Macroeconomics Thanks

1. What are the three basic questions every economy must address? 2. What is globalization? How does globalization affect your economic purchases? 3. Explain how a country may benefit from specialization and economies of scale in the production of its goods and services? What does this mean in terms of productivity? Please use the following table for questions four and five. Exhibit 11 The Extent of Globalization (exports/GDP) One way to measure globalization Is to look at the expon GDP ratio For the world economy and for most individual communes. the ratio of exports GDP has risen in recent decades Country 1970 1980 1990 2000 2007 Hnrnf- Iliuh Innimr- ('nuntrii-s United States 6% Belgium 52o Canada 23o France 16% Italy 16% Japan 1 1% Sweden 24% 50mg Middle Inc mm;- Countries Brazul 7o MeXIco 8% South Korea 14 Some Low Income Countries Chad 16% China 3% India 4% Nigeria 8% Exhibit 1-1 Textbook Media Press 2011 4. Using the above information what happened to the percentage of the Belgium economy that is involved in exports? What does this mean in terms of specialization for Belgium? 5. Consider a relatively small country such as Belgium with a relatively small economy. (: viii:) People in Belgium consume a range of manufactured products such as cars, televisions, refrigerators, computers, wireless telephones, and more. Would it be more productive for Belgium to try to produce these goods within the country, or to specialize in a few and trade with other countries for the rest of them? Explain