Classical liberalism, the term in politics, is a retrospective of distinguishing to old liberalism from new liberalism in the early 19th century. It is which it believed that the government that governed least governed best. Until now, it was referred to all forms of liberalism, such as social liberalism or economic liberalism, prior to the arrival of liberals and conservatives. Compared to liberalism, classical liberalism assumed that individuals are rational and capable of overcoming obstacles without resorting to violence. In philosophy, classical liberalism separately protects the freedom as well as property rights.
Liberalism also shares the idea with realism to use military power to get what they want or need, also military power can be used if other country threatening or bully on the own liberal state. But theoretically liberalism is the theory of peace and development and believes in measuring power through economy, liberal ideas such as freedom of religion, free markets, civil rights, democratic societies, gender equality, international cooperation, freedom of speech and press, when with the other hand realism believes in ideas such as conflicts, aggression, militaristic expansions and also they believe that state would act according to their own ideas and needs when liberals believe that state would act according to their populations needs and ideas. But both theories share the idea that without military power state can be destroyed or insulted by another country. I consider myself as a liberal and mostly liberalism is theory which makes me thinking about things that can be changed in aggressive world by liberalism such as equal rights regardless of sexual orientation or to have every woman the same rights as men, through liberalism I also believe in freedom and equal living wage. I have sympathies to liberalism because believe in government actions to achieve equal opportunity and
They drive the vision and trade policy orientation into liberalism, including Free Trade Area, because trading provides many benefits, such as providing job vacancies that could reduce the number of unemployment. Furthermore, trading helps the producer of products and services obtain resources, especially scarce resources in their countries, provides revenue by exporting, and so on. Nonetheless, the development of free trade policy does not operate excellently, because of the liberalism policy of economy concerning some countries. It has caused some negative impacts, including a discrepancy between developed countries and developing countries especially in this globalization era. Therefore, trade protectionism began to be applied in various countries to minimize the negative impact of international trade.
In classical economics, they believe that if trade unions had less power over wages, flexibility in wages will allow free market to operate and promote supply side economics enabling long term economic growth. Keynesians don’t agree to this and say supply side economics may not always work since the supply side economics can’t deal with issues such as lack of demand. Although the two economic models are so different, they have some similarities. They both agree and believe in free market although Keynesians say government should always regulate. The fact that classical economist believes in monetary policies, that means that they agree and believe in some sort of government intervention in economic business.
There are proprietary technology, managerial know-how, favorable access to raw materials, and learning-curve cost advantages. They can take the cost advantages of the existing firms, but the increases cost will reduce the potential profit. Lastly, the government policy will enhance the cost of entry into the industry that means the government regulated monopoly to ensure the affordable product
[44,pp 242-3] The standard case for free trade is based on a number of assumptions and simplifications. Much of the literature ignores the macroeconomic context. For eg. Kaldor argues that the ricardian rationale for free trade is dependent on the assumptions of constant returns to scale. However, the existence of economies of scale in manufacturing means that a nation that is successfully competing in foreign trade can expect that the advantage of an expanding market will increase it competitiveness.
Defined by the centrality of individual rights, private property, and representative government, liberalism is a domestic theory. Transposed to the international plane, liberals share a common framework or zone of peace with fellow liberals, where they very according to whether property or welfare should guide international preferences and whether the risk of isolation are greater or less than those of internationalism. Foreign policy analyses strive to account for these patterns by focusing on whether individual rights, domestic commercial interests, or a more complicated combination of both, together with republican institutions and international perceptions, shape policy. Moreover, liberalists agree with the realists that states exist under anarchy, but they disagree as to the nature of anarchy. Unlike the realists, liberals do not assume that international anarchy is a state of war – a time wherein, in Hobbes’s phrase, “the will to contend by battle is sufficiently
Free trade main goal is to increase nations’ economic growth whereas Fair trade main goal is to empower marginalized people and improve the quality of their lives. Free trade focuses on Multinational corporations, powerful business interests while Fair trade focuses on vulnerable farmers, artisans and workers in less industrialized countries. Furthermore, the supply chain of Free trade includes many parties between producer and consumer whereas supply chain for Fair Trade includes fewer parties, more of direct trade. Major actions that can be found for Free trade are countries lower tariffs, quotas, labor and environmental standards whereas major actions that can be found for Fair trade are businesses offer producers favourable financing, long-term relationships, minimum prices and higher labor and environmental standards. In conclusion, free trade is differs from fair trade, therefore, ‘free trade is not fair trade’.
It associates competitiveness in countries with good infrastructure, ample education and strong international orientation. Disadvantages: • Competition can result in loss of jobs especially in the manufacturing industry because in order to stay competitive move offshore in pursuit of cheaper labour. • Firms can exploit people, industries and resources in less developed countries in order to fend off competition.. e) Industrialisation Advantages: • Industrialisation sees an ample growth of industries which has resulted in larger scales production of goods which are available to consumers at cheaper rates. • It has raised the standard of living of the people very considerably. • It has also led to the development of new of transport measures enabling quick export and import.
Should not excessive or insufficient investment in inventory. It should be the best. The main purpose of inventory management is maintaining the best level of inventory. In inventory result, the excessive investment will affect the cost of more money, thereby reducing profits and stock can be abused, loss, damage and holding costs of large space and others. At the same time, the inventory stock of underinvestment problem, interrupt the production and sales business.