Harvey N M2 A2
The Advantages and Disadvantages of Free Trade
Natischa Harvey
Argosy University
Submitted to
Dr. Cheryl Moore
The Advantages and Disadvantages of Free Trade
Describe the advantages and disadvantages of free trade. Peter Hann describes free trade as, “generally considered by economists to be beneficial to international trade by encouraging competition, innovation, efficient production and consumer choice” (Hann, 2011 para. 1). Free trade allows freedom of international exchanges; with this there are advantages as well as disadvantages. Some advantages consist of cost advantages, factor earnings, cheaper imports, and an enlarged market (Chand, 2015). Cost advantage allows free trade to warrant a portion of possessions and resources. This in turn leads free trade into the most efficient conduct of economic affairs. Factor earnings and cheaper imports allow production factors to increase while import rates decrease. Enlarging the market is an advantage of free trade because it increases the market allowing labor to be possible. The disadvantages of free trade consist of all countries being in conjunction and working together. Meaning it will only work and be productive if all countries participate, if there is one country that decides not to partake in free trade, it will not work. It is also unfair to and creates a disadvantage to countries for those countries that are unable to compete with larger, advanced countries (Chand, 2015).
Explain if free trade can ever be fair. Justify your response. Free trade can be fair depending upon whom it is benefiting. If there are countries that have the ability to properly allow free trade and it benefits their country then yes, it is fair. However, if there is a country that it does more harm then good or that country is unable to compete with countries that offer free trade then the answer would of course be, no. One would assume that free trade is not fair because it will not be able to
Natischa Harvey
Argosy University
Submitted to
Dr. Cheryl Moore
The Advantages and Disadvantages of Free Trade
Describe the advantages and disadvantages of free trade. Peter Hann describes free trade as, “generally considered by economists to be beneficial to international trade by encouraging competition, innovation, efficient production and consumer choice” (Hann, 2011 para. 1). Free trade allows freedom of international exchanges; with this there are advantages as well as disadvantages. Some advantages consist of cost advantages, factor earnings, cheaper imports, and an enlarged market (Chand, 2015). Cost advantage allows free trade to warrant a portion of possessions and resources. This in turn leads free trade into the most efficient conduct of economic affairs. Factor earnings and cheaper imports allow production factors to increase while import rates decrease. Enlarging the market is an advantage of free trade because it increases the market allowing labor to be possible. The disadvantages of free trade consist of all countries being in conjunction and working together. Meaning it will only work and be productive if all countries participate, if there is one country that decides not to partake in free trade, it will not work. It is also unfair to and creates a disadvantage to countries for those countries that are unable to compete with larger, advanced countries (Chand, 2015).
Explain if free trade can ever be fair. Justify your response. Free trade can be fair depending upon whom it is benefiting. If there are countries that have the ability to properly allow free trade and it benefits their country then yes, it is fair. However, if there is a country that it does more harm then good or that country is unable to compete with countries that offer free trade then the answer would of course be, no. One would assume that free trade is not fair because it will not be able to
References: Chmielewski, T. (2015). Negative Effects of Free Trade. Retrieved from: http://smallbusiness.chron.com/negative-effects-trade-5221.html Hann, P. (2011). A Closer Look at The Pros and Cons of Free Trade. Retrieved from: http://www.brighthub.com/office/finance/articles/122806.aspx Trade. S. (2015). Free Trade Policy: It’s Advantages with Disadvantages/ Trade Policies. Retrieved from: http://www.yourarticlelibrary.com/trade-2/free-trade-policy-its-advantages-with-disadvantages-trade-policies/26245/ Weyer, M. (2005). Can Free Trade be Fair Trade? Retrieved from: http://www.newstatesman.com/node/150052 Great read, I enjoyed your discussion. You made some interesting facts as it relates to free trade and if it can ever be fair. I believe it can only be fair if every person or country can benefit from it. For example, if I go to the movies with my friends and everyone gets free popcorn but two people because they live in a different county do not receive free popcorn, then that simply would be unfair. If it cannot be conducted across the board, then it is not fair. In an article I read, Can Free Trade be Fair Trade by Weyer the author touches on a similar discussion as it relates to free trade and its fairness.