Difference between revisions of "Free trade"
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| − | '''Free trade''' is a term meaning unregulated trade between nations without [[tariffs]], quotas or subsidies applying to the goods exchanged. | + | '''Free trade''' is a term meaning unregulated trade between nations without [[tariffs]], quotas or subsidies applying to the goods exchanged. Since one nation has little control over another nation, without some sort of agreement between two nations, free trade might be one sided. |
| − | Free trade can have undesired side effects, such as a massive loss of manufacturing jobs by the wealthier trading partner though a mechanism known as [[offshoring]] jobs to a trading partner having cheaper labor. Moreover, nearly all of the benefits of free trade can accrue to the trading partner or its government, which may be | + | Free trade can have undesired side effects, such as a massive loss of manufacturing jobs by the wealthier trading partner though a mechanism known as [[offshoring]] jobs to a trading partner having cheaper labor. Moreover, nearly all of the benefits of free trade can accrue to the trading partner or its government, which may be an enemy of the wealthier trading partner. |
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| + | Free trade raises moral issues as well, such as the use by a nation of slave labor or use of proceeds from the trading to build military weapons to be used against other nations. | ||
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[[Category:Politics]] | [[Category:Politics]] | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 04:08, February 7, 2008
Free trade is a term meaning unregulated trade between nations without tariffs, quotas or subsidies applying to the goods exchanged. Since one nation has little control over another nation, without some sort of agreement between two nations, free trade might be one sided.
Free trade can have undesired side effects, such as a massive loss of manufacturing jobs by the wealthier trading partner though a mechanism known as offshoring jobs to a trading partner having cheaper labor. Moreover, nearly all of the benefits of free trade can accrue to the trading partner or its government, which may be an enemy of the wealthier trading partner.
Free trade raises moral issues as well, such as the use by a nation of slave labor or use of proceeds from the trading to build military weapons to be used against other nations.