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Is Free Trade Fair?

Autor:   •  March 31, 2011  •  Essay  •  1,505 Words (7 Pages)  •  1,299 Views

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Free trade can be described as the trade between and within countries that run without government intervention and boundaries exist which means no motivations from government to producers, such as tax breaks or any subsidies, and no so-called 'barriers' to trade – such as import taxes (tariffs) or limits on the amounts imported (quotas). Moreover there are no taxes, Barriers or any restriction (quotas) on the amounts of imported products or services.

When the trade is completely free that means government allow unlimited amounts of imported goods, which is no protection and intervention and because of this in developing countries the cost is often poverty and inequality.

At the moment, trade policy is stacked in favor of developed countries. Developed countries want to keep protecting a few sectors in their own countries, such as their farmers, while using international trade talks to prise open developing countries' markets.

In return, developing countries want to protect their susceptible sectors and sponsor new industries - but are being avoided from doing so.

By locking in fundamentally permanent 'free trade' policies, big business and developed countries are set to bring misery to millions of poor people in the world poorest countries.

Though by some accounts, in the developing countries free trade leaves more disadvantages than advantages, the producers in those countries produce goods or products with no safety nets and social security to help them hold out on selling their goods during time when prices are low. At the same time, all the producers in developed countries or more prosperous nations can wait for the right time the sell their wares which are opposite to the poorest countries that the producers have to sell their products immediately. As a result, they lose big amount of money.

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The other point of view from opponents of fair trade often say that any solution that helps only one group over another harms growth overall. Producers in developed countries, for instance, resent they also having to compete with cheaper price and lower-quality imports. The agreement is unfair because developing nations always sell more of their product but importing less from other countries.

There are many costs as well as benefits of free trade one of which is comparative advantage.

Advantages and disadvantages of free trade.

Almost all arguments against free trade blame it for problems it has little to do with. Free trade enables people to lead better lives and it benefits the environment as well, according to (Morris J.1999)

Many people blamed free trade for many problems in a wrong way. Mainly of the arguments against


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