Trade Liberalization: The Importance Of Trade Liberalization

Trade liberalization is also known as free trade, where each nation can trade freely with no trade barriers. The United States has pursued trade liberalization and has benefitted by doing so. Due to a trade imbalance, consumers are able to receive products at a cheaper price. Trade liberalization requires countries to have an open trade policy where countries can trade under fair and nondiscriminatory circumstances and being able to access each other’s markets. American consumers have increased their standard of living by enabling more goods and services through free trade. Since 1990, imports of goods and services have increased 115 percent while supporting free trade, which is a huge increase in free trade prospective. Other than in the United States, other countries continue to share the benefits that America shares on free trade. Trade liberalization is important to developing countries due to its opportunity of economic growth in the country. The

Trade liberalization fosters competition, allowing other countries to become competitive with one another and develop better goods in order to innovate better products. These countries keep prices low and quality high in order to retain or increase their market share (Froning, 2000). In the United States, electronics and pharmaceuticals are our most innovative good and we are able to acquire growth in the field but still keep the prices low. In only a year, the growth of employment increased 2 million in the United States between 1998 and 1999 alone. Over the years, rapid growth has increased and has shown nothing but progress and has proven to show trade liberalization is working. Trade liberalization in the United States is positive and shows economic growth over the decades. A growing number of countries continue to share the benefits of America’s emphasis of