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Seminar paper from the year 2011 in the subject Economics - International Economic Relations, grade: A, University of Cambridge, language: English, abstract: Free trade in a liberalized market is basically about achieving easier trade since it allows the market to balance the needs, demand and supply. On this note, globalization integrated with free trade has been an economic debate during and after recovery from World War I and II. On the global scale, the idea of globalized market has been facilitating international trade activities. However, based on its various policies and principles, the…mehr

Produktbeschreibung
Seminar paper from the year 2011 in the subject Economics - International Economic Relations, grade: A, University of Cambridge, language: English, abstract: Free trade in a liberalized market is basically about achieving easier trade since it allows the market to balance the needs, demand and supply. On this note, globalization integrated with free trade has been an economic debate during and after recovery from World War I and II. On the global scale, the idea of globalized market has been facilitating international trade activities. However, based on its various policies and principles, the free trade has negatively been perceived due to its various economic, environmental, social and political impacts that portray very different implications of free trade. Consequently, various protests, like Seattle in 1999, have been witnessed against the way its principle and policies are formulated and implemented. As much as globalization and liberation of international trade may be seen as presenting various benefits to the world economy, this idea is greatly opposed based on the way it has contributed towards inflicting poverty upon people, poor principles and inequality. Therefore this essay will evaluate and discuss various pros and cons of this ideology, while supporting the opposition statement; it has brought more harm than good. In this regard, the essay will cover employment opportunities, Infrastructural development, Mercantilism, Interdependence, Workforce, Culture and environment. Employment opportunities- Globalization and liberalization of international trade has made it possible for international companies, organizations and investors to initiate business activities in other countries. On this note, citizens of receiving countries have been able to secure jobs (Amiti and Wakelin, 2009). As a result, the economy of such countries is increased thus contributing to overall increase in the world economy. However, it has been established that majority of international investors, especially western companies investing in African or Asian countries; prefer to work with cheap labor to working with costly workforce in the west (Markusen & Venables, 2008). So if this is the case, then it implies that liberalization of international trade can be held accountable for poor economic growth or economic levels of developing countries. In connection with this, whenever these developing countries experience slower economic growths, even the global economy must experience the same effects as continuously been reported in world economic survey reports.

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