Through
this week of class we have been able to see and understand the clear advantages
of free trade in comparison with autarky. In the article Put Globalization to Work for Democracies, Dani Rodrik analyzes 5
principles of globalization that has affected democracies all over the world. Rodrik
points out that differences in laws between countries can cause and adverse
effect among nations who favor of a less democratic nation as their regulatory
laws may not be as stringent as other nations. In class we have used labor as
our factor of production to show comparative advantage, however other less
developed countries have less regulations in term of not just labor but environmental
impacts. Rodrik continues to point out China was able to push exports by
placing barriers on imports which allowed them to protect their employment in
state enterprises.
While this
strategy may work well for Chinese employees we learned through comparative
advantage this may not be the most optimal way on a global scale, because other
countries may be able to produce products at a most cost effective level.
Additionally, Rodrik points out that the goal of globalization should be to
enhance democracies around the world. Stating that more global governance on
countries such as increased requirements on transparency, public deliberation,
broad representation and accountability will help lead to devising norms that
overcome these obstacles. While globalization has helped people all over the
world, it is time to refocus it goals by aiming to not just work for democracies but improve them.
This article is an interesting read. As a consumer it would be a good thing for globalization to occur and for all countries to develop.This would increase competition between countries and supply causing prices to decrease for the consumers.Increasing trade between countries will support economic growth in developing countries which is what we want to see.
ReplyDeleteI like that this article examines how difference in regulations can create an uneven playing field. Right now, China is the biggest emitter of CO2. The US used to be first in that category, but due to increased regulations, China has passed them in carbon emissions. China has much looser environmental regulations than the US which disadvantages US businesses when competing with Chinese imports.
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