Free and Unrestricted Global Trade Benefits the Majority of the World’s Population Reducing Poverty and Improving Human Rights’ Essay Example

the dynamic abilities of clustered producers through repeated observation is crucial in regards to free trade, which he considers a dynamic process. Moreover, various factors can trigger spatial clustering, leading to diverse national competitiveness sources. Nevertheless, there are two primary models of clustering procedures. Firstly, clustering can result from several common features associated with the one-time location choices made by entrepreneurs. In this instance, entrepreneurs would locate in the cluster region solely to gain passive benefits.

The existence of numerous competitors that inevitably influence each other's investment and commercial decisions serves as an illustration of how short-term commercial risks and long-term uncertainty associated with investments in fixed capital can be reduced. This advantage, which includes technological externalities and pecuniary effects, is automatically enjoyed by domestic producers (Brown and Lauder, 2001). Hirst and Thompson (1999) argue that an inclusive process featuring the development of cooperative linkages with other countries can also lead to the establishment of unrestricted trade. Unrestricted trade, in turn, fosters competition between global firms.

Small- and medium-sized enterprises face high costs of information and cognitive constraints to innovation. To overcome these disadvantages, competition forces producers to establish stronger relationships with their suppliers, clients, competitors, banks, and research centers. Producers aim to address competitive issues through cooperative learning and innovation, including technical, managerial, and entrepreneurial approaches to improving products, processes, and organizational structures.

According to Friedman (2000), process innovations could arise from a technical or commercial dialogue between intermediaries' users and producers, while quality enhancements result from cooperation between producers of similar products. Less developed countries experience significant cultural and social consequences due to free trade. Hirst and Thompson (1999) are currently working on ways that

minorities can have partial autonomy over issues that are important to them without threatening the national integrity. The way these compromises are handled should not only be based on the government's perception of security and national interests but also on appropriate sovereign behavior that considers human rights (Yip, 1995). It is essential to note that corporations and similar groups are artifacts rather than natural entities.

In terms of realizing specific goals and affecting certain aspects of people's lives, limited communities have limitations in two ways. In contrast, natural communities offer their members an inclusive framework for social integration. These natural communities may take the form of a clan or tribe, but in our world, they are usually organized around a nation or people within a state. Thus, these inclusive natural communities make up the larger society in which corporate, religious, union, educational, and other societal groups are embedded (Stiglitz, 2002). Free trade helps promote human rights and equality as well as democratic principles and freedoms related to press and privacy issues.

Supplementing the logical schema of the "rights" idea for inclusive "natural" communities is quite easy. The other components that need to be considered are content and addressees. In terms of content, it pertains to collective goods that are indivisible, which means they cannot be divided among individual users. These goods must be enjoyed in common and are essential for the overall well-being of the entire community. These collective goods include peace and external security, political self-determination, cultural identity, a specific territory, development, a healthy environment, natural resources, and more. Free trade benefits the population by connecting developed and underdeveloped regions. Global enterprises develop interdependently

between agriculture and formal urban economies. Therefore, they must grow together to succeed.The majority of theories regarding the growth of small businesses center on either the informal sector in urban areas and its connection to short-term fluctuations in the formal urban economy, or on non-agricultural endeavors in rural areas and their connection to long-term structural changes in the rural economy due to commercialization, industrialization, and urbanization (Hirst and Thompson 1999). It is evident that certain sub-sectors, such as tailoring, compete with industrial goods (whether produced domestically or imported), and therefore have had to either reduce their level of activity or undergo restructuring.

Despite popular belief and studies on scale economies, small businesses have not disappeared entirely from both developed and developing nations. The issue with these arguments and studies is that they assume small and large enterprises are competing directly by doing the same thing. However, in reality, small businesses tend to specialize in niches within the supply or product markets that large businesses cannot cater to due to their reliance on economies of scale. Levitt (1983) explains that small businesses often focus on distributing goods to outlying areas with low income where large-scale firms face high distribution costs and cannot compete.

When a positive balance exists, it encourages inter-firm division of labor and co-operation in business networks. Conversely, a negative balance hinders this progress. In cases where the clustering process has relied on passive clustering advantages for an extended period of time, the local mental model can work against inter-firm co-operation. This can result in a negative trade-off between the perceived benefits and costs of working together, causing lock-in and stagnation. Misunderstanding market incentives and overestimating

transaction costs contributes to this problem (Wade et al 2006). Accessing information from various sources is beneficial when planning production. It's common for clusters to acquire and disassemble competitor's products in order to analyze and assimilate their strengths, sometimes even resorting to copying their goods (Perraton 2006).

According to Wade et al (2006), many producers do not possess proper technical skills such as pattern making, knowledge of common sizes and familiarity with their competitors' products. During times of trade liberalization, unrestricted business relationships become crucial. Innovation is key to survival during competitive shocks and also sets the foundation for long-term competitiveness. Hirst and Thompson (1999) note that learning is not always a rational process.

The reason for transaction costs in global companies is mainly due to two factors: suppliers of business support services behaving opportunely and limited data collection capabilities in terms of width, depth and variety. In times of unrestricted trade, it is typical to observe the scan of fashion trends and the market penetration of new products in the neighborhoods. In the event of a popular novelty, it is usually bought and duplicated. According to Ohmae (1985), unrestricted and free trade encourages cooperation and integration between nations and global companies while also facilitating national competition and human rights.

It can be inferred that the performance gap between clustered and dispersed producers, across all sizes, is mainly due to the benefits of clustering such as improved product planning and reduced transaction costs. The concentrated clothing activities in the cluster aid in the dissemination of implicit knowledge and ongoing work through direct observation. These advantages are especially significant for small businesses that experience diseconomies of scale and scope

in their transactions. Asgary, N. and Walle, A. (2002). "Cultural impact of globalisation: economic activity and social change." Cross Cultural Management, 9(3), pp. 58-75.

* Brown, P. and Bhagwati, J. (2004). In Defense of Globalization. Oxford: Oxford University Press.

Lauder, H. (2001). Capitalism and Social Progress: The Future of Society in a Global Economy. London: Palgrave. Friedman, Th. (2000). The Lexus and the Olive Tree: Understanding Globalization. Anchor; 1 Anchor edition.

Hirst and Thompson's 1999 book, "Globalization in Question: The International Economy and the Possibility of Governance", Second Edition, published by Cambridge's Polity Press is about globalization and its potential for governance. In addition, Theodore Levitt's 1983 article "The Globalization of Markets" explores the globalization of markets.

The source materials for this text include an article from Harvard Business Review published in May-June, with a page range of 92-102, and a book by Kenichi Ohmae titled Triad Power: The Coming Shape of Global Competition, which was published in 1985. Both sources are referenced within this paragraph enclosed in .

New York-based Freepress published Perraton, J.'s work entitled "The Scope and Implications of Globalisation" which can be found in Jonathan Michie's compilation "The Handbook of Globalisation," published by Edward Elgar Publishers located in Northampton, MA.

In 2003, two authors published works related to globalization. Stiglitz's book, Globalization and its Discontents was published in 2002 and released in London by Allen Lane. Wade and Kambhampati also released a publication on globalization.

, George S. Yip, published Critical Perspectives on Globalization in 2006 through Edward Elgar Publishing.

The book "Total Global Strategy – Managing for Worldwide Competitive Advantage" was published in 1995 by Prentice Hall, located in New Jersey.