Who is Advocating “Free Trade” and Why? Gobalization and Challenges to the Developed World

By:
Prof. Xiaohong He
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The paper examines four questions. How will the knowledge economy change the direction and composition of the world trade especially between the developed vs. developing countries? How does this technological change provide opportunities and challenges differently for developing and developed world respectively? After two centuries of Western domination, are China and India coming back to reclaim their places in history and what does it mean to the developed world? Is there a correlation between the rising of the new world economic powers and global prosperity or peace or war?

The analysis of the paper is focused on the interaction of technological changes and globalization, its impacts on income level and social mobility within and between countries, and challenges facing developed and developing world alike.

Through theories of international economics and empirical data, the paper argues that while the current technological changes favour knowledge workers in contrast with mass production of the previous industrialization, the wages in the developed economy will face continuously downward pressure. While globalization may reduce poverty in absolute terms, it will increase income inequality in relative terms. The gap of income inequality will increase between tradable and non-tradable sectors within a nation and also between the more globalized economies and the less globalized ones. The combination of income inequality and social immobility may impose new threat to the world economy in general and human development in specific.


Keywords: Globalization, Income Inequality, Social Immobility, World Trade, Knowledge Economy, Technological Change, international Trade, Developing and Developed Economies, India, China
Stream: Globalisation
Presentation Type: Virtual Presentation in English
Paper: Who is Advocating “Free Trade” and Why?


Prof. Xiaohong He

Professor and Department Chairperson, International Business Department
School of Business, Quinnipiac University

USA

Xiaohong He is professor and Chairperson of International Business Department at the School of Business, Quinnipiac University. Professor He received her Ph.D. from The University of Texas at Dallas in International Management Studies. Professor He has published many articles in refereed academic journals and books. She also had business and academic experience in the People’s Republic of China. She has served on the editorial board of academic journals and has held leadership position in professional organization. Professor He teaches International Business and has received the Excellence in Teaching Award at Quinnipiac University.

Ref: H05P0927