ipl-logo

Advantages Of Globalization In Ecuador

922 Words4 Pages

Globalization in Ecuador

The definition of Globalization according to “Business dictionary” means: The worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.”

“Investopedia” define Globalization as “the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby …show more content…

One if the greatest advantage is transferring new technology between countries, which is incredibly beneficial for the development of nations. One of the biggest disadvantages is precisely when easy access to incoming technology is not allowed. Take for instance Ecuador, a developing country, which products cannot compete with those from developed countries in terms of quality, advanced technology, know-how, and price.

In order to stimulate local consumption and decrease the amount of money transferred abroad, Ecuador’s government has set several policies, which has considerable effect on imports. Some of those policies are: imports quota and tariff safeguards.

Ecuador is experiencing an economic crisis since a couple of years ago due to the decrease in price of oil, which in 2014 was record ear USD 105,24 and by early 2015 it dropped to USD 47,5.

The reason behind the decision of applying safeguard measures is to regulate the imports and stabilize the Trade Balance. Another big factor that has impacted the Ecuadorian economy is the appreciation of US dollar; this has a negative effect because the price of Ecuadorian products exported to European and Asian markets increases and are no longer competitive against other …show more content…

When first applying the safeguards, one of the official statements was “consumers will not be affected and the increase in costs will be absorbed by the importer or business”. This statement was wrong, in the end there was an increase in price for the consumer. What worry consumers at the moment is that 15 months have already passed and safeguards have not disappeared they only have been reduced by 10%, even though the price of goods have not decrease at all.
- There has been an increase in the price of final goods produced by domestic companies due to the increase in final cost of imported raw materials affected by safeguards. This issued is biased, why did the government tax raw materials? Was not its intention to reduce imports and promote domestic production?
- In addition to the above, this measure caused discontent among countries with commercial ties with Ecuador, especially from CAN (Andean Community) Members. Business representatives from Peru and Colombia expressed their concern and demanded their government act in reciprocity imposing similar barriers to Ecuadorian

Show More
Related

Analysis Of The Battle Of Fort Fisher And The Wilmington Campaign

848 Words | 4 Pages

The purpose of the Staff Ride was to provide background and context of the circumstances of the Civil War that lead to the Wilmington Campaign while conducting extensive site visits of the Battle of Fort Fisher and the Wilmington Campaign. Through preliminary study and comprehensive discussion of the field study, the class learned about the strategies, plans, battles, and leaders of the Battles for Fort Fisher and the overall Wilmington campaign, from both Union and Confederate perspectives to included successes and failures. Analysis during the Staff ride, integrating information gained through preliminary study and field study enabled the class to better understand the successes and failures of both sides and the resulting outcomes’

Read More

How Did Chiquita Lose From The Eu Common Policy?

367 Words | 2 Pages

The EU common banana policy aimed to protect the European preferred banana producers from competition of the dominating international firms. These producers are in former colonies of European countries or European territory. Through the assistance of the policy, those countries' economies benefited since they are heavily dependent on their banana industry. On the other hand, Chiquita lost from the EU common policy because the restrictions were placed on producers in Latin American countries, which is where Chiquita grows most of its bananas. The trade barriers caused Chiquita to incur large costs from trading with Europe and limited the amount of bananas that Chiquita could export there, which caused Chiquita's net income to plummet and lose

Read More

The Creoles: The Latin American Revolution

672 Words | 3 Pages

Alan knight explains "In 1808-1809 drought produced a great mortality among Mexico 's livestock and decimated [destroyed] the harvest... Food prices tripled. As in the past, agrarian [agricultural] crisis soon affected the rest of the economy." [[[[{{{}}}]]]] As Juan Pablo Viscardo said in his An Open letter to America “The Spanish restrictions on travel and commerce sealed America off from the rest of the world limiting our basic personal and property rights… we in America are perhaps the first to be forced to be forced by our own government to sell our products at artificially low prices and buy what we need at artificially high prices.” [[[[[]]]]]]] These Economic problems only added to the Creoles anger towards

Read More

President Nixon's Influence On Chile

1143 Words | 5 Pages

American wanted to ensure Chile did not move towards enforcing funding on trades or stop the authorization of America business ventures. President Nixon ordered for ways to cut off earnings to the Chile, by considering the means of limiting their main way of profit. Nixon begin to take steps towards gradually cutting off any possible profit going to the Chilean people. Washington’s strategy was essential to, because they were aiming to at weaken to the main components of Chiles make up first, in order, to weaken the country as a whole. America held an “invisible blockade” on Chile restricting them of what they relied on most for the constructing of their economy.

