Commanding Heights video series Reaction Paper - Movie Review Example

Commanding Heights video series Summary At the beginning of the 1990s, the global world emerged as a free market economy (Yergin, . This was as a result of thecollapse of controlled economy in Russia and other countries of the East. Therefore, the world has practiced free economy for the past decade as a result of diminishing trade barriers, advanced in technology innovation as well as unrestricted capital movement. ‘The new rule of the game’ explains the global idea and the new challenges ofglobalization.

According to President Clinton, globalization poses a real danger to virulent financial crisis (Yergin, 2012). Moreover, free trade has threatened emerging firm as a result of competition. This has raised concern in the United States because most of the companies are near closure contributing to increased unemployment. Nevertheless, globalization have made it possible for an increased global market and areduction in inefficiency in the production of goods and services.The story also covers the new challenges of terrorism and it effect in the developing world.

For example, the attack on American on September 11 ignited a debate about how safe our top world economies are and the best way to counter the threat to investors confident (Yergin, 2012). The movie also discusses the impact of globalization and free trade to the developing world. The poor nations ought not to be a market target for the developed world, but should be incorporated into web of financial and capital flow so they can feel they are part of the system. The prosperity of the rich continues while the poor get worse off.

The gap between the rich and the poor widens more as globalization takes root throughits eminent challenges. The free market has become unpredictable leading to thefinancial crisis. For this reason, a new debate has arisen in the opposition to globalization. Scholar’sdoubtwho will change the rule of the game to tame the spread of thefinancial meltdown (Yergin, 2012).The world has abandoned the old order for its failures. Communism was disillusioned, and it did not encourage or contribute to trade, commerce or the growth of capital.

On the other hand, capitalism proved to motivate people to trade due to high returns. However, United States and other capitalist countries grappled with boom and burst. Moreover, the growth of democracy has been a challenge to free trade as political parties create political turmoil.Relation to Economic TheoryTo address some of these challenges, the U.S. government has embraced Keynesian theories. Keynes suggested that a free market economy was not self-sustaining because even in an equilibrium situation, the economy suffered from unemployment.

Therefore, Keynessuggested that in order to sustain the economy there was aneed to replace private investment with government or public investment. For this Keynes postulated that government can play a big role even in a free market through deficits to close the gap created by private investors.Moreover, the Chicago School led by Milton Friedman played a key role in entrenching of the free market economy in the 20th and 21st century. However, the Keynes ideas of fiscal discipline guided Washington for a long period of the 1990s and even today.

ConclusionThe movie discusses the benefit and flows of free trade, free market and globalization. Globalization has contributed much to the development of the world best economies but has left out the poor countries. Moreover, the global world struggles with unemployment as a result of loss of job to international companies outside a given country. This is the case President Clinton discusses as a challenge to a free market economy. Nevertheless, the world is much better even though it is susceptible to thefinancial crisis that spread from one country to the rest.

ReferencesYergin, D. (Director). (2012). Commanding Heights P3 New Rules Of The Game [Motion Picture].