The Free Trade And Trade Barriers?

The Free Trade and Trade Barriers Through the rise and development of technology and economy, internationalization and globalization have been the most popular topic among people. People try to achieve the internationalization and globalization in many different fields, such as culture, education, economy, and so on. In long run perspective, the free trade is definitely the way to achieve the globalization. As David Ricardo argued, the foreign trade could creates many benefit to a country; the benefit could be found in many aspects, such as the increase on the variety of products, the increase on the supply to consumers, the appropriate price of commodities and so on. However, through the development of free trade, there is another voice emerges, which says, free …show more content…
According to Mankiw’s statement, during the process of trade, there will be a winner and a loser; theoretically, the winner could compensate the losses of loser, however, in the reality, this kind of compensation is very limited; if the compensation does not exist, it will cause the losses of some countries. In order to protect their own benefits, some governments use the trade barriers, such as tariff, to prevent their own countries from suffering the pressure of competition from other countries. We call it protectionism. However, some people think that the protectionism couldn’t promote the efficient industries in the world field, which free trade could achieve. Now, the question is coming up, should the government support the free trade or protectionism? In long run perspective, the government should practice the free trade, however, the trade barriers are also necessary for some situations; therefore, the best method is to support the free trade but also to use the trade barriers to deal with