Essay about Free Trade

753 Words Nov 14th, 2011 4 Pages
Free Trade
A brief definition of free trade is: Free trade refers to a general openness to exchange goods and information between and among nations with few-to-no barriers-to-trade. Some people argue that free trade is no good to society and is only bad for Americans. But I would have to disagree with these people because there are a lot of reasons that free trade can be good to society.
For the argument that it is important to keep jobs in the United States, this is true that people would rather have jobs in the United States and that the U.S auto industry loses 5,000 jobs to foreign competitors, which those households are worse off. On the other hand, the millions of other Americans that can purchase less expensive, more efficient
…show more content…
An example of why free trade is good would be; If local farmers want their rice or bananas or pineapples to be protected from foreign competition, then they should not expect to buy cheaper, free-trade-price fertilizers, chemicals, seeds, tractors and their spare parts, and other production inputs. People are also happy when they find bargains, such as cheap clothes, shoes, computers, food, cars, etc. whether or not these items are found in their local shops, people are happy when they find a good bargain. In this sense most people are for free trade whether they know it or not.
NAFTA was another thing that has helped the U.S economy along with Mexico and Canada grow. Essentially, NAFTA was free trade in action, it dropped tariffs and reduced quotas around the world. One important thing that NAFTA did right away was to eliminate a large number of tariffs on goods shipped between the three countries. American goods, mostly, were being sold to Canada and especially to Mexico and carried with them a high tariff. Mexico and Canada did not wish to pay the tariffs, so the goods were not sold in North America. Prime examples of these goods were cars, car parts, computers, and food. As a result of NAFTA, Mexico especially has purchased goods from the US in much greater numbers than before. This saves Mexican companies money on imports, and it saves American companies money on export shipping costs. Canada has benefited in this way as well,

Related Documents