Moreover, free trade has threatened emerging firm as a result of competition. This has raised concern in the United States because most of the companies are near closure contributing to increased unemployment. Nevertheless, globalization have made it possible for an increased global market and areduction in inefficiency in the production of goods and services.
The story also covers the new challenges of terrorism and it effect in the developing world. For example, the attack on American on September 11 ignited a debate about how safe our top world economies are and the best way to counter the threat to investors confident (Yergin, 2012). The movie also discusses the impact of globalization and free trade to the developing world. The poor nations ought not to be a market target for the developed world, but should be incorporated into web of financial and capital flow so they can feel they are part of the system.
The prosperity of the rich continues while the poor get worse off. The gap between the rich and the poor widens more as globalization takes root throughits eminent challenges. The free market has become unpredictable leading to thefinancial crisis. For this reason, a new debate has arisen in the opposition to globalization. Scholar’sdoubtwho will change the rule of the game to tame the spread of thefinancial meltdown (Yergin, 2012).
The world has abandoned the old order for its failures. Communism was disillusioned, and it did not encourage or contribute to trade, commerce or the growth of capital. On the other hand, capitalism proved to motivate people to trade due to high returns. However, United States and other capitalist countries grappled with boom and burst. Moreover, the growth of democracy has been a challenge to free trade as political parties create political turmoil.
To address some of these challenges, the U.S. government has embraced Keynesian theories. Keynes suggested that a free market economy was not