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This 4 page paper answers two questions with sources from the Journal of Economic Perspectives. The complex questions involve issues such as globalization and immigration. Bibliography lists 5 sources.
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4 pages (~225 words per page)
File: RT13_SA448eco.rtf
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some of the poorer countries have benefited relatively to richer countries and that middle-income countries have lost relative to both poorer and richer countries. Discuss this apparent contradiction. While
it is true that Kreuger favors an economic development strategy that go to lower tariffs as well as floating exchange rates and export-oriented production, it is also true that she
is not completely averse to some of these conditions. She explains: "Not all preferential trading agreements are created equal" (Kreuger, 1999, p. 121). She sees little point for example in
doing away with WTO agreements (1999). To a great extent Kreuger sees power in compromising, or at least she has given up on fighting for completely unrestricted trade. She recognizes
that agreements are a fact of life and does not fight it. Dornbusch (1992) agrees with Kreugers sentiments but is seemingly more optimistic, writing about free trade fever that has
become a reality in developing countries. Garrett (2004) takes the opposite position. He does not advocate free trade and sees globalization as something that squeezes the middle class. Indeed, globalization
is something that is highly criticized. The apparent contradiction between the two viewpoints that are at odds is nothing more than the free trade debate that has been going on
since Adam Smith wrote Wealth of Nations. It seems that there is the idea in general that if free trade where allowed, then corporations would do the right thing and
according to capitalist theories, everyone will win. Yet, there are flaws in a theory that contends there should be no regulation. The complaint is that large conglomerates have taken advantage
of smaller countries that have no recourse. Smaller nations which are poor are happy to accommodate large conglomerates but in the end, they work for these companies for little benefit.
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