Question

What is your position on free trade? Do you think that barriers to trade should be lowered in general? If so, why?Do you think that there are good reasons to maintain or increase trade barriers? If so, why and which ones? Are you in favor of regional trade agreements like NAFTA or the EU? Why or why not?

Answer 1

Position on free trade is that free trade should take place among the nations, but it should be framed in such a way that it should benefit the participating nations. Accordingly, some limitations should also be placed on the free trade, depending upon the economic status and regulatory framework of the country.

In general, I think that barriers to trade should be lowered and international trade should take place so that countries could expand their economy and benefit from the markets of each other. It should happen, because nations can specialize and utilize the comparative advantage to gain from the trade.

Though there are some reasons that shows that trade barriers should be maintained. The first reason is the national safety and security reason that says that some of the sectors should be protected from the foreign companies. It will help maintain the national security. The second reason is the time bound protection to the industries who are nascent and or regulatory framework is not developed. The third reason is the presence of dumping of goods in the country by the foreign players. It makes countries to protect their domestic market.

These reasons make nations to implement trade barriers.

Yes, I am in favor of regional trade agreements, because it develops regional cooperation, forms strategic alliances and makes use of each others markets. It makes economies to expand as well as movement of labor force from one country to another. Hence, it brings international trade to the next level.