Question

Using the principles of free trade, how do you define globalization in relation to the current perceived multipolarity of the world? Consider using the dilemmas in trade that we have discussed to organize your response.

Answer 1

Free trade emphasizes on allowing businesses in countries to focus on key goods and services which make optimal use of its resources. Thus globalization occurs when national economies integrate for trade, investment, capital flow, technology, migration of labor and thus growth being distributed all over the world because of globalization.

Multipolarity is defined as the distribution of power between countries enabling equal amount of economic, and military influence. In terms of current perceived multipolarity of the world, globalization could be defined as distribution of power between several economies to maintain stable economic influence of each and every country in the global value chain. Thus there are several multipolars in the world such as U.S, European Union, China which mainly constitute the major trade wherein the world is shifting to multipolarity as trade patterns and economic activities are increasingly turning regional.

Because of the prevalence of the dollar as the global currency there is still globalization as trade has become easy, but at the same time there is multipolarity wherein some countries continue to sell to other countries but don't want to invest in such countries.

Globalization encompasses all aspects of the economy whereas multipolarity is leading to regional patterns and power being concentrated between specific regional players, which is providing less scope for others. Thus there is globalisation between several key players and countries are increasingly focusing on trade, but the free trade agreements and large economies are generating multipolarity wherein power is distributed between specific (2 or more) significant countries wherein they are able to block and disrupt.