Essay about Free trade - 2287 Words

Module Code: PM503 2T Class/Group: K Assessment Title: Essay Assessment Topic: Critically evaluate claims that free trade is the most effective way to increase economic growth and global prosperity. Tutor Name: Iwona Pringle Student ID Number: 2172402 Date of Submission: 23 March, 2015 Essay topic: Critically evaluate claims that free trade is the most effective way to increase economic growth and global prosperity. Free trade is refer to the unrestricted export and import of products or services in international markets without tariffs or duties (Sinn, 2014:8). Since the father of economics, Adam Smith proposed that international trade could promote economic growth, the effects of free trade on economic growth†¦show more content†¦Conversely, a growing number of pollution caused by free trade may reduce the economy. In other words, when the costs of pollution protection and treatment overweigh the profits brought by free trade, the national economy would be reduced (Cole Elliott, 2003:363). For example, the great amount of profitable but pollution-intensive companies were established in Mexico due to local government paid more attention to economic growth at the beginning of joining in the NAFTA (Logsdon Husted, 2000:370). However, Mexico spent over $16 billion to control pollution from 1997 to 2000, which is over 150% of earnings gained by the pollution-intensive companies (ibid). T his example indicates that the profits based on the pollution may bring disadvantages to economic growth in the long run. However, this problem could be solved by promulgating stringent environmental protection regulations before pollution or over-consumption of resource (Beladi Oladi, 2011:172). For example, forestry as a core industry in Finland is be protected strictly by local regulations (Stà ¥hls, et al, 2011:1842). Specifically, one of the most stringent forest protection regulations stipulates that any company which exceeds the limit number of logging will be closed (ibid). This regulation could not only protect environment and resource, but also establish a sustainable economy. For global prosperity, free trade could reduce theShow MoreRelatedFree Trade And Trade Agreements1738 Words   |  7 Pages Introduction Free trade strikes when there are no obstructions placed in the way by governments to limit the drift of goods and services between trading nations. When there are barriers to trade, likes of tariffs and subsidies, its sole purpose is to shelter domestic producers from international competition and transmit, rather than create trade flows. 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No tariffs are applied to imports or exports, and people are allowed to trade goods and services as they please.Read MoreThe Doctrine Of Free Trade1612 Words   |  7 PagesHistorically, Republican Presidents have often been considered to be wholeheartedly dedicated to the doctrine of free trade, with the common consensus being that â€Å"Republican Presidents have championed laissez faire foreign commerce since the end of the Second World War† (Batra, 1996, p1). Consequently the idea of protectionism under Republican governments has too often been reflexively denounced by US trade analysts. The purpose of this section is to explicate how even under supposedly ‘neoliberal’ RepublicansRead More Free Trade? Essay672 Words   |  3 Pagesessential, is free trade a necessity for aiding worldwide economic development? At least John F. Kennedy thought so, he being the initiator of removing tariffs and other limitations on U.S. imports. His hypothesis was that by doing that, other nations would follow America’s example and leadership. However, that never happened because the other nations were more concerned with their own problems. Even today, the United States continues to support free trade, an example being NAFTA (North America Free TradeRead MoreFree Trade And International Trade1382 Words   |  6 PagesAnalytical Essay 1 Free trade occurs when there are no artificial blockades put in place by governments to restrict the flow of goods and services between trading countries. When trade barriers, such as tariffs and subsidies are put in place, they protect domestic producers from international competition and redirect, rather than create trade flows. This results in less productivity and competition. Free Trade promotes international trade, multilateralism, the development of lesser-developed nations