Free Trade and Globalization in The Wealth of Nations by Adam Smith

In the modern world of modern economy, trade liberalization and globalization are always subject to discussion. I believe that free trade and globalization will lead to poverty alleviation in developing countries and that developed countries' GDP will reflect growth that could not be achieved. But the other party argues that there is evidence that the introduction of free trade brings disadvantageous benefits to developed countries and weakened emerging industries.

In 1776, Adam Smith completed and published the "Survey on the Nature and Causes of State Property" called "The Wealth of the State". In this document, Smith analyzes wages, labor, trade, population, rents, money supply (Andrea, 151). For his work Smith is known as the founder of academic research in economics and father of capitalism. The economy that Smith conceived in "National Property Theory" resembles capitalism and promotes free market.

Free trade follows the principle first described by Adam Smith in the pioneering work 'Wealth of the nation'. Smith 's national comparative advantage concept explains that there are better countries than other countries, British financial services, jeans in Bangladesh, potassium in Kazakhstan. Better? More economically, it will be cheaper to make casual wearing in developing countries like Bangladesh. In the short term, this will compromise the economic outlook of manufacturers in high cost economies like the UK and the US. However, with the principle of Smith, people with higher costs should focus on industries and services with comparative advantage (in order to get better infrastructure, educated workers etc). Apple is a complete example of design and marketing specializing in manufacturing in the US and South Korea, China.

In 1776, Adam Smith published the "Wealth of the State" and proposed the idea of ​​international free trade to improve the overall economic welfare. The concept of "free trade" has become a universally accepted principle since. A large number of economists believe that free trade benefits the participating countries and improves the well-being of the entire economy. Free trade is often interpreted as abolishing tariffs on international trade, quotas and other government regulations. As a result, each country can focus on the production of products that are relatively inexpensive and more productive than other countries, ultimately achieving higher real incomes. Despite the benefits of free trade, the elimination of tariffs may hurt the domestic industry, as domestic companies are less likely to compete with cheaper imports from partners.