Difference Between Capitalism And Free Trade

CAPITALISM AND FREE TRADE

Capitalism as defined by Merriam Webster is a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government. Another author describes capitalism is at once far too rational, trusting in nothing that it cannot weigh and measure, and far too little as well, accumulating wealth as an end in itself. —Terry Eagleton, Harper 's, March 200

According to James Petras and Henry Veltmeyer - the most striking impact of the globalization of capital has taken place in Asia – more specifically in China, where massive flows of capital by manufacturing multi-national corporations, in association with state capital has created a huge industrial working class. This gives a disadvantage to millions peasants, especially migrants to the coastal cities because migrant workers are denied of the social benefits of resident workers – they are denied access to public health and education.

FREE TRADE

The development in transportation and its accessibility make it easier for people to travel. Second the quality of life and the difference of income from developing countries to developed countries. The advancement in technology helps the migrant keeping in contact with their original country and keeping close contacts with the people they leave behind. The migration of highly-skilled individuals together with their families includes positive and negative consequences for both countries of origin and destination. For instance, transfer of remittances might benefit the countries of origin. On the other hand, the countries of destination might welcome the arrival of high skilled workers as a means to satisfy increasing demand for qualified

The most skeptical responses do not believe the process of globalization as containing something essentially new. As argued by Hirst and Thompson, “there is no strong inclination toward a globalized economy and the major advanced nations continue to be dominant.” Further, Hirst and Thompson believe that Capital Mobility is an overstatement. It appears that foreign investors are more concentrated among advance industrial countries. This shows that the expansion of the market has always been uneven, giving advantage to the mainly advance and developed regions such as the triad (North America, Europe and Japan). In Addition, According to Hirst and Thompson, globalisation does not mean “end of politics.” Yet the nation state still has an important role among the multiple level and types of governance, since it integrates the governing powers and shapes a structure where power is disseminated upwards to the international level and downwards to local agencies. Nation states have a vital role because they control the boundaries of their territory. They are the delegate of citizens within those boundaries and the state has the constitutional legitimate