The Gospel Of Free Trade Analysis

BIBLIOGRAPHY MacEwan, A. (2009). The Gospel of Free Trade. In R. B. Dollars & Sense, Real World Globalization, 10th Edition (pp. 1-9). California: Dollars & Sense.

In this article mentioned that the U.S. and European Countries who founded the free trade and pushing other countries to it collapse in economic crisis. In 2007- 2008 rapid global crisis U.S. had to change their economy “buy American” concept was born. They changed their free trade policies and turn into some government involvement of the economy. According to the author free trade is not a good development strategy. U.S. all the time tried to push the countries for the free trade. By using their power the global push for the free trade agenda U.S. signed the North
American Free Trade Agreement (NAFTA) and in 2005 established the Central American Free Trade (CAFTA). Nevertheless International Monetary Fund (IMF) and World Bank provide loans for the third world countries to condition that they should open their economy to world.
Even though U.S. promoting the free trade to the world and preaching its virtues, U.S. also beaten by the free trade. For an example in 19th century there were premier textile industry in Massachusetts U.S.A. the huge mills and large factories prove that there were large textile industry. But the tariffs of free trade industry couldn’t play the role it had earlier. under this free trade different countries faced financial crisis for an example Mexico. Free trade couldn’t find the answers to economic crisis. Countries who had been faced the crisis had to change the free trade policies ‘cause they couldn’t find the answers to survive the financial crisis. However the free trade is not a good market system there are certain uses of it. The thing is Country has to identify the uses of free trade and get maximum of it with reforms. Because pure free trade can’t adopt the economy it is not practically government should handle the trade such a incidents. BIBLIOGRAPHY \l 1033

BIBLIOGRAPHY \l 1033 Pollin, R. (2009). What 's Wrong with Neolibaralism. In R. B. Dollars & Sense, Real World Globalization, 10th Edition (pp. 16-22). California: Dollars & Sense.

In this article explain the definition and the characteristics of Neo-Liberalism and problems that rise with the neo liberalism.
What is this neo-liberalism, classical liberalism is the political philosophy consider that the minimal involvement of government regulations over the economy including financial and labor market. According to the classical liberalism business should be free to operate as they wish and consumer should be responsible for deciding which businesses produce goods and service that are sufficient quality as well as reasonably priced. Neo-Liberalism and Washington consensus are contemporary variant comparing with the classical liberalism. Neo-Liberalism has set of policy measures are with implementation. According to the author there are 3 fundamental problems with the Neo-Liberalism. Those are Marx problem, Keynes problem, Polanyi problem. Under Marx problem article has talk about the labor’s bargaining power. Neo-Liberalism diminishing the labor’s bargaining power ‘cause to unemployment and underemployment this means worker employs has more readily replacement by the Marx called “reserve army” there for worker can’t get enough wages for their uses. Because if they call for more salaries they have to leave the job ‘cause there are so many worker waiting for that job with relevant wages. Therefore under neo liberalism labor weaken their bargaining power. Under Keynes problem it is talks about the investments security ‘because economy is fluctuating all the time. Investment fluctuations will also affect overall spending in the economy. When investments are spending decline leads to employment declines and this means that business will hire fewer workers. Unemployment rises as a result of this. There is no guarantee that investment spending the business. Because there is no controller to look after the failure businesses. Polanyi problem is if you want some fairness in market economy you have to embedded in social norms that means there should
be government involvement to the market economy to stabilize the full employment, create the stable financial market. Because under free market business owners want to get more profit and they do whatever to increase profit. Then it will become an inequality in the economy so under Polanyi problem discuss that. BIBLIOGRAPHY Shah, A. (2013, March 24). Global Issues. Retrieved from Global Issues: http://www.globalissues.org/

According to the Anup Shah Debt is an effective tool. Most of developing countries borrow money from the International Monetary Fund (IMF) or World Bank for their developing projects. IMF and World Bank have certain policies and conditions to lend the money. Their programs have been heavily criticized for many years for resulting in poverty. In addition, for developing or third world countries there has been an increased dependency on the richer nations. This is despite the IMF and World Bank’s claim that will reduce the poverty. If a country needs to borrow money from IMF country has to implement the policies given by the IMF. Those policies called as Structural Adjustment Policies (SAP) have been imposed to ensure debt repayment and economic restructuring. That means every third world developing country which borrowing money from IMF has to adjust it economy as Neo Liberalism perspective. For an example Open market, Increase Exports, Privatization, Capital market Liberation, Market based prizing, Free trade etc. So countries have to change their economies and as for the IMF wish spend less, reduce consumption, remove or decrease financial regulation are the actions government must have adopt their economies. This article explain about the how developing nations addicted to borrowing money for their developing projects and according to IMF SAP how they change their economy and finally how they become poverty. BIBLIOGRAPHY Stiglitz, J. (2006). Burden of Debt. In J. Stiglitz, Making Globalization Work (pp. 211-244). NewYork: W. W. Norton.

This article has taken some of example by using few countries incidents and situations of their economical level. According to the theory of international trade it mean more wealth to more people. It has mentioned here the supposed trickle-down effect is not occurring. And countries that have focused on their competitive advantage as economic doctrine pushes them to do at the end have found themselves depend on the goodwill or more powerful counterpart. When we talk about the trade with the globalization the trade is obviously at the heart of globalization. And pumping this heart are the agreements and rules made between countries in the World Trade Organization. These rules are largely influenced by the bigger countries to protect their core interests. When it comes to the small countries this system is particularly unfair for them. Who is politically and economically weight are mostly insufficient to defend their interest or even to defend themselves when their interests are threatened. According to the Stieglitz opinion it is enable these small countries to sell these litigations to more powerful countries.
GENERAL SIR JOHN KOTELAWALA
DEFENCE UNIVERSITY
2184400179070
POLITICAL ECONOMY
ASSIGNMENT
MKIK MIRIHANA
O/CDT
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SOCIAL SCEINCES
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