Below is the topic I chose/ name of the book: M Economic the Basics:

Globalizationis the increasing exchange of goods, services, ideas, and people among countries. The United States imports cheese from New Zealand, television sets from Taiwan, fish from Ecuador, tires from Romania, clothing from Turkey . . . the list is almost endless.

But trade in manufactured goods and foodstuffs is only one aspect of globalization. More and more international tradeboth exports and importsconsists of intangible services. For example, when you call customer support for your new computer, you may get routed to a call center in India. The services of those Indian customer representatives are being imported into the United States or wherever you might be located.

Global flows of informationideas, research, entertainment, and other forms of communicationhave vastly increased as well. Many more people are also crossing international borders for business, for tourism, or to immigrate permanently. The number of international travelersnot including immigrantsrose by 45 percent from 2006 to 2016, the latest year of data available.

Why are countries so much more interconnected these days? Technological change is one reason. It is now possible to communicate from virtually any spot on the globe to virtually any other spot at almost no cost. If a retailer like Walmart in the United States is running low on, say, size 12 jeans, it can immediately flash a new order to a clothing factory in China, Thailand, or wherever the production is done.

Technology by itself, however, is not enough to explain the pull of globalization. Most people accept that being open to the global economy brings enormous advantages. Incomes in countries such as Korea, China, and India started rising at a rapid rate only when they focused on becoming exportersthat is, when they produced what the rest of the world wanted.

For a rich country like the United States, a big benefit of foreign trade is access to cheaper goods and services. The price of clothing to American consumers has fallen by 6 percent since 1995, mainly because of soaring imports from low-cost producers overseas. In addition, a global economy greatly expands the size of the potential market for exporters. Companies such as Boeing and Intel, the giant U.S. semiconductor manufacturer, get much of their revenue from outside the United States.

Globalization also acts as a reality check. In an economy walled off from the global economy, it's easy for companies and workers to grow complacent and sluggish. Foreign competition shakes things up, forcing everyone to try harder and to look for better ways of doing things.

Page 7

Of course, the impact of the global economy is not all positive. Foreign competition can wipe out jobs at home, force down wages and profits, and cause deep-seated insecurity. The flood of cheap imports in recent years, while clearly benefiting American consumers, has ravaged manufacturing industries in the United States, eliminating millions of domestic jobs.

In response to such effects, it's tempting to pull up the drawbridge, close the gates, and pretend the outside world doesn't exist. In 2018, President Trump raisedtariffson a wide variety of imported goods, including steel, aluminum, washing machines, and solar panels. He further raised them in 2019.

Now, the United States is a big country; in theory, U.S. factories could produce almost everything we import today, from toys to clothing to computers. Moreover, the stunning rise in domestic oil production in recent years has greatly lessened the U.S. dependence on oil imports.

Yet today, every successful national economy is tied into the broader global economy. Closed economiesthat is, ones that are cut off from the rest of the worldmay do better in the short run, but history shows they quickly lose their vitality and fall behind. Over time it has become clear that countries that are open to international trade do better than those that are isolated (see "Spotlight: The Chinese Economy").

SPOTLIGHT: THE CHINESE ECONOMY

If you check the label on your clothing, there's a good chance it will say "Made in China." The same is true for many smartphones, laptop computers, toys, motorcycles, appliances, and all sorts of other goods.

Forty years ago, it would have been almost impossible for you to find anything in the United States that was made in China. In 1978, China was the most populous country in the world, with a billion people. But it was also one of the poorest countries, barely able to feed itself and certainly possessing no ability to compete economically with the United States.

Since then, China has undergone one of the great economic transformations in history. Starting in the late 1970s, the government relaxed some aspects of its control over the economy, encouraged markets, and took steps to foster trade with the rest of the world.

The result: Despite ongoing trade disputes with the United States, China is now the largest global exporter of goods. Perhaps more important, many Chinese are far better off than their parents were 30 years ago. The country still has poor regions and political unrest. The rapid growth has also caused problems like severe air pollution in Beijing and Shanghai. But China is a global economic success story.