Free Trade Is a Way of Inhibiting Competition - Assignment Example

The above-mentioned states have had significant economic growth. For instance, Canadian manufacturing employment has grown steadily; the Mexican maquiladoras have also become a landmark in the economy of Mexico. The U.S. on the other side has increased the import of agricultural products to Canada and Mexico (Orme, 1996).

The economic basis of trade is to exchange goods and services for currency. It will be an abuse of common sense to purchase or rather get poor services in the name of saving our local industries from foreign competition yet we get poor services and goods. We would rather go for a specialist. Research shows America did well economically because it allowed the free movement of goods across its neighbors. While Europe, because they are protecting themselves from their neighbors did not do quite well. I bought my nephew a play station made in China. China makes good toys for children.  America produces good computers.  We can, therefore, sell our computers to China as we buy their toys (Orme, 1996).

Free trade has allowed Americans to import textiles from Mexico. My dress was made in Mexico. There are very few people wearing clothes made in America. There have been slogans saying buy America keep your job. However, it is costly to put trade restrictions to save the local industries. The taxpayers pay more than those that have free trade. The benefit of buying American goods is that jobs are saved (Orme, 1996).