Free Movement of Capital and Trade: Spurring Economic Growth and Equity

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Introduction: Free international movement and free trade spurs economic growth
and equity
Free movement and free trade of capital internationally has led to countries increase
economically and in equity. Economic globalization is the widespread movement internationally
of capital from one zone to another. Free movement of capital and trade may also be referred to
as economic globalization. It is an increasingly interdependence of economies in the world due
to increased trade in cross border of services and goods. Increased flow of wide spread of
technologies and capital injection from foreign countries also cause rapid growth of economies
and equity (Baral, 2017).
There is a relationship between a country’s economic growth and the export of the
country. This is a debate that has been debated over the recent past with little consensus. It is due
to this debate that questions of whether strong economic performances growth driven or export
led. The casual pattern between growth and export is important in comparison between real
export and real growth. When a country exports its goods and resources and sells them to foreign
markets, the exports bring money and increases the GDP of a country. If the exports are greater
than the imports, the difference either negative or positive is included in the country’s GDP
(Barry and Goodin, 2015).
One of the key issues being raised fundamentally is whether it is possible for a country to
its access to a single market without it accepting the freedom of movement. However, free trade
and free movement simultaneously go together. According to economists, there are different
reasons why it is important to maintain free movement of capital alongside free movement of
trade (Connolly and Swoboda, 2018). For example, in the UK, the question has been about