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Free Trade - Article Example

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Free trade has allowed the breaking of trade tariffs and barriers across the globe as more and more economies engage in international trade. Alan Blinder presented his side of the story in a Wall Street…
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Free Trade

Download file to see previous pages... The problem with this type of outsourcing is that it can critically harm the domestic labor market. Ease of service outsourcing has made millions of domestic jobs vulnerable to being outsourced overseas (Wessel & Davis, 2007). The local labor market is likely to suffer shortage in labor supply as labor demand exacerbates. This scenario would likely trigger economic chaos in the affected economy. On the other hand, countries where most services are outsourced to would experience an influx, similarly causing economic imbalances in labor demand and supply. This type of outsourcing has its benefits too. The process keeps globalization running, thereby enhancing global interdependence in trade. Outsourcing along this line also creates opportunities for poor economic performers when they interact with tiger economies.
To enhance competition along free trade and communication technology aspects, outsourcing practices should be subject to globally agreed upon regulation procedures. The flow of outsourced services should be controlled by taking into account the economic potential of all economies involved. This would ensure that the magnitude of outsourced services matches the economic potential of the destination country. All variables of free trade would also have to be factored in in enhancing ...Download file to see next pagesRead More
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