Explain the difference between deep and shallow economic integration in a global economy and illustrate each with a detailed example.
What will be an ideal response?
Ans: Varies. Shallow integration: single product was made in a single country; country’s government regulated its export and import of other goods into the country. International ties were looser and countries were less interdependent. Deep integration: modern global economy, multinational corporations, products are made of raw materials or parts from a spectrum of countries, management or engineering may be headquartered in one country, sales force, customer service resides elsewhere.
KEY: Learning Objective: 15.6: Discuss the relationship between globalization and the U.S. economy.
REF: Cognitive Domain: Application
Answer Location: Global Economic Interdependence
Difficulty Level: Hard
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