Essays on The Concept of Free Trade and Restriction on Both Import and Export Products and Services Report

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The paper "The Concept of Free Trade and Restriction on Both Import and Export Products and Services" is a great example of a report on macro and microeconomics. There are a thousand advantages that accrue when Americans participate in trading their goods, services, and capital items across the borders with minimum government interference. A free enterprise opens up access to the best and least expensive goods and services which various countries are willing to offer into the market. Subsequently, Americans can sell to the most enterprising market and further choose available investment prospects.

Free trade which describes globalization exposes a country, specifically America, to a pool of capital available across nations. Numerous studies indicate that a higher level of growth and development is realized through an open economy contrary to a closed system. Unilateral trade liberalization that evades preconditions is therefore very effective for an economy looking forward to earning more incomes from trade during this globalization phase. Thesis statement: both import and export markets for tires and other consumer goods should be liberalized instead of imposing restrictions. The political view of protectionismEvidence indicates that concentrated and ordered recipients of protectionism possess power compared with disorganized and diffused recipients of liberalized trade.

Normally, politicians respond to the loudest interest groups thus views imports as unfavorable to an economy. This misconception perpetuates a position that negotiation and reciprocity are principle factors for effective trade. Such inclination means that an optimal trade agreement is one that maximizes the US access to foreign markets whilst minimizing foreign access to the US market. An inclination that cuts on tariffs would yield substantial benefits to consumers may not pass political masters unless there is proof to demonstrated large export benefits. Although tariffs in the United States are relatively low, they are high on common consumer goods like foods, clothing, shoes, and other basic necessities consequently taking a large portion of incomes earned by the poor majority.

Research by Gresser (27) vividly illustrates how a hotel maid who earns an average of $15000 in a year pays more in tariffs when compared to a manager in the same hotel.

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