Question

Much government intervention in trade is done in the name of “fair trade” and “leveling the playing field.” Using examples from the choice, and at least one example from each of the first three Wall Street Journal Articles, give a critique of this type of intervention.

Answer 1

(1)Yes ,I believe Free trade is good for US. Free trade allows Americans to do specialization in their expertise and exchange it with lower expertise field.This specialization and free trade allow US to become most powerful and competitive country in the world . It promotes innovation and economic growth.

(2) Increased freedom of trade has improved living standard as it enhance job opportunity .Increase in employment brings higher income and thus growth circle start moving upward . Economic freedom or freedom from tariff and non tariff activities promote economic growth .IT brings peace and good relation from the rest of the world. Good relations again lead more business activity and prosperity.

(3) Unindustrialized of America or shifting of manufacturing units outside America dragged American economy downside .Outsource has cut the jobs of Americans resulting social unrest and violence .Free trade made happy only to upper class of US. Lower and middle class Americans are still facing the problem of unemployment and under employment .Due to free trade US is facing trade deficit since a long time .