Reducing Barriers to Free Trade
analytical Essay
1672 words
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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- Explains that the north american free trade agreement was designed to eliminate all trade barriers between the three countries and promote conditions of fair competition and increase investment opportunities.
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3047 wordsRead More - Essay On Free Tradeanalytical essayAlthough countries may sometimes contemplate having completely free trade, their trade policy is usually restricted using methods such as tariffs, quotas, or administrative barriers. (Sloman et al. 2015) Against the potential benefits trade might provide, one has to consider the possible costs incurred. One of the oldest and most cited arguments proposed against free trade is the protection of infant industries and key domestic industries from foreign competitors. In the US, industries such as that of steel, petroleum, automobiles, and aerospace are considered essential to the nation’s welfare in times of war, with the thought that international suppliers will not be as dependable as in times of peace. To preserve the country’s superiority, restricting foreign imports should thus be encouraged in order to stimulate development and growth. Infant industries, meanwhile, are industries that have a potential for comparative advantage, but have not yet developed the economies of scale necessary to accomplish this, lack of necessary networks, or simply financial inadequacy. Protection from foreign competition should then, accordingly, allow them the capacity for expansion and efficiency. These arguments can be considered somewhat more politic than economic, however, and a careful balance between self-sufficiency and the economic costs of foregoing trade ought be
In this essay, the author
- Explains that trade has been an important aspect of human civilization since ancient times, but only with the advent of modern technology has globalization allowed international trade to thrive.
- Explains that ricardo's theory of comparative advantage is based on the concept of opportunity costs.
- Explains the ricardian model, which relies on a variety of assumptions not often accomplished in real world markets.
- Argues that free trade isn't universally agreed upon as the best choice, and that a careful balance between self-sufficiency and the economic costs of foregoing trade should be maintained.
- Argues that the protectionist viewpoint is rooted in their desire to reduce foreign competition against domestic goods and services.
- Argues that while domestic industries are impacted by the introduction of free trade, foreign goods are in no way capable of completely replacing the market share domestic firms own.
- Argues that while jobs are created due to free trade, negative social ramifications occur in the wake of such.
- Opines that the link between trade and poverty alleviation is not automatic, but trade can still be an important force for change.
- Argues that trade as a whole is globally beneficial, allowing countries to produce, as well as receive, at levels otherwise unattainable.
1407 wordsRead More - The United States free trade agenda includes policies that seek to eliminate all restrictions and quotas on trade. The advantages of free trade can be seen through domestic markets and the growth of the world economy. T...
In this essay, the author
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- Explains that the benefits of free trade can be seen in both the economic and social realms of the united states.
- Argues that free trade hurts the average american worker while only benefiting the wealthy investors and big business owners.
- Opines that countries must enforce fair play between nations to maximize wealth. the world trade organization is the only free trade enforcement agency, but the u.s. is an area of controversy.
- Explains that the welfare of american workers has played a prominent role in shaping economic politics. fair trade policies protect the american workforce by placing restrictions on foreign products.
- Argues that the u.s. must pursue trade policies that stimulate efficient production and protect the american job market to compete in a global economy.
- Explains that the united states' economic trade policy has changed over the course of time from a solitary national, self-reliant system to an interdependent global market.
2527 wordsRead More - International Trade and The Global Economyopinionated essayThe global economy needs free trade. Countries need free trade. Trade with other countries occurs at some level in every country globally. There may be some indigenous tribes within some countries that can lay the claim that they are self-sufficient, however, there is not a single country that can say the same. Proponents of an open trading system contend that international trade results in higher levels of consumption and investment, lower prices of commodities, and a wider range of product choices for consumers (Carbaugh, 2009, p26). Free trade is necessary. How do countries decide what to import and what to export?
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- Opines that the global economy needs free trade, and that countries need it.
- Explains ricardo's theory of comparative advantage, which states that the citizens of each nation can gain by spending more of their time and resources doing things in which they have a relative advantage.
- Argues against ricardo's comparative advantage theory, which emphasizes technological differences as the reason for free trade.
- Opines that politics can play a role in free trade, and that countries need to think long and hard before intervening in trade wars and trying to gain an advantage over others.
- Opines that krugman's article poses interesting alternatives to the comparative advantage theory. the global trade policy will not change much because countries are content with the current trade policies.
