This website uses cookies to ensure you have the best experience. Learn more

Globalization: A Free Trade Phenomenon Essay

1063 words - 4 pages

Globalization is “the integration of states through increasing contact, communication and trade to create a holistic, single global system in which the process of change increasingly binds people together in a common fate” (Carey 2002). Some economists recognize globalization as being in the best interest of all states. While others believe that increasingly liberated trade and global economic interaction is necessary in many ways. While globalization marks a move toward a more open world-trading regime, it can also be linked to strains on sovereignty, worker’s rights, and the environment.
“Issues of globalization and free trade are surrounded by heated debate and controversy. Problems with contemporary free trade are rooted mainly in the General Agreement on Tariffs and Trade” (Brady 2002), which was established in 1947. The General Agreement on Tariffs and Trade, commonly known as the GATT, instituted guidelines for international trade. These rules and regulations included establishing normal trade relations with all states, restricting non-tariff barriers to trade, restricting unreasonable technical limitations on imports, lower tariffs, and eliminating subsidies and dumping. Over time, the nations affiliated with the GATT began resembling a regime; however, “there were still various issues that the agreement did not address” (Brady 2002). For example, guidelines for the trade of agriculture, textiles, intellectual and cultural property, and services were not included in the GATT. This lack of regulation created problems in international trade.
After almost forty years, members of the GATT met to resolve the resulting problems. Finally, in 1994, the states came to an agreement in every area except textiles. “If there were to be free trade in textiles, many manufacturers in the United States would go bankrupt” (Smith 2002). Many states can produce textiles at lower costs then the US, and for this reason, American policy makers refused to come to an agreement on the trade of textiles. They realized that if they were to allow the free trade of textiles, it would be detrimental to a large portion of the American economy. What our politicians failed to realize is that these losses are only short-term. Over time, workers would be retrained and new jobs would arise. Nevertheless, strong opposition still existed, and no agreement was made.
Without resolution, the member states developed a new organization that was a manifest extension of the GATT. At the Uruguay Round in 1994, the member states of the GATT established the World Trade Organization. The WTO is governed by the rules of the GATT, however, the decisions it makes are binding, and member states are required to abide by its resolutions. Since its beginnings, the WTO has overseen international trade and has stimulated freer international trade across the globe. In addition, the establishment of the WTO has led to the formation of various other free trade areas across the globe. However,...

Find Another Essay On Globalization: A Free Trade Phenomenon

A Free-Trade Agreement Between the US and Europe

1745 words - 7 pages a main buyer. After a tariff reclassification in 1999, the Chilean price band system (PBS) resulted in higher customs duties of up to 64.41%, thus violating the limit set at 31.5%. As a result, this issue was submitted to the WTO . c) U.S and Europe A free-trade agreement between the United States and Europe has been elusive for years. However, with the recent election of President Barack Obama in 2012, European Leaders like Angela Merkel and

The Choice: A Fable of Free Trade and Protectionism

1065 words - 4 pages Book Review: The Choice: A Fable of Free Trade and Protectionism In the acclaimed novel, The Choice: A Fable of Free Trade and Protectionism, author Russell Roberts, an economist and writer, tells a fictional story that enlightens readers to the wonders of the economic system. Russell provides an insightful, thought provoking story that illustrates protectionism and free trade, while making the concepts and arguments easy to comprehend. The

Free Trade and The Global Economy/A comparison between the United States Chamber of Commerce and the AFL-CIO

1107 words - 4 pages that establishes unimpeded exchange and flow of goods and services between trading partners, regardless of national borders is the best definition of a free trade agreement. Free Trade Agreements (FTAs) can help a company enter and compete more easily in the global marketplace, by leveling the international playing field and encouraging foreign governments to adopt and maintain good rulemaking procedures. International trade is an integral part of

Question: "A bilateral free trade agreement between the USA and Australia is likely to be of only marginal benefit to Australian businesses." Evaluate this statement

2145 words - 9 pages A Free Trade Agreement (FTA) between Australia and the United States of America (USA) appears to present a unique opportunity to advance the interests of Australian business. However, to what extent would free trade benefit Australia? An FTA superficially seems to offer significant benefits to Australia in terms of employment and the expansion of Australian business internationally. However, major market access barriers face Australian exporters

