Economics and Government Essay Example | Topics and Well Written Essays - 1500 words

Economics and Government - Essay Example More and more economies are opening themselves up for the free and unrestricted trade with partners from East and West. Countries like China and India have benefited a lot from the free trade and a drive towards globalization. Over the period of time, countries like China has been able to dominate the world trade market with exporting their goods and services to other countries. Though the free trade offers important benefits to improve the overall economic conditions of rich and poor countries however, it can also serve as an important deterrent for war. Globalization and integration of economic interests of the countries make it relatively difficult for countries to fight with each other. The complex nature of international free trade and how the economic interests are intricate with each other make it extremely difficult for the countries to wage war against each other. This paper will argue and discuss that free trade stops war between countries. Globalization and Free Trade Glob alization has emerged as one of the most important forces of change during recent times. What started as an economic move to open the borders and allow free trade has now made inroads into other fabrics of the society also. More importantly, changes are being observed at socio-political level where smaller and developing countries are transitioning towards democracy and improved economic performance. It is critical to note that globalization is really a diverse term and to define it appropriately may be a difficult task. Over the period of time, the explanations as well as the impact of globalization has really widened. Globalization, initially focused upon ensuring developing mechanisms and processes which can be put in place to allow nations to trade with each other with no or very restricted barriers to entry. Â  (Chanda, 2007) As a result of this drive towards the free trade, many nations including China and India benefited from open economies. Since developing countries are es sential providers of raw material and also possess cheap labor therefore the overall benefit was perceived to be transferred to poor countries. Through globalization, poor countries were allowed to benefit from their raw materials and cheap labor sources. Apart from this, poor countries also benefited from the transfer of technology which took place due to globalization. Developed countries, in order to avail the benefit of cheap labor and raw materials actually helped transfer of technology to the poor countries to take advantage from the latest technology to manufacture goods in more efficient manner. (Escobar, 2006) One of the moves towards achieving the free trade and ensure further trade liberalization, World Trade Organization was founded. World Trade Organization or WTO is considered as the apex body which formulates the rules of the game when it comes to trade between the countries and also monitor the same. WTO not only creates the agreements which reduce the barriers to en sure free trade between the countries but also mediate the disputes between countries arising due to trade. (Moore and Lewis, 2009) The overall debate on free trade and what are its pros and cons actually are based upon two set of important arguments. One set of arguments is based upon the moral arguments and other set of arguments is purely based upon the economic impacts of free trade. The moral set of arguments was based upon the assumption that the free