Critically discuss the arguments for and against the current wave of Essay

Critically discuss the arguments for and against the current wave of globalisation - Essay Example In most cases, governments and institutions have had to take protectionists policies to shield their industries and fragile economies in worse situations. Benefits of trade: In the previous waves of globalization, the developing and emerging countries had little power, compared to the western rich countries in Europe and America. At a period marked by imperialism and diverse differences between countries and regions, trade existed but with tighter restrictions. The modern globalization is marked by increased liberalization in trade with more reduced trade barriers that enhance trade across national boundaries (FAO, n.d.). As a result, the more flexibility in trade allowed people and countries to acquire and consume goods and services at a cheaper price. Countries could now enhance their exportation and/or importation to reap the benefit of the trade. For quite a long period, the manufacturing industries in the western nations had flourished before, but the trade liberalization lifted majority of the manufacturing production in the current emerging countries and others in developing world. The presence of adequate aid from institutions (such as IMF and World Bank) in handling the global economic governance facilitates capital flow into diverse markets, and contains political and economic tensions that occur during the periods of transformation in the current wave of globalization (Globesec, 2012). Most of the countries have made efforts to specialize in activities they do best, increasing production of their goods or services, and selling them in the global market to multiple buyers. Most regions and countries, especially in the developing world have gone ahead to lower the non tariffs barriers ( legal prohibitions, import quotas, and export restraints ) and import tariffs to promote free trade, capital markets, and investments (The World Bank Group, 2004). China can be well identified for its increased production