Posted: March 24th, 2017

Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources.

Answer the following question using economic theory covered in this lesson. Make sure you answer all parts of the question. Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures? If yes, how (explain using economic concepts and terms how it is occurring)?