Question

In: Economics

Do you believe it is good that there are no trade barriers within the states of...

Do you believe it is good that there are no trade barriers within the states of the U.S.? Even though wages and cost of production are lower, sometimes much lower, in other states is it good we continue this free trade?

Solutions

Expert Solution

. Yes, I agree with the statement that it is good that there are no trade barriers within the states of the US even though wages and cost of production are lower sometimes much lower in other states, it is good to continue with this concept of free trade in the economy.
Free trade is essential for the development and the productivity of the economy because it is a concept where there is no trade barriers and there is no restrictions on the sale and purchase of the commodities within the state and if the concept of free trade is applicable in the global economy than it means that there is no trade barrier between the countries so here in the case of states of the US there is no trade barrier between the states it means all the states are free to exchange the factors of production on one to one basis and within the state there is a comparison of cost so the comparative cost Strategies and the method are easily applicable in all the states of the US it will enhance the productivity and it will raise the purpose of more production with the help of this, the distribution process is also smoothly going on in these states therefore I am agree on the statement that there must be free trade policies applicable within the state and it keep going because it is capable of handling all the economic problems and in the way to enhance the efficiency and effectiveness of the productive process.


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