Free Trade Or Isolationism? Essay

1618 Words Nov 9th, 2014 7 Pages
Free Trade or Isolationism
In principle, we can take for granted that free international trade brings the maximum benefit to world economy. If two countries completely remove trade barriers on the way of commodity streams, both of them will be the winners, and total growth rate of economies of these countries will be at maximum. However, it is never impossible to claim that the prize from free trade will be identical to both countries, most likely one country will win more, than the other will, growth rate of economy of the first country will be for certain higher, than at the second. Therefore, the second country will feel in the beginning offended, and then will start worrying about the safety because of too rapid growth of the first country. The other reasons include general and economic security of the state, social reasons, in particular opening of borders for foreign goods to growth of structural unemployment, and lack of redistribution of tax payments in world economy in favor of the poor countries and regions. According to Epping (2000), “Most participants in the 21st-century economy agree that it makes sense to spend scarce material and human resources. This concerns producing only those goods and services they are relatively good at — and use their export earnings to import the rest” (98, 107).
Thus, the states have reasons for carrying out a protectionist foreign trade policy. In addition, there is nothing surprising that all states of the world resort to it…

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