- Explains that economic development shapes the patterns of world trade. education, technical skills, income, and natural resources determine what countries will produce and trade; high-income countries concentrate production in areas that take advantage of their abundance of highly skilled labor.
- Explains krugman, p.r., and vollrath, t.l.
1026 wordsRead More - Free Trade Essayanalytical essayThe success and growth of fair trade is heavily tied to consumers and them being aware how goods are produced. In an opposing way to free trades masking of production in the black box, fair trade aims to educates consumers. This education of consumers is the result of “fighting commodity fetishism by creating greater transparency between the grower and the end consumer” (Topik, 2007, pg. 146). Fair Trade thrives off of the transparency of the production of goods. Consumers can pressure sellers to provide fair-trade products in markets who in turn encourage the producers to participate in fair trade by buying fair trade products from them. The objectives of free trade are distinctly different from those of fair trade. As much as fair trade is not a displacement for free trade, its aims are directly opposed to that of free trade and that is a contributing factor as to why the fair trade movement is slow to
In this essay, the author
- Explains that free trade has contributed to the society of perpetual growth by increasing the amount of money added to local economy and offers to consumers many competitive and low prices for commodities.
- Explains that free trade opens countries up to goods from wealthy countries, resulting in the government feeling pressure to provide some sort of jobs for their population. the drive for increased profit margins by corporations is the black box system.
- Analyzes how robbins states that capital investment is natural because the real source of profits and economic harm are hidden well from view.
- Explains that fair trade emerged in 1985 to establish a exchanges of technology and trade to challenge the current system in place.
1070 wordsRead More - Free Trade In The Third Worldanalytical essayAt its simplest, international trade is the exchange of goods and services between countries. About a fourth of all goods and services produced in the world are exported to another country (Yuan & Guanghua, 2015). This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes.
In this essay, the author
- Explains that international trade gives rise to a world economy in which prices affect and are affected by global events.
- Explains that a competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or providing greater benefits and service.
- Explains that developing countries are impeded from the world to equal access to infrastructure, capital resources and literate human labor, which hinders their global trade practice.
- Argues that free trade favors developed nations in a number of instances, with developing nations' competitive advantages often becoming disadvantages.
- Explains that children are used as a cheap substitute for manufacturing equipment, and free trade allows companies to invest in equipment and pay higher wages to adult workers through foreign investment.
- Explains that an increase in employment levels, incomes, and the general standard of living alleviates hunger and lack of medical care in developing countries. angola's high mortality rates and continued poverty demonstrate that the wealthy at the top benefit from international trade.
- Argues that trade stems from inequality and difference. free trade doesn't work as a global anti-poverty strategy.
- Opines that developing countries can benefit from free trade by increasing their amount of or access to, economic resources.
1961 wordsRead More - The History of Fair Tradeexplanatory essayFair trade can be defined as a social movement thats objective is to help producers in developing countries make better trading conditions and elevate sustainability. Fair trade is contrasting to the other trade practices in our world, its about making codes of fairness in the marketplace. The practice of fair trade seeks to reshape the way we buy and sell products - to verify that all farmers and skilled workers behind the manufacturing of goods get a better deal. Most people would assume this as a better means for prices, however can include better and longer lasting relationships. Fair trade is also about information, having the knowledge as to where are food/products are coming from, and having the knowledge that all products were made ethically. It has brought upon an influence to persuade consumers to learn about the social, economic and environmental consequences of their purchases. The movement is conscious of the trust placed in it, and has made a commitment to developing and elevating the highest standards possible in order to maintain the trust. We can look at fair trade as a revolutionary practice, it promotes great change in the market, and on the partnership between producers, traders, businesses and consumers. Fair trade encourages the well-being of the world and those who inhabit it. In this paper we will look at the history of fair trade, the principals and the practices, and the benefits of it all. The fair trade market is an ever-growing place, and people need to become more educated about it.
In this essay, the author
- Defines fair trade as a social movement that helps producers in developing countries make better trading conditions and elevate sustainability.
- Explains that fair trade originated in europe before alternative trading organizations (atos) were developed after wwii.
- Explains that the fair trade movement has a clear vision on what they want to do.
