Question

Read "Knowledge and Globalization" on page 375 in the textbook. Should governments take measures, legal or otherwise, that protect their economic advantages? Should they penalize companies that offshore manufacturing jobs? Should they forbid the sale of know-how to other countries? Should they adopt the Venetian model, or should we look at the world as one large economy for each worker where each organization should compete for a piece of the pie regardless of national borders - so that consumers everywhere can enjoy products of the highest quality for the lowest possible price?

Answer 1

Step-by-step explanation:

(A)

Governments should take measures -legal, fiscal, monetary, social, etc - to protect their economic advantages.

This is the reason for Ministers of Finance. A country should know the goods and services in which it has competitive advantage of production or supply or quality. The government should develop policies and tactics to protect this advantage.

(B)

Governments should only seldom penalize companies that offshore manufacturing jobs. Why? Because sometimes, it is necessary to offshore manufacturing jobs. Foreigners might have the exact expertise needed in that field. If the government however feels that foreigners are gaining traction in that sphere of the economy, they can create an avenue for their citizens to be equipped with the expertise.

(C)

No. Governments should not forbid the sale of know-how to other countries. The government should or could set a 'price floor' that is high, as the minimum amount at which the knowledge is to be sold. Sale of technological know-how is an important source of revenue so it should be encouraged.

(D)

Governments should adopt the Venetian Model.