Global Economy: Between Free Trade and Protectionism
Erika S. McNeil
B6512 – M2A2
Argosy University/Atlanta
Professor Dr. Patrick Kehres
July 28, 2013
Foreign Trade the Global Way of Life
Globalization has united a world of nations and has influenced business, culture and the social environment. Throughout the centuries there has been a transition from mercantilism in which countries focused on limiting imports to free trade. Although there are many benefits to free trade, there are also staunch opponents to this system. Human rights, child labor, environmental protection and lack of regulation are areas of concern. The writer will focus on the benefits of free trade and why this system will prevail as the opportunities it creates outweigh the risks.
According to Trends in Globalization, there have been two times in history which spurred globalization. The first was during the mid-19th century and the second began after World War II. After World War 11 there was a substantial boom in expansion which resulted in an increase in merchandise exports by 8% between the timeframe of 1950-1973. Although there was a slowdown due to inflation directly following, in the 1990’s trade expansion increased again due to technology and innovation. “Despite the small contraction of trade caused by the dotcom crisis in 2001, the average expansion of world merchandise exports continued to be high – averaging 6 per cent for the 2000-07 period. For the entire 1950-2007 period, trade expanded on average by 6.2 per cent, which is much stronger than in the first wave of globalization from 1850 to 1913. As dollar prices expanded much faster after WWII than before WWI the nominal trade expansion of the former period is more than twice as fast as in the earlier period (9.8 per cent versus 3.8 per cent per annum).” (“Globalization and trade,” 2008, page number). During 1950-1973 Japan and European countries were the main players in global trade. This was partly due to the end of…

Global Economy: Between Free Trade and Protectionism
Erika S. McNeil
B6512 – M2A2
Argosy University/Atlanta
Professor Dr. Patrick Kehres
July 28, 2013
Foreign Trade the Global Way of Life
Globalization has united a world of nations and has influenced business, culture and the social environment. Throughout the centuries there has been a transition from mercantilism in which countries focused on limiting imports to free trade. Although there are many benefits to free trade, there are also staunch opponents to this system. Human rights, child labor, environmental protection and lack of regulation are areas of concern. The writer will focus on the benefits of free trade and why this system will prevail as the opportunities it creates outweigh the risks.
According to Trends in Globalization, there have been two times in history which spurred globalization. The first was during the mid-19th century and the second began after World War II. After World War 11 there was a substantial boom in expansion which resulted in an increase in merchandise exports by 8% between the timeframe of 1950-1973. Although there was a slowdown due to inflation directly following, in the 1990’s trade expansion increased again due to technology and innovation. “Despite the small contraction of trade caused by the dotcom crisis in 2001, the average expansion of world merchandise exports continued to be high – averaging 6 per cent for the 2000-07 period. For the entire 1950-2007 period, trade expanded on average by 6.2 per cent, which is much stronger than in the first wave of globalization from 1850 to 1913. As dollar prices expanded much faster after WWII than before WWI the nominal trade expansion of the former period is more than twice as fast as in the earlier period (9.8 per cent versus 3.8 per cent per annum).” (“Globalization and trade,” 2008, page number). During 1950-1973 Japan and European countries were the main players in global trade. This was partly due to the end of…