Introduction
Global political economics is an integrated science that studies the global interaction of economic and political forces. Three main theoretical approaches to the global political economy are liberalism, mercantilism, and radicalism. Each approach has its characteristics and advantages, but the first best describes the state of international trade relations.
The Core Principles of Liberalism in Economics
Liberalism is a theory that believes that free trade and open markets are crucial to achieving economic prosperity and improving the lives of people around the world. The basic principle of liberalism is the free market, where the Government should not interfere in economic processes (Helleiner 1120). However, it should instead create conditions for the free development of economic relations between countries.
The Role of Free Trade in Economic Growth
Liberalism explains that free trade between states is the key to economic growth and prosperity. By supporting free markets and open borders for trade, developed States can better use their resources, technology, and capital to produce goods and services that can be sold abroad (Helleiner 1126). Developing states, in turn, can access cheaper goods and technologies from developed countries, helping them develop and create new jobs.
Liberalism and Modern International Trade Relations
International trade relations have become more complex and diverse, including those between developed and developing countries. Liberalism, in this context, can provide a better approach to trade policy, as it puts free trade and open markets at the center of attention (Helleiner 1127). This can be specifically helpful for developing countries, which often face trade barriers and constraints from developed countries.
Protectionism vs. Free Trade in the Post-Pandemic Era
However, since the beginning of the global pandemic, there has been a need to pay more attention to protectionism or free trade. This depends on the specific situation and the objectives of each state. Some countries may prefer protectionist policies to guard their producers and consumers from external competition.
The Long-Term Impact of Protectionist Policies
At the same time, other countries can maintain free trade to reduce costs and improve economic operations. It must be noted, however, that protectionist policies can have adverse long-term effects. It could lead to a deterioration in the economic environment for exporting countries, which could lead to less deterioration in the quality of goods and services in the local market. As a result, customers may encounter higher prices and lower product quality.
Conclusion
In conclusion, I believe liberalism best characterizes the current state of international trade relations. Nevertheless, in the face of a global pandemic and gradual economic recovery, states should pay attention to protectionism to protect their economies from external factors.
Work Cited
Helleiner, Eric. “The Life and Times of Embedded Liberalism: Legacies and Innovations Since Bretton Woods.” Review of International Political Economy, vol. 26, no. 6, Routledge, 2019. Web.