Free Trade Import And Export Goods Or Tariffs Without Restrictions

Free Trade
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Free Trade
Introduction
Free trade refers to a country’s ability to carry out economic activities without any restrictions or barriers. Countries that practice free trade can import and export goods or tariffs without restrictions. Over the last seven decades, various countries have reaped the benefits of incorporating free trade in their economic sector. Some of these advantages include improved infrastructure, expanded markets, free movement of labor and capital, access to technologies, positive political relations, and investments. Arguably, these benefits play an intrinsic factor in the growth and development of a country. Although free trade seems to be beneficial to a country, some economists argue that it may have adverse effects for the country in the future. For example, when a state obtains loans from another country with the intent of boosting its economy and then fails to repay, the lending country may impose restrictions, which may lead to a decrease of the new markets.
Moreover, the contenders argue that free trade exposes a country to various threats. Some of these threats include environmental pollution, exploitation by technologically advanced countries, unemployment and underperformance of local industries. Arguably, free trade has positively impacted most third world countries by enhancing their economic development. For example, China has facilitated the economic growth of third world countries such as Kenya and Zambia. Because of the mutual economic relations between China and Kenya, the Chinese government facilitated the construction of the standard gauge railway, which may have seemed like a dream at first. Conversely, the Chinese government helped Zambia construct and renovate its airport, thus stimulating the state’s economic development. Accordingly, free trade can improve a country’s economic development if utilized and practiced within the rule of law governing both states.
Free trade is important because it increases the prosperity of the participating countries. Arguably, free trade allows consumers to purchase more goods at low costs. Moreover, free trade is imperative because it escalates a country’s access to high-quality products at low prices. For example, the prevalence of cheaper imports from countries such as Mexico and China has eased the high cost of living in the United States. Free trade plays a crucial role in the growth of a country’s economy. Research suggests that free trade controls market prices and shares because most of the imports originate from low-income states like China and Mexico, thus leaving Americans with more money to spend on other products (Lee-Makiyama 4). Accordingly, free trade promotes fairness. Studies suggest that when countries operate on the same rule of law, chances of the participating countries skewing trade advantages on other nations are low.
According to research from the Bureau of Economic Analysis, free trade refers to more growth. Economists opine that free trade reduces the cost of imported-input costs, hence reducing the cost of production. The reduction of production costs in any business leads to the growth and development of the economy. Economists assert that half of most US imports are not consumer goods, but inputs for producers based in the United States (Orbie & Gerda 66). Besides, free trade is important because it increases innovation and efficiency. Free trade increases the standard of living of workers by putting them into more productive use, thus promoting the rise of other well-organized and operational industries. Besides, free trade promotes competition. For example, if a country is offering low-quality goods and services, the receiving nation is likely to look for new supplies from other countries, thus promoting competition.
What others have said about this question?
Over the past four decades, numerous questions regarding the effectiveness of free trade on a country have remained to be a prevalent issue. For example, the rise of Donald Trump as President of the United States has sparked a contentious debate. Some leaders do not know if President Donald Trump intends to limit America’s way of doing business. Last month, Donald Trump issued a threat that he might consider issuing sanctions against China. Arguably, President Trump’s statements have sparked controversy because some of the people perceive him as the enemy of the people and the American dream. Besides, the President’s statement has caused political turbulence since the legislators feel that Donald Trump is not harboring the American dream of creating employment for the youths.
According to a survey conducted by the Bureau of Economic Analysis, free trade seems to be one of the main facets of economic growth in a state. Researchers aver that free trade has contributed to the rise of most industries in the United States. For that reason, most workers perceive free trade as a good thing. Based on the recent survey, it is plausible to conclude that free trade has an intrinsic effect on the lives and development of a country’s economy. The recent debates pertaining to the removal of trade barriers governing the United States has seen the political class lobbying for different agendas. Both the proponents and contenders of free trade have raised issues, which are worth consideration. For example, both parties argue that jobs and employment are at stake (Orbie & Gerda 62). Currently, the United States has 14 agreements with 20 countries, which support the idea of free trade.
