blog




  • Essay / Reducing Barriers to Free Trade - 1672

    IntroductionEconomists have long viewed free trade as essential to promoting efficient use of natural resources, employment, poverty reduction, and product diversity for consumers. But the concept of free trade had to overcome many obstacles. Including government practices in developed countries, under public and business pressure, to protect domestic companies from cheap foreign products. But as history has shown us time and time again, protectionist measures imposed by governments have almost always had negative effects on local and global economies. These protectionist measures also harm developing countries trying to gain a foothold in international trade markets. With the recent global recession we are currently experiencing, now is the time for governments of all countries to work to reduce barriers to free trade. In recent years, we have seen a decline in trade and economic growth, coupled with a huge unemployment rate, unprecedented since the Great Depression (Lamy, P. 2009). Governments must act to help promote trust in our economic and social systems (Lamy, P. 2009). Free trade must be part of this recovery process. For free trade to thrive, all governments around the world must resist protectionist measures such as: high tariffs, non-tariff barriers or anti-dumping measures and subsidies to domestic businesses (Lamy, P. 2009) . Free trade can work and there are many steps governments can take to promote free trade, which will help developing countries improve the living standards of their citizens, while protecting their local workforce and their national companies. Works Even in these difficult economic times, we are going through...... middle of paper ...... necessary to help ensure fair business practices. The World Trade Organization is a vital part of ensuring fair trade and providing a means to mitigate trade disputes. Overcoming fears of import competition is the greatest obstacle that all countries and governments must overcome. But I think the effective use of trade aid programs is essential in trying to allay the fears of the local workforce about free trade. ReferencesCarbaugh, Robert (2009). Global Economics, (13th ed.): South-Western, CengageLearning. Gidney, Michael, 2009. Government must act now on fair trade: Public Service.CO.UK, retrieved from: http://www.publicservice .co.uk/feature_story.asp?id=11469Lamy, Pascal (2009). G20 countries must not turn inward during difficult times: Public Service.CO.UK, Retrieved from: http://www.publicservice.co.uk/feature_story.asp?id=11468