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Global politcal economy

Essay on Global Politcal economy. Paper must be at least 1500 words. World Trade Organizations (WTO) , European Commission, US Trade Representative and Fronning, 2005 are all conclusive that countries derive benefits.Free trade encourages growth and jobs since lowering trade barriers is good for employment. However, it is noted that as trade expands ,some jobs are lost because of technology and competition from imports. In terms of job creation, EU Commission calculates that the creation of its single market meant 300,000 to 900,000 jobs to be created.Job prospects are enhanced in companies involved in trade. WTO reports 12 million people in the United States owe their jobs to exports. 1.3 million well paying jobs were created between 1994 and 1998. In Mexico, best jobs are those related to export activities, workers of sectors that export 60 percent of its production or more are paid 39% higher than the rest in the economy and those working in in-bond assembly plants are paid 3.5 times the Mexican minimum wage.Free trade brings competence in the system. It helps cut costs because of rules involved. For instance, when there is no free trade, different tariffs and duties are imposed. and if you were an importer of parts for your own production, it would be difficult to calculate different tariff rates charged on imports, thus buying would be very difficult. So in this aspect, free trade brings simplification and standardization of procedures, transparency, and increased certainty on trading conditions.Free trade discourages lobbying in the sense that governments are protected from lobbying of interest groups. For instance when a pressure group asks for protectionism, government can safely reject it on the basis of free trade agreements.Free trade encourages good governance since the rule reduces opportunities for corruption. Take for example quota system as a trade barrier. The quota system is the allocation of a specific amount for import or export. This system is prone to corruption because it

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