Globalization and Free Trade

1086 Words5 Pages
As cost of transportation and communication becomes reduced, corporations are no-longer constricted by borders. Innovation of technology has created a worldwide web making distance and geography no longer relevant for economic purposes. In today’s world, when conditions are right, it is just as easy to do business with someone across the globe as it is with someone across your street. Globalization has opened the doors to economic freedom, and economic freedom became the trigger for international free trade and overall economic expansion. It allows for personal choices and prosperity. On a day to day basis, consumers are no longer limited to local products, they have the choice to choose from a myriad of brands and selections imported from…show more content…
Air transport, which was once far too expensive for most companies to afford, has dropped significantly - between 1955 and 1972, air transport dropped 8.1% annually in cost (1). This has made it worth the shipping costs to hire internationally. Therefore, there are more companies hiring manual workers, customer support staff, and other various positions internationally. Although the benefits of companies hiring at minimum wages as low as 60¢ (2) per hour is not immediate for the countries in which outsource, it is inevitable that competition will increase, and therefore the economies of said countries. For example, the wages paid by international corporations in Vietnam are higher than those paid by local businesses (3). If it were not for the money flowing into a developing nation from international corporations, international income gaps would be even larger. North Korea is cited by many to be one of the least globalized countries (4). With closed borders, controlled markets, and very little press freedom, it is safe to say that North Korea is isolated from many of the economic benefits of globalization. The typical North Korean earns about $47 per month (5), which is very low as compared to more globalized countries. North Korea’s policies mostly reflect self-reliance and independence. Although these policies were mostly successful in the early years of North Korea, the 1990’s brought
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