For the first time in history, almost the entire world is now sharing the same economic system. Communism began to fall in the late 1980s, and since then, capitalism has spread to most corners of the world. The basis of a “pure” capitalist economy is free trade, also called “open trade”. There are benefits of open trade for both rich and poor countries. For developed countries such as Japan and England , free trade brings with it more competition, which in turn brings advantages such as lower prices and more choices of products for consumers. For developing countries, open trade means that people have access to essential goods such as food, clothing, and fuel (for transportation and heat). An open economic system can be a key to improving the lives of people in both poor and rich countries because it can reduce poverty and improving living conditions.

For the first time in history, almost the entire world is now sharing the same economic system. Communism began to fall in the late 1980s, and since then, capitalism has spread to most corners of the world. The basis of a “pure” capitalist economy is free trade, also called “open trade”. There are benefits of open trade for both rich and poor countries. For developed countries such as Japan and England , free trade brings with it more competition, which in turn brings advantages such as lower prices and more choices of products for consumers. For developing countries, open trade means that people have access to essential goods such as food, clothing, and fuel (for transportation and heat). An open economic system can be a key to improving the lives of people in both poor and rich countries because it can reduce poverty and improving living conditions.

For the first time in history, almost the entire world is now sharing the same economic system. Communism began to fall in the late 1980s, and since then, capitalism has spread to most corners of the world. The basis of a “pure” capitalist economy is free trade, also called “open trade”. There are benefits of open trade for both rich and poor countries. For developed countries such as Japan and England , free trade brings with it more competition, which in turn brings advantages such as lower prices and more choices of products for consumers. For developing countries, open trade means that people have access to essential goods such as food, clothing, and fuel (for transportation and heat). An open economic system can be a key to improving the lives of people in both poor and rich countries because it can reduce poverty and improving living conditions.

Another cause of the growing gap between rich and poor countries is protectionist policies. In other words, many rich countries have governmental plans that give special help to their own people, so trade isn’t actually completely “open”. One example of protectionist policies is an agricultural subsidy. This is money that a government gives to farmers; unfortunately, governments in poor countries can’t pay these subsidies to their farmers. Therefore, the farmers in rich countries have a competitive edge in the global market. Other protectionist policies are “hidden”. For example, Country X (a rich nation) might say their trade is open. However, it will not bye products from Country Y (a poor nation). Why? It says that Country Y doesn’t have high enough health or safety standards.

Another cause of the growing gap between rich and poor countries is protectionist policies. In other words, many rich countries have governmental plans that give special help to their own people, so trade isn’t actually completely “open”. One example of protectionist policies is an agricultural subsidy. This is money that a government gives to farmers; unfortunately, governments in poor countries can’t pay these subsidies to their farmers. Therefore, the farmers in rich countries have a competitive edge in the global market. Other protectionist policies are “hidden”. For example, Country X (a rich nation) might say their trade is open. However, it will not bye products from Country Y (a poor nation). Why? It says that Country Y doesn’t have high enough health or safety standards.