To What Extent Has Free Trade Helped People from Poor Countries to Experience a Higher Standard of Living/Quality of Life?

Topics: International trade, Economics, Trade Pages: 1 (393 words) Published: April 29, 2013
To what extent has free trade helped people from poor countries to experience a higher standard of living/quality of life? Free trade is exchange of goods and commodities between parties without the enforcement of tariffs or duties. The trading of goods between people, communities, and nations is not an innovative economic practice. However, free trade is often opposed by domestic industries because the domestic industries involved, will end up having to shut down because free trade creates greater competition from international industries therefore threatens the share of the domestic market. Also the labour unions oppose free trade because it jeopardises low skilled workers jobs because the international trade groups take over, resulting in mass unemployment. As well as labour unions opposing free trade, anti globalisation groups such as Peoples' Global Action and Focus on the Global South oppose free trade as well because free trade generally do not increase the economic freedom of the poorer. They believe that we should try to protect people in the domestic industries. On the other hand, free trade can improve the economy of less economically developed countries. The improvement would come from the exportation of goods grown or made in that country to countries where they can’t be produced, most likely more developed countries, will buy the product keeping the producers in work, keeping unemployment down and feeding money into the LEDC’s economy. Also free trade allows companies a greater supply of raw materials at a lower price.  This allows them to cut costs and be more competitive on the global market. This also benefits developed countries because the prices they pay for the goods are lower than if supplied through domestic industries. Another reason why it has helped countries is that it is an efficient way of buying and selling goods, keeping a steady income for the workers involved. In conclusion, I think that in general, free trade has helped...
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