Economics

Does greater economic openness between nations lead towards economic growth and convergence? Greater economic openness between nations does lead towards economic growth and convergence. All of the first world countries demonstrate greater economic openness then third world countries demonstrate. Although economic openness may be a solution to gain economic growth and convergence, free trade may not be the answer. There are two different views on free trade; the conservative view and the liberal view. In an economic age in which speedy transactions of imports and exports are essential, free trade is a necessity for aiding worldwide economic development. Even today, the United States continues to support free trade, an example being NAFTA (North America Free Trade Agreement). The problem is that America's generosity has caused the foreign industry to take over the U.S. marketplace. This unfortunately has resulted in high unemployment rates because consumers and firms can purchase foreign...