Question

In today’s political climate, it is common to hear polarized arguments about trade being either ‘good’ or ‘bad’ for American consumers and workers. Similarly, the media and politicians often push the idea there are ‘globalist’ and ‘nationalist’ approaches for managing the economy, but not much in between. From what you learned in this module, why are such absolute and simplified positions problematic? In other words, explain why it’s not trade and global economic integration per se that’s the problem, but rather the rules and frameworks used to regulate the global economy, as well as distribute the wealth it creates.

Answer 1

Having a polarized sentiment and taking extremities in any context can pose a threat in various ways and when it comes to running a state on own shoulders, it is important that the flexibility and openness to make choices & accept shades of grey rather than looking for black & white is adopted by leaders. In context of politics and economy of the nation, by taking a fixed stance on trade being either good or bad, closed doors are created for opportunities coming one's way. This simply means that nothing may create an extreme form of loss for the nation & therefore for closing the option of future possibilities, one shuts the prospect of prosperity through that medium. Therefore, the rules and frameworks that guide the glocal economy and the choices in this domain should be well thought over & taken under the guidance of experts in the field. Also, centralisation of power is something that may lead to a certain kind of choices being made instead of having the option to take risks in order to prosper. This can be made possible if stakeholders are carefully chosen by keeping these frameworks into account.