Free Trade Report
Free trade: For or against?
Muntianu Ioana
Hassan Chaudhry
Anna Dvurechenskaya
Guliza Toran
2/18/2013
Ioana
For centuries economists have sustained free trade as the best free trade policy. Even so, after a more in depth analysis one can notice certain advantages and disadvantages of free trade. This report explains the concept of free trade, the implications of engaging in free trade and the pro and con opinions along with an explication of certain theories related to the concept.
Table of Contents 1. Introduction3 2. Free trade definition3 3. Comparative advantage4 4. Trends4 5. Free trade organizations6 6. Protectionism8 7. Fair trade vs Free trade10 8. Arguments for free trade11 9. Arguments against free trade…………………………………………………………………………………13 10. Conclusion14
1. Introduction
The purpose of this report is to define the arguments for and against free international trade. In order to do this, first a definition of free trade and its implications is required. Further on all arguments for and against are analyzed and a discussion on the topic is organized. The last step is reaching a conclusion based on our findings and on the opinion and research of the discussion participants. The contents of this report are based on class lectures, input from classmates, research done using the Internet and the analysis of the work and conclusions of famous economists such as Adam Smith and David Ricardo. 2. Free trade definition
Free trade is a system in which goods, capital and labor flow freely between member countries of an organization. It is a policy through which governments do not use tariffs, subsidies or quotas to interfere with the flow of goods between countries and therefore cause trade discrimination. Even so, it is not always that way. As we will discuss later on, one of the main issues in the free trade topic is the differential treatment regarding tariffs and subsidies that some countries apply to
Muntianu Ioana
Hassan Chaudhry
Anna Dvurechenskaya
Guliza Toran
2/18/2013
Ioana
For centuries economists have sustained free trade as the best free trade policy. Even so, after a more in depth analysis one can notice certain advantages and disadvantages of free trade. This report explains the concept of free trade, the implications of engaging in free trade and the pro and con opinions along with an explication of certain theories related to the concept.
Table of Contents 1. Introduction3 2. Free trade definition3 3. Comparative advantage4 4. Trends4 5. Free trade organizations6 6. Protectionism8 7. Fair trade vs Free trade10 8. Arguments for free trade11 9. Arguments against free trade…………………………………………………………………………………13 10. Conclusion14
1. Introduction
The purpose of this report is to define the arguments for and against free international trade. In order to do this, first a definition of free trade and its implications is required. Further on all arguments for and against are analyzed and a discussion on the topic is organized. The last step is reaching a conclusion based on our findings and on the opinion and research of the discussion participants. The contents of this report are based on class lectures, input from classmates, research done using the Internet and the analysis of the work and conclusions of famous economists such as Adam Smith and David Ricardo. 2. Free trade definition
Free trade is a system in which goods, capital and labor flow freely between member countries of an organization. It is a policy through which governments do not use tariffs, subsidies or quotas to interfere with the flow of goods between countries and therefore cause trade discrimination. Even so, it is not always that way. As we will discuss later on, one of the main issues in the free trade topic is the differential treatment regarding tariffs and subsidies that some countries apply to