Question

In 1500-1800 words, Compare and contrast how the Neo-mercantilist (Economic Nationalist) and the Liberal perspectives deal with both the causes and effects of globalization. Is globalization seen as inevitable? Is it seen as a positive or negative development? For whom? In your answer, address how the role of the state is treated as well as how each perspective views the nature of international economic relations.

Answer 1

according to Neo-mercantilist international trade is an economic theory which deals with the improvement of the domestic economy, his theory deals with restrictions of imports, protection of domestic industry, and an increase in the stock of gold.

neo-mercantilist saw globalization as a negative development

causes:

• it is considered to be a game where people are benefitted at the cost of others since it involves import restrictions,
• it focusses on export expansion, the theory emphasized on providing subsidies to the export industries.
• it involved limiting wages and consumption of the working class in order to get higher profits.

These above stated are some of the practices that reflect the negative viewpoint related to globalization.

Whereas according to the liberals point of view viewed open trade (international trade) is one of the major sources to uplift the economy.

according to the viewpoint,

• Globalization leads to higher economic profits and expansion
• competition among domestic sellers will help to improve quality and will also help them to grow individually.
• it will also lead to labor specialization and development.

thus liberal's opinion reflects positive development through globalization.