Methodology (Method of Interrogation)
During the assessment of the importance of free trade in society, the researcher used various methods to collect data from the public. Some of these methods include questionnaires, oral interviews, sampling, and the Reid technique of data analysis. In the first instance, the researchers used oral interviews with the intent of determining how the public contemplated free trade. The first group of participants asserted that free trade is imperative for the success and rapid growth of a state. Moreover, the contestants averred that since the inception of free trade in the American market, sales have improved, thus contributing to their hike in pay. For example, some of the participants confessed to having received 10 percent increment on their monthly payments. The increase in pay has facilitated them to purchase parcels of land for future use. Conversely, other contestants confessed how free trade has helped them repay their student loans within a short period of time, thus making them have an easy time while working.
In the second phase, the researchers used sampling to collect real-time data from the public. To ensure that the data was accurate, the scholars interviewed 10 people of different origin from five states, which have benefited from free trade. Some of the people interviewed include those who hailed from Mexico, Philippines, New Zealand, and the United States. All the interviewed participants proclaimed how free trade had impacted their lives positively. In fact, one of the contestants admitted how free trade had helped him settle his mother’s medical bill without feeling weighed down.
Additionally, the researchers used questionnaires to assess how local investors felt about free trade. Conversely, the investors expressed their dissatisfaction with some of the incentives imposed by the government. For example, some of the owners felt that the state had contributed to their failure in business because of the advantages that ensue from practicing free trade. To the local investors, granting free trade was a reasonable move by the government to curb the high rates of unemployment, but also a precarious move (Orbie & Gerda 64). Through their spokesperson, the local investors confessed how worried they were because most of the graduates considered being employed in international firms as compared to those in their neighborhood.
The Reid technique involves the use of three components. These components include factual analysis, interviewing, and interrogation. In the factual analysis stage, the researchers used the inductive approach tactically to obtain relevant information. Through this technique, the scholars wanted to identify the characteristics of the participants by evaluating how they feel about free trade. Conversely, the scientists used the behavioral analysis interview method to evaluate the behavior patterns of the participants before and after the incorporation of free trade in the American economy. Arguably, this tactic was influential because it helped the canvassers understand that most of the contestants had become content with what they had gained from the free trade treaty. Accordingly, the researchers employed the Reid interrogation technique with the intent of evaluating if the partakers would support some of the confessions their other counterparts had previously made. Notably, this method was useful since it acted as a verification tool for their survey.
Results
After conducting a survey on the reactions of various participants, it is reasonable to conclude that free trade has various benefits on a country’s economy. For example, the inception of free trade in the United States has opened new markets for the state, thus making it easy for its citizens to find work elsewhere. Moreover, free trade has enhanced America’s way of doing business because local investors can outsource the materials they do not have, thus facilitating their growth. Arguably, free trade enhances the transportation of agricultural produce from the farm to the market easily. Most manufacturing industries rely on the presence of free trade to remain competitive in the market. For instance, beverage manufacturing companies such as Coca-Cola and PepsiCo rely on free trade for the importation of sugar and concentrates from other countries so that they can remain relevant.
The removal of trade barriers has enhanced the growth and development of various economies around the world. For example, through free trade, various countries have benefited from improved infrastructure such as road and railway. The recent examples of improved infrastructure due to free trade are Kenya and Zambia. For Kenya, the standard gauge railway was constructed under the supervision of the Chinese government, thus increasing the flow of agricultural produce from the farms to the market. Additionally, the passing of policies, which lift the barriers of imports and exports by lowering the tariffs is an encouraging factor that free trade is indeed a beneficial thing in the contemporary world.
