To What Extent Can Free Trade Be Viewed as Beneficial to...

To what extent can free trade be viewed as beneficial to economic development? Trade is one of the oldest types of economic activities known to mankind. Through decades of refining and developing, the traditional method of trading goods has evolved into exchanges of products and services. In the 18th century a British economist, Adam Smith, defined the first principle of unrestricted trade or ‘free trade’. Free trade states the possibility of exchanging goods or services without government interference, tariffs or taxes. Free trade raises competition and increases efficiency all over the world. Countries open up their borders by free trade agreements and establishing open trade routes. It expands national borders and increases the†¦show more content†¦Money that local people spent in the supermarket probably does not stay in the community. Many states or countries encourage free trade and recognize the importance of overseas markets to domestic growth. California boasted $1.7 billion of exports in 1999 and supported those exports with $13.5 million of subsidies annually. (Cornell University) Some are concerned, however, that the trade agreements do not take important public feedback in to account and that may damage domestic legislation. Another argument against free trade is that the risen competition is not ethical for countries. The free trade territory is very competitive. Prices are supposed to be at their cheapest possible rate because the costumer has the opportunity to get their products from somewhere else in the world. Poor countries have to keep up their efficiency and countries that do not specialize are in trouble. On Balance the conclusion seems clear, it is fair to say that free trade does not benefit everyone. However, it does help the economy to grow. Throughout history it has proven to â€Å"boom† the economy. After the Second World War Europe was in ruins. The U.S.A. and Britain agreed to start cutting down on tariffs in 1944 as part of the famous Bretton Woods agreements, (World Socialist Movement). As a result of this, world trade grew by 8.7% between 1963–72. (Sklar) Without these free trade agreements itShow MoreRelatedThe Trans Pacific Partnership1549 Words   |  7 PagesJune, which will allow the Obama administration to negotiate trade deals with limited congressional input. The limited number of direct beneficiaries of the CETA, TPP and the other global treaties, are most desperate to keep from the prying eyes of the potential global un-preferred shareholders and the harmless non shareholders. A tariff is a tax imposed on imported goods and services. The main reason for tariffs is to restrict trade, as they increase the price of imported goods and services, theyRead MoreThe Chinese Culture And Chinese Values1489 Words   |  6 Pagesimpress the Emperor to begin establishing stronger trade relations with China. 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