Global economy Essay Sample

As per the view of Obama since we are living in global economy it is inevitable to compete it and the aim should be for a win. The losing of job is not due to the trade. There should be a change in free trade to fair trade. So he reminds the Patriot Employer Act to nullify the tax breaks for firms that farm out jobs overseas.

But Clinton takes another view on this issue and opines that to end the obstacles like, the countries which causes the unfair manipulation of the currency and pilfering America’s intellectual property, Bush‘s inaction for not enforcing WTO laws, unfair trade practice adopted by Canada against small agricultural producers in New York etc, the renegotiation of the 5 NAFTA is highly necessary. (5) According to proponents of the free trade, it causes net benefit to the society against which the opponents argument is it cause the economic insufficient due to the trade diversion.

It is economically sufficient for a good to be produced by the country which is the lowest cost producer. The opponents of the free trade always argued that the lower prices of the imported goods will adversely affect the domestic goods and its production. It will be the gain of consumer’s . Moreover the producers always go for the subsidies and tariffs on imports in domestic countries than in their export markets. Some critics’ points out that the free trade agreements normally do not cause any economic freedom for poor.

Conclusion Amidst of this ongoing battle over NAFTA the Bush administration is urging congress to approve new trade deals with South Korea ,Colombia and Panama. The deal with South Korea is expected to be big since NAFTA as the provision includes the cutting down the import taxes on American goods like beef ,car et.. The trade policies are playing an important role in both ruling and opposition parties. But the citizens always looking for fair trade which imparts good jobs, full employment and good investment in public .


Books and Authors 1. John R. Mc Arthur, The selling of “Free Trade” ,NAFTA, Washington and the Subversion of American Democracy, publ. University of California Articles 2. Canada Business Magazine, Free Trade: Blame Canada, 12 April 2008 3 Mark Engler, The Demo crate’s Free Trade divide, Asia times, 25 April 2008 Website www. boston. com , MC Cain extols free trade as answer to loss jobs in US, 23 April 2008