11. Globalization or free trade. comment.

Globalization


Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.



Effects of Globalization

1. Improvement of International Trade.
2. Technological Progress.
3. Increasing Influence of Multinational Companies.
4. Power of the WTO, IMF, and WB5. Greater Mobility of Human Resources across Countries.
5. Civil Society.

referance- http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization



FREE TRADE


The act of opening up economies is known as "free trade" or "trade liberalisation." Trade liberalisation means opening up markets by bringing down trade barriers such as tariffs. Doing this allows goods and services from everywhere to compete with domestic products and services.






I am in favor of free trade. I believe free trade can give all firms a chance to produce and sell their products, disregarding the location of the firms. I understand that protectionism can benefit ones country by protecting the local firms from exported goods, because importing goods are not part of the GDP elements.
But free trade is a right.Any trade restraint is immoral a priori, since restricting the rights of sovereign consumers to purchase foreign goods is outside the scope of legitimate government.
Also, it increases the comparative advantage of the country,which gives countries to have specialization which could lead to increasing in exporting goods.
Another benefit of free trade is that by removing tariffs it could lead to lower prices for consumers and an increase in consumer surplus.