The paper "International Business - Free Trade Disadvantages" is a good example of business coursework. Free trade is a trade that takes place when governments do not attempt to influence, through duties or quotas, what their citizens can purchase from other countries or what they can create and offer for sale in other countries. In essence, this means that free trade occurs when citizens are free to conduct trade across the borders of different countries without the respective governments of the countries involved intervening to restrict such trade. Free trade has both advantages and disadvantages.
The advantages include the ability of a country to specialise in what it can best produce and export to other countries. On the other hand, the disadvantages of free trade include the point that free trade can lead to some countries depending on other countries for some manufactured goods and services due to the inability to produce such services or goods locally. Against this background information, this essay will evaluate the statement that “ free trade disadvantages people in developed countries” . The analysis will involve looking at the advantages and disadvantages of free trade in relation to the affairs of people in developed countries.
The essay starts by providing a definition of the term ‘ developed countries’ . Definition of developed countries There is no universally accepted definition of the term ‘ developed countries’ . However, developed countries can be regarded as those countries that are characterised by high industrial development, high incomes and high levels of human development (Nielsen, 2011). Developed countries generally have high levels of industrial production and technology, high-performing market economies and high per capita income as well as literacy levels among other features (Armstrong-Mensah, 2017).
Examples of developed countries include the United States, several countries in Europe such as Germany, the United Kingdom and France, and Japan, Canada and Australia among others. In contrast, developing countries are countries with low levels of industrialisation, lower incomes, lower literacy rates, and poor infrastructure among other characteristics (Armstrong-Mensah, 2017). Such countries include Ghana, Ethiopia, Cambodia, Peru and Kazakhstan among others. Free trade implies that both developed countries and developing countries are able to trade with each other without restrictions such as quotas and duties.
This denotes that a developing country like Ghana is able to produce and sell goods such as cocoa to the United States. As well, a developed country such as Japan is able to produce items such as electronics and other technologies and sell them to both developing and developed countries. The implications of free trade are such that free trade presents advantages as well as disadvantages to both developed and developing countries. As noted above, this essay will dwell on the implications of free trade for developed countries. Analysis of the statement ‘ free trade disadvantaged people in developed countries’ As noted above, free trade has both advantages and disadvantages.
Therefore, the statement ‘ free trade disadvantaged people in developed countries’ only tends to address one part of the implications of free trade to developed countries. To address the two sides of the implications of free trade, there is a need to analyse the advantages and disadvantages of free trade to developed countries.
Armstrong-Mensah, E. A. (2017). Lecture notes global health: Issues, challenges, and global action. Chichester, West Sussex: John Wiley & Sons Ltd.
Baumol, W. J., & Blinder, A. S. (2012). Economics: Principles and policy (12th ed.). Mason, OH: South-Western.
Bradshaw, Y. W., & Wallace, M. (1996). Global inequalities. Thousand Oaks, California: Pine Forge Press.
Brakman, S., Garretsen, H., van Marrewijk, & Witteloostuijn, A. (2006). Nations and firms in the global economy: An introduction to international economics and business. Cambridge: Cambridge University Press.
Buultjens, J. (2002). Economics. Sydney: Vivienne Petris Joannou.
Carbaugh, J. J. (2015). International economics (5th ed.). Boston, MA: Cengage Learning.
Goldstein, N. (2007).Globalization and free trade. New York: Facts On File, Inc.
Kowalski, K. M. (2008). Free trade. New York: Marshall Cavendish.
Nielsen, L. (2011). Classifications of countries based on their level of development: how it is done and how it could be done. IMF Working Paper, No. WP/11/31. Retrieved from https://pdfs.semanticscholar.org/bc7f/5b086b8db9adaa3f51645896fda5d1e46659.pdf
Peng, M. W. (2014). Global business (3rd ed.). Mason, OH: South-Western.
Rahnama-Moghadam, M., Samavati, H., & Dilts, D. A. (1995). Doing business in less developed countries: Financial opportunities and risks. Westport, Connecticut/London: Quorum Books.
Schumacher, R. (2012). Free trade and absolute and comparative advantage: A Critical comparison of two major theories in international trade. Potsdam: University of Potsdam.