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Globalization and Free Trade: A No-Brainer
Globalization and Free Trade
People around the planet are connected to each other move than ever. The flow of money, information and communication is faster than ever. Humankind has seen a boom in global manufacturing of goods and services in all parts of the world. International travel is on the rise and cultural boundaries are evaporating. The economic tidal wave sweeping over the planet is known as Globalization; and it cannot be stopped. Globalization and free trade has introduced a new game of 3-dimensional Monopoly and there will be winners and losers. To become a winner, we must study the effects on the U.S. economy and consider the pros and cons of globalization regulation.
Pundits of Globalization argue that multi-national corporations encourage unfair working conditions and social injustices. They also argue that foreign corporations have a complete and utter disregard for the environment while mismanaging natural resources and causing ecological injury. Others argue that Globalization makes the world a better place and solves deep-rooted problems such as unemployment and poverty, thus raising standard of living for all humankind.
The fact of the matter is simple: The main reason that China and India has moved billions of people out of poverty is because of the ability to export and trade freely. Those countries have seen an economic boom, which boosted development and transformed their economies from poor to middle-income. Free trade has historically been the backbone for innovation because it encourages outside trade; thus creating new ideas, innovation and economic growth.
The global economy is increasingly large because countries such as China and India are developing and expanding their middle-class.
A recent shift in the global economy has been from the vast natural resource and energy discoveries made in the United States. Analysts predict that the U.S. will claim the top spot in oil production by 2020; however, foreign shipping leaders are closely monitoring the political uncertainties related to our budget, tariffs, and the inherent cost of over-regulation.
Our current tax system and rigid regulatory environment has been a major deterrent among foreign investors. Why would companies be encouraged to trade with a country with high tariffs and seemingly endless bureaucratic red tape? Instead, people are investing with countries such as China, India and abroad.
Experts believe that the future of free trade is largely in the hands our politicians. The U.S. has a unique opportunity because of our booming energy resources. Incentives must be given to companies for setting up shop, investing money and creating jobs in America. The Government needs to stop squeezing investors because it’s forcing people away and that’s no-good for our economy. America must reform and re-advertise herself to the World in order make herself “Great Again”.