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Words: | Submitted: Tue Jun 20 2006
... has forced established regional economic trading blocs into competing with each other increasingly more, leading to more regional integration and in turn the setting up and strengthening of free trade areas such as in the European Free Trade Association. "Those who promote the global economy say that the rules for trade should be based on comparative advantage" (Mander & Goldsmith. 1996. p124). Those who are pro globalisation and free trade favour the system of comparative advantage. They strive for more and more globalisation and the strengthening of regional economic trading blocs and the proliferation of free trade. It is up to the critics of the free trade movement to come up with suitable solutions to oppose the notion of comparative advantage in order to establish credible alternative trade policies. Comparative advantage exists when a country produce a good more cheaply relative to other goods it produces relative to its trading partner. ...
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