Free

Economics: Research the effects of trade on the global environment - Essay Example

Comments (0) Cite this document
Summary
The current global economic crisis has stimulated much debate about international trade and the role of supranational actors such as the World Trade Organization in regulating the economic affairs of nation-states. Accordingly, globalization is an international phenomenon with…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
Economics: Research the effects of trade on the global environment
Read TextPreview

Extract of sample "Economics: Research the effects of trade on the global environment"

Economics The current global economic crisis has stimulated much debate about international trade and the role of supranational actors such as the World Trade Organization in regulating the economic affairs of nation-states. Accordingly, globalization is an international phenomenon with far-reaching consequences in the social, political and economic realms. Economic globalization, namely the spread of neoliberalism and capitalist-inspired consumerism as the dominant engine of economic growth, has both supporters and detractors. This brief essay will answer the following questions: how has growth and trade affected the environment in Mexico and the globe?; Should the WTO or G8 countries intervene? How?; What will happen with trade with China if we impose environmental restrictions on Mexico?; Does a lax environmental policy in Mexico give them an unfair advantage?; Should the US Government subsidize competing domestic (U.S.) industries? Seeking to address these questions with respect to international trade, we now turn to an exploration of Mexico (Foreign Policy Association, 2009).
Economic globalization has dramatically raised the standard of living in Mexico, albeit with environmental pitfalls. Mexico, a developing country which has embraced economic liberalization and is now a member of NAFTA (the North American Free Trade Agreement), has exhibited recent economic gains since joining this regional trade block. With a population of 108.3 million and a GDP of $839 billion, Mexico has benefited tremendously from economic liberalization and market-oriented growth. In response to its inclusion in NAFTA, employment has risen consistently over the past decade and a half and annual GDP growth over a ten year period from 1997 to 2007, is estimated at 3.7%. This level of steady and consistent growth over a period of 10 years is remarkable for a country which has remained underdeveloped relative to its North American counterparts since its creation nearly two centuries ago. Accordingly, as a percentage of its labour force, the average Mexican unemployment rate from 1995 to 2006 stood at a low 2.8%. Compare that with Mexico’s neighbor to the south, Columbia which still does not have a free trade agreement with the world’s largest economy, the United States, and the results are astounding. Over the same period, Columbia had an average unemployment rate of nearly 15% . Since industrialization in Mexico – as in China – has been relatively rapid, economic conditions have tended to supersede environmental concerns. Mexico exemplifies this as pollution and environmental degradation reign supreme. Can international supranational actors such as the WTO intervene to regulate trade and the ensuing environmental issues? Yes, but the approach must be tempered with an understanding of the social forces and competing issues at play. Does a lax environmental policy in Mexico give them an unfair advantage? Not necessarily as Mexico’s economic development is so delayed relative to its NAFTA partners (Canada and the United States) that Mexico remains at a disadvantage in nearly all economic realms. With respect to US Government subsidies, they certainly should be considered in light of today’s global economic climate (The Economist 2009; The Brookings Institute 2009).
Economic globalization is based upon the principles of neoliberalism, free trade and unhindered markets. Mexico, as a new member of NAFTA and a developing country with strong economic growth over the past decade and a half, exemplifies the positive attributes of economic globalization and but also reinforces the argument that the forces of globalization have not always been positive.
Works Cited
Brookings Institute. Beyond the G8: Will the West include the Rest?. Washington: Brookings Global Economy and Development, 2009.
Foreign Policy Association. Mexico. Last Accessed July 21, 2009 http://www.fpa.org/info-url_nocat2379/info-url_nocat.htm
The Economist. Pocket World in Figures, 2009 Edition. London: Profile Books, 2009. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economics: Research the effects of trade on the global environment Essay”, n.d.)
Economics: Research the effects of trade on the global environment Essay. Retrieved from https://studentshare.org/miscellaneous/1556474-economics-research-the-effects-of-trade-on-the-global-environment
(Economics: Research the Effects of Trade on the Global Environment Essay)
Economics: Research the Effects of Trade on the Global Environment Essay. https://studentshare.org/miscellaneous/1556474-economics-research-the-effects-of-trade-on-the-global-environment.
“Economics: Research the Effects of Trade on the Global Environment Essay”, n.d. https://studentshare.org/miscellaneous/1556474-economics-research-the-effects-of-trade-on-the-global-environment.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economics: Research the effects of trade on the global environment

Global Economics

...exchange regime that that currency board imports is usually appropriate for small economies with fragile central banks. The fixed exchange rate regime will only be effective if there are sufficient foreign exchange reserves to cover the local current issued. A fixed exchange rate system will be of no use if a country is unable to maintain a sustainable exchange rate to the anchor currency. This might cause serious balance of payment problems if the local currency is overvalued. Argentina paid scant respect for these economic principles that precipitated its financial crisis of 2002. The peso was locked at one US dollar since 1991, when then the currency board was established. Because of this...
3 Pages(750 words)Essay

