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Reducing Barriers to Free Trade

analytical Essay
1672 words
1672 words
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Introduction

Free trade has long be seen by economists as being essential in promoting effective use of natural resources, employment, reduction of poverty and diversity of products for consumers. But the concept of free trade has had many barriers to over come. Including government practices by developed countries, under public and corporate pressures, to protect domestic firms from cheap foreign products. But as history has shown us time and time again is that protectionist measures imposed by governments has almost always had negative effects on the local and world economies. These protectionist measures also hurt developing countries trying to inter into the international trade markets.

With the recent global recession we are currently undergoing, it is now time for governments in all countries to work on reducing barriers to free trade. In recent years we have seen a drop in trade and growth in economies coupled with huge unemployment numbers that haven’t been seen since the Great Depression (Lamy, P. 2009). Governments must act to help promote confidence in our economic and social systems (Lamy, P. 2009). Free trade must be part of this recovery process. In order for free trade to flourish all world governments must resist protectionist measures such as: high tariffs, non-tariff barriers or anit-dumping measures and subsidies for domestic firms (Lamy, P. 2009). Free trade can work and there are many measures that governments can do to help promote free trade, which in turns will help developing countries to raise their standard of living for it’s citizens, while protecting their local work force and domestic firms and corporations.

Free Trade Works

Even in these difficult economic times we are going thro...

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...needed to help ensure fair trade practices. The World Trade Organization is a critical component in helping to ensure fair trade and providing a means for mitigating trade disputes. Over coming fears of import competition is the biggest obstacle that all nations and governments must over come. But I think through the effective use of trade assistant programs is critical in trying to appease local work force fears over free trade.

References

Carbaugh, Robert (2009). Global Economics, (13th ed.).: South-Western, Cengage

Learning.

Gidney, Michael, 2009. The Government must act on fair trade now: Public Service.CO.UK,

Retrieved from: http://www.publicservice.co.uk/feature_story.asp?id=11469

Lamy, Pascal (2009). G20 nations must not turn inward in tough times: Public Service.CO.UK,

Retrieved from: http://www.publicservice.co.uk/feature_story.asp?id=11468

In this essay, the author

  • Opines that free trade is the most beneficial way for all nations to achieve economic growth. the world trade organization is a critical component in helping to ensure fair trade.
  • Argues that free trade is essential in promoting effective use of natural resources, employment, reduction of poverty, and diversity of products for consumers.
  • Opines that free trade is growing, and that governments must support it by modifying current trade policies to remove barriers.
  • Argues that free trade is based on the comparative-advantage of lower productivity and higher standard of living, and consumers benefit from more diversity and cheaper prices.
  • Explains that many developing countries still see inconsistences with their ability to get into the international market place, whereas the advanced countries view that they need to make changes slowly and in incremental steps.
  • Explains that developing countries looked at import substitution and export-led growth to achieve economic growth.
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