Free Trade

Other countries that are suitable to perform the jobs needed may demand less money to finish the jobs. The main purpose of this paper is to explain why businesses should outsource to other countries that can do the work they need at a cheaper cost. Many Americans blame outsourcing for the current unemployment rates, even though the amount of Americans on financial assistance programs that are currently unemployed and are not looking for a job is high. This paper is intended for those that blame outsourcing on the unemployment rates and for American businesses that want to provide quality goods at a reasonable cost for American consumers. This paper will inform the audience on the benefits of why businesses should outsource.

Free trade agreements set up international bureaucracies to govern the participants. It also ensures that all parties comply with the terms of the trading agreement. The problem with free trade in America is it generosity has caused the foreign industry to take over the United States marketplace. This has resulted in high unemployment rates because the consumers and corporations can purchase foreign goods for a little less than domestic product. If each nation can produce what it does best and permits trade, over the long run everyone will enjoy lower prices and higher levels of output, income and consumption that could be achieved in isolation.

Third, fair trade appears to be a good way to limit competition for wealthy counties such as Europe and US. Miller states that fair trade has helped many people facing poverty but with consequences. Both articles clarify the benefits of fair trade but the costs overweight the positives pushing me against free trade. I believe the points both authors have stated portray clear evidence of how free trade does not aid all of the farmers, especially the poorest ones. After this assignment my viewpoint of free trade has shifted, although I still think that free trade is beneficial in order to guarantee customers purchases are receive back to the producers.

Any industry that competes with a foreign good or service will inevitably have to drop the price of its product in order to stay competitive in an international market. Trade opponents admit that while this price drop will lead to more efficient production, it may also lead to lower real wages, and less employment in that particular industry or company. This is the primary argument for those who suggest that imports will destroy jobs, and it is not always false, but it is not always true either. Foreign competition can destroy jobs, because the people that get displaced cannot simply just go work for the competitor. In addition, it takes both time and money to retrain for another field of work; and most people, especially those who are closer to the retirement age, would rather spend that time looking for another job in the same or similar industry instead of educating themselves for a new line of work.

If a country it prone to levy tariffs on items that an organization may need, it would increase the risk of doing business while located in that company. By having a country manufacture or produce product that can be done for less elsewhere is not a wise utilization of resources and in turn harms global trade. When foreign countries can enter a home country and sell product for less, people usually see this as a great trade opportunity. However, if that product is manufactured in the home country then the home country not only loses revenue from sales on that product but the economic impacts can run even deeper. With no need to manufacture that product companies will no longer need to purchase the raw materials or hire the employees necessary to maintain the demand.

It typically does not go that far but this is an example of what could happen. A free market is a privilege to have and it is a shame people have to take advantage of it because they do not feel the need to work hard or to go out of their way to do something for someone else. The free rider is a menace in our society and we do not need to let him take our money and put it to his use. We have found ways such as government intervention and price lids to help control the problem but we have yet to find a solution. Once a solution is found we will have fewer worries and possibly a true free market.

Quotas can be in terms of volume or value permitted. Sometimes the domestic government sells licenses to foreign firms they in t... ... middle of paper ... ...eed to protect it and can trade on the international stage. The drawback of this is that the industry will never reach full efficiency because it’s free of the disciplines of foreign competition. It also protects against dumping this is when the sale of a good is below the cost of production. In the short-term consumer’s benefit from low prices of foreign goods, however in the long - term domestic businesses will go out of business resulting in the foreign firm having the monopoly over the market.

How is outsourcing affecting American Citizens, its not only taking jobs away from us Americans but is also hurting our US economy. Outsourcing is when a company such as Apple sends jobs overseas to a country such as China and has factory workers there assemble the product for a much lower price. Yes this lowers the price of products but we have to take into account how many jobs this it taking from American citizens. Outsourcing jobs does lower the price of products but jobs should stay here in the US to build our economy and give American’s their jobs back. The issue on outsourcing jobs is not only jobs being taken away from Americans but its hurting our economy.

Free trade forces all countries to compete using an even playing field, which puts less developed countries behind their more developed counterparts. Another downside of globalization is the phenomenon known as ‘labor drain.’ Since globalization allows workers to easily move from one country to another, countries with limited job opportunities often find it difficult to encourage skilled workers to stay in their countries (Richard Duncan, 2014). In addition, globalization can also have a negative impact on taxation especially for businesses, which want to avoid paying taxes in a less advantageous country regarding taxation. Those businesses will then choose a tax haven such as Luxembourg, Switzerland or Hong Kong.” Starbucks, for example, had sales of £400m

(Business Week p.26) Overview What is Outsourcing? Outsourcing is transferring services or operating functions that are traditionally perf... ... middle of paper ... ... of all low-paid workers should be increased and that workers should have more rights to become involved in the union. (Greene, 2006) Outsourcing should not be allowed to cause U.S. citizens to be jobless, or receive low wages due to business relocating their productions to other countries. Moreover, if free trades continues in the way that it is going, it will bring down America's average wage. Furthermore, if big companies still keep getting tax breaks for buying machinery less and less workers will be needed, meaning, that people will be out of work.