Globalization Economic Integration and Free Trade

Globalization, Economic Integration, and Free Trade
Name
Institution

Introduction
Globalization refers to the integration and interaction process between people, governments, and international or national companies. Economically, it involves the application of new technologies, the improved capital on economic resources, and provisions of goods and services. Free trade, on the other hand, refers to a designed policy aimed at eliminating discriminations made on imports and exports. Free trade allows free movements of buyers and sellers without any prohibitions on some goods and services by the government. Additionally, economic integration is a proper arrangement of different regions to reduce trade barriers and fiscal policies by ensuring that consumers and producers tastes are considered. The paper focuses on the impact of globalization, free trade and economic integration on working people and their unions, and on income inequality and social programs.
Impacts of Globalization on Laborers and Income inequality
The results of globalization have been phenomenal in increasing global trade and Transitional Corporation (TNCs). It has expanded the existing disparities and increasing marginalization of developed countries by placing greater obstacles on the current international system way. The standard trade theory enables globalization to narrow the income disparities, resulting from the free trade demands to increase goods and services in scarce sectors. Ending the NAFTA freed the public of restrains in serving the interest of laborers (Broadbent, 2017).

Similarly, globalization improves capital openness thus reducing low developing country’s income inequalities. Capital stocks of developing countries also enhanced from the Foreign Direct Investments (FDI) which in return reduces the capital of marginal products. Due to increased market liberalization Global Value chain (GVCs), there has been a rapid rise in income inequality in low developing countries (Jackson & Thomas, 2016). This was because of the need to distinguish laborers regarding their skills, skilled and unskilled respectively.
Globalization and Social Program
However, it is not true that an increase in political equality has led to a significant uprise in the inequality of the lower developing countries. USMCA parties representing the poor in well-established democracies have limited powers due to globalization (Jackson & Thomas, 2016). Income earners in the middle class are the net contributors to taxes. Political candidates set their policies positions to serve a smaller primary constituency’s not broader electorate.
Free trade and Transnational corporations (TNC)
A common market improves economic policy unification by regulating products and allowing free movements of the production factors (capital and labor). CUFTA made work, money, goods, and services accessible and affordable to members. Similarly, trade liberalization and investment flows have controlled the government ability to regulate the market economy. Unions who feared joblessness had affirmed their process to reduce the ties. TNC improves the natures of the involved enterprises.Economic Integrations
Commercial integrations increased the income inequality on the working age. The stronger wage growth supports this by cutting social transfers. USMCA links global competition by stagnating the wage average (Broadbent, 2017). Real wages have failed to rise due to increased labor bargaining power in the manufacturing sectors. Consequently, the continental integration and market links have increased. Generally, social programs eroded the income transfers among the working-age population.
Conclusion
In conclusion, globalization has a significant impact when it comes to market and free trade. It has dramatically enhanced the competition in workplaces and better access to larger markets. Also, competition has increased production and at the same time helped to improve the workers living standards. Free trade, CUFTA, and economic integrations have improved the factors of production flow.

References
Broadbent, E. (2017). “Opportunities in a post-NAFTA world,” Toronto Star. Retrieved from https://www.thestar.com/opinion/commentary/2017/10/19/opportunities-in-a-post-NAFTA-world-broadbent.htmlJackson, A. & Thomas, M. (2016). Work and Labour in Canada (3rd ed.). Toronto: Canadian Scholars.