Essay on Free Trade Is A Way Of Buying And Selling Products

718 Words Mar 25th, 2016 3 Pages
According to Investopidia.com free trade is defined as “the unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties and quotas.” This style of trade differs from fair trade which is a way of buying and selling products that makes certain that the people who produce the goods receive a fair price. There are a lot of arguments over which style of trade is better, and like almost every comparison there are pros and cons to each type. Some pros for free trade are that it lowers the cost of goods and services because businesses no longer have to pay taxes and tariffs in order to import or export their products. Many people also believe that free trade in the long run is good for the economy and that it leads to more efficient production methods. Some cons of free trade however are that it hurts small business because free trade mainly focuses on helping big multinational corporations. Free trade also allows foreign industries to do business cheaply, which in turn makes it harder for developing countries to promote their own industries. A good example of free trade in today’s world is the North American Free trade Agreement (NAFTA). It has been over 20 years now since NAFTA created the world’s largest free trade area in 1993. NAFTA was created to ease restrictions on commerce between the United States, Canada and Mexico by providing duty-free trade on multiple classes of goods, and introducing new…

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