- Explains that the fair trade organization offers many benefits to producing and buying fair trade. the fairtrade mark is put on products that are developed by these principles.
- Explains that fair trade has been in development for fifty plus years now, and will continue to be a developing process. fairtrade international and fair trade federation are continuously working towards developing new policies to create an even better way of trading.
1143 wordsRead More - Trade Between Australia And Chinaopinionated essay...d, J.H. 2004, ‘Economic determinants of free trade agreements’, Journal of International Economics, vol. 64, no. 1, pp. 29'' 63.
In this essay, the author
- Opines that australia's trade with china has heightened in the last couple of years. china is home to 1.3 billion people and consumes a variety of goods, including food, toys, clothing, gifts, and car parts.
- Explains that australia has good political and economic relations with both china and japan, neither of which wish to exclude australia from a regional trading community.
- Explains australia imported $287.8 billion in goods from china last year, up from $51.5 billion a decade ago, according to the australian commerce department.
- Explains that china is australia's third largest merchandise trading partner and seventh largest service export market. a more liberal chinese trade policy could increase australia’s income in part through greater market access for its exports.
- Analyzes how australia's bilateral merchandise trade with china grew from aus$10.1 billion in 1998-99, while its merchandise imports from china increased. saving on tax is another area.
- Explains that china's merchandise exports to australia are mainly labour intensive manufactures, with the major categories being textile, clothing, footwear, machinery, and electronics. china’s integration into the world economy through trade was one of the key drivers of this strong economic growth.
- Explains that chinese motorcycle manufacturers don't make huge investments in marketing. copying collapses time and eliminates the learning curve right through the supply chain. japanese companies are making a comeback.
- Opines that imports are creating an uneven and deceptive playing field. the specific damage to local manufacturing industry and the agricultural sector is obvious.
- Opines that the health and safety issue of imported goods from asia is one of the most serious issues china faces about this trade to australia.
- Explains that china has more deaths per capita from work-related illnesses each year than any other country, according to the ilo. in 2005, 386,645 chinese workers died of occupational illnesses.
- Opines that the chinese government has an enormous stake in protecting the "made in china" brand. a region-wide trade agreement would be in australia's interests, but it is not part of australian policy to encourage such a wide and comprehensive pact in the asia pacific region.
- Explains that australia imported $288 billion worth of chinese products in 2006, more than double the 2002 figure and 10 times the 1992 amount.
- Argues that australia and china can benefit from the trade between china and australia if these issues can be handled professionally.
- Cites anderson, pomfret, asia education, and bergstrand, j.h.
- Cites balassa, buetre, ahmadi-esfahani, and business day, 2006, 'cheap buys can trash australia'.
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In this essay, the author
- Explains the impact of the wto on trading countries, stating that countries fight to get the best deal, creating tariffs and taxes to maximize their profit, and the little producing countries are short-changed.
- Explains how the world trade organization impacts international trading and national sovereignty, stating that countries must trade to sustain their people and get the products they need.
- Explains how the world trade organization impacts international trade and national sovereignty. the wto establishes a framework for trade policies, but does not define or specify outcomes.
- Explains that the rules of trading are simply set as guidelines and cannot guarantee a certain outcome for each agreement between countries.
- Explains the concept of nondiscrimination in terms of the most favored nation and the national treatment principle.
- Explains reciprocity is an important part of negotiation where, ideally, each side makes mutual changes in trade policy that bring other changes into play.
- Explains that enforceable commitments restrict tariffs from going up and down too much. since the wto is an intergovernmental agreement, they can handle their own cases.
- Explains that transparency is important for the wto because it requires members to publish their trade regulations, establish and maintain institutions allowing for review of administrative decisions affecting trade, respond to requests for information, and notify changes in trade policies.
- Explains that safety valves are extremely important to the wto for one main reason: the government can restrict trade if they need to.
- Explains how the wto regulations and meetings affect every nation differently, depending on what each nation needs, has and wants to do. national sovereignty is bent for the equality of trading.
- Opines that the wto is a bureaucratic metaphor for the power of the world market, which benefits the big corporations and the super-rich, at the expense of workers and poor farmers.
- Opines that the wto isn't a perfect organization by any means, but it does try to regulate tariffs and taxes and occasionally helps poor countries out.
1293 wordsRead More