Drawing upon the arguments for free trade, discuss if free trade is fair. Prepare your academic paper that outlines the potential costs and benefits of adopting a free trade system in the textiles industry. Also discuss if government policies to reduce these costs are justifiable given the gains from free trade.
In this essay I shall consider the question if free trade is fair? I will be drawing up arguments in order to answer what the potential costs and benefits of adopting a free trade system are in the textile industry. Discussion will also be made on policies to reduce these costs and if they are justifiable given the gains from free trade. From research on the topic I have come across many different articles and stories on how peoples reflection on free trade is sparsely different. Depending on views of life, quality of life but also age and education level, changes how people feel on the issue. In one article, research had been done with 1,502 adults in America in order to hear the public’s reaction on free trade, overall results showed many different signs from people with higher household income saying they feel more aided by free trade agreements, to people with less high school qualifications feeling least aided by free trade. From (figure 1) you can see some results, which were found from the study produced by PEW Research Centre. The research was done to find out what Americans felt about free trade and gives an insight into how split opinions are. From other sources of study I found that many charitable sites and quotations where similar in saying things like ‘Trade can play a role in lifting countries out of poverty. But rich countries continue to push trade rules that prevent development. We want an international trade system that will help end poverty.’ This is a quote from the action aid site, the article goes on to say how there needs to be some sort of representation for countries in poverty in order for the rich countries to not bully their way of getting what they want for minimal exchange or price. I believe this article fights a good argument and puts in to perspective what is happening with the rich countries pushing trade rules to gain more from the vulnerable poor countries. With free trade being such a divide of opinion it will be hard to ever get to a place where all people think it is either a positive thing or negative thing hence the reason of having people standing and arguing its defense.
The potential costs and benefits of adopting a free trade system in the textile industry range from the removal of costly and delaying trade barriers, such as tariffs, quotas and conditions inherently leading to easier and quicker trade of consumer goods, to jobs being sent overseas for cheaper labor and the satisfaction of the overall product and service. With the removal of trade barriers such as tariffs it cuts out the import and export taxes saving company’s paperwork, money and essentially time. However this can have a negative impact on companies as well as the workers their families and local economies. Reason being that it is hard to find employment in growth industries and government assistance is needed spending more of the government’s money on helping the unemployed. Another downfall of free trade is that it can cause more pollution to the earth as moving the factories to other countries, which have weaker environment legislation, as they do not include the correct procedures to dispose of certain materials. Depending on the country and what they are best at mass producing will depend on the overall economic status, there has been a scenario called the agricultural problem where countries who specialize in luxury goods such as electronics can grown over a certain time as the demand for luxury goods increases, people who gain more and more income will want to buy more and more products essentially meaning the countries who are producing the electronic products are...
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