Free trade and employment has a connection that has become one of the world’s most significant concerns because of how the markets interact with one another. Both are able to affect millions of lives around the world. Free trade plays a critical part to boosting the global welfare and employment sectors of the world. Some economists have finally realized that free trade leads to numerous advantages in the labor sector for everyone involved. Unfortunately, free trade can impact the domestic job market; first of all, production on the domestic market will be replaced by imports; second, economic activity restructuring, and third, loss of revenue from tariffs in place (Jansen, & Lee, 2007). For example, trading can trigger several
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Therefore, several impacts of outsourcing, off-shoring were found while researching for this assignment. According to Winston Chang (2012), “off-shoring is often blamed for job loss” (p. 12), wage gaps, and trade displacement costs. Furthermore, Chang also stated that “business cycles and technological changes and the macroeconomic policies determine the number of jobs” in the economy (p.12). In addition, other factors that impact outsourcing and off-shoring includes higher competition on domestic importing and a reduction of good prices.
Each nation import and export goods and services from one country or another; so, there are pros and cons of importing cheap goods and services. When a country imports goods or services; it allows the country to offer a wide variety of options or choices to consumers. The quality of products show improvement due to the competitiveness of imports and even the range of goods and services are expanded by domestic producers to increase the revenue of the country (McConnell, et al., 2015). For example, cellular telephone businesses offer a variety of products and services to consumers; most of their equipment is available because of importing from another country. Alternatively, importing goods and services from other countries are not as beneficial. Therefore, several cons to importing cheap goods and services include: the belief that the rich remains richer and the poor remains poorer,