There are many arguments both for and against both free trade and protectionism. There are some that say that free trade should rule the day and that the market can regulate itself. There are others that suggest that the market is an immoral mess and/or that countries should be allowed to protect their national and economic interests if and when it becomes necessary. This report will talk about the pros and cons of each thought process and offer an overall opinion at the end. While free trade is generally the better course of action to follow, there are times… Continue Reading...
T-TIP for short, with the European Union. Finally, there are broad-based agreements that involve free trade such as the North American Free Trade Agreement (NAFTA) and a few others that are noteworthy (USTR).
Benefits of NAFTA
As far as whether the NAFTA agreement benefits the United States, the answer is dependent on one's perspective and ideas about outsourcing and the shifting of manufacturing. To use the perspective of the United States in particular, the outsourcing of jobs to countries like Mexico has hit the unskilled manufacturing sector rather hard. However, it has been a boon to American companies in terms of their bottom… Continue Reading...
comparative advantage. They conclude that this means that Mexico benefits, but that is not quite right. The objective of global free trade isn't to "win" each pairing by way of having a surplus over a country. The objective is to deliver greater economic efficiency, in terms of greater availability of goods at a lower cost. Persistent trade deficits are something that should be avoided, of course, but a nation is not expected to only have free trade agreements with one or two countries.
Indeed, when one juxtaposes the rhetoric of the Trump Administration – and not to put all the blame on them but other administrations in the past on… Continue Reading...
an OPT in the sense that such deals are not supported by trade theory, that free trade should be fostered. However, there are specific political and social goals that the EU is serving with the OPT policy. For one, it staunches the flow of low-skilled labor from poorer EU nations into wealthier ones, which will help those countries maintain a greater degree of fiscal and social stability. Further, OPT helps the new EU member win immediate gains from membership, something that is likely to bolster political support for the EU in that nation, and likely others as well. So in the short run, OPT is… Continue Reading...
Mercantilism proposes that a country could only increase its wealth from external trade if it had a trade surplus. The specializations theory asserts that free trade motivates nations to specialize in the manufacture of goods and services they can produce through the most efficient level of production. Lastly, the Factor Endowments theory outlines that countries predominantly export goods and services that largely utilize their abundant factors of production. In the contemporary, there are both socio-economic and geo-political justifications for managed trade. These include protecting local infant industries, health and safety reasons, avoiding creation of export cartels and also outlining any questionable labor practices.
Chapter 3
In summary, this chapter elucidates regional economic integration, how… Continue Reading...
free trade or protectionism flourish in the future? The question is posed by VanGrasstek (2013) of the WTO itself—and the answer is not easy to discern. The growing body of nations that want to participate in trade around the world has essentially given the lie to… Continue Reading...
global opium trade as well. Even prior to the newfound hunger for opium, the British sought free trade with China, evidenced in these letters. Yet as the tone and content of these two documents show, China had little to gain from doing business with Britain. China’s concept of international diplomacy also seems qualitatively different from that of the British, although these two British documents naturally offer only a one-sided view of the situation. The conciliatory tone in these two documents shows that Britain was indeed in a subordinate position with regard to establishing bilateral trade agreements. Trade imbalances, as well as stark cultural differences and divergent… Continue Reading...
free trade can unleash, as it can minimize taxes and tariffs, something that isn’t often true in real life. Many G20 nations have continued to add 1200 more restrictive export and import measures in the last 10 years (Collins, 2018). Regardless, those who see the benefits of globalization argue it represents free trade which can’t help but create global economic growth, the creation of jobs and drives competition between companies, ultimately lowering prices for consumers (Collins, 2018). However, the caveat attached to this advantage is that nations manipulate their currencies… Continue Reading...
anti-globalization perspective center on the notion that almost all neoliberal policies that sustain globalization and free trade are designed to benefit corporations and centralize capital accumulation rather than distribute profits equitably to achieve goals of global equality. Capitalism and neoliberalism also undermine the power of governments to provide sustainable growth policies domestically, as governments collude with multinational corporations and international financing groups like the World Bank. Hart-Landsberg (2006) offers some specific examples from China, India, and Southeast Asia, and also provides some quantitative measures to substantiate the primary claims.
In “Three Cheers for Global Capitalism,” Norberg (2004) takes the polar opposite approach to the globalization… Continue Reading...
of marketplaces. Globalization tends to encourage free trade agreements, and free trade facilitates globalization. Yet globalization has not impeded or undermined national sovereignty and regional coalitions. Globalization is not Americanization because Americans—and the nation of the United States—are as dependent on other countries as they are on it. When Dyreson (2013) points out that the “promotion of American visions of affluence” has led to the popularity of Olympic sports like beach volleyball and snowboarding, he ignores the equal and even more transnational and enduring popularity of other sports on the Olympic roster like martial arts and… Continue Reading...
behaviors through persuasions, lobbying and shaming. Constructivism also identifies international bureaucracies as the critical entities that pursue their interests through human rights protection and free trade against wishes of the states, which created them.
Additionally, the post-cold war discourse in international relations offers various approaches to understanding the international system. The constructivist theory has been identified as one of the examples of international relations theories revealing the dynamic of world politics. The constructivist's theory focuses on the materialists and neorealism that reveals on the distribution of power that includes economic capabilities, and military forces. (Hurd, 2008). Constructivists theory also explains the state behavior and balance of power between states. (Nugroho, 2008).
After the… Continue Reading...
