Question

There is an ongoing debate about whether free trade is beneficial for the global economy. Choose whether you support free trade or if you prefer trade barriers. Be sure to cite specific facts and figures to support your analysis. Remember that there may be more than one perspective which could be equally valid given the circumstances.

Please answer in 150 words or more.

Answer 1

I prefer free trade.Free trade means countries can import and export goods without any tariff  barriers to trade with.The benefits of free trade are manifold.Exports and imports increase,free trade increases the access to more high quality products,free trade gives the advantage of low prices to consumers,the cost of imported-input gets reduced which in turn reduces the production cost of business and leads to economic growth. One great advantage of free trade is that the consumers has greater choice of goods and the economy enjoys economies of scale.Free trade also gives rise to innovation..

Post world war 2 the global economy has been moving towards free trade. Britain has started free trade with European countries.In Europe trade negotiations with united states has run into difficulty because the people were worried about the impact on job etc.Adam smith has given the logic of comparative advantage about free trade.Both countries will be better off if they have comparative advantage.But economists also says that trade barriers have advantage as well . The firms who are protected can sell more of their goods in the home market.But consumers lose paying higher prices and the losses are more than the gains.So it is better to avoid trade barriers.