Impact Of Karl Marx On Free Trade

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Karl Marx (1818-1883) and Friedrich Engels (1820-1895) are the major developers of the Marxian economic thought. Karl Marx provided a basic critique of classical economics based on the labour theory of value. Marx made a speech in 1848 and announced that he vote in favour of free trade “In a word, the free trade system hastens the social revolution. It is in this revolutionary sense alone, gentlemen that I vote in favour of free trade" . According to Marx free trade would create an international division of labour and thereby give to each country the production which is most in harmony with its natural advantage and in the world the social revolution accelerate by the free trade. Marx more concerned about the workers. He said that free trade …show more content…
Industrial revolution in the United State was the foundation for the international trade and in the late 18th and early 19th century it was spread across the globe. Changes in the communication, technological and transportation changed the way of conducting international trade and the process. From the ancient time to the present, governments, intellectuals, and economists have considered about the determinants of the international trade. . They tried to find whether trade bring benefits or harms to the nation and tried to determine what trade policy is best for any particular country. In the ancient time Greek philosophies said that trade has both benefit as well as harms. After that different economic thoughts arrived at different conclusion about the international …show more content…
This is because international trade has more benefits for individuals, countries as well as for the world. The countries with strong international trade take power to control world economy as a developed countries such as USA, Britain, china, Japan and Germen etc. the more important thing is that the international trade can eradicate poverty. Due to free trade many countries have opportunities to trade without seeing any geographical boundaries. This trading pattern improve the FDI in the country by increasing investments. International trade reduce the wastage and helps to make optimum use of country’s natural resources. It gives opportunity to consume goods which cannot produce in country due to lack of resources or higher costs. If a country engaging international trade that country produce goods not only for the domestic consumption but also for the exporting. So the country produce goods in large scale and this leads to reduce cost of the production as well as price of commodities. International trade increase the efficiency of production due to international competition because producers have to produce better quality goods at the minimum cost to competing with other producers in the world. Because of this competition consumers can consume better and quality goods at a minimum price. International trade is essential factor for the growth of globalization, transportation

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