Free Trade And Globalization example essay topic

Globalization is the process by which a business or company becomes international or starts to operate on an international level. Globalization does not benefit the majority of the world's population, including Canadians, and is slowly growing to increasingly deadly proportions. It benefits the wealthy, which are but a minority in comparison to the rest of the population, and leaves the impoverished ones out of the loop. The unsteady flow of invisible money running in and out of countries has our markets operating like roller coasters.

Globalization renders our government powerless and leaves them at the mercy of foreign investors. The negative effects of globalization far outweigh and short term gains. As far back as recorded history can go there are generations upon generations of books filled with facts showing the strength of Nation states and their impact on the stability of the world. The cultural, economical and governmental power exerted by nations as a whole shows just how influential they really are.

Conflicting ideologies have both resulted in the most horrifying human catastrophes ever imagined as well as harmonious peace. With the world changing ever so rapidly new theories on where we as a globe are heading enter the minds of academic scholars everyday. One issue of particular interest to these well-educated people is Globalization; this is basically the large Multi Nationals quest for bigger and broader markets. Many think that with the rapid expansion of corporations to larger market places will make nationhood completely irrelevant. Take the peoples republic of China for example, China has one of the most rapidly expanding economies seen in years and considering that Chinese make up one fifth of the population of the world it will be a prime target for Multi nationals in the near future. It is thought that with this shift of expanding markets in the east two things could happen; one, the world regains some of the stability it once had in the past, because nations will want to keep good relations with trading partners to maximize profits, or two, unbelievable as it sounds the world becomes even more disorganized because the fight to clench the trade unbalances in the favor of a particular trading block causes war.

If Globalization is really a threat then as different as the results are one must happen. On the flip side of issue there is always the thought I agree with, Globalization is merely hype and to think of Multi nationals replacing nations is ludicrous. There is about sixty three trillion dollars worth of trade going on in the world with little if any help to the multi nationals. The economic value of corporate trading does not measure close to the magnitude of intra-governmental trading. The end of nation-states doesn't seem apparent, every once in while a nation surrenders its territory and the overpowering country takes complete control over its victim. Even through the smaller nation no longer exists; there is still great nationalism in the larger country.

My point is there isn't much evidence showing the end of nationalism because with every nation that falls there is always another one picking it up. On a global level there is no collapse of the nation state in the face of globalization. In fact nation states have not suffered anything nearly as devastating as the fall of empires such as the Ottomans and Austro-Hungarians. There is not one inch of territory once belonging to these empires left in Europe. There is no longer an Austro-Hungarian imperial army, police or university.

Everything once belonging to these once ungodly sized empires has been succeeded by nation-states that conquered all their territory. Volatile markets could be yet another price we have to pay for globalization. Sixty three trillion dollars is jumping in and out of countries world wide every year. This three trillion dollar a day flow in and out of countries is based on trade rumors. It is this instability that is causing the economic crisis in Africa right now.

As companies become more international in scope, they are free to move operations quickly from country to country based on local conditions, greatly improving their power against local governments, businesses and workers. This in turn severely reduces government regulation of trade, investment, labor, health and safety, and the environment. Government spending would indeed be slashed, especially in the areas of social services. Devalue the currency in order to make exports more attractive and weaken labor to make wages "competitive".

The North American Free Trade Agreement is a non-customs free trade association between the United States, Canada, and Mexico. NAFTA allows for goods to be traded freely between its member states with only minimal tariffs and restrictions. However, many feel that this is not in the best interest of our nation. For example, Ex-President Clinton requested fast track authority to negotiate an expansion of NAFTA. Congress refused Clinton's request, and without a definitive vote on his treaty, he could not further negotiate an increase of free trade in North America. The reason for political opposition to free trade stems from the implications it has for the sovereignty of the United States.

The distribution of wealth both personal and corporate is not as diverse as it should be. With that in mind we have to take the phase "money is the root of all evil" into consideration. Whenever a state agrees to loosen its regulations, it relinquishes some power over international relations. Thus, the increased globalization resulting from freer trade is a source of political turmoil. Many American politicians are against free trade and globalization because it results in increased power for the international economy and lessened power of the sovereign state. The World Trade Organization (WTO) is not only the receiver of political condemnation, but it is also the target of trade unionists and environmentalists.

The WTO does not explicitly outline rules for human rights or the environment. Consequently, as the world becomes increasingly globalized through free trade, many are concerned about the ramifications this may have on laborers and the environment. The rules of The General Agreement on Tariffs and Trade (GATT) include a restriction of slave labor however, they make no mention of child labor or sweatshop conditions. In addition, there are no international restrictions on production emissions or wastes that may have a harmful impact on the global environment.

These issues were the cause of protest a couple of years ago in Seattle. Demonstrators were outraged that the WTO, the organization that orchestrates international free trade, seemingly has no concern for people. Corporations are globalizing not only to reduce production costs, but also to expand markets, evade tax, acquire knowledge and resources, and protect themselves against currency fluctuations and other risks. The driving force of the marketplace is competition: sales go to the company who offers the lowest price. This alone is not a set process as prices are lower and there is improved efficiency in production. But when corporations and governments lower costs by reducing environmental protection, wages, salaries, health care and education, the result can be a decrease in the level of environmental, labor and social conditions.

All the controversy surrounding globalization and its factors forces us to ask, "is free trade good or bad"? Well, it depends on each persons perspective. Free trade leads to globalization, and globalization leads to many changes in our world. Many see free trade as an opportunity for all states to thrive through involvement in the global economy. Others regard globalization with skepticism, believing it is detrimental to a nation's sovereignty and economic prosperity. Still, others object to the ramifications free trade may have on laborers and the environment.

The free trade phenomenon remains an enigma whose solution evades people and politicians alike.