Free Trade Has Been A Part Of The Liberal Prescription

1947 WordsMay 1, 20178 Pages
Free trade has been a part of the liberal prescription for international relations for a long time where it is often defined as the economic policy that allows imports from and exports to foreign jurisdictions. Unlike trading within nation, free trade allows buyers and sellers from separate economies to trade goods without the domestic government applying tariffs, quotas, subsidies or prohibitions on their goods and services. Therefore, free trade is often seen as desirable because it allows customers to get what they need with the lowest price along with the good quality, thus it promotes economic efficiency for both the nation and its citizen. Free trade is necessary and desirable due to the division of labor and the primary of the…show more content…
Therefore, due to the division of labor, free trade allows Japan to buy oil for the lowest price, while Saudi Arabia could buy rice for the lowest price. Using the similar example of English and Portugal where Portugal produced cheap wine, and English produced cheap cloth, Shimko states that “It is a division of labor and free trade that allows English and Portuguese consumers to have both good and cheap wine and cloth” (Shimko, 137). It is, thus, free trade becomes more necessary and desirable due to the division of labor where free trade promotes the increase in productivity and economic efficiency. Furthermore, free trade is desirable due to the primary of the consumer. Shimko portrays the primary of the consumer through the idea that the consumers should be able to buy what they need with the lowest price, regardless of where the products are produced. Shimko emphasizes that everyone is a consumer where free trade is desirable because it makes products cheaper for the individual consumers, but also benefits the community as a whole. According to Shimko, free trade benefits both the individual consumes and the community where it leaves the consumers more money to buy other things which directly helps to increase economic efficiency within the community/nation (Shimko, 138). For example, because of free trade, Mr. A is able to buy the coffee he wants at the cheapest price. Mr. A, then, is left with more

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