ECONOMICS

The Impact of Globalization on Free Trade Law In The Case Of Russia



The Impact of Globalization on Free Trade Law In The Case Of Russia

Introduction

The world reflects itself as a dynamic state based on transformation and transition. The entire world is presently moving towards the integrated international market and it is often referred to as “Global Village” where everybody is having freedom in living their lives, selling and buying. This process of transformation and transition is called as “Globalization” (Bradshaw 1995, p.195-203). Through the globalization, the process of technological development has accelerated particularly electronic items such as computers etc. In the past years, the development of the global village has been considered as the development's engine for both the rich and poor nations around the world. The development concept could be believed not only as the state of life but also as an objective to be achieved as the capability to develop, grow and change (Wallander 2007).

It can also be understood in terms of reduction in the levels of unemployment, satisfaction of basic needs, reduction in the level of poverty, re-dress of inequalities and so on. However, the beginning stage of enthusiasm and passion due to which the globalization has been supported but not justified through the concrete outcomes on the Russian ground. The Russian economy remains with crisis and showing few or no stability signs (Makarychey 2009). The industry sector has led towards growth at the beginning but it remained stagnant for a long while. A limited benefit has been associated in terms of information technology's development. The Russian market has considers as the developing and launching of various IPS - internet service providers that shows a positive development. Most of them are capable to provide internet based business and e-mail services to business to customers' applications. As a result, the efficiency of business has been facilitated among local business and other foreign businesses as well.

Globalization forms have a great impact on the advancement of economic change in the post-Socialist world. The "transition economies" have been urged to open their crisis-ridden economies to international trade and tempt foreign investment. The administrations of these states have been weak to battle the adapting fortunes of the worldwide economy. Russia's 1998 financial crisis was in larger part, initiated by the changing assessments of international financial markets (Bradshaw 1995, p.195-203). Similarly, Russia's present recovery of its economy is part of the way determined by high world prices of oil. Furthermore, the ruble's devaluation has truly been useful for Russia as import substitution restored down domestic producers and urged foreign investors to generate or produce domestically.

Discussion

For maximization of the global economic welfare, there must be free trade that is based on factors of production that allows the individuals and nations for exploiting the 'comparative advantage”. Free trade has several benefits and it frees individuals and societies from the shackles of local tradition, dictatorship and provincialism. Globalization reflects the “sign qua non” for free trade that promote benefits and advantages based on incontrovertible ...