Economics in a Global Environment

...Economics in a Global Environment Assignment Your answer Points Does either Phil or Francis have an absolute advantage in producing both products Phil can produce either one financial statement or answer 10 phone calls, meanwhile Francis can either produce 3 financial statements or answer 12 phone calls, this means that Francis is more efficient in both activities and has absolute advantage over Phil. Phil does not have an absolute advantage, but he has a comparative advantage 15/15 2. Should Phil and Frances specialize or be self-sufficient Phil and Frances should definitely specialize in order to gain value from mutual exchange. To define what each of them should specialize in, we have...
2 Pages(500 words)Essay

Global Economics: Trade, Cost and Pricing

...Global Economics: Trade, Cost and Pricing The US tobacco Companies will subsidize farmers so as to get cheap supply of raw materials from these countries. This is also evident in that in developing countries labour intensive forms of production are cheap. In this developing countries labour is cheap, therefore developed countries prefer to get their raw materials whose production is labour intensive from the developing countries. Therefore, the US tobacco companies will subsidize tobacco farmers in developing countries in order to tap the comparative advantage. David Ricardo came up with the theory of comparative advantage that can be defined as the ability of a country to produce a...
2 Pages(500 words)Essay

Global Economics

...developing countries to the universal path of free trade and private property as the motivator of economic life. (Shahin & Dibeh, p. 111) The end result is that the benefits of Western capitalism were transmitted with the opening of these economies. As we have learned, globalization and all the terms that come with it encouraged the integration of the global market, the increase in capital dynamism as well as the growth in production output. Indeed, there is a wealth of literature criticizing the IMF and its failures but we cannot really downplay its importance in the world economic stage. I would like to endorse a school of thought, which seeks to curb...
2 Pages(500 words)Essay

The Development of the New Media Economics under influence of global economics crises

.../2001/200109/200109abs.html Determination of the December 2007 Peak in Economic Activity, retrieved on 12 March 2009 from http://www.nber.org/cycles/dec2008.pdf Fatt, Arthur C; 1967, The Danger of "Local" International Advertising, Journal of Marketing; Jan67, Vol. 31 Issue 1, Fred, Z and et al; Sep/Oct1994 GLOBAL REACH AND LOCAL TOUCH: ACHIEVING CULTURAL FITNESS IN TV ADVERTISING, Journal of Advertising Research; 34 Issue 5, p35-63, 29 Green, Robert T., The Effectiveness of Standardized Global Advertising, Journal of Advertising; 1975, Vol. 4 Issue 3, p25, 5p Haque, O (2005) The New Economics of Media presentation available at http://www.bubblegeneration.com Kim, W.C. et Mauborgne, R. (Spring 2000), "Strategy, Value Innovation... , and the...
4 Pages(1000 words)Research Proposal

Economics Environment

...Economics Environment The term budget deficit in an economy simply implies that the public expenditure of the government exceeds the amount of revenue earning in a financial year. This is generally occurs in an economy when the government’s actual expenditure goes beyond its planned expenditure. A budget deficit situation in an economy also emerge when the government wants to opt for a deficit financing methodology to finance the public projects by increasing the amount of expenditure over the amount of tax collection. For implementing a budget deficit plan the government borrows money from the market by issuing Treasury bills and long term bonds of the government with a maturity period. The central bank...
6 Pages(1500 words)Essay

Global Economics

.... This may lead to reduction in planned capital investment spending thereby affecting the long run productivity of the economy (Mankiw 140). Inflation is one of the causes of high rates of unemployment in the medium term. Moreover, if one nation experiences a higher inflation rate than the other, this will lead to loss of global competitiveness and, subsequently, worsening the trade performance. Economies of Scale Economies of scale refer to cost benefits realized through long run expansion of the scale of production. The effect is the reduction of the long run average expenditures over a range of output. Internal economies of scale occur from the long term growth within a firm. There...
4 Pages(1000 words)Essay

Global Trade

...Global trade Governments of different countries have adequate reasons to intervene in international trade. According to Agarwal, the governments would be providing a rationale for both economic and non-economic sectors (Agarwal, pp. 1-3). In the economic sector, the government will be helping to solve unemployment. The government will create domestic jobs by limiting imports. Additionally, the government will be shielding the emerging industries from international competitors. In the non-economic sector, the governments will be maintaining essential industries. With reference to the guardian, the governments will be in...
1 Pages(250 words)Essay

Government Effects on Global Trade

...Government Effects on Global Trade Number) July 26, (Faculty Government Effects on Global Trade The virtues versus evils of the global markets have long been considered as the center of concern when it comes to matters pertaining to trade and global debates. Censoring the travels of a t-shirt in the wider global economy reveals extreme hostilities and plights that people, mostly women and ladies, have to go through to produce the clothing that are termed vibrant. Surprisingly, very many consumers are blind enough so that they won’t notice the government reality behind the...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economics: Research the effects of trade on the global environment for FREE!

Contact Us