Name: Andrea Cendon Nuevo Case Summary # 1: The travel of a T-shirt in the Global Economy. “The Travel of a T-shirt in the Global economy” explain us through the example of the U. S textile industry how globalization and free trade works. From the moment I realize that a simple and basic product such as a t-shirt is the result of the increased integration of products and resources across international markets, I understand how important and fundamental globalization has become.
Globalization and free trade are controversial issues that cannot be seen from just one side. The author clearly state that globalization benefits the allocation of resources, increase income, world output, variety of goods and is essentially good for the consumer. However, as I like to say, not everything that shines is gold. Globalization is not the immediate response or salvation for the poor and less developed countries in the world. For me, the so called globalization “backlash” has strong reasons that I respect and understand.
However, although I recognize that under a free trade system equality is hard to accomplish, gains are not equally distributed and there are negative consequences such as human rights abuses and exploitation, I firmly believe that the advantages and benefits of free international trade outweigh the negative aspects of it. The author also explains how it’s that the U. S cotton industry has been able to dominate the world’s production for a very long period of time. Although American cotton growers are well-known for being “innovative entrepreneurs”, the big theme of discussion and controversy here lies in the subsidies farmers receive from U.
S government. The whole set of quotas, tariffs and subsidies they receive are called protectionist policies. Protectionism is in my opinion a short-term solution to the issue of imports in any country. At the beginning, the protectionist measures will help U. S preserve its domestic products as well as the work of many workers and their wages. However, eventually, the lack of international trade and measures prohibiting imports will lower the income of the other nation (in this case China), which in turn will lower the amount expenditures in the U. S. U. S exports to China will also suffer.
The last main issue I want to consider is the role of politics in the marketplace. The article gives us plenty of examples of the interference of political figures in the U. S textile business. In a free trade agreement, competition improves productivity and I think all countries have to play under the same rules. Political intervention and protectionism is unfair to poor and less developed countries. For me, a free trade agreement is a free, cooperative international alliance with no intervention or policies that decide which one has the best odds in the world game.