Free trade Assignment Example | Topics and Well Written Essays - 250 words

Free trade - Assignment Example The U.S. on the other side has increased the import of agricultural products to Canada and Mexico (Orme, 1996). The economic basis of trade is to exchange goods and services for currency. It will be abuse to common sense to purchase or rather get poor services in the name of saving our local industries from foreign competition yet we get poor services and goods. We would rather go for a specialist. Research shows American did well economically because they allowed free movement of goods across its neighbors. While Europe, because they are protecting themselves from their neighbors did not do quite well. I bought my nephew a play station made from China. China makes good toys for children. America produces good computers. We can, therefore, sell our computers to China as we buy their toys (Orme, 1996). Free trade has allowed Americans to import textiles from Mexico. My dress was made from Mexico. There are very few people wearing clothes made in America. There have been slogans saying that buy America keep your job. However, it is costly to put trade restrictions in order to save the local industries. The taxpayers pay more than those that have free trade. The benefit of buying American goods is that jobs are saved (Orme, 1996). Trade restrictions should only apply in cases where there is a violation of preservation rules. For example, food or agricultural products posing a danger to human life due to use of hazardous chemicals should be restricted. International trade does not stop competition or even cause unemployment (Orme, 1996). International trade enables countries to be able to have a look at different types of goods and compare them to theirs. It will challenge local industries to produce better goods and services in order to maintain their