Liberalism and Protectionism Tendencies in Contemporary Foreign Trade Policy

Liberalism and Protectionism Tendencies in Contemporary Foreign Trade Policy

The main objective of the research task is to give a comprehensive analysis of the liberalism and
protectionism tendencies in contemporary foreign trade policy. It must be emphasis that on a
theoretical level, understanding the choice of trade policies between liberalism and protectionism is
very important. It is important to underline that a few multinational firms are responsible for a major
share of world trade and for the rise of global supply chains. The political economy of regulatory
convergence, especially in the conditions of the rise global supply chains, may be more complex than
is sometimes suggested. Preserving freedom needs, to such extent to which that is possible, eliminating the concentration of power and dispersing it with the aid of some controlling and balancing systems. Taking away the control over the organisation of economic activities from the political power eliminates the source of coercion. The economic strength becomes a form of control over the political power rather than being the element supporting it. The systemic transformation of East Central Europe, Baltics and Russia caused the elimination of basic systemic barriers, making the integration with the world economy less difficult. However, there are still factors influencing unfavourably the process of joining the world economy. Accordance to the foreign trade policy theory further trade liberalization and improved framework policies would increase trade and promote growth. It must be emphasized that open to trade is associated with higher incomes and growth and there are the need for new approaches to trade cooperation in light of the forces that are currently re-shaping international business. The key of trade developments within the broader socio-economic context is especially the rise of global supply chains, the general shift of trade power away from the West towards Asia. What indicates the importance and innovativeness of the research is the presentation of the technical progress in P.R. China and the benefits resulting from liberalized of the China foreign trade policy under WTO. The question raised is whether the West will see China’s rise as an opportunity for cooperation or for conflict. Economic growth is generally more preferable in China to military and extensive expansion. With new investments, a country can transform its position through industrial expansion at home and sustain it through international trade. China is especially sensitive to the advantages of intensive growth and will not wish to disrupt essential economic arrangements that have been crucial to her success. In the innovation process very important are the connection between science (universities), market (industry) and government at the regional level. There is positive dependence between innovation activity and effectiveness of the innovation process. The more interaction and cooperation also the creation of enterpreunership it can observe on the regional level than on the state. The new programme of the scientific and innovation research Europe 2020 and Innovation Union are very important factors of the economic growth, social security and global competitiveness of the European Union. It has been emphasized that the talks between EU and USA will make reducing regulatory barriers. New agreements to remove trade barriers aim at reducing dead-weight costs and at increasing net social gains from international trade. For most large and developed nations, they will see positive benefits from a US-China trade war. As trade decreases between the United States and China, the trade will presumably increase between other nations as a result.

Author (s) Details

Zdzisław W. Puślecki
Faculty of Political Science and Journalism, Adam Mickiewicz University, Poland.

View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/262

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