Pros and Cons of Free Trade

IntroductionFree backing is an agreement between ii or much(prenominal) countries in exchange for goods and/or work without the enforcement of tariffs or duties and at a benefit for each country. Advocates in favor of sinless calling believe that it gives Ameri female genitalias a better standard of living because of the goods and services received at such low prices. Free trade strengthens the U.S economy, creates jobs, spreads the take to be of drop outdom, reinforces the rule of law, and helps under developed countries.(White n.d).Most foreign countries can manufacture goods at lower cost so we pay less for them. Economists of free trade believe that when we sell to a greater extent(prenominal) of our products overseas, American businesses can employ more people. Opp geniusnts who oppose U.S. free trade believe that it has caused many job losings here in the U.S and is not good for the economy. Many jobs overseas can be performed for a fraction of the cost of what Amer ican workers earn so many U.S jobs are outsourced. Opponents also stress the unfortunate exploitation of workers in underdeveloped countries and the defiling of their resources.Lastly the free trade agreement is a little one- sided, the U.S buys more goods from overseas than what other countries buy from us.THE PROS AND CONS OF FREE TRADE 3The advantage of free trade is the goods and services that can be bought at a healthy cost. Also, the use of less expensive materials and labor acquired through free trade leads to a lower cost of manufactured goods. Dollar Tree is an deterrent example of how free trade has allowed this business to grow. This dollar store sells all of its goods for one flat rate of $1 to the American consumer. Normally, a pack of batteries would be $4.00 unless at Dollar Tree it is $1. A large ambuscade of bread , frozen food, cleaning agents, head phones, pet supplies, baby clothes, toys, and more are just $1, all items are imported from either Mexico, China, Japan, brazil nut or the Philippines.Deep discounts translates into savings in food and goods. Denise Froming of The Benefits of Free employment A Guide For Policy organizers states, Because of these low prices the U.S. economy has grown by more than 23 percent, adding more than $2.1 trillion to the nations gross domestic product (GDP) and reproduction the wealth of the average American consumer by more than $5,500(Froming 2000). Although, these are frightful savings brought about by these imports, it would be better to see U.S jobs and more American products made here at reasonable cost.The disadvantage of outsourcing jobs is how it impacts on American workers, for example in Ohio a once lucrative brace manufacturing company, named Republic nerve, became Americas third largest steel company. Wikipedia states, Republic brand name remained prosperous until the 1970s, but because of cheaper foreign imports, rising labor costs, and other factors they began to go under. In 1984 i n an exchange of hands Republic merged into LTV steel but unfortunately, in December 2001, LTV filed for Chapter 11 bankruptcy. (Wikipedia 2014).THE PROS AND CONS OF FREE TRADE 4The steel lay down was leveled and flat in its place stands a Wal-Mart super store, the size of three football game fields. The benefits of discount pricing do not outweigh the drawbacks of not having jobs. Hundreds of jobs were anomic when Republic Steel went under and we now get our steel from Mexico Coincidentally, spell writing this paper Ohio governor Kasich is bringing back Republic Steel with the help of a Mexican steel giant ICH who has brought Republic Steel out of bankruptcy.Ohio is producing shale oil and will need a steel plant to make pipes for gas lines within the next year. The average income with overtime and darkness shifts will be $50,000, and if this deal goes through it will inject more money into Ohios economy.(Schoenberger, 2011). In the U.S you have to pay at to the lowest degre e minimum wage so, some companies who want to reap a exalted profit go to other countries and exploit those workers. For example a equalize of Michael Jordan tennis shoes made in China and Vietnam for around $7 resells for $70-180 here in the U.S.(Wiki n.d)The workers that produce these shoes in sweat shops make less than $2.46 per day with no benefits. (Jonathan n.d). The entrepreneurs who exploit the resources and labor of third solid ground countries discredit what free trade is all about. What is needed is a dimension of goods and services along with keeping a fair percentage of jobs for Americans. in that location should also be some way to police entrepreneurs from exploiting the resources of other countries.