Explain and critically examine the statement?Free trade promotes a mutually profitable regional division of labour greatly enhanced the potentialreal national product of all nations and makes...
Explain and critically examine the statement?
Free trade promotes a mutually profitable regional division of labour greatly enhanced the potentialreal national product of all nations and makes possible higher standerds of living all over the world
The statement is a very hopeful view of free trade and capitalist enterprises. There is a fundamental implication of the "invisible hand" that will enable as many people as possible to benefit through an economic pursuit of self interest and profit making motives. The other element that strikes me in this statement is its global reach. It is a statement that makes the assumption that free trade, global deregulation, economic competition, and capitalism motives will bring everyone into greater riches. I think that the statement is a hopeful vision that might not take into account the fact that some will choose to embrace profit making motives over the general good or the welfare of others. It does not account for the reality that there might be some level of regulation needed in this configuration, and that governments and other watchdog groups need to ensure that free trade initiatives do foster an equitable exchange for multiple nations and ensure that as many people are brought into the process of making and keeping wealth. The statement does not reflect what might happen if there is a consolidation of wealth in the hands of a privileged few over the costs and needs of those who "want in" to such a system. The idea of free trade and capitalism, in general, is one where the playing field should be open to as many people and organizations as possible without the collusion that might happen in such endeavors to crowd out competition.