Free Trade Benefits - Essay Example

Free Trade Benefits -Outline- Intro-hook: Does Free Trade help developing countries or only benefit superpowers? Background: Free trade theory Thesis: Free Trade benefits developing countries because it provides economic opportunities, improves working conditions, and advances their technology, become more globally conscious. Body1- topic sentence: Free Trade provides developing countries opportunities for economic growth. Body2- Additionally, Free trade improves working conditions for workers in developing countries. Body3: Free Trade enables developing countries to be more advanced in technology. Body4 (counter argument): On the other hand, many argue that free trade harms developing countries. Body5: Indeed, free trade help developing countries become more globally conscious. Conclusion: Free Trade presents a number of benefits for the trading community at large. -Essay- Free Trade Benefits The question that arises here is that whether or not Free Trade helps developing countries or only benefits the superpowers? Free trade theory was devised by several economists for the sake of economic growth. Proponents of free trade regularly cite the theories of eighteenth century Scottish economist Adam Smith and David Ricardo, a nineteenth century British economist. They argued that if government stays out of trade, then wealth created by private businesses and trade will benefit the public at large. They also said that countries need to specialize in the goods that they can produce most efficiently and cheaply. Also when countries trade their specialties, nearly all the stakeholders receive the benefits. Free trade theory claims that economic competition with minimal government intervention will lead to greater efficiency, productivity, and innovation; will reduce costs for consumers; and will free up more capital for further investment. First of all, the role of free trade is removal of trade barriers such as tariffs which should promote economic growth, foster a cooperative spirit among nations, help developing nations into becoming independent economies, and end poverty around the world. Free Trade benefits developing countries because it provides economic opportunities, improves working conditions, and advances their technology, becoming more globally conscious. Free Trade provides developing countries different opportunities for economic growth. If free trade becomes a universally acceptable economic system, provisionally wealthy countries and developing countries both gain a number of benefits to grow the worldwide economy. Trade is the greatest factor that leads to economic growth. When trade occurs as a result of true demand and supply, the economic growth that occurs also truly reflects the increase in economic welfare. Thus, free trade brings about increased economic growth, which means better and more jobs; advanced standards of living and so on. Free Trade is not only beneficial for wealthy countries, but also developing ones. The growth is the solution to world poverty. Additionally, free trade improves working conditions for workers in the developing nations. Free trade can help global workers who are working under torrid conditions. If my friend told me “I feel bad that workers are laboring under life-threatening conditions to produce the goods I buy. However, I don’t know how to change my consumer habits.” I agree we all feel difficulties in changing our consumer habits. Even though we realize a large number of workers are laboring under bad conditions, everybody wants to buy cheaper priced goods. I think it is essentially one unchangeable habit on the part of the global consumers. The criticisms and controversies in the wake of the free trade discussions have provided more drawbacks to the cause of this topic than it could offer as compared to the benefits that are drawn from time to time. The Canadian disputes, the US deindustrialization debates, the Chapter 11, 14, 19 and 20 issues respectively have all come under the criticisms that have been raised ever since NAFTA was launched in the year 1994. The same have remained attached to the very same even today as well. The manner in which public responds to the basis of NAFTA as well as its works is one of a mixed one. They have both the positive and negative feelings related with NAFTA and this indeed is a healthy feeling to have – more so in the midst of a democratic discussion. Americans, Mexicans and Canadians have had their share of mixed feelings when it comes to the working basis of NAFTA. Some are of the view that NAFTA as an organization is good for their respective nations whilst others think that the same is just a waste of time, money and resources on the part of their countries. Thus, the role of NAFTA is looked upon with an eye of skepticism time and time again. This is because there are concerns within the related ranks and more so within the people, for whom the policies are enacted, suspended, revised and implemented yet again. It is for these people that NAFTA is in institution even to this day and had the confidence of people shaken in the past, NAFTA would have ceased to exist much before one could have anticipated. Thus, in all essence, NAFTA has been playing its vital role since it came into its own. It has touched quite a number of nerves as well as provided happiness amongst different quarters. The future could be a little bit difficult in the path of achieving success for NAFTA. Free Trade enables developing countries to be more advanced in technology. The world has grown flatter so that all countries can share the technological benefits. Especially, it will be an important opportunity for the developing countries. For example, China was not a wealthy and prosperous country in the world. Most major industries’ factories moved to China for lower labor and lesser regulations on workers in the free trade competition. Now, China is rapidly becoming the center of global economy and this has been a trend. Are sweatshops harmful and dangerous to poor countries? Some analysts and journalists argue that sweatshops greatly benefit workers in developing countries. However, sweatshops have essentially bad working conditions for their workers. On the other hand, many argue that free trade harms developing countries. The author of article “My Six-Year-Old Son Should Get a Job: Is Free Trade Always the Answer?”, Ha-Joon Chang, argued that Free Trade is not working in essence for the developing countries, because some wealthy nations have captured larger market shares in these developing countries and preempt competition rather than to nurture these countries’ economic development. He also asserted “Industries in developing countries will not survive if they are exposed to international competition too early. They need time to improve their capabilities by mastering advanced technologies and building effective organizations”. He also wrote a strong example about his six year old son that “He is over-protected and needs to be exposed to competition, so that he can become a more productive person.” I think he gives his son an example for developing countries. Indeed, free trade helps developing countries in becoming more globally conscious. The governments need to support protection policy for their native workers. Free trade prevents the need for protectionist government policies. These are such policies that lead to corruption amongst the government officials. Thus, a free trade economy promotes healthier governance. A healthy government also works towards a healthier economy. This ensures smoother and healthier trade, and political relationships to develop amongst nations. Thus, free trade leads to healthier domestic governance and peaceful international ties. In the end, it would be sound to state here that free trade induces productivity and efficiency to come within the ranks of the countries which are in their developing stages. It would be premature to suggest here the exact benefits of the free trade within the already developed and self-sustained countries but proper knowledge and research has proven this fact for the sake of the underdeveloped ones. It is for this reason that the developing nations are usually being seen as the ones that will be listed when the talk goes out loud regarding the free trade realms and hence success could be envisioned within the same ranks. Works Cited Johnson, June C. Global Issues, Local Arguments. Second Edition, LongMan, 5 August 2006 Read More