The Global(ized) Antiglobalism

It is an interesting thing that what is commonly called the antiglobalist movement (by the media as well as by those involved themselves) is probably the best interconnected – one may say, globalized – movement in the world. The spread of Occupy Wall Street to Europe is a most recent example. In this context, two question may well be asked: is it right to call that movement anti-globalist? And what does it represent? What are the grounds such an interconnected movement has emerged? The latter questions must be answered first, before we can turn to the former one. Continue reading

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Ricardo’s Theory of International Trade versus Antiglobalist Arguments

There is one particular reason why my study of economics is very interesting: I am confronted, repeatedly, with traditional economic models, theories, and arguments. Some of them are of some value, many are not (maybe for training some basic economic understanding, but not for analysis of real world problems). Recently I attended a lecture in Advanced International Economics, in which the theory of international trade by David Ricardo was presented. For non-economists: Ricardo developed the first major theory of international trade (in the beginning of the 19th century). It is a very simple theory built upon the foundation of the so-called “comparative advantage”, stating that trade between two countries is mutually beneficial when their relative productivities are differ (not as in Adam Smith’s theory, where only absolute productivity was of meaning). For a short introduction see here.

After having explained the theory, the teacher wanted to show us how it can be applied to real world problems (though he himself had pointed out to some deficiencies due to basic assumptions of the theory): he picked up some “frequent antiglobalist arguments” against free trade and “defeated” them using Ricardo’s simple comparative-advantage model. Continue reading