The Globalization Paradox

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The discussion would revolve around this continuing debate on globalization which is, without a doubt, the controlling capitalistic trend in the world today. But there is a hotly debated contest on how globalization should continue. This is a contest between free trade and fair trade. Free trade and fair trade have been in constant tug of war pulled from each side by economists and politicians. Both carry an ideological approach to what world commercial activity should be. But it is also flavoured by nationalism and politics because the issue directly stirs the potential economic power of its participants whether it is a developed or a third-world country. It is not surprising then that this debate is rife with vicious arguments from each side. In this paper, we would create a case for fair trade as better form of globalization with the rationale that free trade globalization has only made global markets become reckless and abusive.

Proponents of free trade argue that trade between countries should be eliminated of barriers and preferential policies, particularly those that favour countries or specific industries. It is their belief that a business would fail or succeed depending on how it can adapt on a free and open market, without having to depend on special government protections that protect industries or workers. Thus, proponents want to eliminate subsidies and tariffs and are opposing regulations that force companies to pay extra just to do business in foreign markets.

Advocates of fair trade, on the other hand, make working conditions a priority in establishing trade relations. For instance, a fair trade advocate will want to demand an increase of wage rates of workers to improve their livelihood. Thi...

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...s that could support the thrust toward new capitalism. The author builds on the arguments of globalization supporters that say that the richest countries tend to be the most open to the rest of the world if you look at their trade practices and investments. This is because, according to Rodrik, these countries have big governments that have extensive reach and effective regulation. They also have the widest, social safety nets.

In conclusion, fairer trade should be the object if globalization should continue to the future. A fairer trade protects trading itself and not let organizations abuse it. It may seem like protectionism. But a measured form of protectionism means there is a balance between government regulations and openness of the market. Fairness is the only foreseeable solution against globalization’s trilemma of democracy, independence and openness.
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