Free Trade Essays

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Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
Free trade
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He can either buy rice or beans or cassava and so much more and for every hour he spends buying rice he gives up an hour he could have used to buy beans or cassava. “Trade off can simply be defined as giving up something that you like to get something that you like” (Principle of microeconomics).
The second principle of how people make decisions is by realizing that the cost of something is what you give up to get it. Due to the fact that people generally face trade-offs, decision making requires comparing the costs and benefits analysis of other alternative courses of action. When making decision you must have an opportunity cost which is what you give up to obtain something else.
The third principle of how people make decisions is that rational people think at the margin. Individuals and firms can make better decisions by thinking at the margin and by comparing the marginal benefits with the associated marginal costs of a decision. “A rational decision-maker takes action if and only if the marginal benefit of the action exceeds the marginal cost” (Principles of microeconomics).
The fourth and final principle is that people respond to incentives. An incentive is something that induces a person to act and because rational people make decisions by comparing costs and benefits, they respond to incentives.
Free trade is one of the few trades that is considered as a fair trade because it gives consumers the option to choice the best

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