Final answer:
The determinants of trade theories include factor endowments, technology, demand conditions, and related industries. Globalization has both pros, such as economic growth, and cons, like inequality. The IMF and World Bank remain relevant despite criticisms, serving important roles in the global economy.
Step-by-step explanation:
Determinants of Trade Theories
The four determinants that link together the various trade theories are: factor endowments; technology; demand conditions; and the presence of related and supporting industries. An example of how these determinants connect can be seen in the automobile industry where a country's advanced technology, high demand for vehicles, skilled workforce, and a strong network of suppliers and infrastructure play a crucial role in its competitive advantage.
Globalization Debate
Pros of Globalization include increased economic growth, access to new markets, and the spread of technology. Cons of Globalization include the widening inequality, loss of cultural identity, and environmental degradation. Each point has nuanced implications on society and economics, affecting different stakeholders in various ways.
The IMF and World Bank
The International Monetary Fund and the World Bank were established to rebuild the international economic system post-World War II and to promote international monetary cooperation and financial stability. The challenges they face include accusations of promoting a one-size-fits-all approach to economic policy and contributing to debt burdens in developing countries. Despite these challenges, they also provide crucial financial support and guidance to nations. The debate over their usefulness continues in the face of evolving global needs.
Based on their purpose and the challenges and benefits they present, it is my view that while both institutions have areas for improvement, they still serve significant roles in the global economy. Therefore, I disagree with the statement that they have outlived their usefulness.