Since the industrial revolution, the free trade plays a vital role in the process of globalization, the benefits of it, believe in any a economics textbook can find the answer. Adam Smith in the wealth of nations, marketization, specialization is one of the cult's best approaches to create wealth. And promoting the motive force of international trade, is that countries and the division of labor, as long as the play itself advantages, focus on the opportunity cost of relatively low industry and trade with other countries to exchange products, the result will be the whole benefit, everyone is won, no losers, that is the comparative advantage theory, the basic idea of from each according to his ability, to get the level of national spirit. Just think, in the absence of tariffs, the price advantage of export enterprises will more reveal, do big export, expanding investment and hiring, thereby promoting economic prosperity. In addition, the enterprise can expand scale, helps the average cost, in other words, there is no trade, some industries have no need to expand the investment development.
What is to against free trade? The more imports, domestic companies will inevitably face the fierce competition, how to deal with? The prehistorical powers to reduce cost, reduce the price to business to close the door, so, of course, is not conducive to burgeoning local industry; But from the perspective of the consumer or the overall situation of global look, is not a bad thing. Global more production and consumer goods prices fall, people's living standards improved, day or can. Slowing economic growth in developed countries, and expand the gap between the rich and the poor, there are reports that the United States in the middle in the past 20 years after deducting inflation of real per capita income basic stagnant, but the data is not reflected in consumer prices fell sharply at the same time period a way also could improve the living standards of the masses.
Competition from the outside also is helpful to break up market monopoly, to remove excess capacity and inefficient enterprises. It can be said that without trade, Japan is unlikely to rise again after the war, there will be no tigers legend, not to speak of China's reform and opening up to hundreds of millions of people out of poverty so epic.
Industry started from the 19th century, the industrial revolution into a more mature stage, promote free trade and globalization to the first world war in 1914 after the outbreak of the screeching halt, Keynes with a heavy sigh: "the first wave of globalization, the progress of human economic glory days because of the war ended in August 1914." Jazz age of the postwar is flash light, article 1929 xiaos let globalization in the bottom, until the end of the second world war, the victors redesign the international order, again to revive the western-dominated globalization, international trade after twice each year to global economic growth speed rise, until the international financial system in 2008, large impact on the global financial crisis, demand of developed countries, the global trade volumes shrink, the contradiction between poor and rich in developed countries, the conflict between RACES, the sharpening contradictions between the mass and the elite, eventually contribute to the growth of exclusion, hatred, globalization thought, overall U.S. special general election, the British European events such as no accident. Tenet that anti-globalisation's thought and Chinese President xi jinping in davos speech in contrast. Improper global leaders in the United States, the opportunity to let to China.
Globalization for developing countries more than one billion population out of poverty, shorten the gap between the rich and the poor of the. Tenet of trade policy will not as he wish, put to work back, let us strong again? The most likely outcome is that the entry price will rise, his supporters will find your prices, wages are still couldn't keep up with, if really have a new position, may by robots to dry. If the implementation of a 45% tariff for China, China's export enterprises will, of course, big hit, so don't American companies in China. If the policy can not reach the desired effect, finally will be abandoned, even if a counter-current globalization, but this will only is temporary, not permanent.