There is a wide economic gap between various countries. With WTA agreement, this gap would reduce, remain more or less same or would increase? What do you perceive?

Answer:
Globalisation can increase opportunities for better commerce to all countries. It can also bring about greater efficiency due to open competition. It can even increase the overall wealth of all countries put together through an overall increase in efficiency across the world. But, alas, it can not reduce by itself the economic differences between the countries. The best analogy is what happens to individual levels of wealth when an economy opens up - the differences do not reduce - in my perception, they actually increase even though every individual may have gained from it.
Globalisation can not let the differences remain unchanged either, because it does affect various countries in different ways depending on a number of complex factors, such as social culture, geographical peculiarities, demography etc.That takes me to my perceived conclusion that globalisation may actually further accentuate the extent of economic differences between various countries. Even though all countries may prosper, those with better resources and resolve would far outdo the others, thereby widening the gap.

This article is extremely true. I think it neatly sums up everything that I have been trying to put forward regarding economic globalisation. Even as countries open up to each other, and their economy grows, some situations among countries have not been resolved. The difference between the rich and poor is still predominant in the world's economy. Richer countries are taking measures to help poorer countries but they will only do this as long as their own economy is sustained and not threathened. They do not want to make the same mistake the US made years ago when it aided Japan after World War II. Japan was provided with so much help and resources from the USA that it is now one of the world's leading economies, and constantly competing the the US as to who's economy is stronger. In essence, richer countries naturally prefer having a slight advantage over poorer ones. Opening up their economies to the world might not neccesarily be the best thing for poorer countries.

However, those who are resisting economic globalisation are under severe pressure. For example, Myanmar has refused to open up its doors to free trade. It is under enormous pressure from many countries, in particular South East Asian countries, who feel that it is not contributing to world welfare. Naturally, the government in Myanmar is free to make its own decisions, therefore they cannot be forced to set up a free trade market. However, this is putting enormous tensions on relationships with Myanmar, and certainly not helping it to improve the state of its country.

Because of this, and what is stated in the article -which is mainly that while globalisation may improve the economy and conditions in the country, the gap between rich and poor will still be there, perhaps increased- it does not look like globalisation will do much to reduce economic differences between countries, or help social ties.

Labels: economic globalization, trade

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