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Jagdish Bhagwati besides supporting multilateral free trade, he also cites its essential benefits that are contrary to the 1930s protectionism approach (Bhagwati 20). He contends that, multilateral free trade usually aids in maintaining globalization due to the flourishing trade…
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Econ Jagdish Bhagwati besides supporting multilateral free trade, he also cites its essential benefits that are contrary to the 1930s protectionism approach (Bhagwati 20). He contends that, multilateral free trade usually aids in maintaining globalization due to the flourishing trade liberalization that exists among diverse states, hence boosting their economies. Mainly, this is evident both in the developing and in third world states, which have adopted the free trade despite their economies experiencing some diverse challenges (Bhagwati 25). For illustration, Jagdish Bhagwati conveys both the India and china’s remarkable upturn of GDP in late 1980s and early 1990s, which resulted from the abolition of trade barriers. This illustrates how trade liberalization usually does to the global states’ economies owing to its free interaction characteristic besides thriving trade across their boundaries. Jagdish Bhagwati believes the remedy to the current global economic crises only rests in adopting trade liberalization or free trade rather than the present protectionism (Bhagwati 38).
Jagdish Bhagwati refutes “Section 24 allowance” or“allowance for Preferential Free Trade Agreements (FTA)” which the current US regime is applying besides other global states (Bhagwati 20). Since it yields to numerous economical predicaments presently faced by the global states’ besides posing the issue of economic unpredictability. This is evident in the incumbent US regime where the president Obama prefers protectionism approach and seems to forget its grievous impacts on economy notably in 1930s (Bhagwati 78). Jagdish Bhagwati does not approve the utilization of Preferential Free Trade Agreements (FTA) as a remedy to the present challenges. This is because he refers to the approach as an effective and malicious approach meant to undermine free trade or its liberalization. Therefore, Preferential Free Trade Agreements (FTA) normally erects barriers that prevent the flourishing of economy not only for US but also for other global states (Bhagwati 134).
Work Cited
Bhagwati, Jagdish. Termites in the Trading System: How Preferential Agreements Undermine Free Trade. United States of America: Oxford University Press, 2008. Print. Read More
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