Free Trade and Poverty

Powerful Essays
Topics: Poverty, Tariff
Poverty is defined as the state of being without, often associated with need, hardship and lack of resources across a wide range of circumstances. Some of the main uses of the term include description of material need, including deprivation of essential goods and services, and multiple deprivations. Another main uses of the term includes economic circumstances describing a lack of wealth or inequality, social relationships including social exclusion, dependency, and the ability to live what is understood in a society as a normal life (wikipedia).
In the economics, two kind of poverty are considered: the absolute and relative. A measure of absolute poverty quantifies the number of people below a poverty line, and this poverty line is thought to be independent of time and place (Wikipedia). A measure of relative poverty defines ƒÏpovertyƒÏ as being below some relative poverty line (Wikipedia). An example is when poverty is defined as households who earn less than 25% of the median income is a measure of relative poverty. The Copenhagen Declaration describes absolute poverty as a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. The World Bank identifies ¡§extreme poverty¡¨ as being people who live on less than $1 a day, and ¡§poverty¡¨ as less than $2 a day. On that standard, 21% of the world¡¦s population was in extreme poverty, and more than half the world¡¦s population was poor in 2001.

Causes of poverty has been attributed to different factors that includes: individual or pathological causes; familiar causes; subcultural causes such as common pattern of life, learned or shared within a community; agency causes, actions causes by others including war, government, and economics; structural causes (Wikipedia). Other related causes includes land right and ownership, diversion of land use to nonproductive use, increasing emphasis on export

You May Also Find These Documents Helpful

  • Good Essays

    Free Trade

    • 1303 Words
    • 6 Pages

    American Free Trade Agreement, one of the largest free trade areas, which in 1994 established a free-trade zone between the US, Canada, and Mexico. NAFTA passed with some important negotiations to protect the environment and labor standards. In 2001, President Bush organized the proposal of expanding NAFTA to a Free Trade Area for the Americas, surrounding 34 countries and 800 million people by 2005. President Obama continues to push for expansion to CAFTA known as Central America Free Trade Agreement…

    • 1303 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Free Trade

    • 570 Words
    • 4 Pages

    TEST REVISION FREE TRADE Free trade exists between nations when all obstacles to trade such as tariffs are removes Free trade occurs because of differences in the quantity and quality of resources COMPERATIVE ADVANTAGE The advantage one country has over another in the production of a particular good or service. A country has a comparative advantage if it can produce a product at a lower opportunity cost than its trading partner. AUSTRALIA KEY EXPORTS Mining- Iron Ores, Coal, Gold, Natural…

    • 570 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Free Trade

    • 437 Words
    • 2 Pages

    Free Trade Svante Lietzke – 2001585009 Trade between nations plays an important role in economies all over the world. By trading countries can specialize on the production of specific goods and services. But to secure the domestic economy countries came up with tariffs and taxes for important goods. Free Trade has been implemented to reduce trade barriers and made the trade volumes in the world increase significantly. Free Trade is promoted by the WTO (World Trade Organization) and it is based on…

    • 437 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Free trade

    • 2276 Words
    • 8 Pages

    Class/Group: K Assessment Title: Essay Assessment Topic: Critically evaluate claims that free trade is the most effective way to increase economic growth and global prosperity. Tutor Name: Iwona Pringle Student ID Number: 2172402 Date of Submission: 23 March, 2015 Essay topic: Critically evaluate claims that free trade is the most effective way to increase economic growth and global prosperity. Free trade is refer to the unrestricted export and import of products or services in international…

    • 2276 Words
    • 8 Pages
    Best Essays
  • Better Essays

    Free trade

    • 1384 Words
    • 4 Pages

    What is free trade? Many American’s have a broad and sometimes-false idea of what free trade actually is. Free trade “refers to the economic philosophy and practice of reducing barriers such as tariffs, taxes, subsidies and quotas so that raw materials, goods and services can move unhampered across national borders.” (68) Various options have arisen about whether or not free trade benefits developing counties or not. I believe that free trade is not favorable or helpful towards developing counties…

    • 1384 Words
    • 4 Pages
    Better Essays
  • Good Essays

    free trade

    • 284 Words
    • 1 Page

    Free trade is the path to prosperity for countries, benefiting consumers, producers and governs. It enhances competition and eliminates inefficient firms by requiring better productivity, which enables products to reach consumers at a lower price and variety, and create new jobs, thereby increasing economic development (Bernanke 2007, para. 4; World Bank 2010, para. 1). Although free trade has the potential to stimulate a country development and economy growth which benefit all consumers, rich nations…

    • 284 Words
    • 1 Page
    Good Essays
  • Good Essays

    Free Trade

    • 1080 Words
    • 5 Pages

    FREE TRADE 자유 무역 التجارة الحرة Free trade has many different properties that make it both good and bad. I believe that the positives aspects of free trade outweigh the negative, but the negatives are still significant. Having a free trade agreement with another country can cause a loss of income to local businesses, but it allows businesses to step up their work ethic and improve products and production. This can benefit the unemployed because business owners need to hire more workers. A…

    • 1080 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Free Trade

    • 483 Words
    • 2 Pages

    Questions on Free Trade 1. Why should countries engage in international trade rather than remaining self-sufficient and avoiding the unfair competition of low-paid foreign workers? By just purchasing products from countries with low-paid foreign workers and not producing your own goods for trade countries will become dependent on that particular country. Specialization allows countries to develop a competitive advantage on products they produce the best and outsource produces and services…

    • 483 Words
    • 2 Pages
    Good Essays
  • Best Essays

    free trade fair trade

    • 3078 Words
    • 9 Pages

    “Completely free trade would be fair. ‘Fair trade’ encourages people to stay in uncompetitive sectors in which they will always be poor.” Discuss. The concept of the ‘Fair Trade’ initiative can be summarised with reasonable simplicity; “Fair Trade works to alleviate poverty in the global South through a strategy of ‘trade, not aid,’ improving farmer and worker livelihoods through direct sales, better prices and stable market links, as well as support for producer organizations and communities”…

    • 3078 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Free Trade

    • 167722 Words
    • 671 Pages

    Cover photos: Seven themes of sustainable forest management Left, top to bottom: Forest biological diversity (M.P. Wilkie); Forest health and vitality (FAO/FO-0506/C. Palmberg Lerche); Productive functions of forest resources (FAO/FO-6960/J. Carle) Centre: Extent of forest resources (M.P. Wilkie) Right, top to bottom: Protective functions of forest resources (M.L. Wilkie); Socio-economic functions of forests (FAO/FO-5154/Veracel); Legal, policy and institutional framework (FAO/24683_1206/G. Napolitano)…

    • 167722 Words
    • 671 Pages
    Powerful Essays