Mercantilist Approach Of Globalization

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Global Economy Globalization can be described as the process of global amalgamation following the exchange of different commodities including goods, services or even some traditions. In business it involves a firm extending its investments to the global market hence widening its catchment areas. A lot has been prevailing around the term globalization ever since it was embraced. Globalization hit the world positively with many supporting it since it was thought to open up businesses to new markets, encourage innovations and productivity among other aspect. The current globalization trends are; that the world economy has grown due to increased trade an act that has made countries to be more open to each other. Global markets are becoming more …show more content…

Despite the many challenges faced by globalization, the global economy won’t return to the mercantilist stage. Mercantilist approach ensures that a country gathers wealth while putting policies that are favoring its interests. This approach despite the temptations by some countries to embrace it has proved not to work since its not sustainable (O 'Rourke, 2001). It will halt the global economy due to the limitations in the global market. If every country would like to export without necessarily importing, there will be no fairness. Mercantilism has been the cause of many wars and conflicts since many affected countries felt misused and this prompted the urge for a free trade zone. This is because no single nation has the capacity to sustain all its demands in terms of production and supply. The benefits of free trade and market liberation will remain since that is the only way the economy can grow sinceit’s sustainable and every nation has a chance to import and export freely. Most nations have understood the importance of the free trade and have committed to make policies that favor

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