Question

Why do some people argue against free trade? Please illustrate your answer with relevant examples from both economic and political perspectives

Answer 1

People argue against free trade due to the disadvantages it has. With making international trade free it decreases the value and profits of local businesses. Free trade helps in increasing the supply of exported products with which consumers prefer buying them. This affects the local manufacturers' business adversely. It promotes inefciency as the country will sppecialize in producing only a few products and rely on other country for the products they supply. This will cause inefficiency in the country's overall industrial development. The free trade liberties allow harmful products to enter the country too which can be hamrful for the country's environment. The economy of the country depends on the international partner and if their economy weakens, it will affect the contry's economy too. Trade fees and taxes are a huge source of income for the government and letting it be free will reduce this huge source of revenue for the government which can be a loss in the long term. Free trade can be disadvatnageous to backward economies because it does not give them a change to develop and increase their economic condition.