In terms of efficiency, free trade thus means that every state should play to maximise their specialisation of production and to minimise doing less efficient tasks (Kindleberger, 1995). Liberals believe that specialisation will improve the welfare of an individual country and that of the world as a whole if countries specialise in one task according to their comparative advantage (O’Brien and Williams, 2013). Moreover, nation states can expand their businesses with foreign direct investments, and this leads to more dynamic business style. Free trade opens up a door to the world for every single state, and domestic companies can export and import their commodities without paying extra tariffs or tax. Eliminating trade barriers creates a field which people can play a role internationally to compete one another in order to improve national as well as international economy (Balaam, and Dillman, 2011b).
”Free trade policies have created a level of competition in today's open market that engenders continual innovation and leads to better products, better-paying jobs, new markets, and increased savings and investment” (Denise Froning). Though Free trade plays a huge role in the economy today because of what and where it is used. Free trade allows for traders to trade across national boundaries and other countries without government interference. Meaning that traders have very few regulations that allow for them to do this without the government intervening. Free trade makes things for traders much easier and also allows for many more jobs in the US, such as exporting jobs, or jobs in the auto industry and plants.
Free trade does add wealth to the economy in a country such as America. The main reasons to support free trade are to have a higher standard of living as it allows people to improve their living standard where they can consume better quality products and services at less expensive price. With the increases of standard of living, the people who are in the state of poverty will begin to experience better lifestyles and they will not be discriminated by the richer as now they are almost equally financial stable as the normal working people. Moreover, free trade is a good way for people to create competition and make transformation towards the country. With the existing of competition, the challenges with each other producing similar goods or services makes these businessmen to motivate themselves to discover new technologies around them.
On this note, they are committed to maintain harmony to ensure that this interdependence works out for all of them and that each country can uplift their economy. Furthermore, free trade allows for the broader political interests of all to be tended to, and thus a more prosperous nation. Supporters of peaceful economic globalization, particularly Adam Smith, argues that a globalized economy allows countries to come together in the business market, and to establish common relationships (List 49). However, other great thinkers such as Alexander Hamilton feel that a global economy breeds competition which may eventually result into conflict between nations. The world enjoys harmony due to thriving relationships derived from the formation of a global economy, as seen through the interdependence of nations, and free trade.
Free Trade is the ability to trade goods and services without barriers, and for prices to rise naturally through supply and demand. In theory, Free Trade was a way to break down the barriers between countries, banishing taxes and allowing prices to be naturally set through supply and demand. According to the World Trade Organization, this gives the poor countries the opportunity to specialize in the production of goods that derive from their environment and natural resources with the capacity to sell those same goods to the western world, while being able to buy back goods that may not produced in their native country. This idea is to be beneficial to all; however, the rich become richer while the poor remain poor. Free Trade Agreements can create opportunities for Americans and help to grow the U.S. economy.
America has tried to engage the Chinese to try to stop such theft, but while doing so may have surpassed civil liberties that are constitutional to all American citizens. The United States needs to ensure safety of intellectual property, while at the same time protecting the rights of the American people. By allowing overzealous amounts of regulation on the Internet would be unconstitutional. The most detrimental forms of Internet piracy do not happen within American borders; instead, they occur from overseas countries, like China (London, 2011). This causes the American economy to lose billions of dollars.
The development of a complete free market system will lead to the growth of the gross domestic product. The development of a complete free market would strengthen the GDP as the country has a growth in the amount of new businesses established. Entrepreneurs would be more motivated to create a business if there were no restrictions. They could produce what they want, however they choose to produce it (any method), and they can produce the product for whomever they want and whom ever will buy it. Since there is no government intervention, government cannot put a price sealing.
Web. 23 Oct. 2013. Stigler, George J. "The Bell Journal of Economics and Management Science." The Theory of Economic Regulation 2.1 (1971): 3-21.