A common world market could work in everyone’s favour if state intervention is withdrawn but capital has globalized far faster than labour and a fully open model is yet to be tried out?
The idea of a common world market, where state intervention is minimized and barriers to trade and capital flows are reduced, has been a subject of debate among economists and policymakers. While it is true that capital globalization has occurred at a faster pace than labor globalization, implementing a fully open model without any state intervention raises both opportunities and challenges. Here are some key points to consider: Advantages of a Common World Market and Reduced State Intervention: 1. Economic Efficiency: A common world market with reduced state intervention can enhance economic efficiency by promoting competition, specialization, and the efficient allocation of resources. With fewer trade barriers, countries can focus on producing goods and services in which they have a comparative advantage, leading to increased productivity and overall economic growth. 2. Consumer Benefits: Reduced state intervention can lead to lower prices for consumers as a result of increased ...