Advantages And Disadvantages Of Free Trade Essay

778 Words May 2nd, 2016 4 Pages
Earlier in the class we discussed the advantages and disadvantages of free trade. We concluded that benefits of free trade outweigh its drawbacks and that our society would ultimately be better off with free trade. Yet most people are against this idea and believe that we should protect our domestic production by implementing trade barriers such as tariffs and quotas as well as canceling the existing regional trade agreements. In the article we see how presidential candidates use this matter as a leverage to win people’s votes.
A tariff or a quota on a certain good will increase the domestic production of that good. This of course is beneficial to the domestic producers since they get to expand their production. In order to expand their production they higher more workers and that raises the wages of those workers. That is the reason why a lot of producers and workers oppose the idea of trade. A lot is at stake for them, so surly they support trade barriers. Consumers are the ones who are hurt in this scenario, so you would expect them to support the idea of trade. The problem is that consumers are naturally less motivated to get involved. Change in domestic prices are usually insignificant so a lot of them may not even notice and even if they do it is so little that they are not bothered to do anything about it. Keep in mind that all they hear in the media over and over again is their patriotic duty to support domestic industry. That is certainly why supporting trade…

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