Marc Levinson

Chapter One of the Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson,

Available online at http://press.princeton.edu/chapters/s9383.html

1). Identify a selection from this chapter that you found particularly interesting and explain why you selected it.

Marc Levinson’s article is very interesting in that it made me think about how transporting good can affect the economy. I never really pay attention to where we get certain products and how did a product travel half way across the country. I thought that transporting goods is interesting in that “A 35-ton container of coffeemakers can leave a factory in Malaysia, loaded aboard a ship, and cover the 9000 miles to LA in 16 days.” This made me think about how the world has change so much over time and how globalized the world have become. Trades has always been a fascinating topic for me because imports and exports are interesting to see where and how much of a product is and how everyone can have the product even though it is not from the same place they lived in. Another thing that I found to be interesting is that when products and goods are loaded onto a large truck, it get shipped to its next destination not allowing anyone to see or touch the goods and this is interesting because “containers can be just as efficient for smuggling undeclared merchandise, illegal drugs, undocumented immigrants and terrorist bombs as for moving legitimate cargo” and no one will know. This makes me wonder if the black markets also work this way when it comes to shipping their goods.

2). How does the author see the development of the shipping container contributing to globalization?

The development of the shipping container contributes to globalization because they allow the world to trade goods shipping from one country to another easily. These containers also save time and is quickly handled. “The containers are at the core of highly automated system for moving goods from anywhere, to anywhere, with a minimum of cost and complication on the way.” The containers allow consumers from different country to have access to the goods and this makes the world more globalized.

3).What short run impact did this innovation have on national income and employment? What would the long-run impact be? Explain.

In a short run impact, it can increase the GDP because if net export increase then it will cause the consumption, investment and government to also increase. On the supply and demand graph it will affect the supply line causing an increase in supply shifting the curve to right. This will cause a decrease in prices and increase in quantities. 

GDP ↑ = C + I + G + NX↑






In a long run impact, there will be a little increase in resources because of the amount of good flowing into the country. However, the shipping containers do not really impact labor or natural resources. Although in capital, it will increase money supply and help the economy in a long run.


Work Cited

Levinson, Marc. "The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger." Princeton University Press. N.p., n.d. Web. 19 Apr. 2012. <press.princeton.edu/chapters/s9383.html>.