Free trade is best defined as a system in which goods, capital, and labor flow freely between nations, without barriers, that could hinder the trade process.
Many Americans feel that their jobs at home should be protected and that free trade should be limited. However, global competition and less expensive imports keep prices under control and reduce inflation. In this assignment, you will be researching and discussing the pros and cons of free trade.
Impacts of Free trade
This refers to the sale of goods and service between countries without any form of restrictions, in other words, it’s free from barriers or any other form of constraints. This kind of trade enables the states to focus on development rather than basing on individual gains in society thus foresees the citizens economic growth.
Advantages And Disadvantages’ Of Free Trade In The Country
Free trade in mostly encouraged because it aids the practicing nations to concentrate their efforts towards development, the policies initiated enables the countries to generate more foreign exchange in order to purchase more products in the market, the scope of free trade therefore entails the theoretical practices and its application whereby it leads to reduction of the commercial barriers that might exist between countries. For instance, free trade enables free flow of goods and even labor. the positive strategy enables the a cohesive development in developing countries,
The common roles played y the free trade is that it aids high rates of employment, here, developing countries tend to offer new job opportunities for its local workers thus helps to reduce dependency syndrome which further develops the locally owned enterprises.(Grynberg,2001).
Moreover, when the free trade is emphasized it lead to ultimate reduction of child labor, the use of technology replaces the manual work that could have been done by the unskilled laborers . Existence the manufacturing industries too contribute to use of technology hence free trade allows adoption of technology which further attracts adult and foreign workers through investments, this development tend to encourages children to enroll for schools for various professional courses.
However despite the numerous impacts of free trade, it can negatively affect the environment through pollution, companies producing goods will end up emitting harmful toxics to the ozone layer which dangers the survival of living things and drastic change of climate.
Measure to promote fairness and protection of the free trade in the country
For fair development between inter-governmental agencies, they can formulate policies that restrict the existence of partnerships; the legal trade amongst member states should always be emphasized.(Levy, 2009) .In conclusion ,this measures will enable the sustainability of the trade hence boosting the improvement of the infrastructure along the corridors of trade.
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