Discuss the Challenges Presented by an Increasingly Global Economy

question 48

Essay

Discuss the challenges presented by an increasingly global economy. Should the United States commit itself to free trade, or should it provide protections for the domestic industries on which its citizens depend? How much say should international organizations such as the WTO have in determining America's economic policies? Do the trends of economic globalization and possible environmental catastrophe make it inevitable that the United States will have to forfeit some degree of its sovereignty in the near future?

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Definitions:

Nash Model

A concept in game theory where each participant's strategy is optimal given the strategies of all other participants, leading to a situation of equilibrium.

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Bertrand Model

An economic model of competition among firms that compete by setting prices simultaneously.

Payoff Matrix

A table that shows the payoffs for each player in a game for every possible combination of actions by the players.