May 11, 2006
refers to the worldwide phenomenon of technological, economic, political and
cultural exchanges, brought about by modern communication, transportation and legal
infrastructure as well as the political choice to consciously open cross-border and is caused by four
fundamental forms of capital movement throughout the global economy. The four fundamental
capital flows are:Human Capital (i.e. Immigration, Migration, Emigration, Deportation, etc.),
Financial Capital (i.e. Aid, Equity, Debt, Credit & Lending, etc.), Resource Capital (i.e. Energy,
Metals, Minerals, Lumber, etc.), and Power Capital (i.e. Security Forces, Alliances, Armed Forces,
Comparitive Advantage allows for specialization in production. Supporters of free trade
point out that economic theories of comparative advantage suggest that free trade leads to
a more efficient allocation of resources, with all countries involved in the trade benefiting.
In general, this leads to lower prices, more employment and higher output.