Clearing: Assignment Related To Globalization And Free Marke ✓ Solved

CLEARING: Assignment related to globalization, free markets, and intellectual property

Respond to two students separately based on the following prompts:

Respond to two students. Question: We see the topic and theme of globalization threaded throughout much of our work on the subject business ethics. In the broader context of government, markets, and international trade, current economies contain elements of traditions, commands, and markets where the balance of those elements can vary significantly. Velasquez (2018) examines two important arguments for free markets: moral rights and utilitarianism.

As stated by Velasquez, "Controversies over globalization and free trade are but the latest episodes in a great and centuries-long ethical debate over a single question: Should governments allow businesses to trade freely among themselves without interference, or do governments have the right and the duty to impose restrictions on business activities to protect their citizens?" (p 124). Discuss your response to this question. Offer supporting evidence for your position. Please respond to two students. Respond to the two students separately.

Student 1:

I feel like when these topics are discussed, we often talk about them like it has to be one way or the other without any possibility of a give and take relationship.

After reading the chapter for this week, the dominant theory around government involvement was not a positive one. Locke argued that without government involvement, humans would exist in a idealistic but "very unsafe, very insecure" state of nature. Only because of the turbulent state of nature, people would form a government to protect their natural rights (Velasquez 129). Adam Smith states that any government involvement would disrupt the invisible hand of the free market altogether, so it should be avoided (Velasquez 137). I believe that without some government intervention, the risk of harmful business practices would be rampant globally.

An example from our textbook is how the Thai government tried to intervene when a drug company was charging monopoly prices for a necessary AIDS drug that was developed. I understand patents and intellectual properties, but I oppose exploiting people's needs for profit. Companies developing life-saving drugs should aim to benefit the world’s sick, not solely to maximize profits. When citizens are exploited, governments have a moral right to step in.

In cases of monopolies around essentials, collaboration between governments and companies should aim for solutions benefiting everyone.

Student 2:

The debate over government involvement in business is ongoing in my lifetime. My initial instinct is that governments should not interfere in what was built without them. However, considering corporate power, unchecked companies could engage in unethical practices.

Relying solely on Locke’s natural rights view seems overly optimistic. People’s feelings and societal conflicts suggest that total absence of government oversight isn't practical. That’s where the concept of negative rights versus positive rights becomes important, balancing individual freedoms with societal protection.

In sum, while free markets promote individual liberty, rational regulation of business is essential to prevent exploitation and ensure fairness within the economy.

Sample Paper For Above instruction

Globalization has profoundly impacted the way economies operate, intertwining the interests of governments, markets, and international trade. Central to this discourse are ethical considerations surrounding free markets and government intervention. Velasquez (2018) highlights the enduring debate: should governments reduce interference to enable free trade, or should they impose restrictions to safeguard citizens? My position aligns with a moderated approach, recognizing the benefits of free markets while advocating for strategic government oversight to prevent exploitation and promote societal wellbeing.

Historically, thinkers like John Locke championed natural rights, emphasizing that governments should protect individuals’ rights to life, liberty, and property. Locke's perspective suggests that minimal interference is ideal, provided it preserves personal freedoms. Conversely, Adam Smith’s vision of the invisible hand underscores the efficiency of free markets driven by individual self-interest. Smith believed that market forces naturally lead to optimal allocation of resources without government meddling. These views underpin the argument that free trade fosters prosperity and innovation, but they fall short of addressing pluralistic societal needs, especially regarding inequality and exploitation.

An illustrative controversy is the monopolization of essential medicines, such as the Thai government's intervention to regulate drug prices. Monopoly prices for life-saving medications, which render them inaccessible to many, raise ethical concerns. Governments are justified in intervening to protect citizens from corporate exploitation, especially when life and health are at stake. This aligns with the utilitarian principle of maximizing overall happiness and reducing suffering. Allowing unchecked corporate greed can lead to unequal access to basic needs, exacerbating social inequalities. Evidence supports that strategic government actions can balance innovation incentives and public welfare.

In my view, a pragmatic equilibrium is necessary. Governments should create frameworks that regulate monopolistic behaviors without stifling innovation. For example, patent laws can be designed to incentivize research but should incorporate provisions for affordability, especially for essential drugs. International trade policies should emphasize fair competition and prevent practices that undermine public health. The ethical stance favors a nuanced approach: free markets are beneficial but require vigilant oversight to safeguard human rights and societal wellbeing.

In conclusion, the ethical debate over globalization and free trade revolves around balancing economic efficiency with social responsibility. While free markets promote innovation and growth, governments must intervene prudently to address inequalities and prevent exploitation. The protection of fundamental human rights should guide policy decisions, ensuring that globalization benefits all. This balanced approach fosters sustainable economic development aligned with moral principles.

References

• Velasquez, M. (2018). Business Ethics Concepts & Cases (8th ed.). Pearson.
• Locke, J. (1689). Two Treatises of Government.
• Smith, A. (1776). The Wealth of Nations.
• Ricardo, D. (1817). On the Principles of Political Economy and Taxation.
• Marx, K. (1867). Capital: Critique of Political Economy.
• Stiglitz, J. (2002). Globalization and Its Discontents. W.W. Norton & Company.
• OECD. (2019). The Role of Governments in Promoting Innovation and Growth.
• World Health Organization. (2020). Access to Medicines and Global Health Policy.
• United Nations. (2015). Transforming Our World: The 2030 Agenda for Sustainable Development.
• Frieden, J. (2019). Global Capitalism and Its Discontents. Harvard University Press.