Having a wide gap between the upper and lower class doesn’t benefit the economy instead has a negative impact on it. For example, according to the Washington Post, “As income inequality grows, more and more resources are concentrated in the hands of the wealthiest. So, the idea goes, the wealthiest are better able to steer policies in directions that protect inequality at the expense of growth”. Because most of the wealth is in the hands of individuals who are at the top they have the power to do things their way. On the other hand, consumer spending plays a role in the economic growth of a country.
Running head: PROTECTIONISM ECONOMY 1 How National Economic Protectionism Helps National Economy Growth Yuhua Li Stony Brook University Abstract Key words: economic protectionism, economic growth, challenges, profit, free trade Introduction The idea of globalization has been widely adopted by the majority of states collaborating to deliver quality products at affordable prices. The wide campaign for open markets and increased relations is for the obvious reasons including specialization and increased productivity, the creation of quality commodities and innovation, and the identification of new markets is hence improving organizational sales. However,
Comparative and Absolute Advantage Introduction With many changes in the international business platform and political climates in different countries, there have been resultant changes in how these countries do business. International trade has also been largely boosted by globalization which on the other hand fueled by technology. Consequently, international trade has its dynamics and is affected by different factors. Consequently, different countries have different comparative or absolute advantages in comparison to others. Comparative advantage is used when considering the capacity to produce certain goods or services at a lower opportunity than another producer.
In my opinion, globalization has both positive and negative aspects. First of all, the most obvious advantage that the globalization brings about is that goods (such as car, laptop, smartphone, etc.) produced in one country can be sold in other countries .For the developed countries, now the can easily export their products and services to other countries to earn money. And for the developing countries, it can create opportunities of employment and reduce poverty, which is very good for the economy. The next positive aspect which is taken into consideration is that the developing countries now can receive sources of capital, new technologies from developed countries, which is very essential for the growth of a country.
Although cheaper prices seem like a good deal for the consumers, there are the laborers who produce the goods who barely get paid enough to sustain a living. These root causes are all problems that need to be resolved in order to reduce the number of trafficked victims. Catching the traffickers and punishing them is not nearly enough to put an end to the rapidly growing industry. There need to be more state involvement to set up and implement the right laws so that less innocent people around the world will be victims to
This lead to the decrease in economic growth where there is dropping in number of investors to invest in Malaysia’s market. This is because, the smaller the size market, the lower the demand of product. Investors are usually looking up the market size of the host country to determine whether to invest or not. Notably, a larger market size of a country will be more efficient and in utilizing their resources and exploitation of economic of scale (Charkrabarti, 2001 as cited in Moosa & Cardak, 2006). Traditionally Malaysia has small and medium-sized of businesses that were built around retail sector but the retail sector started to grow in terms of its size and quality service due to the increase in income and the tourisms arrival.
However, nowadays, globalization due to the Industrial Revolution and the advances in transport and technologies has reached an unprecedented scope. Globalization can be explained in mainly 3 different areas: in politic, social and economic terms. In politic terms, globalization can refer to the shift of political activities from a single-nation level to a global level and it has been created international organization such as the United Nations. It has also tried to spread democracies all over the world. Social globalization describes an exchange of values, ideas and it has facilitated the promotion of equality, dignity and human rights.
Even the international companies bring considerable economy growth to developing countries such as technology transfer and job opportunity. Nevertheless, the multinational corporations also bring problems to developing country like harm human right. However, it is believed that multinational companies bring advantages morn than disadvantages. The developing country should increase the economy in the short term because competed economy can enhance competitive strength in the world and ameliorate the life of developing country people such as using additional finance develops capital
Protectionism weakens the industry. Without competition companies cannot progress because the domestic product will reduce its quality and increase its price as it will have no competitor. If any country loses its borders other countries will do the same this decreases the economy of country. In my point of view free trade is far better than protectionism. Though protectionism has a lot of advantages but in long term protectionism has many dark aspects as it specifies the trade of the country whereas free trade opens the barriers of the trade which welcomes international investors an firms to invest in country that helps in increasing the economy of the country.
An additional benefit is that high-skilled immigrants are likely to pay far more in taxes than they use in public services, generating a positive net contribution to government fiscal accounts. Although high-skilled immigration has a lot of benefit developing countries, most of high-skilled immigrants want to work in developed countries rather developing countries, which cause difficulties to developing countries to attract them to come to work for their countries. On the other hand, developed countries like Japan, England, USA, not only they also want skilled immigrants to have more benefit to their economy and society but also they more opened to unskilled labor to come to their country because they can pay less money than the natives workers. However, having too many working labor in their country not only the nation’s problems will not minor like governments expect from immigration but also the economy has more burden in spending more on security or training to immigrants workers. Julius (1947) suggested