"Free trade policies are always better than protectionist ones." Do you agree?
Answer:
Free trade policies benefit countries that have well established industries. If countries like the US, Japan, and other developed nations can trade freely amongst themselves, usually all parties involved will benefit.
If, however, an industrialized country negotiates a free trade agreement with a country that has weak or non-existent industries, the developing nation can be seriously hurt in the long term by this arrangement. For though free trade means an initial increase in available goods and perhaps an increase in the number of jobs, the weaker domestic companies have a very difficult time competing against companies that are better established and more efficient. This means that domestic companies will go out of business, leaving citizens unemployed, and a net loss of wealth within the country itself.
yes, but there must be some control if artificial scarcity created by traders.
yes
as the free trade forces better competition by building better products
the whole capitalist market is corner stoned on giving the consumer what they want, fail to do that and the consumer looks elsewhere for value
witness the downfall of GM, Chrystler and Ford and the layoff, consumers have gone to better value and better built trucks and cars ( Toyota, Honda , Mazda ) and thus they have suffered for it, even though it took years and tariffs to see if they could force the consumer to buy american, it didn't work, which is why the american companies work harder to please the consumer.
sticky question. free trade allows for more opportunities however you must be more competitive to stay on top. protectionist policies are good for sensitive products and services. for instance we would not want to trade/sell our military secrets because they could then be used against us. free trade is usually better but you better be prepared to take advantage of it before someone else takes advantage of you!
I'm not a economist, but I absolutely do not agree. I believe that there have to be some protections in the international market. Also, there needs to be ways to give developing countries an edge...the market does not right itself. I think there has to be some monitoring. Also look at the great trade imbalance presently in regard to China.
Absolutely not. The costs of production vary so widely, especially labor and currency rates, that some countries are unable to compete in their own local markets. This results in job losses and dimished wages. Protectionism just levels the playing field for everyone and the business goes to the one with the best product.
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