Globalization Is A Positive Effect On Free Trade And Economic Prosperity

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Globalization allows for international free trade by increasing efficiency in the production and distribution of goods as well as increasing economic productivity and variety of goods. New scientific and technological advancements have made economic globalization possible in mainly developed countries. Overall, globalization has had a positive effect on free trade and economic prosperity for developed countries, and has had a negative effect on some developing nations.
During mid-18th century, Bengal in India spun roughly 85 million pounds of cotton per year, as opposed to Britain’s 3 million (Allen, 33). A decade later, technological advances like the spinning jennies, Arkwright’s water frame, and Samuel Crompton’s mule were all aimed to mechanize production. In a sense, the goal was to use capital to save labor. The economic results from the use of the machines produced the rates of return: 40% in England, 9% in France, and less than 1% in India. Relative profitability was similar with the spinning jennies: “20,000 jennies were installed in England on the eve of the French Revolution, 900, in France, and none in India” (Allen, 35). It proved pointless to invest time and money to install mechanical spinning in countries like France and India since it was not profitable. Using Industrial technology was not cost-effective in the parts of the world with lower wages. For example, it was inefficient for India to use spinning machines because such technology increased capital…

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