The Pros And Cons Of Globalization

2006 Words 9 Pages
Register to read the introduction… Theories had been established and tested whether they comply with the on going globalization trend or not. The question is for whom is the free trade really beneficial? H-O theory argues that free trade is beneficial for both developed and developing countries. However, a more realistic view to the world trade history we will capture that the developing countries will incur the costs of free trade, and by complying to the GATT?s terms on the specified time period means a relatively larger cost (Amin 26). This free trade notion lead to a new division in the world which is the economic blocks.

The first integrated economic block although unrecognized as a block is the United States of America. As it become the only power in the world with out any rivals especially after the collapse of the soviet union, the Europeans started to develop their economic block in order for them to compete with the US as a super power or as an economic power. Leaving the uncivilized and uncoordinated countries out of the blocks so they can always keep trying to catch up with the super
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It will increase free trade, competition, and nation profits. But these benefits are going mainly towards the nations who have the highest interests in removing tariffs and trade barriers i.e. developed nations. On the other hand the developing countries which are the ones that have the greatest needs for progress and growth are the ones that will be hurt in the process of unification. This globalization trend is simply a new developed or we may say a good looking way to keep the exploitation of the third world countries going on. One may argue for the benefits of globalization for the developing countries, yet time will prove that its a new from of economic imperialism the I personally call Neo-Imperialism.

Bibliography

Amin, Samir. Capitalism In The Age Of Globalization. Zed Books. London,1997.

Dunning, John. Governments, Globalization, and International Business. Oxford University presses. New York, 1997.

Khan, Azizur. Employment Expansion and Macroeconomics Stability Under Increasing Globalization. Macmillan Press. London,1997.

Mittelman, James. Globalization Critical Reflection. Lynne Rienner Publishers. Colorado,

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