Read More

Pros And Cons Of Globalization In Colombia

954 Words | 4 Pages

The representation of the interests of Colombia is participating in the negotiations, the dispute settlement processes in our interest and in meetings in which are discussed issues regular administration and enforcement of the WTO agreements. Colombia expressed its interest directly through formal and informal groups that there is common interests. Coalitions are formed depending on the issues and national interests, this explains why they are not always integrated by the same partners. " This openness and trade liberalization has led to the importation of products, where the agricultural sector has been one of the most disadvantaged for reasons that hinder their good development as the high cost of supplies for cultivation, armed groups, drug trafficking and the lack presence of government support programs and plans to increase the safety and permanence of the rural population in agricultural

Read More

Executive Summary: The Conflict Between Chile And Bolivia

1355 Words | 6 Pages

It stopped the mineral exportations and set the prohibition of new taxes of any kind during the next 25 years. During this year Bolivia insisted on his position and the government of Chile, trying to find a solution to the dispute showed interest to consider a boundary treaty between both countries. But Bolivian internal political problems prevented further progress of these negotiations. The abundance of guano in the region, that was substituted for salt and later by copper was the main reason of the “War of the Pacific”.

Read More

Dichotomy In Latin America

1569 Words | 7 Pages

Peru could face problems adopting the norms, regulations and values of Mercosur (Bakker 50). The asymmetry of the bloc is observable when disagreements within Mercosur endanger internal integration as national interests are placed before regional unity (Bakker 10). So even though Mercosur dreams of a deepening of regional economical integration, it dreams are shattered by its internal weaknesses. It is this weakness that withholds

Read More

How Does Globalization Affect Venezuela

509 Words | 3 Pages

Globalization impacts pollution in Venezuela in many ways like to the economy, people health, and to their necessities. The condition of the economy is very awful because everything is being polluted. The people’s health is affected by the economy which is killing the people. The people necessities are being affected because their is barely products in the markets for the people to buy what they need. My solution is to build some factories in the country of Venezuela and place these factories far away from the city Venezuela or any other town/city so it wouldn’t affect the people and the economy they live in.

Read More

Cultural Changes In Ecuador

1129 Words | 5 Pages

Vehicles, medicines, telecommunications equipment, and electricity are the main imports. The United States, Colombia, Peru, Venezuela, and Brazil are its chief trading partners. During the 1980s and 90s, Ecuador 's leaders imposed austerity budgets on the government in an attempt to stimulate economic growth. The country experienced an economic crisis in the late 1990s, but began recovery early in the 21st cent. Ecuador is a member of the Andean Community, an economic organization of South American

Read More

Positive And Negative Effects Of Globalization In Spain

837 Words | 4 Pages

Globalization is becoming the latest trend of the worldwide development and affects every single country, including Spain, with positive and negative effects. Spain is located in Southwestern Europe, which is the root of globalization. In the 15th century, some of the royal members from Spain commanded their sailors to travel the world to seek gold and other new trade routes; this action was regarded as the great geographical discovery and firstly developed the relation between the eastern and western countries. From 1959 to 1986, within four processes of liberalization Spain had become one of the most open countries; the openness ratio had increased 18.5% during the 13 years. Moreover, in 1986 Spain joined the European Union, one of the most powerful political and economic organizations, which help the rapid growth of economy in Spain (Aninat, 2001).

Read More

Organized Religions Should Or Should Not Speak Out On Globalization And Major Socio-Economic Issues.

876 Words | 4 Pages

It is the interaction among different governments, peoples and companies. Globalization depends heavily on international trade, investment and information technology (“What is Globalization” 1). In

Read More

The Good Life In Ecuador

307 Words | 2 Pages

In Ecuador, the communities believe that a good life is composed of humanly factors but also naturist factors. They have an idealistic view of the good life, for them, it refers to living in harmony between themselves and living in harmony with the earth and nature. On the other hand, many Americans believe the good life is living “the American Dream” which is made up of freedom, success and achieving one’s personal potential. Every person has an ideal of the good life because it is a very broad term and, depending on their own way of living and personal experiences; the term gets shaped into a more specific ideal.

Read More

Summary Of Confessions Of An Economic Hit Man By John Perkin

922 Words | 4 Pages

Same was the case in Ecuador- an oil rich country. Jaime Roldes opposed US oil firms’ presence in the country and tried to expel them. He announced in clear words that ‘We must take effective measures to defend the energy resources of the nation. The State must maintain diversification of its exports and not lose its economic independence. Our decisions will be inspired solely by national interests and in the unrestricted defense of our sovereign rights’.

Read More

Pros And Disadvantages Of International Trade

906 Words | 4 Pages

DRAWBACKS OF INTERNATIONAL TRADING Drawbacks of international trade extent from negative social effects to opposing environmental consequences. Occasionally the well-being of people is overlooked or risked for the sake of return on investment. Other issues related to the exchange of services and goods between countries include a potential unsafe need of foreign countries and local occupation losses. There are social hindrances of international trade. While experience with other cultures can be an advantage, it can also be damaging.

Read More

Mankiw Principle Of Economics Analysis

1323 Words | 6 Pages

During the Chavez’s regime key items such as, medicine and food were reduced. Goods were still affordable but below the cost of production. Firms were expropriated, and the government limited access on dollars in order to prevent people from changing Volivards to dollars. Due to the restrictions on Venezuela’s economy, the market malfunction making firms unprofitable to produce goods. As the country experienced shortage in goods, the government relied on the oil revenue.

Read More

More about Advantages Of Globalization In Ecuador

Related Topics

Open Document