Even thought here are many advantages to having a free trade zone and being a part of one, there are still some disadvantages that make them notoriously known. In places like El Salvador, there is a widespread amount of young adults and children. Among the age groups of sixteen to twenty-four is the highest percentage of factory workers. According to a census taken back in 2012, there was approximately 6.2 million people living in El Salvador; 64.4% of those people are under the age of thirty-five years old. You would think that with all the saved money from lowered costs and tax cuts that giving a more substantial salary to workers would not be a problem. El Salvador, on its international free trade zone website, makes it a staple to include
Free trade comes with its share of pros and cons. It is responsible for increased economic growth, better business environments, encourages investment
War and violence in Central America is a result of governmental injustice due to the United States’ foreign policies. The United States supported El Salvador with weapons and money throughout the civil war. As a result of enforcing these policies, El Salvador’s poverty, population and crime rate increased. The books “…After…” by Carolina Rivera Escamilla and “The Tattooed Soldier” by Hector Tobar give us a glimpse of the issues Central Americans faced.
The United States has for over two centuries been involved in the growing world economy. While the U.S. post revolutionary war sought to protect itself from outside influences has since the great depression and world war two looked to break trade restrictions. The United States role in the global economy has grown throughout the 20th century and as a result of several historical events has adopted positions of both benefactor and dependent. The United States trade policy has over time shifted from isolationist protectionism to a commitment to establishing world-wide free trade. Free trade enterprise has developed and grown through organizations such as the WTO and NAFTA. The U.S. in order to obtain its free trade desires has implemented a number of policies that can be examined for both their benefits and flaws. Several trade policies exist as options to the United States, among these fair trade and free trade policies dominate the world economic market. In order to achieve economic growth the United States has a duty to maintain a global trade policy that benefits both domestic workers and industry. While free trade gives opportunities to large industries and wealthy corporate investors the American worker suffers job instability and lower wages. However fair trade policies that protect America’s workers do not help foster wide economic growth. The United States must then engage in economic trade policies that both protect the United States founding principles and secure for tomorrow greater economic stability.
These countries should consider embracing free trade in order to fully benefit in many areas for their economy. There are several pros and cons to consider regarding free trade. Free trade fully removes any hassles of taxes and other government restrictions that limit international trading opportunities. Free trade vastly improves upon the economic wellbeing of all nations involved in international trading. Since free trade also allows each nation involved to specialize and create specific commodities, free trade can run efficiently and inexpensively compared to other complicated
During 1979-1992 El Salvador was engaged in a civil war, with the government fighting the rural indigenous citizens. Violence and gang culture were taking over the country and creating a cycle that can’t be easily broken. El Salvador’s citizens were searching for new power, opportunities, and a way out of poverty.
Few governments will argue that the exchange of goods and services across international borders is a bad thing. However, the degree to which an international trading system is open may come into contest with a state’s ability to protect its interests. Free trade is often portrayed in a good light, with focus placed on the material benefits. Theoretically, free trade enables a distribution of resources across state lines. A country’s workforce may become more productive as it specializes in products that it has a comparative advantage. Free trade minimizes the chance that a market will have a surplus of one product and not enough of another. Arguably, comparative specialization leads to efficiency and growth.
El Salvador (The republic of The Savior) is known to be the smallest and most densely populated country in Central America. San Salvador has been announced as the Capital City. It is considered to an important cultural and commercial center for the whole Central America. It borders with Guatemala, Honduras, The Pacific Ocean and the Gulf of Fonseca. It’s the only country in this region not on the Caribbean Sea.
Growing up in a developing country has really open up my mind about setting up for a better future. My home in El Salvador wasn't the most lavishness, but it's also not the worst. I grew up in a house with two levels; three bedrooms on the top floor, one on the bottom, a garage and laundry room at the lower level, and a small sale shop at the front of the house. Growing up in this home has been a meaningful place for me. Its where I found my sense of place.
Living in a third-world country is not something I am particularly familiar with. My father, however, knows all too well what it is like to live in a place where people struggle to get food every day. Honduras is a country located in Central America, a region that is filled with poverty, crime, and gang activity. There is one thing that stands out about Honduras: it is beautiful. I went to visit my family in Honduras when I was young, and we visited a part of the country where the ancient civilizations of the Maya were located.
All nations can get the benefits of free trade by being specialized in producing goods they have a comparative advantage and then trade them with goods produced by other nations in the world. This is evidenced by comparative advantage theory. Trade depends on many factors, country's history, institution, size and. geographical position and many more. Also, the countries put trade barriers for the exchange of their goods and services with other nations in order to protect their own company from foreign competition, or to protect consumers from undesirable products, or sometimes it may be inadvertent.
Free trade is a form of economic policy which allows countries to import and export goods among each other with no government interference. In recent years there has been a general consensus in economist’s stance on free trade. They view free trade as an asset. Free trade allows for an abundance of goods with increased varieties and increased availability. The products become cheaper for consumers and no one company monopolizes an industry. The system of free trade has been highly controversial. While free trade benefits consumers it has the potential to hurt manufacturers and businesses thus creating a debate between supporters of free trade and those with antagonistic positions.
Free trade in today’s economy allows so much more than just jobs and goods at lower prices for Americans. Compared to the foreign competition, the free trade benefits outweigh any risks the foreign competition might impose on the US. As said by Denise Froning in her article, free trade benefits in four ways. “Free trade promotes innovation and competition, Free trade generates economic growth, Free trade disseminates democratic values, and Free trade fosters economic freedom.” Societies that enact free trade policies create their own economic enthusiasm, nurturing freedom, job opportunities, and success that benefit every citizen. Free trade is the only type of fair trade because it offers consumers the most choices and best standards to improving their type of living. Also by fostering opportunitie...
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
...every corner of the globe. When those low costs occur as a result of inferior, and even illegal, working conditions, then sweatshops are a major global problem. A possible solution would be to change, or at least modify, the conditions under which sweatshops continue to function. Universal workers rights, with minimum age and minimum wages could be a solution. Still, certain countries will always have the advantage of low cost labor and will exploit that advantage in the international marketplace. However, the disparity between the great differences in labor cost can be lessened, but it can best be done by continuing to promote world free trade and continuing to improve the quality of life in developing nations, where low cost labor is most abundant.
Trade creation occurs when low cost producers within free trade area replace high cost domestic producers. These agreements create more opportunities for countries to trade with one another by removing the trade barriers and investment. Trade creation allows member countries for a wider selection of goods and services not previously available. They can acquire goods and services at a lower cost after trade barriers due to lowered tariffs or removal of tariffs which will encourage more trade between member countries the balance of money spend from cheaper goods and services, can be used to buy more products and services. Regional economic integration significantly contributes to the relatively high growth rates in the nation. By removing trade barriers between members countries the factor of production can be move