Comment this discussion in few paragraph ? The Advantages and Disadvantages of F
ID: 1158552 • Letter: C
Question
Comment this discussion in few paragraph ?
The Advantages and Disadvantages of Free Trade
M2 Assignment 1 Discussion
We live in a world where either on a local or global level businesses must trade to in order to survive. In the business environment organizations are in business for one simple reason. And that reason is to make money. In the process of making money businesses are trading with their consumers. While trading with consumers especially on a global level, trading becomes more complex. Growing businesses might want to open up different factories and operation in other countries for the simple fact that they might be able to avoid and or reap the benefits of free trade.
The trading process businesses are typically taxed whenever they are importing or exporting. Tariffs are typically put in place in order to serve as protective measures. When not dealing with tariffs a free trade policy is typically put in place, which allows trading. Investopedia Staff. (2018). Free trade is a policy to eliminate discrimination against imports and exports. Buyers and sellers from different economies may voluntarily trade without a government applying tariffs, quotas, subsidies or prohibitions on goods and services.
Advantages and disadvantages of free trade
Free trade is a policy that has so many pros and cons. Free trade can greatly impact businesses and investors nationally and or internationally. Some of the positive effects of free trade are that it helps increase economic growth, improves business cultures, improvement of the foreign direct investment process, and many more. Some of the negative effects of free trade consist of the destruction of native cultures, lost jobs, tax reduction issues, and even poor working environments.
Can free trade ever be fair?
In my opinion, free trade could never be fair for the simple fact that it has so many disruptive factors that are associated with it. Some of those factors consist of the destruction of native cultures, lost jobs, tax reduction issues, and even poor working environments. Businesses tend to do what is in the best interest of their organization instead of what is in the best interest of the people. In addition to that, the rich will try and find more ways to dominate the industry that they are in, in order to control as much money as possible.
Measures that countries can take to protect itself from the negative aspects of free trade
It is critical that companies in the free trade process protect their selves. Protectionism is a measure that countries can use to protect themselves from free trade. Protectionism is basically the act of the government to enforce rules on international trading. They could use this process to set rules and regulations to benefit their country.
References
Investopedia, Staff. (2018 April). “Free Trade.” Investopedia, Investopedia, www.investopedia.com/terms/f/free-trade.asp.
Explanation / Answer
The trading procedure organizations are ordinarily saddled at whatever point they are bringing in or trading. Unhindered trade is a strategy to wipe out oppression imports and fares. Purchasers and merchants from various economies may willfully exchange without an administration applying levies, shares, sponsorships or restrictions on merchandise and ventures. A portion of the constructive outcomes of facilitated trade are that it helps increment financial development, enhances business societies, change of the remote direct speculation process, and some more. A portion of the negative impacts of unhindered trade comprise of the devastation of local societies, lost employments, impose diminishment issues, and even poor workplaces.
Facilitated trade would never be reasonable for the straightforward certainty that it has such a large number of troublesome variables that are related with it. A portion of those variables comprise of the decimation of local societies, lost occupations, charge lessening issues, and even poor workplaces. Organizations have a tendency to do what is to the greatest advantage of their association rather than what is to the greatest advantage of the general population. It is important that organizations in the facilitated trade process ensure their selves. Protectionism is a measure that nations can use to shield themselves from unhindered trade. They could utilize this procedure to set tenets and controls to profit their nation.