What are the advantages and disadvantages of free trade?
Free trade can provide consumers with access to goods at lower prices. It can provide domestic job opportunities that may not otherwise be available, resulting in a higher level of illegal immigration. In some cases, however, leads to competition that destroys industry in one nation. There are also risks that free trade can lead to developed nations supporting working conditions in the developing nation that would not allow it in itself. This means that the manufacturer's goods are often more attractive for foreign consumers and that these consumers can get these goods at lower prices. Free trade can also lead to low prices, as goods can often be produced in a nation that has raw materials to create them. If businesses in one country first buy raw materials from a foreign source and then pay to the workers for creating the final product, retail prices may be surnantically higher for these items. In some cases the quality is also at risk when they are importedRaw materials, because individuals in the country where these raw materials are located can be more qualified at work with them.
Business competition is generally considered a positive element. One of the disadvantages of free trade, however, is that the markets can expose a huge number of competition. In some cases, after the nation enters into such an agreement, it may witness the destruction of industry or massive loss of jobs, as it is advantageous to obtain products or services available on the domestic market from a foreign source at a cheaper price.
In the correct implementation, free trade agreements can be used to solve illegal immigration. Nations at the inland level commonly experience these problems. When one country is richer than its neighbor, people try to cross the boundaries in searching for better life. If nations with strong economies allow poorer nations easy access to their marketY, he can provide job opportunities to encourage individuals to stay in their home countries.
Another disadvantage of free trade is that it can lead to direct or unintentional supportive behavior that it would not allow in its own country. In some developing countries, manufacturing workers are paid by extremely low wages, child labor is exploited and working conditions may be non -standard. If these countries have access to large markets of developed nations, citizens of developed nations will become supporters of these circumstances, and these injustices may occur on a larger scale.