Free Trade America Should NOT Protect Industries from...

Free Trade: America Should NOT Protect Industries from Foreign Competition Many politicians oppose free international trade, trade without any restrictions, for a couple of reasons. From their point of view it would affect the United States in several ways: 1. Many USA workers would lose their jobs because factories would be moved to the country with whom the U.S. has a Free Trade Agreement, and where working force is much cheaper. 2. Importing foreign goods and services without tariff into the United States makes it harder for domestic industries to compete with lower prices and better quality of foreign competition. 3. Some politicians feel that it is not the right decision to have†¦show more content†¦The United States’ strong economic performance is due in part by trade and investment liberalization resulting from the Uruguay Agreement and the North America Free Trade Agreement (NAFTA). The openness and freedom of the economy has contributed to improving the competitiveness of the U.S. producers, creating more and better paid jobs, which in turn raised labor standards and reduced poverty. At the end of 1998 the unemployment rate fell to 4.5% and consumer price inflation to 1.6%, which is the lowest level since the 1960. This outstanding macroeconomic performance has been greatly followed by a large and growing current account deficit, which in 1998 reached a record level of $223 billion (2.7% of GDP). The trade deficit has enabled the U.S. economy to keep up with its strong rate of growth. Open economy brings imports, which are often at a lower price, and they help to satisfy domestic demand. They have also contributed to lower domestic prices and wider choice for the U.S. consumers. The U.S. producers have benefited from lower costs and wider choice of input, too. It increased their competitiveness, resulting in more jobs and higher wages. Imports have helped with inflation pressure that might otherwise have emerged as a result of the very strong growth of domestic demand and low unemployment rate, thereby supporting low market interest rates. An additional source of funds forShow MoreRelatedHow Economic Globalization Has Fostered Globalization of Critics and Criticism?3991 Words   |  16 Pagesdefinition. (Trebilcock, 2000). The concept of economic globalization stemmed from the root concept of â€Å"globalization† and by definition, pertains to that specific attribute of globalization that refers to the process of integration between the economic front and the ‘developed’, ‘under-developed’ and ‘developing’ economies (Naik, 2011). Economic globalization essentially comes together through international trade, FDIs (foreign direct investments) and the like (Naik, 2011). 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