This week’s reading was on the subject of neoliberalism which is an economic ideology involving the reduction of restraints on economic institutions to make it easier for everyone to profit. The perfect example of this is free trade, opening up all borders for trade and eliminating all restrictions and tariffs. A recent attempt example of free trade that the authors go into detail about is the Mercosur in South America. Neoliberalists believe that globalization is a process that is only possible with the principle of free trade in practice. More conservative economists believe that free trade would just lead to further exploitation of the lesser-developed countries. With free trade, the developed nations are no longer so accounted for for what they do overseas (as they are now with countless restrictions) and they’d be free to outsource all they want. This would lose countless jobs for many citizens of the powerful nations since thousands of jobs would be moved overseas where the minimum wage is significantly lower, thus it is much cheaper. Production would boom though and huge companies would thrive. But in this situation, there is no room for improvement for the lesser developed nations even though the principle is to give everyone a free chance to progress economically. Free trade just gives developed nations an opportunity to take advantage of those less fortunate for their personal benefits.
Is it possible in today’s capitalistic society of complete self-determination to open up all borders but avoid this situation?