Learn Globalization and Free Trade

Such opposition may come in the form of a specific government intervention. There are several reasons for such opposition. First, certain occupations and industries should be protected from foreign competition (Hill, 2004). United States provides protection to vital industries such as automobile, machine tools and steel in the form of Voluntary Export Restraint (VER) in the 1980s, which protected jobs as well (Hill, 2004). However, these measures are not justified because the price of this product is higher than the world price by reducing imports from abroad, hence diminishing global competitiveness (Hill, 2004). Another argument related to the opposition is the need to protect infant industries with appropriate tariffs, import quotas and subsidies until they have developed enough to compete on the global stage (Hill, 2004). However, such protectionism does not usually make the industry more efficient, with the side effects make them more satisfied.

The Brazilian automotive industry is still highly inefficient after 30 years of protection from the government (Journal of Commerce, 1991). Krugman (2001) also mentions that the interventionist policies to promote certain sectors of industry had to pull resources from other sectors, hence rendering the policy is inefficient. In fact, the proponents of free trade have called for an end to all subsidies that promote wasteful use of natural resources and introduce a pollution tax, so the current price can reflect the risks of global warming (Economist, 2001). The argument for free trade is therefore justified in this case.

National security is another reason to oppose globalization. The industry related to the production of defense products, such as aerospace and semi-conductors, are considered too important and dangerous to rely on foreign sources (Hill, 2004). The US government previously funded and protected SEMATECH, a consortium in the production of semi-conductors, in the mid-1980s (World Investment Report, 2002). However, that argument proved to be yourself, as a semi-conductor which is then used for personal computers and microprocessor chips, and ultimately produce more efficient private funding for 1996 (World Investment Report, 2002).

Protecting consumers is another strong call to oppose globalization. At times, government intervention is required, with regulations in place, to protect consumers from products that are not considered safe (Hill, 2004). The US has banned imports of some weapons and arms in 1998 after the assassination of rampant by individuals using such weapons (World Investment Report, 2002). such an opposition is justified in this case.

Protecting human rights is always a popular call for the opposition to globalization. Countries like China and India has a poor human rights records, with the use of child labor and poor working conditions in rural areas (Hill, 2004). The US had wanted to grant Most Favored Nation (MFN) status to China, with many critics oppose the measure. They claim that the MFN status should only be administered when China has been showing signs of marked improvement in their human rights records (Hill, 2004). However, others argue that the best way to improve the attitude of the human rights of the country may be to engage them through international trade (Hill, 2004). With China’s entry of World Trade Organization (WTO) for the year 2001, remains to be seen whether China can demonstrate substantial progress in the situation of human rights and their working conditions.

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