Advantages Of Free Trade

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Free trade is an economic policy in which one country has open imports and exports with another country, or countries. Edward E. Leamer discusses in his book, Sources of international comparative advantage: theory and evidence, the purpose of free trade is that some countries are able to produce more efficiently than other countries, which could be because they offer lower labor and environmental-protection costs. This allows certain countries to focus on producing what they do best, and trading that product away to other countries in exchange for other necessary goods. This can either be extremely helpful to the economy, or devastating depending on how you look. As other countries have developed new manufacturing plants, they also include…show more content…
Democracy could be explained as having a “short-term cost”, while having larger gains in the future. In democratic countries, the people are demanding higher wages and benefits, as well as improved: education, infrastructure and environment. These granted wishes lead to a prosperous economy, as long as certain benefits are fed back into maintaining that infrastructure, education and services. This prosperous economy made America a desirable market to sell things to. Unfortunately, low labor and environmental-protection costs are a comparative advantage. Economist say that the United States should to take advantage of countries with governments that exploit labor and environment cost, because they offer lower total costs for manufacturing. Although, trade will show increases, but so does our country’s trade deficit as imports rise and exports fall. Factories here close, people here get laid off, wage pressures here increase and overall demand in our economy…show more content…
Burfisher, Sherman Robinson, and Karen Thierfelder in their journal article The Impact of NAFTA on the United States. The first is digital trade, which has been pushed for since NAFTA was first introduced. A growing online community in the “buying and selling” world starts on a website or a smartphone, which relies on the internet to produce and deliver goods and services. The internet has made it easier for small trading companies sell all over the world. One way to boost electronic trade is setting clear rules and standards for electronic payments, as well as increase in security and

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