Allowing free trade between countries can be beneficial but it also imposes cost

Question

Allowing free trade between countries can be beneficial but it also imposes costs use the ITT Tech virtual library to research costs and benefits of allowing free trade discuss aspects of international trade that some may consider unfair. For example 1. Distribution of costs and benefits of free trade. In other words, does everyone share in the gains and the cost equally? 2. Competing with different labor restrictions or lack of, such as slave or child labor. Report 3 differences and environmental standards

Explanation / Answer

Free trade between the countries can be beneficial for both the countries in terms of consumers getting more advanced goods at a relatively cheaper rate as well as the producers of other country getting a chance to get new markets and exposure to other countries i. Costs of free trade: Local or domestic production hampered because of the free trade low price goods from other countries comes in and the local manufacturers are not able to sell their products against them or compete against them Benefits of free trade: Consumers gets better and advanced product a a relatively cheap price than the home country. Better exposure to foreign goods. Also the producer of these goods gets exposure to other markets and a chance to expand their production. Apart from this the inflow of foreign goods promotes competition in the industry and the domestic firms try to compete this increases their efficieny of those who remain others are wiped out. ii. There is a difference in labor laws in India and for example say any other developed country like US. While in US child labor is not allowed and the employees get compensations that are pretty good. India or China still use child labor which reduces their cost of production of the goods. This reflects in the proces of the goods which the other countries provides o the developed countries and pose a threat to the industries of the developed countries as they can not produce goods at such a low cost. iii. Environmental emissions and standards are while meant and moved in accordance in the developed countries this is not so in the developing countries. This results in extra costs for the developed countries to produce as they incur costs in treating the emissions produced from producing their goods. I hope this helps. Do rate me please. Need ratings :)

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