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Free Trade during Colonialism vs. Free Trade during Globalization - Essay Example
Pages 4 (1004 words)
Free trade during colonialism vs. free trade during globalization Introduction Many people have the illusion that free trade is an entirely modern economic concept which is the brain child of globalization. In reality, free trade existed in numerous forms even during colonialism…
This paper analyses the major similarities and differences between free trade during colonialism and free trade during globalization. Free trade: Colonialism vs. globalization An unexpected transformation occurred in the aftermath of the economic downturn or depression which began in 1873 in Europe and North America. With barriers to trade rising, production standing still, and new competitors such as Germany and the United States industrializing, the search for new markets and sources of raw materials intensified in the direction of colonial expansion (Saul, n.d.). Colonial powers tried to safeguard their business interests during nineteenth and twentieth centuries rather than thinking too much about the rights of the nations under their control. The concept of free trade was another mechanism for them to exploit the resources of nations under their control. The current free trade which is the concept of globalization promotes neo-colonialism which is sharp in contrast with the principles of free trade implemented by the colonial powers in the past. It should be noted that neo-colonialism is a practice of promoting capitalism, globalization and cultural co-operation between countries. ...