What are some advantages of free trade?
What are some disadvantages of free trade?
In your own words, do you believe free trade is beneficial to the economy or harmful to the economy?
Your essay should be 4-5 paragraphs, including an introduction paragraph, body paragraphs and a conclusion. Please cite any information in MLA format that you use within your essay.
Free trade refers to the unrestricted movement of goods and services between countries without any government intervention. Supporters of free trade believe that it has numerous advantages for economies, including boosting economic growth, increasing consumer choice, and reducing prices. However, critics argue that free trade is detrimental to some sectors and creates inequalities that harm some groups in society.
One significant advantage of free trade is that it promotes economic growth. By removing trade barriers, countries can access a broader market and increase their export levels, leading to more significant economic activities and job creation. Additionally, free trade helps to reduce the prices of goods and services, making them affordable for consumers. When countries engage in the exchange of goods and services, they typically specialize in the production of what they are best at, leading to efficiency gains and better allocation of resources.
On the other hand, one disadvantage of free trade is that it may lead to job losses, especially in industries that cannot match the standards of other countries. For example, if the cost of labor in one country is too high, businesses may outsource jobs to countries with lower wages, leading to unemployment in the original country. Additionally, free trade may exacerbate inequalities between countries, with richer countries able to dominate trade at the expense of poorer ones.
In my opinion, free trade is beneficial to the economy. As mentioned earlier, free trade promotes economic growth and job creation while reducing the prices of goods and services. Although it may lead to job losses in some sectors, the overall benefits outweigh the disadvantages. Furthermore, trade agreements can include protections for those who may be negatively affected and ensure that the benefits of free trade are distributed equitably.
In conclusion, free trade has its advantages and disadvantages. While it can promote economic growth and reduce prices of goods and services, it can also lead to job losses and inequalities between countries. However, with appropriate safeguards and protections, free trade can be beneficial to the economy, leading to increased prosperity and opportunities for all.
Works Cited:
Richards, Chris. “The Pros and Cons of Free Trade.” Peterson Institute for International Economics, 15 June 2016, www.piie.com/blogs/trade-investment-policy-watch/pros-and-cons-free-trade.