Essay on Why Free Trade is Good for the Economy - 1970 Words

Why Free Trade is good for the Economy What is free trade? Free trade is â€Å"international trade left to its natural course without tariffs, quotas, or other restrictions.† As of right now the United States and China are guilty of not trading freely; however, most of the blame could be put on the United States for putting tariffs on certain products that come from China. For many years free trade has been scrutinized on whether it is actually beneficial to the economy or harmful to the economy. Many economists have different views on free trade and some big controversies have come from the arguments they have made to each other. A few of the reasons free trade is beneficial are that it helps the economy grow and prosper as well as†¦show more content†¦That product that is priced low will be more effective in the long run because plenty of people will buy that product which will create more profit for others. When other countries see how not having tariffs on product s makes their country better off, they will then understand part of â€Å"the magic of free trade† (1). Marian Tupy, a researcher for the CATO Institute, states that, â€Å"Trade allows consumers to benefit from more efficient production methods† (1). Tupy also says that, â€Å"Lower production costs lead to cheaper goods and services, which raises real living standards† (1). By making this claim Tupy means that by producing something at a low cost makes the product cheaper, but also raises the living standards because more people will be able to buy that product since it is on the market at such a low price. Milton Friedman and Rose Friedman, writers at the Hoover Digest, wrote, â€Å"Protection really means exploiting the consumer† (1). They are completely right in saying this because with the protections of trade they are only just raising the price so that the consumer has to pay way more than they really need to thus leading to a lower standard of living because people will be unable to buy some of the other things they could without these so called protection laws being in place. Protections not only exploit the consumer, but make it muchShow MoreRelatedFree Trade And Its Effects On The Prosperity Of Countries1744 Words   |  7 PagesThe dispute over whether free trade has positive effects on the prosperity of countries or hinders the development of nations has been a major topic in international relations for centuries. Free trade is defined as a system in which goods, capital, and labor flow freely between nations without any trade barriers (What Is Free Trade?). 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