Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 words

wad Case Studies - Assignment ExampleThe models of mess developed by Paul Krugman can also let off intra-industry duty as an outcome of economies of scale, monopolistic competition, and consumer preference for product diversity. The development in the field of geography led to his work crediting especially since it helps to explain the core periphery pattern of urbanization and migration as witnessed in much of the world. Also, Paul Krugman has made noteworthy contributions to the research on strategic policies of trade and currency crises.The trade businesses which have trade patterns that conform to Krugmans theory are clothing, shoes, restaurants, and service businesses in major cities. The trade patterns conforming to Krugmans theory exhibited by these businesses show that the costs of production reduce with increasing merchandise prices resulting in lower equilibrium prices for the products.Globalization can have challenging drawbacks to some countries in the world. First, the importee of cheap products from developing countries could lead to high levels of unemployment in developed countries due to the high costs of production. Secondly, the speciality in particular products by some countries could lead to unemployment in other non-prioritised sectors of the economy. Finally, globalization has led to utmost(prenominal) competition for upcoming businesses in developing countries and the Dumping of goods below the cost of production price harming the businesses in those countries (Perloff, 2004, p.7). Globalization as a world issue of concern has had a positive effect on my life due to the creation of a free trade zone, elimination of trade restrictions such as trade tariffs, a wide range of products and services to choose from, and reduction of transportation costs, for example, the cost of merchant marine for goodsThe ignorance of the possible job losses in the