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
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China participate in more Free Trade Agreements? Introduction “Free trade is a system in which goods‚ capital‚ and labor flow freely between nations‚ without barriers which could hinder trade process.”(What is free trade‚ 2013) The Chinese government now has 16 FAT partners in the world like the Asean‚ Chile‚ Pakistan‚ New Zealand‚ Singapore‚ Peru and Costa Rica. This essay will explain the possible benefits and the problem for china participate in more free trade agreements and use some current examples
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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
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Department Introduction to Economics I TRADE AGREEMENTS AND WORLD TRADE ORGANIZATION PROFESSOR ASSISTANT STUDENTS Nataša Tandir Nedžad Isaković Sejid Abaz Sarajevo‚ December 2011. CONTENT Trade Agreements.......................................................................................................................... 3 Bilateral and Multilateral Agreements................................................................................. 3 Trade Agreements and Trading Blocks.............
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fell by 20 percent. The cuts in production led to significant job losses‚ with employment in textile mills falling from 478‚000 to 239‚000‚ and apparel employment dropping from 858‚000 to just 296‚000. Most students will recognize that the NAFTA agreement meant that U.S. producers could take advantage of Mexico’s low cost labor and inputs. Wages in Mexico are between $10 and $20 per day as compared to the $10 to $12 per hour in the United States. QUESTION 2: Who gained from the process of readjustment
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NAFTA AND THE US TEXTILE INDUSTRY 1. Why did many textile jobs apparently migrate out of the United States in the years after the establishment of NAFTA? Jobs migrated out of the United States because where the average labor for US was $10 to $12 an hour compared to rates in Mexico at $10 to $12 a day. For example‚ the company Fruit of the Loom Inc. would benefit more and increase their revenue by paying their employee’s less to perform the job. It is also stated that NAFTA was credited
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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
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Free Trade and Fair Trade All over work places and school campuses around the world you can be sure to find cocoa‚ coffee and certain other products that are labeled “free trade‚” but is fair trade the same as free trade? “Free” and “fair” are powerful‚ often abused words when applied to the concept of trade. I will attempt to clarify the differences between free and fair trade‚ show how they may overlap‚ and the beneficial in each system. Deliberate trade benefits both the buyer and the seller
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“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”
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International Trade Agreements and Organizations The Increase of Globalization Showed a dramatic increase after WW2 Why? Growth in… Communication Technology Travel Baby Boom Advantages of Globalization Outsourcing Lower prices Improved human rights Increased productivity Innovation (due to increased competition) Disadvantages of Globalization Loss of local jobs Exploitation of cheap labour Pollution Disease Unhealthy products being spread around (e.g. drugs‚ fast food)
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