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Sample Essay on Globalization of Free Trade

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Sample Essay on Globalization of Free Trade

The subject matter presented revolves around the effects of global free trade system on states’ economic stability and financial survival. There is a general belief by political and social activists that consumers are directly affected by free trade’s principles, policies and practices.  They observe that the venture is bias as it causes the rich to be richer and vice versa. In terms of national economic dimensions, globalization of free trade is an item for the developed countries used for exploitation of developing countries.

But who is to blame for the success of the trade mechanism?

 Survival of any economic venture is consumer dependant.  This means that activities of global free trade are enhanced by the positive responses from target consumers.  Due to availability of market, global free trade enjoys shopping and availability of cheap labour thereby causing unhealthy competition and corporate greed. For instance, in developing countries, workers are grueled, low paid and exposed to dangerous jobs.  Advocates of free markets and corporation assert that such incidences are common as giant product factories are built in areas with cheap labour and few business regulatory measures. Good examples are the re-establishments of the assembling plants for Whirlpool, Coca-Cola, Ford, RCA and General Motors from U.S.A to Mexico.

It is important to note that such moves impacts negatively on the local economic policies, as proliferation of cheaply manufactured goods into a country causes stiff price competition on the locally produced goods, leads to high rate of unemployment due to jobs outsourcing and reduced wages.

On the government platform, the economic approach is self perpetuating as big money distorts political systems through lobbying for political support and enactments of favorable laws and policies.

Therefore, what is the way forward?

On the option as to whether governments should control citizen’s economic opportunities, advocates and corporate leaders are reluctant, arguing that markets have operational dynamics for self regulation.  It is true that government’s intervention will spike global competitiveness.   Nigel Sheinwald opposes this move, claiming that shielding of domestic industries would lead to nurturing unsuccessful companies, endanger open markets and emergence of trade wars.

In conclusion, global free trade is deeply rooted in the current economic arena. Big economies still have upper hand in manipulating developing economies. Therefore, as a mitigation measure, individual states need to adopt a quick mechanism, characterized by quality industrial service provision, for self economic sustenance.


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