The liberation of trade has contributed to the integration of a country’s economy, thus facilitating the flow of imports and exports. For example, most Latin American countries such as Colombia and Brazil have united with other developed countries such as China, thus leading to improvements in financial systems and other developments. In 2014, Brazil benefited from free trade relations by receiving machines, which could detect and prescribe drugs for the widespread Zika virus in the country. Accordingly, technology has contributed to the growth of most local industries globally. The ability to share and receive information from various parts of the world without geographical limitations has enhanced the way companies operate. For instance, the directors of Coca-Cola can place orders for concentrates from countries such as Saudi Arabia and Swaziland without traveling. Notably, the new technology has increased productivity and accuracy.
Additionally, free trade has increased access to economic resources through the utilization of capital and labor, thus increasing the status quo of the country. Through free trade, middle-income countries can obtain resources for economic development, thus fostering their growth. India and Asia are examples of countries that have developed through the liberation of trade policies. Studies suggest that if there were limitations between countries, India and Asia would not have managed to realize their current developments. Besides, free trade can contribute to the influx of imports in a country, hence leading to an increased supply of goods and services in the market. Although this may seem like an advantageous move, research findings show that it may cause the reduction of healthy competition between countries, thus leading to the importation of low-quality goods.
According to research, free trade can contribute to unemployment. Because free trade does not limit the entry of entrepreneurs and workers in a country, most domestic laborers are likely to be denied the chance of employment by local-based industries. Arguably, this means that each time the local firms want to have something done, they will always be forced to outsource labor from other countries with the intent of reducing their expenses. Moreover, because there is no restriction barring the establishment of new industries in developed countries, many employees are likely to lose their jobs. For example, the closure of most industries in Mexico led to the destabilization of the country’s economy because of the investors abandoned their native country for the United States. Even though the demerits of free trade seem detrimental to the economy of a country, studies suggest that it is a reality that all countries should try and explore.
Based on the above discourse, it is plausible to assert that free trade has remained a reality in most developing countries. Kenya, Zambia, India, and Asia are some of the ideal examples of the influence of free trade in society. China, Britain, Germany, and South Korea are some of the countries that have benefited from free trade. By boosting the economies of other countries such as Colombia and Brazil, China has managed to attract investors, who have facilitated the growth of its economy. Although free trade has some negative implications on a country’s economy, research suggests that the positive aspects surpass the negative, thus making it a good thing. Therefore, it is plausible to conclude that free trade has impacted the growth of most developing countries. In fact, most countries would not have managed to attain economic developments if they did not receive help from some of the developed countries. The presence of free trade in the world has contributed to the rise and development of most nations, thus creating more employment opportunities for the youth. Accordingly, free trade is a reality that is worth the exploration and trial by developing countries.
Section One
Free trade refers to the importation and exportation of goods and services without any limitations. Since the inception of free trade in the world of business, various countries have managed to grow and develop into superpowers. For example, India is one of the countries that have benefited from free trade immensely. The topic of free trade has remained a contentious issue worth the debate of Congress in the United States. Republicans affiliated to President Donald Trump postulate that free trade has negative effects on America. Conversely, the Democrats argue that free trade is beneficial and should be embraced.
Arguably, the inception of free trade has changed the way countries operate. For example, with the incorporation of free trade, politicians from the United States have stopped uttering defamatory remarks, which may affect the relationship between the trading countries. For instance, Donald Trump’s assertion that he might impose a sanction on China’s tariffs has sparked controversy with some of the Republican legislators telling the President to stop making such remarks. The Democrats’ defense elucidates how free trade is imperative to the lives of most Americans. Some of the Democrat legislators had even suggested that they would file a petition for the impeachment of President Donald Trump because they had lost faith in his leadership. To better understand what the topic means, researchers should research on the benefits of practicing free trade in a country. Moreover, scholars should list some of the factors affecting the integration of free trade in middle-income countries.
Over time, the topic of free trade has remained a determining factor for the success and failure of most industries. Through free trade, companies such as PepsiCo and Coca-Cola have managed to bridge the gap of poor communication between their suppliers and the entity. Research suggests that the two companies can now request for goods from their suppliers in other countries without tra...