The Meaning of Globalization

1806 words - 7 pages in the 1980’s and it grew so popular that the economic, political and cultural background of today is now described as “The Era of Globalization.” However, this term needs to be thoroughly clarified as it means different things to different people. To some, it is a natural phenomenon of wide-spreading economic, social, and political activities of different countries beyond their physical borders. In these people’s view, the increase in free trade

Globalization Has Destroyed the Middle Class

965 words - 4 pages company money. Today, thousands of American workers are also waking up to the stunning situation of unemployment as the result of their jobs being outsourced to foreign countries. This outsourcing phenomenon has been fueled by the recent trends in globalization, with the hope to cut cost and increase production. Globalization was intended to benefit the world economy, but the wage difference among different globalized countries has promoted a

Globalization: Advantages and Drawbacks

672 words - 3 pages , culture, security, and exchange between different countries have also been affected by globalization. There are numerous factors that lead to the speedy globalization trends. For example, the increase in free-trade activities throughout the nations, emerging technologies that are constantly advancing, and the worldwide acceptance of markets. All of said factors actively assist with our nation’s development. A major impact of globalization on the

Globalisation

1658 words - 7 pages AbstractGlobalization is a worldwide phenomenon where there is growth in the interconnectedness of the economies of the countries in the world. The signs of globalization can be seen from the increase in volume of international trade, the increasing number of trade agreements between countries, the growing interdependence between financial markets and more globalized workforce. More than just economic factors, globalization also has a great

IMPACT OF GLOBALISATION ON PAKISTAN

5468 words - 22 pages the creation of an unregulated international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people in poor nations. Since the phenomenon of globalization is controversial and it has influenced various countries in view of their peculiar set of circumstances therefore this paper ventures to analyze its impact on Pakistan's trade, investment, financial

Ant- globalization movement

3494 words - 14 pages worker's rights and opposing free trade etc."(Ratnesar et al, 2001).Future direction of the movementGlobalization is still a game that is so far only played by minority of authorities. Globalization cannot gain driving sources unless it is really connected with most civilians because only if people have found immediate interests and risks of globalization, the latter could be durative. Unfortunately, faced with the wave of opponents in Genoa, G-8

Knowledge Economy

1721 words - 7 pages drastically changed the working condition of the employees and on trade union. Given the prospects either knowledge economy, globalization or trade union each aspects have its own advantages and disadvantages. An important concern from the international point of view, given the shift of knowledge economy is a global phenomenon virtually affecting every economy around the world.Sadly the trade unions virtually had no stand against this drastic

Similar Essays

Thw Wto, Free Trade And Globalization

907 words - 4 pages Every one of us probably seen reports or heard something about demonstrations against globalization when international organizations like the WTO meet. One example was the G8 meeting in July 2001. We have to ask us the question why there are some people who protest against globalization and also against the free trade the WTO stands for.The main complaint and concern of these groups is unfairness. They say free trade is unfair, the low wages are

Free Trade And Globalization In The Wealth Of Nations By Adam Smith

1255 words - 6 pages In the modern world of contemporary economics trade liberilisation and globalization are constantly debated topics. One side of the arguing that free trade and globalization will lead ultimately lead to developing countries being alleviated of poverty and developed nation’s GDP will reflect an increase that would otherwise be unattainable. The other side of the argument however claims that there is already contrary evidence that the introduction

A Critical Analysis Of Free Trade

1511 words - 6 pages answer is right in front of them, reorganize and fix the free trade agreements in place. Free Trade is wrong for America and is the reason for outsourcing and the decline of our once great manufacturing sector Since the year 2000 America has lost 5.5 million manufacturing jobs; 2.2 million of those jobs were lost after 2008 showing a steep decline in the sector that is theorized to decline even faster with more trade agreements being negotiated

Globalization Will Provide A World Free Of War

986 words - 4 pages Conclusion, globalization is in our world’s destiny. The ability to trade and become one has been here since we were able to communicate with each other. It only seems right to continue with this globalized world and it has to seem right because it is inevitable. It will take time for things to change and for peace to shine through but in the end globalization will prevail and peace will be right by its side maybe not in your lifetime or my lifetime but in many lifetimes to come. This will only set the stage right for a war free world for our future generations. Works Cited Wright, Richard. Non-Zero: The Logic of Human Destiny. Vintage Books, September 2001