Is Free Economic Interchange Beneficial?
Is Free Economic Interchange Beneficial?
Introduction
Globalization together with free economic trade, are accepted today as something if not inevitable, then at least natural. Numerous researchers from organizations like the International Monetary Fund (IMF), World Trade Organization (WTO) and others publish their research papers annually, aiming to justify and show the benefits of globalization, and free trade as part of it. On one side, world history of trade remembers when free economic interchange exacerbates for existing distortions and harmed social, economic, and environmental protection of the poorer partner of trades. Security of a country could suffer from free trade as well, free trade would lead to 'interdependence', which could, in turn, hamper a country's independent pursuit of its national interests; also, other countries could use trade as leverage over one's country. Can free economic trade help providing development capital? If the answer “noâ€Â, the free economic trade could not be beneficial in general. Diversification and specialization – are they advocating against or for free trading? The strongest advantages of globalization are conflict inhibition and promoting democracy. However, would they be enough to start voting for it? Protecting the domestic economy is closely aligned with anti-globalization. It is a time now to analyze both sets of arguments and determine the truth about whether free economic interchange beneficial and if yes then for whom it is beneficial.
Pros and Cons Example of first free trading relationship between United Kingdom (UK) and China serves as vivid illustration how richer countries might actually benefit more from free trade and therefore, the gap between rich and poor could increase. “In the nineteenth century, for instance, the leading nations such as Britain grew at an average annual rate of 1.5 percent per capita.†(Welsh, p. 197) How did that occur? The nineteenth century
Introduction
Globalization together with free economic trade, are accepted today as something if not inevitable, then at least natural. Numerous researchers from organizations like the International Monetary Fund (IMF), World Trade Organization (WTO) and others publish their research papers annually, aiming to justify and show the benefits of globalization, and free trade as part of it. On one side, world history of trade remembers when free economic interchange exacerbates for existing distortions and harmed social, economic, and environmental protection of the poorer partner of trades. Security of a country could suffer from free trade as well, free trade would lead to 'interdependence', which could, in turn, hamper a country's independent pursuit of its national interests; also, other countries could use trade as leverage over one's country. Can free economic trade help providing development capital? If the answer “noâ€Â, the free economic trade could not be beneficial in general. Diversification and specialization – are they advocating against or for free trading? The strongest advantages of globalization are conflict inhibition and promoting democracy. However, would they be enough to start voting for it? Protecting the domestic economy is closely aligned with anti-globalization. It is a time now to analyze both sets of arguments and determine the truth about whether free economic interchange beneficial and if yes then for whom it is beneficial.
Pros and Cons Example of first free trading relationship between United Kingdom (UK) and China serves as vivid illustration how richer countries might actually benefit more from free trade and therefore, the gap between rich and poor could increase. “In the nineteenth century, for instance, the leading nations such as Britain grew at an average annual rate of 1.5 percent per capita.†(Welsh, p. 197) How did that occur? The nineteenth century