Is free trade advantageous than imposing restrictions on international trade?
Answer:
I don't think anyone realizes it because it is NEVER discussed in the news, but the segment of the population that benefits the most is the banking sector.
Why?
Because "Exchange Rates" make some countries have a wage rate out of proportion to another country,,,,and when one currency is exchanged for another the Central banks that do the exchanges "ALWAYS" charge a hidden fee.
I think free trade is horrible. It's how America has lost so many jobs to foreign countries who will do the job for less.
What can you find that is American made anymore?
Debt.
depends on what you consider advantageous.
let's say free trade gets you stuff that's imported for half what it costs for domestic goods...
that's good for consumers in your country, the poor can afford things that help them live better lives.
...but bad for the workers in your country that could otherwise make the item. It will increase the number of poor people, because it will make jobs disappear.
Now the country the item comes from gets employment, but let's consider why it's cheaper there...
do they dump toxic waste into rivers to save money, whereas domestic goods are pollution controlled?
do they use child labor? slave labor? How exactly does making something 3000 miles away and overseas, then shipping it (using up oil) become cheaper than making it 100 miles away?
there is no correct answer to your question, but free trade has plenty of demons.
Why ?
In theory yes. It means people can consume what they cannot produce for the consumer and for the world at large, the 'invisible hand' will act as the perfect allocation of resources, which will make each country produces the products that they have the most comparative advantage.
free trade means that producers, who can make the same product for lower costs, get to sell it in profit, and force their competitors, who spend more on the same product, out of market.
consumers who have money benefit from free trade, since they can buy more goods with less money.
but usually to cut down prices, a producer must reduce manpower costs, by paying less.
in a global market producers move industries to countries with low levels of salaries, which causes people in high salaried countries to lose their jobs and income.
so free trade is good for poor but industrious countries (China) and bad for rich countries (US,EU)
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