on humans and the other living beings on Earth.
2007-03-03 02:32:29 · 4 answers · asked by anonacoup 7 in Social Science ➔ Economics
the effect of a free market economy on global scale in theory would mean that each country, and each region of every country will be operating at its optimal and each will be producing only those goods in which a particular region has a competitive advantage.
Now a reality check: there will probably never be a fre market economy in the true sense because most countries will protect certain parts of their economy. For example the EU protects the textilee industry with subsidies and the EU CAP olicy protects farmers from outside competiton. In the US we pay farmers NOT to farm their land, because it would lower the price of food and put many farmers out of business, this despite the need for that same food in other parts of the world. Not only are protectionist policises keeping the free market at bay, but so are logistics. it is sometimes not feasible to make a product that can be traded worldwide, to the extent that the competitive advantage of a country is not in a product that can be readily exported, that countries competitive advantage will always remain beynd the reach of the world market.
2007-03-03 04:42:22 · answer #1 · answered by brad p 2 · 0⤊ 0⤋
If you mean "unregulated", then it will probably be destabilizing, to say at least. "Free" is an interesting word and many people understand it differently. We don't live in a perfect world and there is always a struggle going on. Thus, if everybody has freedom to do what they want, the strong will abuse their privileges, and the weak will loose and be devastated.
2007-03-03 10:45:37 · answer #2 · answered by Kalistrat 4 · 0⤊ 0⤋
The rich, (smart people) would get richer. The poor, (dumb people) would get poorer. Same as in any economic system.
2007-03-03 10:41:14 · answer #3 · answered by raggnaar 4 · 0⤊ 0⤋
Lowest prices on all commodities.
2007-03-03 10:40:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