Critical Response: Why Competition Is Good for People?

Topics: International trade Pages: 1 (293 words) Published: March 5, 2013
Name Nguyen Hong Nhung
Class: H61111B
Student code: L9917997

Why competition is good for everyone.

The article by Dr Yi Min Tsai shows the benefits of free trade to Australia. Overall, most of her arguments are convincing. However, she has some unpersuasive ideas that the trade leads to diversifying choices with lower price, creating chances to local producers and perceiving new skills. First of all, the author presents an unconvincing idea that free trade agreements lead to a wider range of choices and a decrease in price of products. Dr Tsai makes an oversimplification when she omits the negative impact of the issue. The fact is that foreign companies take advantage of the trade; they can become larger and defeat domestic companies. And, as a consequence, a domination of these companies results in higher prices and a limited range of product. The other unpersuasive point of Dr Tsai is that free trade agreement can open the door of opportunities for local companies sell their commodity all globally. There is a lack of current evidence to support her argument. She should add some more clear explanations and examples or statistics to demonstrate that profits of local companies increase or free trade agreements stimulate the growth of the Australian economy. Finally, the author exaggerates the benefit of the transaction when she claims that it encourages innovative thinking ideas and a development of new skills. Obviously, if most people lose their main income, they have lower living standard and lose the financial affordability to study new skills. In conclusion, the author fails to understand the effects of free trade such as widening a range of products with equal prices, getting a huge amount of potential and inter national customers and facilitating creative thinking.
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