The Pros and Cons of Free Trade Essay

941 Words4 Pages
The Pros and Cons of Free Trade Free trade is exchange of goods and commodities between parties without the enforcement of tariffs or duties. The trading of goods between people, communities, and nations is not an innovative economic practice. Nations are however the main element within a free trade agreement. By examining free trade through three different political ideologies: Liberal, Nationalistic, and Marxist approaches, the advantages and disadvantages will become apparent. Theses three ideologies offer the best evaluation of free trade from three different perspectives. The fundamental component for a liberal political economy is the concept that there be no interference from the government or any other outside source.…show more content…
The liberal approach to free trade is heavily associated with the fundamentals of capitalism. Free trade is therefore beneficial to the minority who are capable of manufacturing their goods in societies that have more unskilled labourers and in turn can be compensated less. The labourers in the nations that have the technology to do something better but not necessarily cheaper are at the greatest disadvantage within a liberal free trade political economy. A nationalist political economy places the emphasis on the nation as a whole. The nation is more important than the individual whereas the opposite was found in the liberal political economy. A nation that executes free trade with a nationalistic approach is looking for the most benefits to the nation itself. The nations that benefit from free trade with this approach place an important emphasis on state power. That is, how powerful is the nation within the global community. Free trade enables nations to strive for global supremacy by importing materials at a cheap price and manufacturing them so as to export them at a higher price. The advantages of nationalistic free trade is larger countries (similar to the minority in liberal political economy) are empowered to attain materials for mass production at a cheaper price, from it’s less powerful trading partners. By manufacturing mass amounts of goods, all aspects of the economy (the workforce and other indirect secondary sectors) will
Get Access