Globalisation |
Issue #112 July 2016
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Globalisation, is there really such a reason to be so discontented?
By Michael Baxter
Economic theory is unequivocal. Free trade promotes wealth. It’s down to specialisation and is best summed by what many consider to be the most important economic theory there is: The Law of Comparative Advantage.
Theory says that free trade enables each country to focus on what it does best. According to the theory, free trade works in the interest of both sides of a trading agreement, even if one party is better at producing just about everything than the other. Take as an example, a high-powered lawyer who can command a fee of say...
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The benefits of trade and globalisation
By Michael Baxter
Trade increases wealth. And according to one set of stats, in the United States alone, GDP is one trillion dollars higher today than it would have been had it not been for advances in trade since World War 2. That’s a staggering finding. The data comes courtesy of the US Peterson Institute. It found that deeper engagement since World War two, caused by trade agreements, and improvements in transportation and communication technologies has increased US GDP per capita by $10,000.
See Why...
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Globalisation and Brexit, global leaders shift emphasis
By Michael Baxter
Part three of a series of three articles:
IMF managing director, Christine Lagarde, has been talking to the FT about globalisation.
She said: “Globalisation can be a force for good and can generate huge benefits. It has taken lots of people out of poverty, it has helped the Chinese economy, for instance by bringing hundreds of millions of people out of starvation. But equally, globalisation is producing losers and we have probably not been paying enough attention to this.
“And if there is a lesson we can draw from the current situation, it is that globalisation has to be inclusive and beneficial for all. So whether on growth, inclusive growth, inclusive...
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UK will be ‘global facing’ after Brexit, Osborne says
By Daniel Hunter
The UK will be “more outward-looking, global-facing” after the vote to leave the European Union, the Chancellor George Osborne has pledged.
Writing in the Wall Street Journal on Monday, Mr Osborne said there was an “overwhelming interest” for the US and UK to create even closer ties between the two countries.
Similarly to business secretary Sajid Javid, George Osborne is travelling the world in the coming months for preliminary talks over trade. Among the Chancellor’s destinations are New York, China and Singapore.
Mr Osborne said: “While Britain’s decision to leave the...
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