Question

Do Agencies that Facilitate International Trade Prevent Free Trade?

Answer 1

If the answer Is yes, the assertion is that the concept of free trade is a gimmick or an unfair scenario. If a nation has more flexibility through trade agreements, and that nation also offers more subsidies to its exporters; other nations that may not be able to offer their businesses equal aid, will not be able to participate In true “free trade”. Countries like China and the US wield great power when It comes to trade.

Smaller, less developed nations simply do not have the resources or revenue to offer their Mac’s loans, besides and support on the same scale as “superpower” nations do. The other side of the argument, the no side, states that each country has the Inherent opportunity to take advantage of free trade agreements, and to offer lad to businesses. If a nation doesn’t have the meaner to do so, they are not Impeded by International trade laws, but rather their own fiscal shortcomings. One word comes to mind; China.

China ensures that we continue to import their goods in part by paying incredibly low wages, and In part by manipulating” the value of the Yuan. When US consumers look for goods they want their stuff cheap. We are accustomed to having options, and we are not above eschewing American made goods, if the price for Imports Is lower. Until very recently, China did in fact manipulate their currency values to an extreme, In order to unfavorable alter the value of the dollar, and to ensure that their products offered a much better value to US consumers.

The imbalance of trade between the United States and China equates to far less trade with other nations that may have better scenarios to offer. The US suffers because the dollar is not entirely stable, and because trade with other nations could be more balanced. We have much to offer, our workforce is ready, willing and able to produce. But when we can’t even sell to our own citizens because of trade imbalance, how are we to engage in truly fair trade on an international scale?