Globalization and Trade

I’m not opposed to trade between countries and globalization in general. Not only because I think the world could only benefit from it in the long run, but also because it is a inevitable process.

However, I understand that in the short run, the dynamics of the world can generate losers in this process. Classical trade theory recognizes this. Firms in countries that open themselves to free trade may lose competitiveness in the goods they produce if production costs are higher than in other country from which the same good could be imported. This could generate unemployment and many firms going out of business and moving into new industries.

Enough said. This video explains all this boring theory in a very entertaining way, enjoy it!