Economic nationalism is said to be as the body policies that emphasize domestic control of the economy, capital formation and labor. Economic nationalism underline the burden of tariffs and other movement of labor, which are restricted, it also include policies such as protectionism and import substitutions. Economic internationalism gives great concern on the effect of economic activities of international differences in productive resources and consumers preferences, it also seek to explain the patterns and consequences of transactions and interactions between citizens of different countries which includes migration, investment and trade.
In the case of economic internationalism, the economic internationalist came up some arguments in support of promoting free economic interchange and also increasing for development (Bhagwati, 2004). Economic nationalism has a great advantage to globalization and also in assisting the LDC’s. As a result of that, economic internationalist claim that unrestricted trade and any other form of free economic will result in promoting general richness, export have increased from 11% of the world’s collective GDP in 1995 to 29% in 2005 which actually means that more of what countries produce goes abroad. Another advantage of economic nationalism on globalization is based on the longstanding theory. Ricardo developed the ‘’theory of comparative advantage’’, which states that everyone would benefit if each country produced and exported its most cost-effective products. Economic internationalism also promote beneficial competition, and lastly its does increase the flow of investment capita to the LDC’s for example the foreign MNC’s employ 6.3 million people in the US, pay them $350 billion a year and contributed tens of billions of dollars in U.S federal states and local taxes.
Well, in the case of economic nationalism, economic nationalist protect threatened domestic industries and workers from foreign competitions and as well preserving jobs for example, the U.S clothing industry has been devastated with its workforce dropping 47% between 1990 and 2005 from 929,00 to 260,000 and all these happen due to robotics and other forms of mechanization, but it mainly chance due to the foreign competition. It also encourage economic diversification and compensating for existing biases for example in the case of China’s refusal to substantially revalue its artificially low currency and the Yuan against dollar, the economic nationalist battles with the US to retaliate against China by raising tariffs and setting quotas or even embargos on Chinese goods (Shambaugh, 2004).
Though, economic internationalism and economic nationalism have a boundless advantage to the globalization, but they still have other pros, which are not economic. Economic internationalism promote democracy and also decreased violence while on the other hand economic nationalism promote national sovereignty and national security.
Below is a YouTube video debate by Milton Friedman on free trade Vs protectionism.