what are the advantages and disadvantages of free trade policy?
478317
Reducing tariffs on imports allows companies to expand to other countries. Without tariffs, imports from countries with a low cost of living cost less. It makes it difficult for U.S. companies in those same industries to compete, so they may reduce their workforce.
1261900
Disadvantages of WTO. Free trade may prevent developing economies develop their infant industries. For example, if a developing economy was trying to diversify their economy to develop a new manufacturing industry, they may be unable to do it without some tariff protection. Difficulty of making progress.
963731
['Globalization may encourage more offshoring instead of less. ... ', 'Globalization benefits the wealthy more than the poor. ... ', 'Globalization would encourage disease transfer. ... ', 'Globalization could reduce social safety net programs. ... ', 'Globalization would create a new system of politics.']
192205
['Increases in domestic production and consumption as a result of specialisation.', 'Economies of scale in production.', 'Greater choice for consumers.', 'Increased competition and greater efficiency in production.', 'Lower prices for consumers.', 'Acquiring needed resources.', 'Free trade and more efficient allocation of resources.']
411578
['Advantage: Increased Competition. In the business world, competition is a good thing. ... ', 'Advantage: Immunity From Political Influence. ... ', 'Advantage: Tax Reductions and Job Creation. ... ', 'Disadvantage: Less Transparency. ... ', 'Disadvantage: Inflexibility. ... ', 'Disadvantage: Higher Costs to Consumers. ... ', 'Privatization Pros and Cons at a Glance.']
679283
['Private Property.', 'Economic Freedom.', 'Consumer Sovereignty.', 'Competition.', 'Profit.', 'Voluntary Exchange.', 'Limited Government Involvement.']
638282
['Tariff Barriers: Tariff barriers indicate taxes and duties imposed on imports. ... ', 'Administrative Policies: ADVERTISEMENTS: ... ', 'Considerable Diversities: ... ', 'Political Instability or Environment: ... ', 'Place Constraints (Diverse Geography): ... ', 'Variations in Exchange Rates: ... ', 'Norms and Ethics Challenges: ... ', 'Terrorism and Racism:']
1433884
Disadvantages of Trade Deficits The worst and most obvious problem is that trade deficits can facilitate a sort of economic colonization. If a country continually runs trade deficits, citizens of other countries acquire funds to buy up capital in that nation.
495896
["The false belief that trade is a zero-sum game (win-lose), when in fact it's win-win.", 'The costs of protectionism to consumers are mostly hidden.', 'The benefits of protectionism to producers are easily identifiable and visible.']
1270506
Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. ... Most governments still impose some protectionist policies that are intended to support local employment, such as applying tariffs to imports or subsidies to exports.
1458630
Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism.
110585
['Advantage: Better Financial Results. ... ', 'Advantage: Global-Level Competition. ... ', 'Advantage: Fact-Based Decision-Making. ... ', 'Advantage: Creative and Innovative Thinking. ... ', 'Advantage: Cross-Cultural Understanding. ... ', 'Disadvantage: Difficulty in Transitioning. ... ', 'Disadvantage: Short-Term Cost Outlay.']
239338
While a market economy has many advantages, such as fostering innovation, variety, and individual choice, it also has disadvantages, such as a tendency for an inequitable distribution of wealth, poorer work conditions, and environmental degradation.
27698
['higher employment.', 'more wealth.', 'better services.', 'good climate.', 'safer, less crime.', 'political stability.', 'more fertile land.', 'lower risk from natural hazards.']
1019310
The advantage of a free enterprise economy is that it maximizes profits. The disadvantage of a free enterprise economy is that - well - it maximizes profits above everything else! For example, Free Enterprise created AT&T in the U.S. Once it built all the network infrastructures, everybody wanted to be on AT&T.
1385077
Protectionism is an attempt to mitigate the harm done by international trade. The most prominent argument for tariffs, quotas and other barriers to trade is to protect jobs and incomes that otherwise would be at risk from foreign imports.
328998
['Globalization has lowered prices. The free movement of goods and people has brought overheads down and allowed companies to sell products more cheaply. ... ', 'Globalization has improved access to technology. ... ', 'Globalization creates jobs. ... ', 'Globalization promotes peace. ... ', 'Globalization improves productivity.']