Question

Do Agencies that Facilitate International Trade Prevent Free Trade?

POINT: Yes. The Export-Import Bank of the U.S. provides many programs to help U.S. exporters conduct international trade. The government is essentially subsidizing the exports. Governments in other countries have various programs as well. Thus, some countries may have a trade advantage because their exporters are subsidized in various ways. These subsidies distort the notion of free trade.

COUNTER-POINT: No. It is natural for any government to facilitate exporting for relatively inexperienced exporting firms. All governments provide a variety of services for their firms, including public services, and tax breaks for producing products that are ultimately exported. There is a difference between facilitating the exporting process and versus protecting an industry from foreign competition. The protection of an industry violates the notion of free trade, but facilitating the exporting process does not.

WHO IS CORRECT? Use the Internet to learn more about this issue. Which argument do you support? Offer your own opinion on this issue.

Answer 1

No. The Agencies that facilitate international trade promote free trade. It is natural for any government to facilitate exporting from relative inexperienced exporting form of Government provides a variety of services for their forms public services and Taxes. The Institutions that facilitate International trading are IMF, World Bank , World Trade Organisation, regional development agencies, OECD. The IMF's mind it includes facilitating the expansion and balanced growth of International Trade promoting exchange stability and providing the opportunity for orderly correction of countries balance of payment problems the work of the IMF and the WTO are complementary. The WTO is an international body whose purpose is to promote free paid by persuading countries to abolish import traffic and other barriers as such it become closely associated with the globalisation the WTO is the only international agency overseeing the rules of international trade. Himself facilitate the expansion and balanced growth of international trade in it is one of their primary purposes. The men train macroeconomic policies appropriate in stable exchange rate and structural reforms that must underpin trade liberalization they encourage countries to adopt outward oriented policies that is policies that do not discriminate between production and domestic market and for export or between purchase of domestic and foreign goods moreover programs they support frequently include measures to increase outward orientation of the economy in keeping with members obligation to WTO. They also assist in the Apes establishment of multilateral system of payments in respect of current transaction they have encouraged then members to eliminate restriction from all current account transaction reforming economy is an this month in protection is a painful process at times at least in short and medium term in this is why the enhanced and the sound competition they want to promote through trade liberalization can only be beneficial if accompanied by appropriate social policies at home incredible instruments at multilateral solidarity. It has adapted its financial instruments to support members adjustment and Reforms needs in particular the extended facility and the enhanced structural adjustment facility for low income members are allowed the IMF to support the medium term programs in Greater emphasis on structural adjustment .