Global Free Trade should be followed by all the countries

Global Free Trade should be followed by all the countries

Globalization has become a significant part of countries. Globalization and free trade are considered positive for the economies but the way things are shaping up from last few years have brought the two aspects under scrutiny. The powerful nations are keen to use the policies for their own benefit. In the democratic countries elected leaders are seeking policies to fulfill their own interest. In such a scenario is it wise to support the global free trade?

Yes

• Global free trade is always positive for two countries. When two countries enter into a mutual beneficial relationship then the probability of war is reduced.

• Each and every country has its own distinct strengths. They should make use of their strength to make a place in the global economy. It is going to strengthen the global economy.

• Free trade leads to increase in efficiency of any economy which can be used to create the demand ultimately resulting in reducing poverty.

• Free trade was initiated in China in 1980s and in India it was started in 1990s. The global free trade allowed the companies to grow at a much faster pace.

No

• It is not the global free trade that makes a country liberal. But it is the liberal countries that choose to accept the global free trade policies as there are hardly any chances of war.

• The under developed companies are unable to make use to their resources to make a niche in the world economy. They are only left with the option to supply raw material to the developed economies.

• Free trade does not guarantee reduction of poverty. There is no evidence as to where the funds coming from global free trade goes to. Often it’s seen the poor gets poorer and the rich gets richer.

• Global free trade makes use of the opportunity and it sometimes comes at a high cost. It can hurt the economy of poor countries or can reduce the job opportunities in such countries.

Conclusion

Global free trade may benefit many countries but it does not imply that it is beneficial for all. The global free trade might provide many advantages; still the greatest drawback comes with global free trade. It hurts the poor countries and this drawback overshadows all the benefits of global free trade.