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Exam Questions - Essay Example

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The ideology behind the liberalisation of commerce originated in the UK, where the principles of the free market system was opposed to protectionist measures. …
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Download file to see previous pages The free market system has been widely accepted both in national and global economies because countries and peoples the world over desire a better standard of living which is only gained through developing their local, regional and national economy. This can occur only by opening up trade markets to wider or global markets. The success of the free market system is evident when one examines the distinction between Europe and North America and Africa, for example. Developing countries are looking to free market societies as a guide to their economic future. Asia is a recent case in point as a group of economies which could not have grown without benefit of liberlised trade practices.  The policies of a free market system is envied, emulated and remains the ‘gold standard’ of national economic policy accepted by economists, businessmen, politicians and academics worldwide (Brace, 2001).

Overwhelming evidence has demonstrated that free trade economic policies open markets to foreign investment and trade which is necessary to initiate and/or sustain economic development. No national economy has realized increased economic growth in the last half century without having an open market strategy or has any country gained considerable growth in the standard of living among its population. The reduction of trade restrictions along with the opening of monetary incentives to foreign investments over the last two decades has combined to stimulate economic development in eastern Asian countries. The average import levied in these countries of East Asia has dropped to 10 percent from 30 percent in this time period which proves a direct connection between open economies and prosperity. ...Download file to see next pagesRead More
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