It is clear from the theory of international trade that the ideal world economy is an economy in which goods and services move without any restrictions around the world. If it is additionally accompanied by the possibly unlimited flow of capital and technology, and partly also by the labor force, then we can be sure that, using the language of economic theory, production factors are used where it is the most effective.
Then the customers have the greatest amount of merchandise available.
Undoubtedly, such a situation is incompatible with the existence of sovereign states. Their inhabitants would have to accept perfect market mechanism operating globally. And this could, for example, lead to the conversion of China into single large factory (deprived of trade unions), the United States into a laboratory providing inventions, the Middle East, Russia and Africa into large raw material basins, and the rest of the world into suppliers of agricultural products. In addition, Europe could be considered an open-air museum.
Therefore, accepting in general all the advantages of the market economy and the need to give it as wide a range as possible, the international community has been trying to "tame" the market mechanism for decades. At a national level, this is supported by the state's economic policy, and internationally by various international agreements and the activities of international organizations. All of these activities certainly allow us to achieve a significant part of the benefits that would give us a hypothetical free market with global reach. Moreover, they often allow it to be achieved in a way that is acceptable to the individual countries’ societies.
However, globalization, which is a specific slogan of the processes presented above, entails not solely benefits, but also threats and limitations of both economic and social as well as political nature. Some of them have become real challenges for all humanity and individual communities. We would like address these issues for discussion in this panel.