwagesandlivingconditionsWhatarethe“collateralbenefits”ofglobalizationfordevelopingcountries?Expansionofeconomicopportunitiesandemploymentforworkers.Increasedspecializationofproductionandexpansionofemployment.Expansionofemploymentandbettereconomicpolicymakingframework.Improvedfinancial,institutional,andcorporategovernanceandpolicymakingframework.∨Whoarethemainbeneficiariesofglobalizationindeveloping

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