What exactly is free trade and what business of our economy benefit from it?
I know it has to do with trading imports and exports between other countries unless I’m wrong. Also can I have examples (facts) of what we benefit from? You don’t even have to give me a straight answer really but a link how we benefit from a specific business.
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Free trade.
Hint: all businesses benefit in the same way. What does your textbook or teacher say?
Think of a lemonade stand. You buy the lemons from Mexico; the lumber from the Pacific NW in the United States; import child labor from Canada and use your local bank to hold the profits.
I tried to look up in the index free trade and it wasn’t in there O.o which was odd…
Free trade means that each nation removes any tariffs on items being brought in from another country. The argument against free trade is that you want to protect a domestic industry. So we might put a $2000 tariff on cars from Japan because they cost $2000 less than American cars.
Free trade allows nations to compete more equally. Even so, there are issues. China, for example, is accused of subsidizing its industry. This makes their goods artificially cheaper, so they sell more in the US. The US industry might ask for tariffs on Chinese items to make the competition fair, or to bias the competition towards the US.
The problem is that consumers are hurt when there are tariffs. Our stuff is more expensive, and so we make less because we sell less, and the economy does not grow. Free trade grows the economy much more quickly than placing tariffs in an effort to protect US jobs. But tell that to the folks who will lose their jobs. They don’t care if they can buy stuff cheaper. They don’t have a job.
But eventually they will get one. And be better off. That’s why free trade wins out over tariffs.
Free trade is something that exists in nominal form between and among the various States of the United States, and among member countries of the European Union and some other trading blocs.
If NAFTA really documented “free trade” among the US, Mexico and Canada, then we wouldn’t need two thousand-odd pages of documentation to say “there shall be free trade among these three nations”. So “free trade” between the United States and its various trading partners, including Mexico and Canada, is still more of an ideal than an actuality.
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