The debate regarding international trade has been around as long as trade itself. A complicated yet necessary aspect to an economy, trade can be interpreted very differently. Currently, the accepted definition of trade is a transaction where two parties exchange goods and services. Free trade, on the other hand, is international trade without tariffs, quotas, or other restrictions. However, free trade's advantages and weaknesses make it a divisive topic. In the United States, the highly debated issue of free trade has and continues to divide the nation into two opinions: one side believes that international trade benefits all parties involved and therefore advocates for unrestricted international trade, but the other argues that free trade
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The Mercatus Organization from George Mason University writes that "free trade increases access to higher-quality, lower-priced goods. Cheaper imports, particularly from countries such as China and Mexico, have eased inflationary pressure in the United States" (Boudreaux). In other words, the domestic market faces less pressure to inflate prices, and leaves more income for American families to spend or save. Alan Blinder of the Library of Economics and Liberty also points out that "protecting one American industry from foreign competition imposes higher costs on others" (Blinder). Donald Boudreaux affirms this claim by arguing that "Trade restrictions limit the choices of what Americans can buy; they also drive up the prices of everything from clothing and groceries to the materials manufacturers use to make everyday products" (Boudreaux). If Americans have access to cheap foreign goods, they would have more choices. More choices means more competition, which benefits the consumer by lowering price and increasing …show more content…
Labor rights advocates point to human rights or environmental concerns, as they suggest that the jobs that move abroad are given to workers who toil in lower, unacceptable conditions. Furthermore, skeptics of NAFTA identify that "no protections were contained in the core of the agreement to maintain labor or environmental standards" (Scott). As a result, this agreement favors the big businesses while hurting workers and the environment. Deborah James of the Global Exchange Organization expresses similar concerns, and reports, "rules in CAFTA and the FTAA would actually prohibit member countries from enacting many new environmental regulations" because they would be viewed as "barriers to trade" (James). Many developing countries prioritize their economic growth to the extent that they disregard the potential and longer term environmental damage, which would have negative implications on sustainability and health.
Free trade comes with many benefits and sacrifices. Our current international trade debate is highly divisive, with different people arguing from different perspectives. Some argue that free trade is economically beneficial for all trading economies and consumers, while others focus on the negative job impact and social cost of free trade. Benjamin
The Mercatus Organization from George Mason University writes that "free trade increases access to higher-quality, lower-priced goods. Cheaper imports, particularly from countries such as China and Mexico, have eased inflationary pressure in the United States" (Boudreaux). In other words, the domestic market faces less pressure to inflate prices, and leaves more income for American families to spend or save. Alan Blinder of the Library of Economics and Liberty also points out that "protecting one American industry from foreign competition imposes higher costs on others" (Blinder). Donald Boudreaux affirms this claim by arguing that "Trade restrictions limit the choices of what Americans can buy; they also drive up the prices of everything from clothing and groceries to the materials manufacturers use to make everyday products" (Boudreaux). If Americans have access to cheap foreign goods, they would have more choices. More choices means more competition, which benefits the consumer by lowering price and increasing …show more content…
Labor rights advocates point to human rights or environmental concerns, as they suggest that the jobs that move abroad are given to workers who toil in lower, unacceptable conditions. Furthermore, skeptics of NAFTA identify that "no protections were contained in the core of the agreement to maintain labor or environmental standards" (Scott). As a result, this agreement favors the big businesses while hurting workers and the environment. Deborah James of the Global Exchange Organization expresses similar concerns, and reports, "rules in CAFTA and the FTAA would actually prohibit member countries from enacting many new environmental regulations" because they would be viewed as "barriers to trade" (James). Many developing countries prioritize their economic growth to the extent that they disregard the potential and longer term environmental damage, which would have negative implications on sustainability and health.
Free trade comes with many benefits and sacrifices. Our current international trade debate is highly divisive, with different people arguing from different perspectives. Some argue that free trade is economically beneficial for all trading economies and consumers, while others focus on the negative job impact and social cost of free trade. Benjamin