The view of the wonders of globalization and the free market turned
out to be able to rule out other alternatives. Where this view argues
that every country should eliminate all forms of protectionism and
create a favorable climate, ensure efficiency, economic benefit and
prosperity of society. But in fact in the context of economic interests,
the US and the developed countries apply double standards in free
trade.
The fall in the strength of the United States.
The bankruptcy of Lehman Brothers in 2008 and the global crisis, marked the end of free market capitalism and marked the final triumph of the United States. Where, then formed a new configuration that is still searching for the form. But China is still not ready to become a new economic superpower, this situation will lead the world in two options or possibilities, namely: economic cold war; or reconsolidation and cooperation.
The emergence of the BRICS represents the rising position of a new force in global economic governance. China, which in 2040 predicted to exceed the strength of the US economy, the main sentrum BRICS become an increasingly central role in fora such a global economic coordination G20, WTO, IMF.
International regime will be weakened if the hegemon strength weakened,
A regime is said to be weakened if the principles, norms, rules and procedures that exist reduced coherence or there are many inconsistencies in practice.
For example the policy of "Buy American Product", this is an example of the weakening of the WTO regime, because basically this policy violates the principles of the WTO.
The weakening of the US economy since the crisis of the US subprime-mortgage encouraging many to practice protectionist measures which violate the principles of free trade which was originally propagated by the US alone. The most prominent in this regard is the policy of "Buy American Product" and other policies that aim maintain the competitiveness of US products in order to prevent further spread of deindustrialization and unemployment. The US originally being a pioneer of free trade it is now spearheading trade competition between countries, after the economy deteriorated and can not compete in the free market system that enforcement alone.
China successfully utilize the principle of the world is flat kept under pressure by the salience of the issue of global economic imbalances. On the other hand, the US dollar continued to create and maintain a policy of low interest rates close to zero percent, thereby increasing the value of other currencies against the US dollar. Calls for the devaluation was ignored and instead rewarded by adding currency US dollars into the market.
Globally, protectionism has increased.
In the future policy of free trade, must involve broader constituencies. As well as the national industrial policy was time managed better, so that adverse economic imbalances Indonesia (due to free trade) did not happen.
Thanks
The fall in the strength of the United States.
The bankruptcy of Lehman Brothers in 2008 and the global crisis, marked the end of free market capitalism and marked the final triumph of the United States. Where, then formed a new configuration that is still searching for the form. But China is still not ready to become a new economic superpower, this situation will lead the world in two options or possibilities, namely: economic cold war; or reconsolidation and cooperation.
The emergence of the BRICS represents the rising position of a new force in global economic governance. China, which in 2040 predicted to exceed the strength of the US economy, the main sentrum BRICS become an increasingly central role in fora such a global economic coordination G20, WTO, IMF.
International regime will be weakened if the hegemon strength weakened,
A regime is said to be weakened if the principles, norms, rules and procedures that exist reduced coherence or there are many inconsistencies in practice.
For example the policy of "Buy American Product", this is an example of the weakening of the WTO regime, because basically this policy violates the principles of the WTO.
The weakening of the US economy since the crisis of the US subprime-mortgage encouraging many to practice protectionist measures which violate the principles of free trade which was originally propagated by the US alone. The most prominent in this regard is the policy of "Buy American Product" and other policies that aim maintain the competitiveness of US products in order to prevent further spread of deindustrialization and unemployment. The US originally being a pioneer of free trade it is now spearheading trade competition between countries, after the economy deteriorated and can not compete in the free market system that enforcement alone.
China successfully utilize the principle of the world is flat kept under pressure by the salience of the issue of global economic imbalances. On the other hand, the US dollar continued to create and maintain a policy of low interest rates close to zero percent, thereby increasing the value of other currencies against the US dollar. Calls for the devaluation was ignored and instead rewarded by adding currency US dollars into the market.
Globally, protectionism has increased.
In the future policy of free trade, must involve broader constituencies. As well as the national industrial policy was time managed better, so that adverse economic imbalances Indonesia (due to free trade) did not happen.
Thanks
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