Flaws Of Free Trade Essay
What is Free Trade?
According to the Merriam Webster dictionary, Free Trade means “a system of trade between nations in which there are no special taxes placed on imports”. This enables countries to trade on their exports and imports without government intervention. Free trade also means that there will be no form of authority or control to balance out the traders. Economists advocate for free trade because it predominantly benefits both countries. This allows most of the countries to have a comparative advantage in producing a good or services since the opportunity cost of producing goods or services is lower for some countries than for others. However, this is the benefits for nations with an increasing economic growth. Even though free trade has an advantage for countries of exporting and importing goods, it still can affect workers and growing companies from improvised countries. Supporting free trade only works in the favor of powerful trading countries at which commodities is being delivered at. However, this focus steers away consideration of the larger effects on employment and environmental in impoverished countries.
Political …show more content…
The theory of comparative advantage demonstrates that trading countries gain from trade through specializing in commodities that they can produce goods efficiently. However, this theory does not examined environmental externalities that may correlate with the production and consumption of goods due to free trades among countries. For example, a rise in cooperative farms can increase pesticide use which leads to consuming more energy to push agriculture in marginal land. Also, farmers in Latin America and Africa are replacing domestic crops with tree crops such as cocoa and coffee which decreases erosion. This happens when trading countries export and import its goods without any environmental